EXHIBIT 99.7A
REINSURANCE AGREEMENT
EFFECTIVE MAY 1, ▇▇▇▇
▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇ LIFE INSURANCE COMPANY
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
(Referred to in this Agreement as the Company)
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ▇▇▇., ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
(Referred to in this Agreement as the Reinsurer)
FACULTATIVE YRT
June 1, 2000 HA-FBLI-02
TABLE OF CONTENTS
Agreement
Article I Facultative Reinsurance
Article II Liability
Article III Plan and Amount of Reinsurance
Article IV Reinsurance Premiums
Article V Claims
Article VI Procedures to Effect Facultative Reinsurance
Article VII General Provisions
Article VIII Recapture
Article IX Arbitration
Article X Treasury Regulation Section 1.848-2(g)(8) Joint Election
Article XI Duration of Agreement
Article XII Execution
Schedule A Retention and Reinsurance Limits
Schedule B Reinsurance Forms
Schedule C Commissions and Allowances
Schedule D Reinsurance Premium Rates
AGREEMENT
1) Mutual Agreement. The Company and the Reinsurer mutually agree to reinsure
in accordance with the terms and conditions set forth hereinafter. This
Agreement is solely between the Company and the Reinsurer, and performance
of the obligations of each party under this Agreement shall be rendered
solely to the other party. In no instance shall anyone other than the
Company or the Reinsurer have any rights under this Agreement.
2) Entire Agreement. This Agreement, Amendments, and Addenda shall constitute
the entire agreement between the parties with respect to business reinsured
hereunder. There are no understandings between the parties other than as
expressed in this Agreement and any future change or modification of this
Agreement, shall be null and void unless made by Amendment to the Agreement
and signed by both parties.
1
ARTICLE I
FACULTATIVE REINSURANCE
The Company may submit at its own option any risk under policies written by the
Company for consideration by the Reinsurer. The reinsurance will be on the cost
basis determined by the attached schedules.
...END OF ARTICLE I
2
ARTICLE II
LIABILITY
The liability of the Reinsurer on any facultative reinsurance under this
Agreement begins at the same time as that of the Company, subject to the
Reinsurer's having given the Company an unconditional offer on the application
for reinsurance, and the Company's having notified the Reinsurer of its
acceptance within ninety (90) days of the offer. The liability of the Reinsurer
will continue in accordance with the terms and conditions of this Agreement,
and will end at the same time as that of the Company.
...END OF ARTICLE II
3
ARTICLE III
PLAN AND AMOUNT OF REINSURANCE
1) Life Reinsurance shall be on the Yearly Renewable Term plan. The
Reinsurer's net amount at risk for the first policy year shall be the
original amount ceded by the Company. In subsequent years, the Reinsurer's
net amount at risk shall be calculated in the following manner:
The net amount at risk will be a level amount for the level term policies
and riders, and will be decreased on an amortized basis for decreasing term
policies and riders. For other plans, the net amount at risk will be the
difference between the face amount of reinsurance and the terminal reserve
thereon, in accordance with the reserve tables of the Company.
2) Disability Waiver of Premium and Payor benefits, if included in this
Agreement, shall be on a coinsured basis in accordance with the benefit
form issued by the Company. The Reinsurer's amount at risk shall be in
proportion to the net amount at risk on the life reinsurance.
3) Accidental Death Benefits, if included in this Agreement, shall be on a
Yearly Renewable Term basis. The Reinsurer's amount at risk shall be the
amount ceded by the Company.
4) Reductions and terminations of the Company's policies, riders or benefits
shall reduce or terminate the reinsurance thereon in a corresponding amount
as of the same date. If reinsurance applies to more than one policy, the
reduction or termination will be on a per-life, first-in-first-out basis,
whereby the Company will maintain the same retention in effect prior to the
decrease in reinsurance. If reinsurance is in effect with more than one
reinsurer, the reduction in the Reinsurer's amount will be in proportion to
the reduction in the amounts originally ceded to each reinsurer.
