VARIABLE ANNUITY DEATH BENEFIT
REINSURANCE AGREEMENT
Effective June 1, 1997
Between
THE TRAVELERS LIFE AND ANNUITY COMPANY
(Hartford, Connecticut)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hartford, Connecticut)
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
VARIABLE ANNUITY DEATH BENEFIT REINSURANCE AGREEMENT
Effective Date of June 1, 1997
between
THE TRAVELERS LIFE AND ANNUITY COMPANY
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
INDEX
ARTICLE PAGE
------- ----
Access to Records XII 6
Arbitration XVII 8
Automatic Excess Reinsurance III 2
Claims VII 4
Currency XIV 7
DAC Tax Regulation Election XVIII 9
Delays, Errors, or Omissions XIII 7
Effective Date, Term and Termination XIX 9
Extra Contractual Obligations IX 5
Hold Harmless XV 7
Insolvency XVI 7
Liability of Connecticut General IV 3
Litigation X 6
Notices XXI 12
Offset XI 6
Parties to the Agreement I 1
Premium Accounting VI 3
Regulatory Compliance XX 11
Reinsurance Coverage and Amounts at Risk II 1
Reinsurance Premiums V 3
Reserves VIII 5
SCHEDULES
A Limits of Reinsurance in Connecticut General
B Contracts and Funds Subject to this Reinsurance Agreement
C Limits and Rules of Travelers/Death Benefit Value/CDSC
D Reinsurance Premium
E Quarterly Reporting Format
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
VARIABLE ANNUITY DEATH BENEFIT REINSURANCE AGREEMENT
(Hereinafter called Agreement)
between
THE TRAVELERS LIFE AND ANNUITY COMPANY
(Hereinafter called Travelers)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hereinafter called Connecticut General or CIGNA Reinsurance)
It is agreed by the two companies as follows:
ARTICLE I - PARTIES TO THE AGREEMENT
This Agreement shall be binding upon and shall inure solely to the benefit of
Travelers and Connecticut General. This Agreement shall not and is not intended
to create any right or interest in any third party and shall not and is not
intended to create any legal relationship between either party and any third
party, including, without limitation, annuitants, insureds, certificate holders,
employees, dependents, beneficiaries, policy owners, applicants or assignees
under any policy or contract issued by Travelers.
ARTICLE II - REINSURANCE COVERAGE AND AMOUNTS AT RISK
Unless terminated pursuant to Article XIX, this Agreement provides permanent
coverage for all Travelers' Vintage Individual Variable annuity contracts, on
forms and funds identified in Schedule B, which have the Old or New Enhanced
Death Benefit endorsements attached to them, and that have contract dates from
June 1, 1997 through December 31, 2000.
Unless terminated pursuant to Article XIX, this Agreement also provides
permanent coverage for all Travelers' Vintage Individual Variable annuity
contracts, on forms and funds as identified on Schedule B, which do not have the
Old or New Enhanced Death Benefit endorsements attached to them (Standard Death
Benefit applies), and that have contract dates from July 1, 1998, through
December 31, 2000.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-1
The Standard Death Benefit is the death benefit included in the body of the
Vintage contract. Such Death Benefit will apply if no Enhanced Death Benefit
endorsement is attached to the contract. The Standard Death Benefit in all
jurisdictions other than Florida is fully described in Schedule C-1 and the
Standard Death Benefit in Florida is fully described in Schedule C-2.
If an Enhanced Death Benefit endorsement is attached to a contract, such
Enhanced Death Benefit will replace the Standard Death Benefit. The Old Enhanced
Death Benefit is that which is described in Schedule, C-3, and the New Enhanced
Death benefit is that which is described in Schedule C-4.
The reinsurance death benefit payable by Connecticut General upon the death of
either the annuitant or contract owner is 25% of the excess of the Death Benefit
Value over the Cash Surrender Value. The Death Benefit Value is described in
Schedule C. The Cash Surrender Value is defined in the contract forms listed in
Schedule B.
ARTICLE III - AUTOMATIC EXCESS REINSURANCE
A. On and after the effective date of this Agreement, subject to the limit of
Connecticut General's liability set forth in Schedule A and all other
terms, conditions and limitations set forth in this Agreement and the
Schedules attached to and made a part hereof, Travelers shall cede and
Connecticut General shall accept Travelers' death benefit liability under
the variable annuity contracts, as described in Article II.
B. This Agreement covers only 25% of Travelers' liability for claims paid
under variable annuity contracts written on forms and invested in funds
which were reviewed by Connecticut General prior to their issuance. Forms,
as supplemented by additional materials, and funds available as of the date
of this Agreement are listed on Schedule B, attached hereto and made a part
hereof. If Travelers intends to cede to Connecticut General liability with
respect to a new form or fund, or a revised version of an approved form or
fund, it must provide to Connecticut General written notice of such
intention together with a copy of the proposed form, fund or revision, and
a revised Schedule B.
C. Travelers shall provide written notice to Connecticut General of any
changes in its published limits and rules identified on Schedule C, and
Connecticut General shall have no liability pursuant to revised limits and
rules which increase its exposure hereunder unless and until Connecticut
General provides written notice to Travelers that such revised limits and
rules are acceptable.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-2
ARTICLE IV - LIABILITY OF CONNECTICUT GENERAL
Connecticut General's liability for reinsurance under this Agreement shall be
coincident with that of Travelers in every case, and be subject in all respects
to the general stipulations, terms, clauses, conditions, waivers and
modifications of the variable annuity contracts.
In no event shall Connecticut General have any reinsurance liability unless the
variable annuity contract issued by Travelers is in force and the underwriting
and issuance of coverage by Travelers constituted the doing of business in a
jurisdiction in which Travelers was properly licensed and authorized to do
business at the time the contract was issued.
ARTICLE V - REINSURANCE PREMIUMS
Premiums for reinsurance subject to the terms and conditions of this Agreement
shall be paid on a quarterly basis. Such premiums shall be determined by the
application of the basis points set forth in Schedule D for each annuity insured
by Travelers as calculated based on the criteria defined in Schedule D.
ARTICLE VI - PREMIUM ACCOUNTING
A. Reinsurance premiums shall be paid in advance on a Quarterly basis. On or
before the Due Date (as defined in Paragraph B), Travelers shall forward to
Connecticut General its statement of account as set forth in Schedule E
along with its remittance for the net amount due as shown therein as well
as any premium adjustments from the prior quarter. If the statement shows a
balance due Travelers, Connecticut General shall remit that amount to
Travelers on or before the Remittance Date (the date occurring thirty days
after the Due Date). All outstanding balances due and unpaid beyond the
Remittance Date shall be subject to an interest charge on the unpaid
balance from the Due Date as specified in this Article to the date of
payment at the rate charged by Connecticut General for delinquent premiums
as further described in paragraph C of this Article.
B. For the purposes of this Agreement the Due Date for Connecticut General's
receipt of the statement of account and premium due is the thirtieth day
following the close of any reporting period. The payment of reinsurance
premiums in accordance with the provisions herein shall be a condition
precedent to the liability of Connecticut General for reinsurance covered
by this Agreement. In the event that reinsurance premiums are not received
by Connecticut General as of the Due Date following the close of the
reporting period in which they fall due, Connecticut General will notify
Travelers that such premiums are due and unpaid, and Travelers will remit
the premium on or before the Remittance Date. In the event that the
premiums are not paid by the Remittance Date, Connecticut General shall
have the right to give Travelers notice of termination of such reinsurance
immediately.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-3
C. Whether or not Connecticut General exercises its right to terminate the
reinsurance as specified in the preceding paragraph, all such outstanding
premiums shall be subject to an interest charge on the unpaid balance from
the Due Date to the date of payment, at a rate coincident with the current
rate of interest charged by Connecticut General for delinquent premiums in
connection with its individual life insurance policies.
