Amendment #4 to the AUTOMATIC
Amendment #4
to the
AUTOMATIC
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE March 1, 2003
Between
PRUDENTIAL INSURANCE COMPANY OF AMERICA
(THE COMPANY)
And
SCOTTISH RE (U.S.), INC.
(THE REINSURER)
The parties hereby agree to the following:
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SECTION 9a, COMMENCEMENT OF REINSURANCE COVERAGE – AUTOMATIC REINSURANCE, shall be replaced by the following: |
AUTOMATIC REINSURANCE.
▇▇/▇▇▇ ▇▇/▇▇▇ ▇▇▇▇—THE REINSURER’s reinsurance coverage for any policy that is issued on or after March 1, 2003 that is ceded automatically under this Agreement will begin simultaneously with THE COMPANY’s contractual liability for the policy reinsured. THE REINSURER’s reinsurance coverage for any policy that is issued prior to March 1, 2003 that is ceded automatically under this Agreement will begin on March 1, 2003. In either instance, no coverage will begin prior to March 1, 2003. Reinsurance coverage for all policies that are ceded automatically under this Agreement will end simultaneously with THE COMPANY’s contractual liability for the policy reinsured.
ProFunds—THE REINSURER’s reinsurance coverage for any policy with an effective date on or after January 1, 2005, that is ceded automatically under this Agreement will begin simultaneously with THE COMPANY’s contractual liability for the policy reinsured. There will be no coverage for policies with an effective date prior to January 1, 2005.
For all policies reinsured under this Agreement, THE REINSURER will be liable for benefits paid under THE COMPANY’s conditional receipt or temporary insurance agreement if all of the conditions for automatic reinsurance coverage under Section 6 of this Agreement are met. THE REINSURER’s liability under THE COMPANY’s conditional receipt or temporary insurance agreement is limited to the lesser of (1) THE REINSURER’s reinsured portion of the face amount of the policy and (2) $150,000.
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SCHEDULE A, Section 1, AUTOMATIC PORTION REINSURED, shall be replaced by the following: |
PLANS REINSURED:
This Agreement covers the following plans:
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PruLife Universal (UL) - Policies issued by Pruco Life Insurance Company of New Jersey (PLNJ) (Form Number UL-2000 and all state variations), including in force policies with issue dates back to April 30, 2000. |
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PruLife Custom Premier (VUL II) - Policies issued by PLNJ (Form Number VUL-2000 and all state variations), including in force policies with issue dates back to April 30, 2000. |
Y-UL/VULII-2000-▇▇▇▇-PLNJ-4
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PruLife Custom Premier II (VUL 2004) –Policies issued by PLNJ (Form Number VUL-2004 and all state variations) |
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PruLife Advisor Select 2002 (ProFunds) – Policies issued by PLNJ (Form Number VULPAS 2002 and all state variations) |
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Target Term Rider (TTR) issued by PLNJ (currently available on VUL II policies) |
Excluded from reinsurance under this Agreement are the Waiver of Premium and Accidental Death Benefits included in the above reinsured policies. Also excluded from reinsurance under this Agreement are riders that provide additional life insurance on the lives of any dependent children of the policyholder. Included under this Agreement is the Living Needs Benefit rider.
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SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following: |
AUTOMATIC PORTION REINSURED
US/Canadian Residents
THE REINSURER will automatically reinsure an amount equal to 15% of the net amount at risk related to the face amount of insurance up to the First Layer of Coverage amounts shown in Schedule A, Section 4.B. below.
The net amount of risk is determined as of the issue date and each subsequent policy anniversary and is defined as the death benefit minus the contract fund.
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SCHEDULE A, Section 3, AUTOMATIC PORTION RETAINED, shall be replaced by the following: |
AUTOMATIC RETENTION LIMIT
THE COMPANY will retain at least 10% of the net amount at risk related to the face amount of insurance of each policy in the First Layer of Coverage, as defined in Schedule A, Section 4B. THE COMPANY may cede up to 75% of the net amount at risk related to the face amount of insurance of each policy on a first-dollar quota share basis to other reinsurers. In addition, THE COMPANY will retain 100% of the net amount at risk related to the face amount of insurance of each policy, in excess of the First Layer of Coverage.