5) Reinstatement by the Company under its regular rules, of policies, riders
or benefits which were reduced, terminated or lapsed, shall automatically
reinstate the reinsurance thereon for the amount that would have been in
force if the insurance had not been reduced, terminated or lapsed.
6) The Nonforfeiture benefit of Reduced Paid-Up will be treated as a reduction
in coverage, with a corresponding reduction in the reinsurance as described
above. The reinsurance amount applicable to extended term will be on a
basis proportionate to the reinsurance risk before the option was effected.
The cash surrender of a Company's policy will terminate the reinsurance
thereon.
7) Minimum amounts of reinsurance which may be ceded under this Agreement are
stated in the attached Schedule A.
4
8) Term Conversions. If any policy reinsured under this Agreement is
converted, the Company will cede and the Reinsurer will accept
automatically such conversions to permanent plans of insurance. The
eligible life insurance amount will be the excess of the converted amount
over the amount retained by the Company at the time of term policy
issuance. If the conversion results in an increase of risk, the amount of
increase will be subject to evidence of insurability. The life reinsurance
converted will be on the Yearly Renewable Term Plan in accordance with the
rates specified in the attached Schedule D on a point-in-scale basis (using
the original issue age and duration from the original issue).
...END OF ARTICLE III
5
ARTICLE IV
REINSURANCE PREMIUMS
1) Life Reinsurance. The annual premiums for standard and substandard life
reinsurance shall be computed in accordance with the Yearly Renewable Term
rates contained in the attached Schedule D. Substandard premiums are
calculated at 25%, per table, of the standard rate. If a flat extra premium
is charged, an amount will be payable to the Reinsurer, based upon an
equivalent table rating.
The Reinsurer anticipates that those premium rates will be continued
indefinitely for all business ceded using these rate schedules; however,
because of the technical questions in some states regarding deficiency
reserve requirements, for those premiums less than those which are based on
the 1980 CSO Table at 4 1/2% Interest, only the latter premiums shall be
guaranteed for renewal by the Reinsurer.
2) Disability Waiver of Premium and Payor Benefits. Annual premiums for these
benefits, if included in this Agreement, will be paid at the same rate as
the Company charges for the benefit, less allowances for commissions as
shown in Schedule C.
3) Accidental Death Benefit. Annual premiums for this benefit, if included in
this Agreement, will be computed at the rates shown in Schedule D.
4) Associated Riders. Premiums for term life riders will be computed in the
same manner, and at the same rate, as the base life policy. If any other
types of riders are reinsured under this Agreement, premiums and allowances
will be included in Schedules C and D.
5) Preliminary Term Insurance. If the Company issues a policy with preliminary
term, the reinsurance premiums for the term period will be at the same rate
as charged by the Company, less commissions at the same percentage as paid
by the Company, for the life reinsurance and all reinsured benefits. For
the first policy year after the preliminary term, premiums and allowances
for the life reinsurance and benefits will be computed at regular first
policy year rates.
6) Payments. The payment of reinsurance premiums, annually in advance, by the
Company to the Reinsurer, shall be a condition precedent to the liability
of the Reinsurer. The Reinsurer shall have the right to terminate the
reinsurance on risks for which reinsurance premiums are in default by
giving thirty (30) days' written notice of termination to the Company. At
the close of the last day of this thirty-day notice period, all of the
reinsurer's liability for risks subject to the termination notice, plus for
the risk on which premiums went into default during the thirty-day notice
period, shall terminate. Notwithstanding termination or reinsurance as
provided by this provision, the Company shall continue to be liable to the
Reinsurer for all unpaid premiums earned by the Reinsurer under this
Agreement. The Company may reinstate such terminated
6
reinsurance by paying in full, within sixty (60) days of the termination date,
all unpaid premiums for the reinsurance which was in force prior to its
termination. The effective date of reinstatement shall be the day the Reinsurer
received all required premiums. However, there shall be no reinstatement on any
risk on which the Company incurred a claim for Insurance after the reinsurance
terminated.