D. If reinsurance is terminated as provided in paragraph B, Connecticut
General shall thereupon be relieved automatically of future liability under
all reinsurance for which premiums and other charges remain unpaid. The
reinsurance so terminated may be reinstated at any time within sixty days
of the date of termination upon payment of all reinsurance premiums and
other charges in arrears; but in the event of such reinstatement,
Connecticut General shall have no liability in connection with any claims
incurred between the date of termination and the date of reinstatement of
the reinsurance.
E. Not withstanding termination of reinsurance as provided herein, Travelers
shall continue to be liable to Connecticut General for all unpaid
reinsurance premiums earned by Connecticut General under this Agreement.
Such premiums are subject to an interest charge as specified in paragraph C
above.
ARTICLE VII - CLAIMS
Travelers is solely responsible for payment of its claims under the underlying
variable annuity contracts identified on Schedule B.
Travelers shall provide written notice to Connecticut General within 15 days of
its decision to contest or deny a claim. Travelers shall also provide prompt
notice to Connecticut General of all subsequent significant developments
relating to such claim. Inadvertent oversight or omission in the provision of
such notice shall not relieve Connecticut General of liability provided
Travelers informs Connecticut General of such oversight or omission promptly
upon its discovery.
Travelers shall provide Connecticut General with proof of claim, proof of claim
payment and any other claim documentation requested by Connecticut General.
Reinsurance premiums submitted by Travelers shall be net of claims incurred. If
a balance is due Travelers, Connecticut General shall remit payment on or before
the Remittance Date following receipt of the quarterly reinsurance statement, as
set forth in Schedule E and in accordance with paragraph A of Article VI.
Any payment of reinsurance by Connecticut General shall be subject to the
following paragraphs:
Travelers shall notify Connecticut General of its intention to contest or
deny a claim that may involve the reinsurance coverage under this Agreement
before any notice of contest or denial is provided to the claimant.
Connecticut General shall then have thirty (30) calendar days within which
to advise Travelers whether it agrees that the claim should be contested or
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-4
denied. If Connecticut General does not agree that the claim should be contested
or denied, then it shall pay to Travelers the full amount of the reinsurance on
the risk reinsured, as set forth in this Agreement, and Connecticut General
shall have no further obligation in respect to such claim. If Connecticut
General agrees that the claim should be contested or denied, then Connecticut
General shall pay its share of the following, as expenses accrue, in accordance
with its share of liability as set forth in this Agreement:
- Expenses incurred by Travelers in investigating, contesting
litigating or otherwise resisting the Claim, excluding salaries and
expenses of employees and officers of Travelers and ordinary expenses
of Travelers, and costs of third party administrators acting on behalf
of Travelers; and
- Interest which is paid by Travelers in respect of the Claim.
If the denial of a Claim results in an award verdict or judgment against
Travelers, where Connecticut General has agreed with the claim denial and
Travelers intends to appeal the verdict or judgment, written notice of the
intention to appeal shall be provided to Connecticut General. Connecticut
General shall be entitled at that time to pay its share of the judgment,
together with any expenses and interest as set forth above, and to have no
further obligation in connection with such Claim. If Connecticut General
does not pay its share of the judgment and any expenses and interest due at
that time, Connecticut General shall pay its share of the expenses
associated with the appeal of the judgment or verdict, together with its
share of any additional interest charges that may accrue during the appeal.
ARTICLE VIII - RESERVES
The reserve held by Connecticut General for reinsurance of the variable annuity
death benefit will be determined in accordance with the NAIC Actuarial Guideline
XXXIV, but will, in no event, be less than the recognized statutory required
reserve. If, at any time, Travelers requests that Connecticut General hold a
reserve that includes a provision for a one-third (1/3) drop in contract value,
Connecticut General will hold such reserve, in exchange for an increase in the
flat annual rate of two (2) basis points. The increased rate will be charged
only for the length of time that such reserve is held at Travelers' request.
ARTICLE IX - EXTRA CONTRACTUAL OBLIGATIONS
A. In no event shall Connecticut General be liable for extra contractual
damages (whether they constitute Compensatory damages, Statutory penalties,
Exemplary or Punitive damages) which are awarded against Travelers as a
result of an act, omission or course of conduct by Travelers in connection
with policies subject to this Agreement, unless Connecticut General shall
have received notice of and concurred in writing with the actions taken or
not taken by
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-5
Travelers that led to its liability, in which case Connecticut General
shall pay its share of such liability. For this purpose, Connecticut
General's share shall be proportionate with its risk under the business
reinsured hereunder.
B. The following definitions shall apply:
(1) Punitive damages and Exemplary damages are those damages awarded as a
penalty.
(2) Statutory penalties are those amounts which are awarded as a penalty
but fixed in amount by statute.
(3) Compensatory damages are those amounts awarded to compensate for the
actual damages sustained and are not awarded as a penalty nor fixed in
amount by statute.
ARTICLE X - LITIGATION
A. In the event of any action brought against Travelers under any variable
annuity contract that is subject to the terms and conditions of this
Agreement, Travelers shall provide a copy of such action and written notice
of such action within five (5) business days to Connecticut General.
B. Except as provided in Article VII, Travelers and Connecticut General agree
that all litigation costs, excluding the salaries of employees of Travelers
and Connecticut General, shall be borne by Travelers. If Connecticut
General appoints its own counsel, Connecticut General shall be responsible
for such counsel's fees; however, if Travelers and Connecticut General
agree to jointly defend any litigation, litigation costs will be borne in
proportion to the net liability borne by each party.
ARTICLE XI - OFFSET
Either party shall have, and may exercise at any time and from time to time, the
right to offset any balance or amounts whether as a result of premiums or on
account of losses or otherwise, due from one party to the other under the terms
of this Agreement. However, in the event of insolvency of Travelers subject to
the provisions of Article XVI, offset shall only be allowed in accordance with
the statutes and/or regulations of the state or jurisdiction having authority
over the insolvency.
ARTICLE XII - ACCESS TO RECORDS
Connecticut General, or its duly authorized representative, shall have
reasonable access to all records of Travelers (including the right to photocopy
documents) which pertain directly to this reinsurance. The right of access shall
survive the termination of this Agreement.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-6
ARTICLE XIII - DELAYS, ERRORS OR OMISSIONS
No accidental delay, errors or omissions on the part of Travelers shall relieve
Connecticut General of liability provided such delay, errors or omissions are
rectified as soon as possible after discovery. However, Connecticut General
shall not be liable with respect to any reinsurance that may have been
inadvertently included in the premium computation but which ought not to have
been included by reason of the terms and conditions of this Agreement. It is
expressly understood and agreed that if failure to comply with any terms of this
Agreement is hereby shown to be unintentional or the result of misunderstanding
or oversight on the part of either party, both parties shall be restored to the
position they would have occupied had no such error or oversight occurred,
subject always to the correction of the error or oversight.
ARTICLE XIV - CURRENCY
All retentions and limits hereunder are expressed in United States dollars and
all premium and loss payments shall be made in United States currency. For the
purposes of this Agreement, amounts paid or received by Connecticut General in
any other currency shall be converted into United States dollars at the rates of
exchange on the date such transactions are entered on the books of Connecticut
General.
ARTICLE XV - HOLD HARMLESS
A. Connecticut General shall indemnify and hold Travelers harmless from any
and all liability, loss, damage, fines, punitive damages, penalties and
costs, including expenses and reasonable attorney's fees, which results
from any negligence or willful misconduct of Connecticut General in
fulfilling its duties and obligations under this Agreement or which results
from any action that exceeds its authority under this Agreement.
B. Travelers shall indemnify and hold Connecticut General harmless from any
and all liability, loss, damage, fines, punitive damages, penalties and
costs, including expenses and reasonable attorney's fees, which results
from any negligence or willful misconduct of Travelers in fulfilling its
duties and obligations under this Agreement or which results from any
action which exceeds its authority under this Agreement.
