Common use of Basic Premiums Clause in Contracts

Basic Premiums. The Company will pay to the Reinsurer a basic premium calculated by multiplying the net amount at risk of the Reinsured Policy, as defined in the Net Amounts At Risk provision of this Exhibit, by the appropriate rate from the 2008 VBT ALB S&U rates which have been included at the end of this Exhibit, subject to the percentages shown below. The Company will continue to pay the appropriate premium to the Reinsurer as long as the Reinsured Policy is in force. The following percentages will be applied to the reinsurance premiums payable hereunder: First Year: 0% Female NT Residual 115% 102% 88% 90% 92% 80% 67% 59% NT Preferred 97% 83% 72% 70% 78% 65% 55% 46% NT Pref Elite 71% 69% N/A N/A 57% 54% N/A N/A TB Residual 122% 106% 89% 84% 98% 83% 68% 55% TB Preferred 103% 88% 75% 73% 82% 69% 57% 48% Male NT Residual 112% 102% 86% 88% 90% 80% 65% 58% NT Preferred 94% 81% 68% 68% 75% 63% 52% 45% NT Pref Elite 71% 70% N/A N/A 57% 55% N/A N/A TB Residual 120% 103% 86% 81% 96% 80% 65% 53% TB Preferred 99% 86% 71% 71% 79% 67% 54% 47% * For Preferred Elite, issue age 60 (the maximum issue age for that risk class), please use the age 40-59 rate. ** For policies issued on a unisex basis, please use a weighted average of 80% of the applicable male rate and 20% of the applicable female rate, as specified in the 2008 VBT Unisex rates which have been included at the end of this Exhibit. The Reinsurer shall receive its proportionate share of any extra premiums payable due to additional mortality risk. Table extra premiums are equal to 22.5% of the Standard Non-Nicotine or Standard Nicotine premiums for each assessed table of extra mortality. Where a fractional rating is determined, the multiple extra rating is rounded down to the next lowest whole number for the purposes of calculating the reinsurance premium.