7) Procedure for Payment.
a) First Year and Renewal Business. On or before the twentieth (20th) day
after the close of each month, the Reinsurer will submit to the
Company a statement of account, substantially in accordance with
Schedule B, showing the premium due on new reinsurance effected in the
preceding month(s), the annual renewal reinsurance premium due, and
any other pertinent data mutually agreed upon by the parties hereto.
If a statement shows that a new reinsurance premium balance is payable
to the Reinsurer, the Reinsurer will include with the statement its
payment for the amount of the net balance due the Reinsurer.
b) Adjustments. If any change is made in the Company's policy that
affects the reinsurance, the Company will provide written notice, on a
form mutually agreed upon, to the Reinsurer. If an adjustment to the
premium is to be made, and a refund is due the Company, it will be
included as an adjustment to the regular monthly statement prepared by
the Reinsurer. Policy fees are not pro-rated or refunded on
termination.
8) Electronic Data Transmission. If the Company chooses to report its
reinsurance transactions via electronic media, the Company shall consult
with the Reinsurer to determine the appropriate reporting format. Should
the Company subsequently desire to make changes in the data format or the
code structure, the Company shall communicate such changes to the Reinsurer
prior to the use of such changes in reports to the Reinsurer.
9) Adjustment of Age or Sex. If the insured's age or sex was misstated, the
Company and the Reinsurer will share the adjustment in proportion to the
amount of liability of each at the time of Issue.
...END OF ARTICLE IV
7
ARTICLE V
CLAIMS
1) Notice. The Company will notify the Reinsurer after receipt of any
information on a claim where reinsurance is involved. The reinsurance claim
forms and copies of notification, claim papers, and proofs will be
furnished to the Reinsurer as soon as possible.
2) Authorization for Payment. The Reinsurer will accept the decision of the
Company on payment of a claim on which reinsurance is in force except as
noted in 4) below.
3) Payment. For Life and Accidental Death benefit claims, the Reinsurer will
pay its share in a lump sum, without regard to the form of settlement of
the Company. For waiver of premium disability claims, the Reinsurer will
pay its share of each gross premium waived by the Company. The Reinsurer
will not be liable for any part of any compensatory or punitive damages
assessed against the Company based on its misconduct, alleged or otherwise,
in the handling of claims or in any of its other dealings with its cedent
companies.
4) Contested Claims. The Company will promptly advise the Reinsurer of its
intention to contest, compromise or litigate a claim involving reinsurance.
The Reinsurer will pay its proportional share of the unusual expense of
the contest, in addition to its proportional share of the claim itself, or
it may choose not to participate in the contest. If the Reinsurer so
chooses, it will discharge all of its liabilities by payment of the full
amount of reinsurance to the Company.
When a death occurs within the contestable period and the amount of
reinsurance ceded to the Reinsurer is 50% of the amount issued by the
Company or greater, or if the Company retained less than, or none of, its
usual retention on the basic plan or supplementary benefits and riders,
than all papers that have been furnished to the Company in connection with
the claim, shall be submitted to the Reinsurer for recommendation, before
the Company admits liability or makes any settlement with its claimant. The
Reinsurer will review all the claim papers and make a recommendation within
5 working days after receipt of all necessary papers.
5) Assistance and Advice. At the request of the Company, the Reinsurer will
assist and advise the Company in its determination of liability on any
claim.
6) Age or Sex Adjustment. If the Insured's age or sex was misstated and the
amount of insurance on the Company's policies is adjusted after his death,
the Company and the Reinsurer will share the adjustment in proportion to
the amount of liability of each at the time of issue of the policies.
Premiums will be recalculated for the correct ages and amounts but
according to the proportion as above, and adjusted without interest. If the
insured is still alive, the method above will be used for past years and
the amount of reinsurance and premium adjusted for the future to the amount
that would have been correct at issue.