ARTICLE XVI - INSOLVENCY
In the event of insolvency of Travelers, the reinsurance under this Agreement
shall be payable directly by Connecticut General to Travelers or to its
liquidator, receiver, conservator or statutory successor on the basis of
Connecticut General's liability to Travelers without diminution because of the
insolvency of Travelers or because the liquidator, receiver, conservator or
statutory
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-7
successor of Travelers has failed to pay all or a portion of any claim. It is
agreed, however, that the liquidator, receiver, conservator or statutory
successor of Travelers shall give prompt written notice to Connecticut General
of the pendency of a claim against Travelers within a reasonable time after such
claim is filed in the receivership, conservation, insolvency or liquidation
proceeding and that during the pendency of such claim, Connecticut General may
investigate such claim and interpose, at its own expense, in the proceeding
where such claim is to be adjudicated, any defense or defenses that it may deem
available to Travelers or its liquidator, receiver, conservator or statutory
successor. The expense thus incurred by Connecticut General shall be chargeable,
subject to the approval of the Court, against Travelers as part of the expense
of conservation or liquidation to the extent of a pro-rata share of the benefit
which may accrue to Travelers solely as a result of the defense undertaken by
Connecticut General.
Where two or more Reinsurers are involved in the same claim and a majority in
interest elects to interpose defense to such claim, the expense shall be
apportioned in accordance with the terms of this Agreement as though such
expense had been incurred by Travelers.
ARTICLE XVII - ARBITRATION
A. As a condition precedent to any right of action hereunder, any dispute
between the parties with respect to the interpretation of this Agreement or
any right, obligation or liability of either party, whether such dispute
arises before or after termination of this Agreement, shall be submitted to
arbitration upon the written request of either party. Each party shall
select an arbitrator within thirty (30) days of the written request for
arbitration. If either party refuses or neglects to appoint an arbitrator
within thirty (30) days of the written request for arbitration, the other
party may appoint the second arbitrator. The two arbitrators shall select
an umpire within thirty (30) days of the appointment of the second
arbitrator. If the two arbitrators fail to agree on the selection of the
umpire within thirty (30) days of the appointment of the second arbitrator,
each arbitrator shall submit to the other a list of three umpire
candidates, each arbitrator shall select one name from the list submitted
by the other and the umpire shall be selected from the two names chosen by
a lot drawing procedure to be agreed upon by the arbitrators. The two
arbitrators and the umpire shall constitute the arbitration panel.
B. The arbitrators and the umpire all shall be active or retired, executive
officers of insurance or reinsurance companies and the umpire shall be
disinterested.
C. The arbitration panel shall interpret this Agreement as an honorable
engagement rather than merely as a legal obligation and shall make its
decision considering the custom and practice of the applicable insurance
and reinsurance business. The arbitration panel is released from judicial
formalities and shall not be bound by strict rules of procedure and
evidence.
D. The decision of the arbitration panel shall be final and binding on both
parties. The arbitration panel may, at its discretion, award costs and
expenses as it deems appropriate, including, but
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-8
not limited to, attorneys' fees and interest. The arbitration panel may not
award damages defined in Article IX B. Judgment may be entered upon the
final decision of the arbitration panel in any court of competent
jurisdiction.
E. All meetings and hearings before the arbitration panel shall take place in
Hartford, Connecticut unless some other place is mutually agreed upon by
both parties.
F. Each party shall bear the expense of its own arbitrator and shall jointly
and equally bear with the other party the expenses of the umpire and of the
arbitration.
ARTICLE XVIII - DAC TAX REGULATION ELECTION
Connecticut General and Travelers hereby agree to make a joint election
pursuant to Internal Revenue Code Regulation Section 1.848-2(g)(8). This
election shall be effective for all taxable years for which the Reinsurance
Agreement remains in effect.
The terms used in this article are defined by reference to Regulation Section
1.848-2 promulgated on December 28, 1992.
Connecticut General and Travelers agree that the entity with net positive
consideration for the reinsurance agreement for each taxable year will
capitalize specified policy acquisition expenses with respect to the reinsurance
agreement without regard to the general deductions limitation of Section
848(c)(1) of the Internal Revenue Code of 1986, as amended.
Connecticut General and Travelers agree to exchange information pertaining to
the amount of net consideration under the reinsurance agreement each year to
ensure consistency. To achieve this, Travelers shall provide Connecticut General
with a schedule of its calculation of the net consideration for all reinsurance
agreements in force between them for a taxable year by no later than April 30 of
the succeeding year. Connecticut General shall advise Travelers if it disagrees
with the amounts provided by no later than May 31, otherwise the amounts will be
presumed correct and shall be reported by both parties in their respective tax
returns for such tax year. If Connecticut General contests Travelers'
calculation of the net consideration, the Parties agree to act in good faith to
resolve any differences within thirty (30) days of the date Connecticut General
submits its alternative calculation and reports the amounts agreed upon in their
respective tax returns for such tax year.
Connecticut General represents and warrants that it is subject to U.S. taxation
under either Subchapter L or Subpart F of Part III of Subchapter N of the
Internal Revenue Code of 1986, as amended.
ARTICLE XIX - EFFECTIVE DATE, AND TERMINATION
A. The effective date of this Agreement is June 1, 1997.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-9
B. Once each calendar year, Travelers shall have the option to recapture
existing contracts beginning with the twentieth (20th) anniversary of their
reinsurance hereunder. Recapture must be made on an issue year basis, and
no contracts can be recaptured unless all contracts with earlier issue
years are recaptured.
C. Connecticut General shall have the option of terminating this Agreement
for new business upon delivery of thirty (30) calendar days written notice
to Travelers, within thirty (30) days of the happening of any of the
following events:
(1) Travelers' A. M. Best rating is reduced to a "C" or lower;
(2) Travelers' domiciliary state's insurance regulators take any
regulatory action potentially adversely affecting its license to
conduct business, including without limitation placement on a "watch
list;"
(3) An order appointing a receiver, conservator or trustee for management
of Travelers is entered or a proceeding is commenced for
rehabilitation, liquidation, supervision or conservation of Travelers;
(4) The Securities and Exchange Commission takes any regulatory action
with respect to Travelers that potentially has a significant adverse
effect on its conduct of business.
D. Travelers shall have the option of terminating this Agreement for new and
existing business upon delivery of thirty (30) calendar days written notice
to Connecticut General, within thirty (30) days of the happening of any of
the following events:
(1) Connecticut General's A. M. Best rating is reduced to a "C" or lower;
(2) Connecticut General's domiciliary state's insurance regulators take
any regulatory action potentially adversely affecting its license to
conduct business, including without limitation placement on a "watch
list;"
(3) An order appointing a receiver, conservator or trustee for management
of Connecticut General is entered or a proceeding is commenced for
rehabilitation, liquidation, supervision or conservation of
Connecticut General;
(4) The statutory capital and surplus of Connecticut General falls below
the NAIC Authorized Control Level Risk Based Capital;
(5) Travelers loses reserve credit in a jurisdiction in which it was
licensed on the effective date of this Agreement and Travelers and
Connecticut General have not been able to
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-10
correct the loss of reserve credit within ninety (90) days after
receiving notice of the loss.
E. If this Agreement is terminated for new and existing business, Connecticut
General shall be relieved of all liability to Travelers for claims incurred
following the termination date of this Agreement under such underlying
variable annuity contracts issued by Travelers.
F. If this Agreement is terminated for new business only, Connecticut General
will remain liable, after termination, in accordance with the terms and
conditions of this Agreement, with respect to all reinsurance effective
prior to termination of the Agreement for new business.
G. Both parties shall continue to be entitled to all offset credits provided
by Article XI as long as coverage is provided under the terms of this
Agreement.
H. Neither party shall have the right to assign or transfer any portion of
the rights, duties and obligations of the other party under the terms and
conditions of this Agreement without the written approval of the other
party.
I. Connecticut General shall have the option of terminating this agreement
for new and existing business in accordance with Article VI upon delivery
of thirty (30) calendar days written notice to Travelers, within thirty
(30) days of failure by Travelers to pay premium in accordance with Article
VI. If, during the thirty (30) days notice period, Connecticut General
receives all premiums in arrears and all premiums which may become due
within the thirty (30) days notice period, the notice of termination shall
be deemed withdrawn. In the event of termination under this paragraph, this
Agreement may be reinstated if, at any time within sixty (60) days of
termination, Travelers pays and Connecticut General receives all premiums
due and payable up to the date of reinstatement.