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Y-UL/VULII-2000-▇▇▇▇-PLNJ-4
SCHEDULE A, Section 4, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
AUTOMATIC ACCEPTANCE LIMIT:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the automatic issue limits shown in the following tables:
US/Canadian Residents – No Foreign Travel – Non-Smoker
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Issue Age of Insured |
No Substandard Rating |
Class A – D |
Class E – H | |
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Ages: |
0 – 65 |
$65,000,000 |
$65,000,000 |
$46,400,000 |
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66 – 70 |
$60,900,000 |
$55,900,000 |
$35,400,000 |
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71 – 75 |
$46,400,000 |
$43,400,000 |
$23,400,000 |
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76 – 77 |
$26,400,000 |
$23,400,000 |
$15,900,000 |
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78 – 80 |
$21,900,000 |
$18,900,000 |
$11,400,000 |
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81 – 85 |
$13,400,000 |
$11,400,000 |
None |
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86 – 90 |
$5,250,000 |
$4,150,000 |
None |
US/Canadian Residents – No Foreign Travel – Smoker
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Issue Age of Insured |
No Substandard Rating |
Class A – D |
Class E – H | |
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Ages: |
0 – 65 |
$64,900,000 |
$64,900,000 |
$46,400,000 |
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66 – 70 |
$50,900,000 |
$50,900,000 |
$34,400,000 |
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71 – 75 |
$41,400,000 |
$41,400,000 |
$23,400,000 |
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76 – 77 |
$23,400,000 |
$23,400,000 |
$14,900,000 |
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78 – 80 |
$18,900,000 |
$18,900,000 |
$10,400,000 |
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81 – 85 |
$11,400,000 |
$10,400,000 |
None |
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86 – 90 |
$4,250,000 |
$3,150,000 |
None |
US/Canadian Residents - Foreign Travel
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Pref. Best – Class C |
Class D - E |
Class F - H | |
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Ages: |
0 – 70 |
$20,000,000 |
$15,000,000 |
None |
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71 – 75 |
$15,000,000 |
$10,000,000 |
None |
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76 – 90 |
None |
None |
None |
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance are the First Layer of Coverage amounts shown in the following tables:
US/Canadian Residents – No Foreign Travel
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Issue Age of Insured |
Pref. Best – Class D |
Class E – H | |
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Ages: |
0 - 65 |
$ 50,000,000 |
$ 35,000,000 |
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66 - 70 |
$ 40,000,000 |
$ 25,000,000 |
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71 - 75 |
$ 35,000,000 |
$ 15,000,000 |
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76 – 77 |
$ 15,000,000 |
$ 10,000,000 |
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78 – 80 |
$ 10,000,000 |
$ 5,000,000 |
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81 – 85 |
$ 5,000,000 |
None |
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86 - 90 |
$ 1,500,000 |
None |
US/Canadian Residents - Foreign Travel
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Pref. Best – Class C |
Class D - E |
Class F - H | |
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Ages: |
0 – 70 |
$20,000,000 |
$15,000,000 |
None |
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71 – 75 |
$15,000,000 |
$10,000,000 |
None |
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76 – 90 |
None |
None |
None |
Y-UL/VULII-2000-▇▇▇▇-PLNJ-4
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE REINSURER on that life will not exceed the amounts in the following tables:
US/Canadian Residents – No Foreign Travel
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Issue Age of Insured |
Pref. Best – Class D |
Class E – H | |
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Ages: |
0 – 65 |
$7,500,000 |
$5,250,000 |
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66 – 70 |
$6,000,000 |
$3,750,000 |
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71 – 75 |
$5,250,000 |
$2,250,000 |
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76 – 77 |
$2,250,000 |
$1,500,000 |
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78 – 80 |
$1,500,000 |
$750,000 |
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81 – 85 |
$750,000 |
None |
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86 – 90 |
$225,000 |
None |
US/Canadian Residents - Foreign Travel
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Pref. Best – Class C |
Class D - E |
Class F – H | |
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Ages: |
0 – 70 |
$3,000,000 |
$2,250,000 |
None |
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71 – 75 |
$2,250,000 |
$1,500,000 |
None |
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SCHEDULE A, Section 5, JUMBO LIMIT, shall be replaced by the following: |
JUMBO LIMIT:
For any policy to be reinsured under automatic reinsurance, the total amount of insurance in force and applied for in all companies will not exceed the following amounts:
US/Canadian Residents- No Foreign Travel
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Issue Age |
Pref. Best – Class E |
Class F – H |
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18 - 80 |
$65,000,000 |
$65,000,000 |
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81 - 85 |
$30,000,000 |
$30,000,000 |
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86 - 90 |
$10,000,000 |
$10,000,000* |
*For ages 86-90, Classes F-H, the Automatic Acceptance Limit is $0. Therefore, no mortality risk will be ceded to THE REINSURER for these ages and rating classes.
Note: When a policy is reinsured under automatic reinsurance and the total amount in force and applied for in all companies exceeds $50,000,000, THE REINSURER must be notified and THE COMPANY shall provide the amount being issued.
US/Canadian Residents – Foreign Travel
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Pref. Best – Class E |
Class F - H | |
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Ages: |
0 – 75 |
$35,000,000 |
None |
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Y-UL/VULII-2000-▇▇▇▇-PLNJ-4
SCHEDULE A, Section 8, MINIMUM CESSION, shall be replaced by the following:
MINIMUM CESSION
The minimum amount per cession that can be reinsured with THE REINSURER is $7,500.
Y-UL/VULII-2000-▇▇▇▇-PLNJ-4
In witness of the above, PICA and SCOTTISH have by their respective officers executed and delivered this Amendment in duplicate on the dates indicated below, with an effective date of January 1, 2005.
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PRUDENTIAL INSURANCE COMPANY OF AMERICA |
SCOTTISH RE (U.S.), INC. |
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By:________________________________ |
By:______________________________ |
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Title:_______________________________ |
Title:_____________________________ |
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Date:_______________________________ |
Date:_____________________________ |
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By:________________________________ |
By:______________________________ |
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Title:_______________________________ |
Title:_____________________________ |
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Date:_______________________________ |
Date:_____________________________ |
Y-UL/VULII-2000-▇▇▇▇-PLNJ-4