8
7) There shall be no refund of any unearned premium for the unexpired portion
of the policy year in which death occurs unless the Company is required to
refund premium, or is not being paid a premium, for such period, in which
case the Reinsurer shall allow the Company a refund of that portion of the
reinsurance premium paid which corresponds either to the unearned
reinsurance premium that the Company is obligated to refund, or to the
period for which the Company will not be paid any premium.
...END OF ARTICLE V
9
ARTICLE VI
PROCEDURES TO EFFECT FACULTATIVE REINSURANCE
1) Facultative Reinsurance. When the Company desires facultative reinsurance,
it will send to the Reinsurer any and all information it has about the
risk, including specifically, but not limited to, copies of the
application, medical examiners' reports, attending physicians' statements,
inspection reports, and other papers bearing on the insurability of the
risk. Upon receipt of the application, the Reinsurer will analyze the risk
promptly, and as soon as possible, notify the Company of its decision, and
its classification of the risk.
2) Facultative Acceptance. The Company will notify the Reinsurer in writing of
its acceptance of the unconditional offer by the Reinsurer within ninety
(90) days of said offer. When the policy has been paid for and delivered,
the Company will report the facultative business. Once a risk is submitted
on a facultative basis, any additional applications must also be submitted
facultatively, unless the Reinsurer gives the Company written permission to
submit such subsequent applications on an automatic basis.
...END OF ARTICLE VI
10
ARTICLE VII
GENERAL PROVISIONS
1) Company Forms and Rates. The Company will furnish the Reinsurer with a copy
of its application forms, policy and rider forms, premium and nonforfeiture
values, reserve tables, and any other forms or tables needed for proper
handling of reinsurance under this contract. It will advise the Reinsurer
of any changes or new forms it may adopt.
2) Reinsurance Conditions. The reinsurance is subject to the same limitations
and conditions as the insurance under the policy or policies written by the
Company on which reinsurance is based.
3) Errors and Omissions. It is understood and agreed that if non-payment of
premiums within the time specified, or failure to comply with any terms of
this contract is shown to be unintentional, is the result of
misunderstanding or oversight on the part of either the Company or the
Reinsurer, both the Company and the Reinsurer shall be restored to the
positions they would have occupied had no such error or oversight occurred.
4) Inspection. The Reinsurer may inspect, at the Home Office of the company
and at any reasonable time, the original papers and any other books or
documents relating to or affecting reinsurance under this
Reinsurance
Agreement.
5) Premium Taxes. Premium taxes will not be reimbursed by the Reinsurer.
6) Insolvency. All reinsurance recoveries under this Agreement will be paid by
the Reinsurer directly to the Company, its liquidator, receiver, or
statutory successor, on the basis of the liability of the Company under the
policy or policies reinsured without diminution because of the insolvency
of the Company. In the event of the insolvency of the Company, the
liquidator, receiver, or statutory successor of the Company will give
written notice of a pending claim against the Company on any policy
reinsured, within a reasonable time after the claim is filed in the
insolvency proceedings. While the claim is pending, the Reinsurer will
investigate and interpose, at its own expense, in the proceedings where the
claim is to be adjudicated, any defenses which it may deem available to the
Company or its liquidator, receiver, or statutory successor.
The expense incurred by the Reinsurer will be charged, subject to court
approval, against the Company as a liquidation expense to the extent a
proportionate share of the benefit accrues to the Company as a result of
the defenses by the Reinsurer. Where two or more reinsurers are involved,
and a majority in interest elect to defend a claim, the expense will be
apportioned in accordance with the terms of the
Reinsurance Agreement, as
if the expense had been incurred by the Company.