ARTICLE XX - REGULATORY COMPLIANCE
Connecticut General agrees to maintain its state insurance licenses, provide any
required security, and/or comply with other regulations to the extent necessary
for Travelers to receive statutory reserve credit in all jurisdictions in which
Travelers is licensed as of the effective date of this Agreement for the
reinsurance ceded hereunder.
Travelers warrants that it has secured all necessary licenses and approvals for
the contracts reinsured hereunder, and that it is operating in compliance with
federal investment laws and state investment and insurance laws and regulations.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-11
ARTICLE XXI - NOTICES
All notices required to be given hereunder shall be in writing and shall be
deemed delivered if personally delivered, sent via facsimile, or dispatched by
certified or registered mail, return receipt requested, postage prepaid,
addressed to the parties as follows:
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, FSA, MAAA, Actuary Phone No. ▇▇▇-▇▇▇-▇▇▇▇
The Travelers Life and Annuity Company Fax No. ▇▇▇-▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇-▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, FSA Phone No. ▇▇▇.▇▇▇.▇▇▇▇
Assistant Vice President and Actuary Fax No. ▇▇▇.▇▇▇.▇▇▇▇
CIGNA Reinsurance
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Notice shall be deemed given on the date it is received in the mail or sent via
facsimile in accordance with the foregoing. Any party may change the address to
which to send notices by notifying the other party of such change of address in
writing in accordance with the foregoing.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-12
The text of this Agreement and all exhibits, schedules and amendments are
considered to be the entire contract between the parties. There are no other
understandings or agreements between the parties regarding the policies
reinsured other than as expressed in this Agreement. Either party may make
changes or additions to this Agreement, but they will not be considered to be in
effect unless they are made by means of a written amendment which has been
signed by both parties.
In witness whereof, the parties hereto have caused this Agreement to be signed
in duplicate on the dates indicated to be effective as of the date specified
above.
THE TRAVELERS LIFE AND ANNUITY COMPANY
By: -s- [ILLEGIBLE]
----------------------------
Date: March 12, 1998
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: -s- [ILLEGIBLE]
----------------------------
Date: Jan 29, 1998
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
-13
SCHEDULE A
Limits of Reinsurance in Connecticut General
Connecticut General requires prior notification of any initial annuity purchase
amount in excess of $5,000,000 per contract. Upon receipt of such notification,
Connecticut General then has the obligation to notify Travelers within five days
of its decision to accept or not accept its 25% quota share of the reinsurance
risk associated with the initial purchase amount in excess of $5,000,000. Should
Connecticut General not respond within five days, it shall be deemed that
Connecticut General does not agree to accept its 25% quota share of the
reinsurance risk associated with the initial purchase amount in excess of
$5,000,000.
For contracts with initial purchase amounts in excess of $5,000,000, Connecticut
General's liability will be equal to the liability it would have had if it had
accepted its 25% quota share risk on the entire purchase amount multiplied by
the ratio of the amount of the initial purchase payment on which Connecticut
General has agreed to accept its 25% quota share of the reinsurance risk to the
total initial purchase amount. Absent prior written consent of Connecticut
General, this ratio shall not change regardless of subsequent purchase amounts
or withdrawals, except as provided in the following paragraph.
For all contracts with total purchase amounts exceeding $5,000,000, Connecticut
General requires notification of all subsequent purchase amounts of $1,000,000
or more. Upon receipt of such notification, Connecticut General then has the
obligation to notify Travelers within five days of its decision to accept or not
accept its 25% quota share of the reinsurance risk associated with such
subsequent purchase amount. If Connecticut General does not make such
notification within five days, it shall be deemed that Connecticut General does
not accept its 25% quota share of the reinsurance risk associated with such
subsequent purchase amount. Connecticut General's liability on such contracts
will be equal to the liability it would have had if it had accepted its 25%
quota share risk on 100% of all of the purchase amounts multiplied by the ratio
of the total of all purchase amounts on which Connecticut General has agreed to
accept its 25% quota share of the reinsurance risk to the total of all purchase
amounts.
In accordance with Article IV of this Agreement, Connecticut General's limits
of reinsurance liability extend to the jurisdictions in which Travelers is
properly licensed and authorized to do business at the time that reinsured
contracts were issued.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
SCHEDULE B
Forms Subject to This Reinsurance Agreement
The following form numbers and all jurisdiction variations of each are covered
by this Agreement:
Form Number Policy Description
------------------ ----------------------------------------
TL-12778, TL-12779 Individual Deferred Variable Annuity
TL-12780, TL-12781 Contract (Tax Qualified)
TL-12756, TL-12757 Individual Deferred ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇-▇▇▇▇▇, ▇▇-▇▇▇▇▇ ▇▇▇▇▇▇▇▇ (Non-Tax Qualified)
TL-12793 Old Enhanced Death Benefit Endorsement
(Non-Tax Qualified)
TL-12794 Old Enhanced Death Benefit Endorsement
(Tax Qualified)
TL-22144 New Enhanced Death Benefit Endorsement
(Tax Qualified and Non-Tax Qualified)
Funds/Portfolios Subject to This Reinsurance Agreement
G.T. Global Strategic Income ▇▇▇▇▇ ▇▇▇▇▇▇ High Income
MFS Emerging Growth ▇▇▇▇▇ ▇▇▇▇▇▇ Income and Growth
Alliance Growth ▇▇▇▇▇ ▇▇▇▇▇▇ International Equity
MFS Total Return ▇▇▇▇▇ ▇▇▇▇▇▇ Money Market
Fixed Fund ▇▇▇▇▇ ▇▇▇▇▇▇ Pacific Basin
▇▇▇▇▇▇ Diversified Income ▇▇▇▇▇ ▇▇▇▇▇▇ Total Return
TBC Managed Income ▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Balanced
AIM Capital Appreciation ▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Conservative
Van Kampen Amer. Cap. Enterprise ▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Growth
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select High Growth
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Income
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
SCHEDULE C
Limits and Rules of Travelers
Travelers will determine the death benefit value for each deceased within seven
(7) working days of receipt of due proof of death and written instructions for
payment of proceeds.
The maximum purchase payment without Travelers' approval is $1,000,000 per
contract.
The minimum initial purchase payment is $5,000 for qualified and non-qualified
plans.
Death Benefit Value
The death benefit value reinsured hereunder shall be equal to the Death Proceeds
Prior To Maturity Date as defined in one of the death benefit options described
in Schedule C-l, C-2, C-3, or C-4. Schedule C-l shall apply if the Standard
Death Benefit applies and the contract is issued in any jurisdiction other than
Florida. Schedule C-2 shall apply if the Standard Death Benefit applies and the
contract is issued in Florida. Schedule C-3 shall apply if endorsement TL-12793
or TL-12794 is attached to the contract. Schedule C-4 shall apply if endorsement
TL-22144 is attached to the contract.
Contingent Deferred Sales Charge
Contingent Deferred Sales Charge (CDSC) will be assessed if a full or partial
surrender of the contract value is made during the first six years following a
Purchase Payment. The length of time from receipt of the Purchase Payment to the
time of surrender determines the amount of the charge. The CDSC is equal to a
percentage of the portion of the amount withdrawn which is available for charge
and is calculated as follows:
Length of Time from
Purchase Payment Contingent Deferred
(Number Of Years) Sales Charge
---------------------- ---------------------
1 6%
2 6%
3 6%
4 3%
5 2%
6 1%
7 and thereafter 0%
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997
Treaty No. 103069
[CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
SCHEDULE C - 1
DEATH BENEFIT PROVISIONS
DEATH OF ANNUITANT
A death benefit is payable to the Beneficiary upon the death of the Annuitant
before the Maturity Date, unless prior to the Maturity Date there is a
contingent annuitant surviving. A death benefit is also payable under those
Settlement Options which provide for death benefits. We will pay the Beneficiary
the death benefit in a single sum as described below upon receiving Due Proof of
Death. A Beneficiary may request that a death benefit payable under this
contract be applied to a Settlement Option subject to the provisions of this
contract and the current Tax Law Qualification Rider.
