Amendment No. I to the Automatic Self Administered YRT Reinsurance Agreement effective April 14, 2008 (hereinafter referred to as "Agreement") between American National Insurance Company (hereinafter referred to as "Ceding Company") NAIC Code 60739,...
Amendment
No. I
to
the
effective
April 14, 2008
(hereinafter
referred to as "Agreement")
between
American
National Insurance Company
(hereinafter
referred to as "Ceding Company")
NAIC Code
60739, FEIN ▇▇-▇▇▇▇▇▇▇
and
Swiss Re
Life & Health America Inc.
(hereinafter
referred to as "Reinsurer")
Hartford,
CT
NAIC Code
82627, FEIN ▇▇-▇▇▇▇▇▇▇
Treaty
ID: Executive UL
It is
hereby declared and agreed that effective January 1, 2009, Exhibit B Plans
Covered and Binding Limits and Exhibit E Reinsurance Premiums shall be replaced
by the attached Exhibit B Plans Covered and Binding Limits and Exhibit E
Reinsurance Premiums in order to add a Variable Universal Life product using the
existing reinsurance terms.
All other
terms and conditions of this Agreement shall remain unaltered.
EXECUTION
Made in
duplicate and executed by all parties. The Ceding Company and the Reinsurer have
caused this Amendment to be executed on the dates shown below.
For
American National Insurance Company
EXHIBIT
B
Plans
Covered and Binding Limits
The
business automatically reinsured under this Agreement is defined as
follows.
B.1 PLANS,
RIDERS AND BENEFITS
Policies
issued on plans with effective dates within the applicable period shown below
may qualify for automatic reinsurance under the terms of this
Agreement.
|
Plan Identification
|
Policy Form
|
Commencement
Date
|
Rate
Basis
(Exh. E.1)
|
|
Executive
UL bands 3 and 4
(Policy
Face Amounts $500,000+)
Executive
UL band 2 - facultative only
(Policy
Face Amounts $250,000-$499,000)
Executive
UL band 1 – to avoid overretention
(Policy
Face Amounts $100,000-$249,000)
VUL2008
bands 3 and 4
(Policy
Face Amounts $500,000+)
VUL2008
band 2 – facultative only
(Policy
Face Amounts $250,000-$499,000)
VUL2008
band 1 – to avoid overretention
(Policy
Face Amounts $100,000-$249,000)
|
EXEC-UL,
EXEC-ULU
EXEC-UL,
EXEC-ULU
EXEC-UL,
EXEC-ULU
WQVUL08
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April
14, 2008
April
14, 2008
April
14, 2008
January
1, 2009
January
1, 2009
January
1, 2009
|
1
1
1
2
2
2
|
B.2 BASIS
The
Reinsurer's share will be 33.333334% of the total ceded amount on each policy on
a first dollar quota share basis. This amount will not exceed the Reinsurer's
share of the maximum Automatic Binding Limits specified in Exhibit
B.3.
B.3 AUTOMATIC
BINDING LIMITS
(a)
Life
|
Issue
Ages
|
(Pool)
Maximum
Standard
– Table 16
|
|
All
|
$20,000,000
|
The
(pool) maximum autobind amounts above exclude the Ceding Company's
retention
(b)
Waiver of Premium Disability Benefits: Not Reinsured
B.4 JUMBO
LIMITS
The
Ceding Company will not cede any risk automatically if, according to information
available to the Ceding Company, the total amount in force and applied for on
the life with all insurance companies, including any amount to be replaced,
exceeds the applicable amounts shown below.
(a) Life:
S50,000,000
(b) Waiver
of Premium Disability Benefits: Not Reinsured.
B.5 CONDITIONAL
RECEIPT OR TEMPORARY INSURANCE AGREEMENT
The
amount of coverage provided by the Reinsurer under a Conditional Receipt (or
Interim Receipt) will not exceed the lesser of:
|
1.
|
The
Reinsurer's share of $500,000; or
|
|
2.
|
The
Automatic Acceptance Limits; or
|
|
3.
|
The
Reinsurer's share of the difference between the amount of insurance
provided by the Conditional Receipt (or Interim Receipt) and the Ceding
Company's maximum retention assuming the life had been underwritten as
standard. The Ceding Company's retention will include any amounts retained
under any inforce policies on the
life.
|
B.6 CESSION
LIMITS
(a)
Minimum Initial Cession: Total amount ceded to all reinsurers on an automatic
basis must equal or exceed $75,000.
(b)
Trivial Amount: Total amount ceded to all reinsurers must exceed
$25.000.