11
7) Insolvency of the Reinsurer. Notwithstanding any provision to the contrary
contained herein, in the event of the insolvency, dissolution or
liquidation of the Reinsurer, the Company shall have the option to
terminate this Agreement as it pertains to both new business and inforce
reinsurance. To exercise this option, the Company must give the Reinsurer
twenty days written notice and must pay the Reinsurer a mutually agreed
upon cancellation fee representing the present value of the future profits
the Reinsurer might have reasonably expected to emerge from the inforce
reinsurance. Should the Company and the Reinsurer not be able to agree upon
an equitable cancellation fee within forty five days of the receipt by the
Reinsurer of the notice of cancellation, the determination of the fee shall
be assigned to a third party acceptable to both the Company and the
Reinsurer.
8) Offset Provision. Any debits or credits, matured or unmatured, liquidated
or unliquidated, in favor of or against either the Company or the
Reinsurer, with respect to this agreement or with respect to any other
claim of one party against the other, are deemed mutual debits or credits,
as the case may be, and may be set off, and only the balance may be allowed
or paid. It is agreed that claims will not be offset until the claim
procedures outlined in ARTICLE V - CLAIMS have been followed.
9) Severability. In the event that any of the provisions herein contained
shall be declared or adjudicated invalid or unenforceable, such declaration
or adjudication shall in no manner affect or impair the validity or the
enforceability of the other and remaining provisions which shall remain in
full force and effect as though such invalid or unenforceable provisions or
clauses had not been herein included or made a part of the Agreement.
...END OF ARTICLE VII
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ARTICLE VIII
RECAPTURE
1) Recapture. If the Company increases its limits of retention, then the
Company may make a corresponding reduction in the reinsurance in force
under this Agreement, on all insureds where the Company maintained its
maximum limit of retention at time of issue. However, no reinsurance shall
be reduced under this provision prior to the policy anniversary specified
in Schedule A, and no reinsurance shall be recaptured where the Company
retained less than its maximum retention in effect at the time the policy
was issued.
2) Method of Recapture. If the Company elects to recapture, it will notify the
Reinsurer in writing ninety (90) days prior to the effective date of its
increase in retention. At the next policy anniversary date following the
anniversary specified in Schedule A, the reinsurance will be reduced to
increase the total retained by the Company to its new maximum. If the
reinsurance on any policy for any insured is reduced under this provision,
all reinsurance eligible for such reduction must be reduced. If two or more
reinsurers have reinsurance eligible for recapture on the same insured, the
Reinsurer's share of the reduction will be in proportion to its share of
the total reinsurance on the insured.
...END OF ARTICLE VIII
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ARTICLE IX
ARBITRATION
1) Agreement. All differences between the Company and the Reinsurer on which
an agreement cannot be reached, will be decided by arbitration. The
arbitrators will determine the interpretation of the Agreement in
accordance with usual business and reinsurance practices, rather than by
strict technicalities.
2) Method. Three arbitrators will decide any differences. They must be
officers of life insurance companies, or reinsurance companies, employed by
other than the two parties to the Agreement, or have been previously so
employed in such a capacity in an insurance or reinsurance company. In no
event may an employee - past or present - of either party or its affiliates
serve as an arbitrator.
Each party will choose one member of the arbitration panel and, once
selected, these two members will choose the third member. If the two
arbitration panel members chosen fail to agree on the selection of the
third member of the panel, the choice will be left to the American
Arbitration Association.
Each company will submit its case in writing to the arbitration panel
within one month of the date the panel is finally established, and the
parties to the Agreement are required to make their arbitrator nominee
known to the other party within 30 days of the announced dispute.
It shall be the function of the arbitration panel to determine settlement
of the differences between the parties based on the evidence presented,
their experience and knowledge of the subject matter, and on the basis of
usual and customary practice, rather than to act solely on the basis of
evidence as would be admissible in a court of law. The majority decision of
the panel will be deemed to be the decision of the panel. The Reinsurer and
the Company agree to accept the interpretation of the panel as binding upon
both parties to the Agreement.
The costs of arbitration will be shared equally by the parties to the
Agreement, unless the arbitrators decide otherwise.
The arbitration will be held at the times and places agreed upon by the
arbitrators.