DEATH OF OWNER WITH ANNUITANT SURVIVING
If the owner dies (including the first of joint owners) before the Maturity Date
and with the Annuitant surviving, we will recalculate the value of the contract
under provisions of DEATH PROCEEDS PRIOR TO THE MATURITY DATE below. The value
of the contract, as recalculated, will be paid in a single lump sum or by other
election to the party taking proceeds under the current Tax Law Qualification
Rider. The party must take distributions no later than under the applicable
elections of that provision. All references to age in the DEATH PROCEEDS PRIOR
TO MATURITY DATE provision will be based on the owner's age rather than the
Annuitant's age.
DEATH PROCEEDS PRIOR TO THE MATURITY DATE
If the Annuitant dies before age 75 and before the Maturity Date, we will pay
the Beneficiary the greater of a), b), or c) below, less any applicable premium
tax or prior surrenders not previously deducted as of the Death Report Date:
a. the Contract Value of the contract;
b. the total purchase payments under the contract; or
c. the Contract Value of the Contract on the fifth Contract Year
anniversary immediately preceding the Death Report Date.
If the Annuitant dies on or after age 75, but before age 85 and before the
Maturity Date, we will pay the Beneficiary the greater of a), b), or c) below,
less any applicable premium tax or prior surrenders not previously deducted as
of the Death Report Date:
a. the Contract Value of the contract;
b. the total purchase payments under the contract; or
c. the Contract Value of the Contract on the latest fifth Contract Year
anniversary occurring on or before the Annuitant's 75th birthday.
If the Annuitant dies on or after age 85 and before the Maturity Date, we will
pay the Beneficiary the Contract Value of the contract less any applicable
premium tax as of the Death Report Date.
DEATH PROCEEDS AFTER THE MATURITY DATE
If the Annuitant dies on or after the Maturity Date, we will pay the Beneficiary
a death benefit consisting of any benefit remaining under the Annuity or Income
option then in effect.
SCHEDULE C - 1
SCHEDULE C - 2
DEATH BENEFITS PROVISIONS
A death benefit is payable to the Beneficiary upon the death of the Annuitant
before the Maturity Date. A death benefit is also payable under those Settlement
Options which provide for death benefits. We will pay the Beneficiary the death
benefit in a single sum as described below upon receiving Due Proof of Death. A
Beneficiary may request that a death benefit payable under this contract be
applied to a Settlement Option subject to the provisions of this contract and
the current Tax Law Qualification Rider.
DEATH PROCEEDS PRIOR TO THE MATURITY DATE
If the Annuitant dies before age 75 and before the Maturity Date, we will pay
the Beneficiary the greatest of a), b), or c) below, less any applicable premium
tax, prior surrenders not previously deducted or outstanding loans as of the
Death Report Date:
a. the Contract Value of the contract;
b. the total purchase payments under the contract; or
c. the Contract Value of the contract on the fifth Contract Year
anniversary immediately preceding the Death Report Date.
If the Annuitant dies on or after age 75, but before age 90, the Maturity Date,
we will pay the Beneficiary the greatest of a), b), or c) below, less any
applicable premium tax, prior surrenders not previously deducted or outstanding
loans as of the Death Report Date:
a. the Contract Value of the contract;
b. the total purchase payments under the contract; or
c. the Contract Value of the contract on the latest fifth Contract Year
anniversary occurring on or before the Annuitant's 75th birthday.
DEATH PROCEEDS AFTER THE MATURITY DATE
If the Annuitant dies on or after the Maturity Date, we will pay the Beneficiary
a death benefit consisting of any benefit remaining under the Annuity or Income
option then in effect.
SCHEDULE C - 2
SCHEDULE C - 3
DEATH BENEFIT ENDORSEMENT
This endorsement is made a part of the contract to which it is attached and
will take effect as of the Contract Date shown on the CONTRACT SPECIFICATIONS.
The endorsement modifies the determination of the value of the death benefit in
the DEATH PROCEEDS PRIOR TO THE MATURITY DATE provision.
If the Annuitant dies before age 75 and before the Maturity Date, the death
benefit payable under the contract as of the Death Report Date will be the
greater of 1) the guaranteed death benefit; or 2) the Contract Value less any
applicable premium tax.
The guaranteed death benefit is:
1. On the Contract Date, the death benefit is equal to the purchase
payment made to the Contract;
2. On each Contract Date anniversary, but not beyond the Contract Date
anniversary following the Annuitant's 75th birthday, the guaranteed
death benefit will be recalculated as follows:
a. the guaranteed death benefit as of the previous Contract
Date anniversary;
b. plus any purchase payments made during the previous
Contract Year;
c. minus any amounts surrendered during the previous Contract
Year;
d. minus any applicable premium tax;
e. the sum of a through d multiplied by 1.05 equals the new
guaranteed death benefit.
3. On dates other than the Contract Date or the Contract Date
anniversary, the guaranteed death benefit equals:
a. the guaranteed death benefit on the previous Contract Date
anniversary;
b. plus purchase payments made since the previous Contract Date
anniversary;
c. minus any amounts surrendered since the previous Contract Date
anniversary;
d. minus any applicable premium tax.
The maximum guaranteed death benefit payable equals 200% of the total of the
purchase payments minus surrenders, minus applicable premium taxes.
If the Annuitant dies on or after age 75, but before age 85 and before the
Maturity Date, the death benefit payable as of the Death Report Date will be the
greater of 1) the guaranteed death benefit as of the Annuitant's 75th birthday,
plus additional purchase payments, minus surrenders and applicable premium tax;
or 2) the Contract Value less any applicable premium tax.
If the Annuitant dies on or after age 85 and before the Maturity Date, the death
benefit payable will be the Contract Value less any applicable premium tax as of
the Death Report Date.
THE TRAVELERS INSURANCE COMPANY
-s- [ILLEGIBLE]
-------------------------------
President
SCHEDULE C - 3
SCHEDULE C - 4
DEATH BENEFIT ENDORSEMENT
This endorsement is made a part of this contract as of the date it is attached
to the contract.
The "DEATH PROCEEDS PRIOR TO THE MATURITY DATE" provision is amended by deleting
the provision and replacing it with the following:
DEATH PROCEEDS PRIOR TO THE MATURITY DATE
IF ANNUITANT DIES BEFORE AGE 80:
If the Annuitant dies before age 80 and before the Maturity Date, the death
benefit payable as of the Death Report Date will be the greatest of (1), (2) or
(3) below, less any applicable premium tax or outstanding loans as of the Death
Report Date:
(1) the Contract Value on the Death Report Date;
(2) the Roll-Up Death Benefit Value (as described below) available at the
Death Report Date; or
(3) the maximum of all Step-Up Death Benefit Values (as described below)
in effect on the Death Report Date.
IF ANNUITANT DIES ON OR AFTER AGE 80 BUT BEFORE AGE 90:
If the Annuitant dies on or after age 80, but before age 90 and before the
Maturity Date, the death benefit payable as of the Death Report Date will be the
greatest of (1), (2) or (3) below, less any applicable premium tax or
outstanding loans as of the Death Report Date:
(1) the Contract Value on the Death Report Date; or
(2) the Roll-Up Death Benefit Value (as described below) available at the
Annuitant's 80th Birthday, plus any additional Purchase Payments and
less any Partial Surrender Reductions (as described below) which occur
after the Annuitant's 80th birthday; or
(3) the maximum of all Step-Up Death Benefit Values (as described below)
in effect on the Death Report Date which are associated with any
Contract Date anniversary occurring on or before the Annuitant's 80th
birthday.
IF ANNUITANT DIES ON OR AFTER AGE 90:
If the Annuitant dies on or after age 90 and before the Maturity Date, the death
benefit payable as of the Death Report Date will be the Contract Value on the
Death Report Date, less any applicable premium tax or outstanding loans as of
the Death Report Date.