(c)
Minimum Initial Facultative Cession: $250,000 (face amount) to age 70); $100,001
(face amount) over age 70
EXHIBIT
E
Reinsurance
Premiums
E.1 LIFE
|
|
Plans
covered under this Agreement will be reinsured on a YRT basis. Reinsurance
premiums will be based on
|
|
|
the
2001 VBT Smoker/Non-Smoker Distinct Select & Ultimate (MaIe &
Female) ALB rate scale shown in Exhibit 1, times the following multiples
in all years:
|
Basis 1: Executive
UL
|
Plans
|
Issue
age
|
Band
3
|
Band
4
|
||||||
|
0-39
|
40-69
|
▇▇-▇▇
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▇▇-▇▇
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▇▇-▇▇
|
▇▇-▇▇
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||
|
Life
Coverage
|
Preferred
Plus Nonsmoker
|
55%
|
47%
|
58%
|
66%
|
53%
|
45%
|
56%
|
62%
|
|
Preferred
Nonsmoker
|
62%
|
53%
|
63%
|
70%
|
60%
|
51%
|
60%
|
67%
|
|
|
Standard
Plus Nonsmoker
|
67%
|
59%
|
70%
|
80%
|
64%
|
57%
|
67%
|
77%
|
|
|
Standard
Nonsmoker
|
82%
|
71%
|
76%
|
85%
|
79%
|
68%
|
73%
|
82%
|
|
|
Preferred
Smoker
|
68%
|
70%
|
83%
|
92%
|
65%
|
67%
|
80%
|
88%
|
|
|
Standard
Smoker
|
92%
|
92%
|
93%
|
105%
|
88%
|
88%
|
89%
|
101%
|
|
Basis 2: Executive
UL
|
Plans
|
Issue
age
|
Band
3*
|
Band
4
|
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|
0-39
|
40-69
|
▇▇-▇▇
|
▇▇-▇▇
|
▇▇-▇▇
|
▇▇-▇▇
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▇▇-▇▇
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▇▇-▇▇
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||
|
Life
Coverage
|
Preferred
Nonsmoker
|
61%
|
52%
|
62%
|
69%
|
59%
|
50%
|
59%
|
66%
|
|
Standard
Nonsmoker
|
81%
|
70%
|
75%
|
84%
|
78%
|
67%
|
72%
|
81%
|
|
|
Standard
Smoker
|
91%
|
91%
|
92%
|
104%
|
87%
|
87%
|
88%
|
100%
|
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Bands 1
&2: $ 1 W000 - $499,999
Band 3:
$500,000 - $999,999
Band 4:
$1,000.000 +
*Band 3
rates will also apply to any Band I or 2 policies reinsured as a result of the
Ceding Company having previously reached maximum retention on a
life.
E.2 AGE
BASIS
Age Last
Birthday
E.3 POLICY
FEES
The
Reinsurer will not participate in any policy fees.
E.4 RECAPTURE
PERIOD
Number of
years: 20
E.5 STANDARD
RATINGS
Premiums
will be based on the standard rate increased by an extra 25% per table of
assessed rating.
Discounts
are the same as those for standard life coverage.
E.6 EXTRAS
The total
premium remitted to the Reinsurer will include the flat extra premium minus the
discounts shown below.
Type
of Flat Extra
Premium First
Year Renewal
Temporary
(1 -5
years) 10% 10%
Permanent
(6 years &
greater) 75%
10%
E.7
RIDERS AND BENEFITS
On the
VUL 2008 Plan: - Term Rider. Other Insured Rider. The reinsurance premium for
these riders will be the
same as
the basic premiums the Ceding Company pays the Reinsurer, as developed in
Section E.1, Basis 2 above.
E.8 Interest
Calculation on Late Payments:
Any
amounts remaining unpaid for more than 30 days from the due date as specified in
Exhibit G or otherwise required will accrue interest from the due date at a rate
equal to the Three Month London Interbank Offering Rate (LIBOR) as published in
the Wall Street Journal (or if not available, a comparable publication) on the
due date or, if the due date is not a business day, on the next business day
after the due date, plus 50 basis points per annum to be compounded and adjusted
every three months after such due date.
E.9 CONDITIONS
REQUIRING CLAIMS CONSULTATION:
Before
conceding liability or making settlement to the claimant, the Ceding Company
will seek the Reinsurer's
recommendation
if:
a) The
claim occurs during the contestable period and the Ceding Company is not
contesting the claim,
but the Reinsurer's share exceeds
$0, or
b) The
claim occurs outside of the United States or Canada, and the Reinsurer's share
exceeds $0, or
c) The
claim is one for which there is no body, i.e. the insured is missing and
presumed dead, and the
Reinsurer's share exceeds
$0.
If the
Reinsurer discovers that the Ceding Company's claims paying practices and
procedures differ materially from those performed at the inception of the
Agreement or from the Business Guidelines, then, in addition to any other
remedies, the Reinsurer may, with 30 days' written notice, adjust the threshold
amounts specified above.