...END OF ARTICLE IX
14
ARTICLE X
TREASURY REGULATION SECTION 1.848-2(g)(8) JOINT ELECTION
The Company and the Reinsurer hereby agree to the following pursuant to Section
1.848-2(g)(8) of the Income Tax Regulations issued December 1992, under Section
848 of the Internal Revenue Code of 1986, as amended. This election shall be
effective for the taxable year ended December 31, 2000 and for all subsequent
taxable years for which this Agreement remains in effect unless such election is
terminated by mutual written agreement of the parties hereto with the consent,
if required, of the Commissioner of the Internal Revenue Service.
1) The term "party" will refer to either the Company or the Reinsurer as
appropriate.
2) The terms used in this Article are defined by reference to Treasury
Regulation Section 1.848-2 in effect as of December 29, 1992. The term "net
consideration" will refer to either net consideration as defined in
Treasury Regulation Section 1.848-2(f) or, "gross premium and other
consideration" as defined in Treasury Regulation Section 1.848-3(b) as
appropriate.
3) Both parties agree to identify this Agreement as one for which the joint
election under Treasury Regulation Section 1.848-2(g)(8) has been made in a
schedule attached to their respective federal income tax returns for the
taxable period ended December 31, 2000.
4) The party with the positive net consideration for this Agreement for each
taxable year will capitalize specified policy acquisition expenses with
respect to this Agreement without regard to the general deductions
limitation of Section 848(c)(1).
5) Both parties agree to exchange information pertaining to the amount of net
consideration under this Agreement each year to ensure consistency or as
otherwise required by the Internal Revenue Service.
6) The Company will submit a schedule to the Reinsurer by May of each year of
its calculation of the net consideration for the preceding calendar year.
This schedule of calculations will be accompanied by a statement signed by
an officer of the Company stating that the Company will report such net
consideration in its tax return for the preceding calendar year.
7) The Reinsurer may contest such calculation by providing an alternative
calculation to the Company in writing within 30 days of the Reinsurer's
receipt of the Company's calculation. If the Reinsurer does not so notify
the Company, the Reinsurer will report the net consideration as determined
by the Company in the Reinsurer's tax return for the previous year.
15
8) If the Reinsurer contests the Company's calculation of the net
consideration, the parties will act in good faith to reach an agreement as
to the correct amount within thirty (30) days of the date the Reinsurer
submits its alternative calculation. If the Company and the Reinsurer reach
agreement on an amount of net consideration, each party shall report such
amount in their respective tax returns for the previous calendar year.
...END OF ARTICLE X
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ARTICLE XI
DURATION OF AGREEMENT
This Agreement is unlimited in duration, but may be amended by mutual consent of
the Company and the Reinsurer. It may be terminated as to new reinsurance by
either party, by giving ninety (90) days' written notice to the other, prior to
the effective date of termination. Termination as to new reinsurance does not
affect existing reinsurance. Existing reinsurance will remain in force until
termination of the Company's policies on which the reinsurance is based, in
accordance with the terms of this Agreement.
...END OF ARTICLE XI
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ARTICLE XII
EXECUTION
In witness of the above, this Agreement is signed in duplicate at the dates and
places indicated, with an effective date of MAY 1, 2000.
FARM BUREAU LIFE INSURANCE COMPANY
WEST DES MOINES, IOWA
Date: Aug. 3, 2000
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By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
---------------------------------------
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Exec. V.P. & General Manager
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Witness: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
---------------------------------------
▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President - Life Administration
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
ORLANDO, FLORIDA
Date: August 3, 2000
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By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
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Title: Vice President
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Witness: ▇▇▇▇ ▇. ▇▇▇
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...END OF ARTICLE XII
18
ADDENDUM I
TO THE
REINSURANCE AGREEMENT
BETWEEN
FARM BUREAU LIFE INSURANCE COMPANY
(Referred to in this Addendum as the Company)
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
(Referred to in this Addendum as the Reinsurer)
This Addendum is to be attached to and made a part of the Facultative YRT
Reinsurance Agreement which became effective May 1, 2000, and this Addendum
shall become effective for policies issued on and after October 1, 2001. All
other provisions of the
Reinsurance Agreement not in conflict with the
provisions of this Addendum will remain unchanged.