SCHEDULE C - 4
SCHEDULE C - 4
ROLL-UP DEATH BENEFIT VALUE
On the Contract Date, the Roll-Up Death Benefit Value is equal to the Purchase
Payment. On each Contract Date anniversary, the Roll-Up Death Benefit Value will
be recalculated as follows:
(a) the Roll-Up Death Benefit Value as of the previous Contract Date
anniversary;
(b) plus any Purchase Payments during the previous Contract Year;
(c) minus any Partial Surrender Reductions (as described below) during
the previous Contract Year;
(d) the sum of (a) through (c) increased by 5% equals the new Roll-Up
Death Benefit Value.
On dates other than the Contract Date anniversary, the Roll-Up Death Benefit
Value equals:
(a) the Roll-Up Death Benefit Value on the previous Contract Date
anniversary;
(b) plus any Purchase Payments made since the previous Contract Date
anniversary;
(c) minus any Partial Surrender Reductions (as described below) since the
previous Contract Date anniversary.
The maximum Roll-Up Death Benefit payable equals 200% of the difference between
all Purchase Payments and all PartiaL Surrender Reductions (as described below).
STEP-UP DEATH BENEFIT VALUE
A separate Step-Up Death Benefit Value will be established on each anniversary
of the Contract Date which occurs on or prior to the Death Report Date and will
initially equal the Contract Value on that anniversary. After a Step-Up Death
Benefit Value has been established, it will be recalculated each time a Purchase
Payment is made or a partial surrender is taken until the Death Report Date.
Step-Up Death Benefit Values will be recalculated by increasing them by the
amount of each applicable Purchase Payment and by reducing them by a Partial
Surrender Reduction ( as described below) for each applicable partial surrender.
Recalculations of Step-Up Death Benefit Values related to any Purchase Payments
or any partial surrenders will be made in the order that such Purchase Payments
or partial surrenders occur.
PARTIAL SURRENDER REDUCTION
The Partial Surrender Reduction referenced above is equal to (1) the amount of a
Death Benefit Value (Step-Up or Roll-Up) immediately prior to the reduction for
the partial surrender, multiplied by (2) the amount of the partial surrender
divided by the Contract Value immediately prior to the partial surrender.
THE TRAVELERS INSURANCE COMPANY
-s- [ILLEGIBLE]
---------------------------------
PRESIDENT
SCHEDULE C - 4
SCHEDULE D
Reinsurance Premiums
The Reinsurance Premium will be paid quarterly and will be equal to the sum of
all Daily Reinsurance Premiums for any particular quarter, accumulated without
interest until the end of the quarter. The Total Daily Reinsurance Premium for
any particular day will be equal to the sum of the Individual Daily Reinsurance
Premiums for all contracts subject to this Agreement. The Individual Daily
Reinsurance Premium for any particular contract on any particular day is equal
to the multiplicative product of the following four items:
a) 25%;
b) the day-end account value for that contract;
c) the Daily Reinsurance Charge associated with that contract, as
defined below;
d) all purchase amounts associated with that contract on which
Connecticut General has accepted its 25% quota share of the
reinsurance risk divided by all purchase amounts associated with that
contract.
In all jurisdictions, including without limitation Florida, for all contracts to
which the Standard Death Benefit applies, the Daily Reinsurance Charge will be
0.02904 basis points (equivalent to 10.6 basis points annually). For all
contracts to which the Old or New Enhanced Death Benefit applies, the Daily
Reinsurance Charge will be 0.06575 basis points (equivalent to 24 basis points
annually).
If Travelers, at any time, requests that Connecticut General hold a reserve that
includes a provision for a one-third (1/3) drop in contract value, Connecticut
General will hold such reserve in exchange for an increase in the annual
reinsurance charge of two (2) basis points. In such case, the Daily Reinsurance
Charges for contracts with the Standard Death Benefit and Enhanced Death Benefit
would be those equivalent to annual basis point charges of 12.6 and 26 basis
points, respectively. The increased rate described herein will be charged only
for the length of time that such reserve is held at Travelers' request.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1,1997 [CIGNA REINSURANCE LOGO]
Treaty No. 103069
Connecticut General Life Insurance Company
SCHEDULE E
Quarterly Reporting Format
1. Following the end of each calendar quarter, the Quarterly Input Page
(Schedules E-1 and E-3) and Quarterly Transaction Summary (Schedules E-2
and E-4), attached hereto, or an exhibit of similar form, must be prepared
for Qualified plans and Non-Qualified plans separately.
2. The tabulation associated with Schedules E-1 and E-3 are on a seriatim
basis, with each contract contributing toward the total for exposure,
aggregate contract value, death benefit values and claims.
3. At year end reporting, a tabulation of exposures by age and sex based on a
percentage decrease in account value by fund type as specified by NAIC
Actuarial Guideline XXXIV must be submitted for reserve purposes.
The Travelers Life and Annuity Company
Variable Annuity Death Benefit Reinsurance
Vintage Individual Variable Annuity
Effective June 1, 1997 [CIGNA REINSURANCE LOGO]
Treaty No. 103069
Connecticut General Life Insurance Company
VARIABLE ANNUITY DEATH BENEFIT
Quarterly Input Page
STANDARD DEATH BENEFIT
Calendar Year
-------------
Reporting Quarter
-------------
Male Female Male Female Male Female Male Female
Age Band Exposure* Exposure* Annuity Value Annuity Value Claims Claims DBV DBV
------------------------------ --------- --------- ------------- ------------- ------- -------- -------- --------
0 - 34 -------- -------- ------------ ------------ ------- -------- -------- --------
35 - 39 -------- -------- ------------ ------------ ------- -------- -------- --------
40 - 44 -------- -------- ------------ ------------ ------- -------- -------- --------
45 - 49 -------- -------- ------------ ------------ ------- -------- -------- --------
50 - 54 -------- -------- ------------ ------------ ------- -------- -------- --------
55 - 59 -------- -------- ------------ ------------ ------- -------- -------- --------
60 - 64 -------- -------- ------------ ------------ ------- -------- -------- --------
65 - 69 -------- -------- ------------ ------------ ------- -------- -------- --------
70 - 74 -------- -------- ------------ ------------ ------- -------- -------- --------
75 - 79 -------- -------- ------------ ------------ ------- -------- -------- --------
80 - 84 -------- -------- ------------ ------------ ------- -------- -------- --------
85 - 89 -------- -------- ------------ ------------ ------- -------- -------- --------
Total 0-75 -------- -------- ------------ ------------ ------- -------- -------- --------
75+ -------- -------- ------------ ------------ ------- -------- -------- --------
Total Male/Female
0-75 -------- ------------ -------- --------
75+ -------- ------------ -------- --------
All Ages -------- ------------ -------- --------
Please use end of the period values.
* Exposure is defined as Death Benefit Value less Annuity Cash Surrender Value,
Calculated on a seriatum basis and aggregated.
The Travelers Life and Annuity Company Cigna Reinsurance
Variable Annuity Death Benefit Reinsurance June 1,1997
Vintage Individual Variable Annuity
Treaty No. 103069
SCHEDULE E-l
VARIABLE ANNUITY DEATH BENEFIT
Quarterly Transcation Summary
STANDARD DEATH BENEFIT
Calendar Year
----------
Reporting Quarter
----------
QUARTERLY REINSURANCE PREMIUM CALCULATION
1 Aggregate Contract Value (BOQ) ----------
2 Aggregate Contract Value (EOQ) ----------
3 Average Aggregate Contract Value ----------
4 Quarterly Fund Based Premium Rate 0.00026500
5 Quarterly Earned Premium ----------
6 Advanced Premium Current Quarter [2*4] ----------
7 Advanced Premium Prior Quarter ----------
8 Net Premium Due [5+6-7] ----------
ACTUAL CLAIMS
9 Quarterly Reinsurance Amount* ----------
NET TRANSACTION
10 Premium Due Reinsurer [Sum 8] ----------
11 Quarterly Reinsurance Claims [Sum 9] ----------
12 Prior Adjustment (attach explanation) ----------
13 Amount Due to (from) Reinsurer [10-11 +12] ----------
* Quarterly Reinsurance Amount is defined as the aggregate sum of all claims
settled during a Calendar Quarter.