SCHEDULE A
RETENTION AND REINSURANCE LIMITS
Part I Business Covered
The preceding limits apply to all insured lives whose surnames begin
with the letters A through Z inclusive, for residents of the United
States only, on the Company's Traditional Last Survivor Life plan.
SCHEDULE D
REINSURANCE PREMIUM RATES
Part I Life
The basis for calculating the premiums for this coverage will be
determined according to the amount reinsured with the Reinsurer per
insured risk, and the appropriate life YRT rates per thousand.
Attached is the basis for determining these rates.
FACULTATIVE YRT
HA-FBLI-02
ADDENDUM I
SEPTEMBER 27, 2001
Last Survivor YRT rates will be calculated as follows
First year rates are 0.
Renewal year rates equal $.25 per 1000 added to the Frasierized last survivor
rates based on Individual life rates for each of the two lives determined as
follows.
TRADITIONAL LIFE LAST SURVIVOR CLASS MULTIPLES
----------------------------------------------
Super Preferred Non Tobacco 40%
Preferred Non Tobacco 45%
Non Tobacco 55%
Preferred Tobacco 80%
Tobacco 105%
A) These multiples apply to the Society of Actuaries 1975-80 Basic
mortality table: Male/Female, Age Last Birthday, issue ages 18
through 85.
B) Policy Fee - None.
EXECUTION
In witness of the above, this Addendum is signed in duplicate at the dates and
places indicated, with an effective date of OCTOBER 1, 2001.
FARM BUREAU LIFE INSURANCE COMPANY
WEST DES MOINES, IOWA
Date: October 29, 2001
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By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
---------------------------------------
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Exec. V.P. & General Manager
---------------------------------------
Witness: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
---------------------------------------
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
ORLANDO, FLORIDA
Date: November 5, 2001
---------------------------------------
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
---------------------------------------
Title: Vice President
---------------------------------------
Witness: ▇▇▇▇ ▇. ▇▇▇
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ADDENDUM II
TO THE
REINSURANCE AGREEMENT
BETWEEN
FARM BUREAU LIFE INSURANCE COMPANY
(Referred to in this Addendum as the Company)
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
(Referred to in this Addendum as the Reinsurer)
This Addendum is to be attached to and made a part of the Facultative YRT
Reinsurance Agreement which became effective May 1, 2000, and this Addendum
shall become effective for policies issued on and after March 1, 2002. All other
provisions of the
Reinsurance Agreement not in conflict with the provisions of
this Addendum will remain unchanged.
SCHEDULE D
REINSURANCE PREMIUM RATES
Part I Life
The basis for calculating the premiums for this coverage will be
determined according to the amount reinsured with the Reinsurer per
insured life, and the appropriate life rates, multiplied by the
applicable percentages listed below:
UL, VUL, AND LSVUL MULTIPLES
----------------------------
Super Preferred Non Tobacco 40%
Preferred Non Tobacco 45%
Non Tobacco 55%
Preferred Tobacco 80%
Tobacco 105%
A) These multiples apply to the Society of Actuaries 1975-80 Basic
mortality table: Male/Female, Age Last Birthday, issue ages 18
through 85.
B) Policy Fee - None.
FACULTATIVE YRT
HA-FBLI-02
ADDENDUM II
MAY 6, 2002
EXECUTION
In witness of the above, this Addendum is signed in duplicate at the dates and
places indicated, with an effective date of MARCH 1, 2002.