The Travelers Life and Annuity Company CIGNA REINSURANCE
Variable Annuity Death Benefit Reinsurance June 1,1997
Vintage Individual Variable Annuity
Treaty No. 103069
SCHEDULE E-2
VARIABLE ANNUITY DEATH BENEFIT
Quarterly Input Page
ENHANCED DEATH BENEFIT OPTIONS
Calendar Year
--------
Reporting Quarter
--------
Male Female Male Female Male Female Male Female
Age Band Exposure* Exposure* Annuity Value Annuity Value Claims Claims DBV DBV
---------------------------- --------- --------- ------------- ------------- -------- -------- -------- --------
0 - 34 --------- --------- ------------- ------------- -------- -------- -------- --------
35 - 39 --------- --------- ------------- ------------- -------- -------- -------- --------
40 - 44 --------- --------- ------------- ------------- -------- -------- -------- --------
45 - 49 --------- --------- ------------- ------------- -------- -------- -------- --------
50 - 54 --------- --------- ------------- ------------- -------- -------- -------- --------
55 - 59 --------- --------- ------------- ------------- -------- -------- -------- --------
60 - 64 --------- --------- ------------- ------------- -------- -------- -------- --------
65 - 69 --------- --------- ------------- ------------- -------- -------- -------- --------
70 - 74 --------- --------- ------------- ------------- -------- -------- -------- --------
75 - 79 --------- --------- ------------- ------------- -------- -------- -------- --------
80 - 84 --------- --------- ------------- ------------- -------- -------- -------- --------
85 - 89 --------- --------- ------------- ------------- -------- -------- -------- --------
Total 0-75 --------- --------- ------------- ------------- -------- -------- -------- --------
75+ --------- --------- ------------- ------------- -------- -------- -------- --------
Total Male/Female
0-75 -------- ------------- -------- --------
75+ -------- ------------- -------- --------
All Ages -------- ------------- -------- --------
Please use end of the period values.
* Exposure is defined as Death Benefit Value less Annuity Cash Surrender Value,
Calculated on a seriatum basis and aggregated.
The Travelers Life and Annuity Company CIGNA REINSURANCE
Variable Annuity Death Benefit Reinsurance June 1,1997
Vintage Individual Variable Annuity
Treaty No. 103069
SCHEDULE E-3
VARIABLE ANNUITY DEATH BENEFIT
Quarterly Transcation Summary
ENHANCED DEATH BENEFIT OPTIONS
Calendar Year
----------
Reporting Quarter
----------
QUARTERLY REINSURANCE PREMIUM CALCULATION
1 Aggregate Contract Value (BOQ) ----------
2 Aggregate Contract Value (EOQ) ----------
3 Average Aggregate Contract Value ----------
4 Quarterly Fund Based Premium Rate 0.00060000
5 Quarterly Earned Premium ----------
6 Advanced Premium Current Quarter [2*4] ----------
7 Advanced Premium Prior Quarter ----------
8 Net Premium Due [5+6-7] ----------
ACTUAL CLAIMS
9 Quarterly Reinsurance Amount* ----------
NET TRANSACTION
10 Premium Due Reinsurer [Sum 8] ----------
11 Quarterly Reinsurance Claims [Sum 9] ----------
12 Prior Adjustment (attach explanation) ----------
13 Amount Due to (from) Reinsurer [10-11+12] ----------
* Quarterly Reinsurance Amount is defined as the aggregate sum of all claims
settled during a Calendar Quarter.
The Travelers Life and Annuity Company CIGNA REINSURANCE
Variable Annuity Death Benefit Reinsurance June 1,1997
Vintage Individual Variable Annuity
Treaty No. 103069
SCHEDULE E-4
AMENDMENT NO. 1
To The Reinsurance Agreement Effective June 1, 1997
Between
THE TRAVELERS LIFE AND ANNUITY COMPANY
(Hereinafter Travelers)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hereinafter Connecticut General)
It is agreed by the two companies to amend the Agreement effective May 1, 1998,
as follows:
1. SCHEDULE B entitled Contracts Subject to This Reinsurance Agreement will
be amended. Now, therefore, the attached Schedule B will be substituted for
and replace Schedule B of the Agreement.
2. ARTICLE XIX entitled EFFECTIVE DATE AND TERMINATION will be amended. Now,
therefore, the following Paragraph J shall be added to ARTICLE XIX of the
Agreement.
J. Travelers represents and warrants that its processing and reporting
of business transactions under this Agreement shall be in an accurate
and timely manner and shall, to the extent that liabilities remain
under this Agreement into the year 2000 and beyond, maintain
application functionality and information system services for such
time. In the event that Travelers materially breaches this warranty
and representation, Connecticut General shall have the right to
terminate this Agreement for new and existing business upon 30 days
written notice. In the event of such termination, Connecticut General
shall have no further liability under this Agreement.
3. All other terms and conditions of the Agreement dated June 1, 1997 shall
remain in full force and effect.
The Travelers Life and Annuity Company
Vintage Individual Variable Annuity
Treaty No. 103069 Effective 6/1/97 [CIGNA REINSURANCE LOGO]
Amendment No. 1 Effective 5/1/98
Connecticut General Life Insurance Company
- 1 -
In witness whereof, the parties hereto have caused this Amendment to be signed
in duplicate on the dates indicated to be effective as of the date specified
above.
THE TRAVELERS LIFE AND ANNUITY COMPANY
By: -s- [ILLEGIBLE]
---------------------------------
Date: December 30, 1998
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: -s- [ILLEGIBLE]
---------------------------------
Date: December 31, 1998
The Travelers Life and Annuity Company
Vintage Individual Variable Annuity
Treaty No. 103069 Effective 6/1/97
Amendment No. 1 Effective 5/1/98 [CIGNA REINSURANCE LOGO]
Connecticut General Life Insurance Company
- 2 -
SCHEDULE B
Contracts Subject to This Reinsurance Agreement
The following form numbers and all jurisdiction variations of each are covered
by this Agreement:
Form Number Policy Description
----------- ------------------
TL-12778, TL-12779 Individual Deferred Variable Annuity
TL-12780, TL-12781 Contract (Tax Qualified)
TL-12756,TL-12757 Individual Deferred Variable Annuity
TL-12758,TL-12759 Contract (Non-Tax Qualified)
TL-12793 Old Enhanced Death Benefit Endorsement
(Non-Tax Qualified)
TL-12794 Old Enhanced Death Benefit Endorsement
(Tax Qualified)
TL-22144 New Enhanced Death Benefit Endorsement
(Tax Qualified and Non-Tax Qualified)
Add Eliminate
---- ---------
G.T. Global Strategic Income
MFS Emerging Growth
Alliance Growth
MFS Total Return
Fixed Fund
▇▇▇▇▇▇ Diversified Income
TBC Managed Income
AIM Capital Appreciation
Van Kampen Amer. Cap. Enterprise
▇▇▇▇▇ ▇▇▇▇▇▇ High Income
▇▇▇▇▇ ▇▇▇▇▇▇ Income and Growth
▇▇▇▇▇ ▇▇▇▇▇▇ International Equity
▇▇▇▇▇ ▇▇▇▇▇▇ Money Market
▇▇▇▇▇ ▇▇▇▇▇▇ Pacific Basin
▇▇▇▇▇ ▇▇▇▇▇▇ Total Return
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Balanced
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select
Conservative
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Growth
▇▇▇▇▇ ▇▇▇▇▇▇ Large Cap Value
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select High
Growth
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Income
5/98 Dreyfus Small Cap
5/98 MFS Research
5/98 Solomon Brothers Investors
5/98 Salomon Brothers Total Return
5/98 ▇▇▇▇▇ ▇▇▇▇▇▇ Large Cap Growth
5/98 Strategic Stock
5/98 Travelers Convertible Bond
5/98 Travelers Disciplined Mid Cap
5/98 Travelers Disciplined Small Cap
The Travelers Life and Annuity Company
Vintage Individual Variable Annuity
Treaty No. 103069 Effective 6/1/97 [CIGNA REINSURANCE LOGO]
Amendment No. 1 Effective 5/1/98
Connecticut General Life Insurance Company
SCHEDULE B
AMENDMENT NO. 2
To the Reinsurance Agreement Effective June 1, 1997
Between
THE TRAVELERS LIFE AND ANNUITY COMPANY
(Hereinafter Travelers)
and
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
(Hereinafter Connecticut General)
It is agreed by the two companies to amend the Reinsurance Agreement, effective
May 1, 1999, as follows:
1. Schedule B entitled Contracts Subject to This Reinsurance Agreement shall
be amended to include new funds. Now, therefore, the attached Schedule B
shall be substituted for and replace Schedule B of the Agreement.
2. Article III entitled Automatic Excess Reinsurance shall be amended.
Therefore, the following Article III shall be substituted for the
corresponding language in the Agreement.
ARTICLE III - AUTOMATIC EXCESS REINSURANCE
A. On and after the effective date of this Agreement, subject to the
limit of Connecticut General's liability set forth in Schedule A and
all other terms, conditions and limitations set forth in this
Agreement and the Schedules attached to and made a part hereof,
Travelers shall cede and Connecticut General shall accept Travelers'
death benefit liability under the variable annuity contracts, as
described in Article II.
B. This Agreement covers only 25% of Travelers' liability for claims
paid under variable annuity contracts written on forms and invested in
funds that were reviewed by Connecticut General prior to their
issuance. Forms, as supplemented by additional materials, and funds
available as of the date of this Agreement are listed on Schedule B,
attached hereto and made a part hereof. If Travelers intends to cede
to Connecticut
The Travelers Life and Annuity Company
Vintage Individual Variable Annuity
Amendment No. 2 Effective 5/1/99 [CIGNA REINSURANCE LOGO]
Treaty No. 103069
Connecticut General Life Insurance Company
- 1 -
General liability with respect to a new form or fund, or a revised
version of an approved form or fund, it must provide to Connecticut
General written notice of such intention together with a copy of the
proposed form, fund or revision. Connecticut General shall have no
liability pursuant to new or revised forms or funds unless and until
Connecticut General provides written notice to Travelers that such new
or revised forms or funds are acceptable.
C. Travelers shall provide written notice to Connecticut General of any
changes in its published limits and rules identified on Schedule C,
and Connecticut General shall have no liability pursuant to revised
limits and rules which increase its exposure hereunder unless and
until Connecticut General provides written notice to Travelers that
such revised limits and rules are acceptable.
3. All other terms and conditions of the Agreement shall remain in full force
and effect.
In witness whereof, the parties hereto have caused this Amendment to be signed
in duplicate on the dates indicated to be effective as of the date specified
above.
THE TRAVELERS LIFE AND ANNUITY COMPANY
By: -s- [ILLEGIBLE]
------------------------------------
Date:10/1/1999
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By: -s- [ILLEGIBLE]
------------------------------------
Date:10/4/1995
The Travelers Life and Annuity Company
Vintage Individual Variable Annuity
Amendment No. 2 Effective 5/1/99 [CIGNA REINSURANCE LOGO]
Treaty No. 103069
Connecticut General Life Insurance Company
- 2 -
SCHEDULE B
Contracts Subject to This Reinsurance Agreement
The following form numbers and all jurisdiction variations of each are covered
by this Agreement:
Form Number Policy Description
-------------------- -------------------------------------
TL-12778, TL-12779 Individual Deferred Variable Annuity
TL-12780,TL-12781 Contract (Tax Qualified)
TL-12756, TL-12757 Individual Deferred Variable Annuity
TL-12758,TL-12759 Contract (Non-Tax Qualified)
TL-12793 Old Enhanced Death Benefit Endorsement
(Non-Tax Qualified)
TL-12794 Old Enhanced Death Benefit Endorsement
(Tax Qualified)
TL-22144 New Enhanced Death Benefit Endorsement
(Tax Qualified and Non-Tax Qualified)
Add Eliminate
---- ---------
G.T. Global Strategic Income
MFS Emerging Growth
Alliance Growth
MFS Total Return
Fixed Fund
▇▇▇▇▇▇ Diversified Income
TBC Managed Income
AIM Capital Appreciation
Van Kampen Amer. Cap. Enterprise
▇▇▇▇▇ ▇▇▇▇▇▇ High Income
▇▇▇▇▇ ▇▇▇▇▇▇ Income and Growth
▇▇▇▇▇ ▇▇▇▇▇▇ International Equity
▇▇▇▇▇ ▇▇▇▇▇▇ Money Market
▇▇▇▇▇ ▇▇▇▇▇▇ Pacific Basin
▇▇▇▇▇ ▇▇▇▇▇▇ Total Return
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Balanced
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select
Conservative
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Growth
▇▇▇▇▇ ▇▇▇▇▇▇ Large Cap Value
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select High Growth
▇▇▇▇▇ ▇▇▇▇▇▇ Concert Select Income
5/98 Dreyfus Small Cap
5/98 MFS Research
5/98 Solomon Brothers Investors
5/98 Salomon Brothers Total Return
5/98 ▇▇▇▇▇ ▇▇▇▇▇▇ Large Cap Growth
5/98 Strategic Stock
5/98 Travelers Convertible Bond
5/98 Travelers Disciplined Mid Cap
5/98 Travelers Disciplined Small Cap
5/99 Equity Index Portfolio Class II
The Travelers Life and Annuity Company
Vintage Individual Variable Annuity
Amendment No. 2 Effective 5/1/99 [CIGNA REINSURANCE LOGO]
Treaty No. 103069
Connecticut General Life Insurance Company
- 3 -
CIGNA REINSURANCE
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇, FSA, MAAA
Assistant Vice President and Actuary
[CIGNA REINSURANCE LOGO]
March 31, 1999 Routing Code R-26
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇.
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Telephone ▇▇▇-▇▇▇-▇▇▇▇
Facsimile ▇▇▇-▇▇▇-▇▇▇▇
▇▇. ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, FSA, MAAA
Actuary
The Travelers Insurance Company
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇-▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
BY FAX: ▇▇▇.▇▇▇.▇▇▇▇ AND CERTIFIED MAIL
Re: Notice of Termination of the Vintage Variable Annuity Guaranteed Death
Benefit Rein-surance Treaty Between Connecticut General Life Insurance
Company and The Travelers Insurance Company, dated June 1, 1997 (the
"Treaty").
Dear ▇▇. ▇▇▇▇▇▇▇▇:
Connecticut General Life Insurance Company, through CIGNA Reinsurance Division
("CIGNA") is no longer assuming reinsurance of guaranteed death benefits or
income benefits under variable annuity contracts.
This letter is CIGNA's notice of termination of the Treaty effective as of
December 31, 2000, (the "Expiry Date"). In accordance with the termination
provision of the Treaty, CIGNA will not reinsure new business issued on and
after the Expiry Date. Under the Treaty, in force business will remain
reinsured, but we are interested in discussing with you the conditions under
which the parties may be willing to agree to a recapture of that business.
We recognize that this notice is being sent in advance of the date provided
under the Treaty for termination. We hope that by providing this advance notice,
you may be well positioned to obtain replacement reinsurance coverage in a
timely manner.
Please let me know if we may have an opportunity to meet with you to discuss a
possible re-capture. If I can provide further assistance, or if you have
questions about this letter, please call me at ▇▇▇.▇▇▇.▇▇▇▇, or ▇▇▇▇ ▇▇▇▇▇ at
860.726.7619.
Sincerely,
-s- ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
-----------------------------------
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Copy: ▇. ▇▇▇▇▇