FARM BUREAU LIFE INSURANCE COMPANY
WEST DES MOINES, IOWA
Date: May 14, 2002
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By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Exec. V.P. & General Manager
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Witness: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President - Life Administration
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
ORLANDO, FLORIDA
Date: June 7, 2002
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By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
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Title: Vice President
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Witness: ▇▇▇▇ ▇. ▇▇▇
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AMENDMENT I
TO THE
REINSURANCE AGREEMENT
BETWEEN
FARM BUREAU LIFE INSURANCE COMPANY
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
This Amendment is to be attached to and made a part of the Facultative YRT
Reinsurance Agreement, which was executed effective May 1, 2000. All provisions
of the Reinsurance Agreement not in conflict with the provisions of this
Amendment will continue unchanged.
ARTICLE I
FACULTATIVE REINSURANCE
Article I is hereby deleted with respect to new business for the Traditional
Last Survivor Life, Executive Term, Three Year Term, Custom Term, Traditional
Life, and the 15 Pay Traditional Life plans.
In witness of the above, this Amendment is signed in duplicate at the dates and
places indicated with an effective date of SEPTEMBER 1, 2002.
FARM BUREAU LIFE INSURANCE COMPANY
WEST DES MOINES, IOWA
Date: Nov. 1, 2002
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By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Exec. V.P. & General Manager
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Witness: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President - Life Administration
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
ORLANDO, FLORIDA
Date: Nov. 11, 2002
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By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
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Title. Vice President
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Witness: ▇▇▇▇ ▇. ▇▇▇
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FACULTATIVE YRT
HA-FBLI-02
AMENDMENT I
REV. OCTOBER 23, 2002
ADDENDUM III
TO THE REINSURANCE AGREEMENT
BETWEEN
FARM BUREAU LIFE INSURANCE COMPANY
(Referred to in this Addendum as the Company)
AND
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
(Referred to in this Addendum as the Reinsurer)
This Addendum is to be attached to and made a part of the Facultative YRT
Reinsurance Agreement, which was executed effective May 1, 2000, and shall
become effective for policies issued on or after SEPTEMBER 1, 2002. All
provisions of the Reinsurance Agreement not in conflict with the provisions of
this Addendum will continue unchanged.
SCHEDULE A
RETENTION AND REINSURANCE LIMITS
Part I Business Covered
The preceding limits apply to all insured lives whose surnames
begin with the letters A through Z inclusive, for residents of
the United States only, on the Company's UL, VUL, and LSVUL
plans, including U-Term Life Rider, Universal Waiver of Charges
Rider, Guaranteed Insurability Option Rider, and Universal Cost
of Living Increase Rider.
Part II Additional Conditions
A) Minimum Cession - $25,000
B) Recapture - 20 Years
C) Jumbo Limit - $15,000,000
D) Currency - U.S. Dollars
FACULTATIVE YRT
HA-FBLI-02
ADDENDUM III
REV. OCTOBER 23, 2002
SCHEDULE C
COMMISSIONS AND ALLOWANCES
The allowances for commissions granted for reinsurance amounts, expressed as a
percentage of the premium rate charged by the Company, are shown below for the
applicable benefit.
Part II
FIRST YEAR RENEWAL YEARS
---------- -------------
Universal Waiver of Charges Rider 75% 10%
Universal Cost of Living Increase Rider 75% 10%
NOTE: The above allowances refer to the premium only for the
rider. Reinsurance premiums for reinsured amounts arising from
exercising the option under these riders will be the YRT rates as
contained in the Reinsurance Agreement.
EXECUTION
In witness of the above, this Addendum is signed in duplicate at the dates and
places indicated with an effective date of SEPTEMBER 1, 2002.
FARM BUREAU LIFE INSURANCE COMPANY
WEST DES MOINES, IOWA
Date: Nov. 1, 2002
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By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Exec. V.P. & General Manager
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Witness: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Vice President - Life Administration
HANNOVER LIFE REASSURANCE COMPANY OF AMERICA
ORLANDO, FLORIDA
Date: Nov. 11, 2002
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By: /s/ ▇▇▇▇ ▇. ▇▇▇▇
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Title: Vice President
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Witness: ▇▇▇▇ ▇. ▇▇▇
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