Common use of Percentages Clause in Contracts

Percentages. ON BASIC PREMIUM(S) Reinsurance premiums will be based on the following percentages of the Society of Actuaries 1990-1995 ANB table, attached to this Exhibit C-1: FIRST YEAR RENEWAL YEARS Preferred Non-Smoker 0% 43% Standard Non-Smoker 0% 61% Standard Smoker 0% 125% Aggregate Non-Smoker 0% 58% (For use where no Preferred class, e.g. ages 81-90) For policies/riders with intended durations of less than 10 years, the following level YRT rates will apply. FIRST YEAR RENEWAL YEARS Preferred Non-Smoker 41% 41% Standard Non-Smoker 58% 58% Standard Smoker 120% 120% Aggregate Non-Smoker 55% 55% (For use where no Preferred class, e.g. ages 81-90) ON LAST SURVIVOR POLICIES To calculate premium rates for last survivor policies, first determine the appropriate single life rate for each Insured Individual. If the first year percentage, as stated in 4. of this Exhibit, is 0% use the 2nd year percentage for the first year. Then combine the rates using the Frasiar calculation. If the first year percentage, as stated in 4. of this Exhibit, for each individual is 0%, then multiply the resulting frasiarized rate by 0. A minimum rate of $.11 per $1,000 of Net Amount at risk shall apply in renewal years. ON TABLE EXTRA SUBSTANDARD RISKS Substandard table extra will be reinsured using 25% per table rating multiplied by the appropriate YRT rate. Substandard extras will be based upon the underwriter's assessment regardless of how the policy is issued. Substandard table ratings for a reinsured policy are applicable for the first 20 years after issue or until the policyholder reaches attained age 65, whichever occurs last. ON FLAT EXTRA PREMIUMS When a flat extra premium is payable for 5 years or less, an allowance of 10% of the gross flat extra charged by the Company will be made each year. When a flat extra premium is payable for more than 5 years, an allowance of 100% of the gross flat extra charged by the Company will be made in the first year and an allowance of 10% in each year thereafter. ON MULTIPLE EXTRA PREMIUMS The same allowances as those payable on the basic policy. ON TERM PLANS An 80% increase in rates will apply for term policies that are renewed at very high premium levels (e.g. years 11 and later for the 10-year term plan and years 16 and later for the 15-year term plan).

Percentages. ON BASIC PREMIUM(S) Reinsurance premiums will be based on the following percentages of the Society of Actuaries 1990-1995 ANB table, attached to this Exhibit C-1: FIRST YEAR RENEWAL YEARS ---------- ------------- Preferred Non-Smoker 0% 43% xx% Standard Non-Smoker 0% 61% yy% Standard Smoker 0% 125% zz% Aggregate Non-Smoker 0% 58% (For use where no Preferred class, e.g. ages 81-90) For policies/riders with intended durations of less than 10 years, the following level YRT rates will apply. FIRST YEAR RENEWAL YEARS Preferred Non-Smoker 41% 41% Standard Non-Smoker 58% 58% Standard Smoker 120% 120% Aggregate Non-Smoker 55% 55% ww% (For use where no Preferred class, e.g. ages 81-90) ON LAST SURVIVOR POLICIES To calculate premium rates for last survivor policies, first determine the appropriate single life rate for each Insured Individual. If the first year percentage, as stated in 4. of this Exhibit, is 0% use the 2nd year percentage for the first year. Then combine the rates using the Frasiar calculation. If the first year percentage, as stated in 4. of this Exhibit, for each individual is 0%, then multiply the resulting frasiarized rate by 0. A minimum rate of $.11 per $1,000 of Net Amount at risk shall apply in renewal years. ON TABLE EXTRA SUBSTANDARD RISKS Substandard table extra will be reinsured using 25% per table rating multiplied by the appropriate YRT rate. Substandard extras will be based upon the underwriter's assessment regardless of how the policy is issued. Substandard table ratings for a reinsured policy are applicable for the first 20 years after issue or until the policyholder reaches attained age 65, whichever occurs last. ON FLAT EXTRA PREMIUMS When a flat extra premium is payable for 5 years or less, an allowance of 10% of the gross flat extra charged by the Company will be made each year. When a flat extra premium is payable for more than 5 years, an allowance of 100% of the gross flat extra charged by the Company will be made in the first year and an allowance of 10% in each year thereafter. ON MULTIPLE EXTRA PREMIUMS The same allowances as those payable on the basic policy. ON TERM PLANS An 80% increase in rates will apply for term policies that are renewed at very high premium levels (e.g. years 11 and later for the 10-year term plan and years 16 and later for the 15-year term plan).

Percentages. ON BASIC PREMIUM(S) Reinsurance premiums will be based on the following percentages of the Society of Actuaries 1990-1995 ANB table, attached to this Exhibit C-1: FIRST YEAR RENEWAL YEARS --------------------------------- Preferred Non-Smoker 0% 43% xx% Standard Non-Smoker 0% 61% yy% Standard Smoker 0% 125% zz% Aggregate Non-Smoker 0% 58% (For use where no Preferred class, e.g. ages 81-90) For policies/riders with intended durations of less than 10 years, the following level YRT rates will apply. FIRST YEAR RENEWAL YEARS Preferred Non-Smoker 41% 41% Standard Non-Smoker 58% 58% Standard Smoker 120% 120% Aggregate Non-Smoker 55% 55% ww% (For use where no Preferred class, e.g. ages 81-90) ON LAST SURVIVOR POLICIES To calculate premium rates for last survivor policies, first determine the appropriate single life rate for each Insured Individual. If the first year percentage, as stated in 4. of this Exhibit, is 0% use the 2nd year percentage for the first year. Then combine the rates using the Frasiar calculation. If the first year percentage, as stated in 4. of this Exhibit, for each individual is 0%, then multiply the resulting frasiarized rate by 0. A minimum rate of $.11 per $1,000 of Net Amount at risk shall apply in renewal years. ON TABLE EXTRA SUBSTANDARD RISKS Substandard table extra will be reinsured using 25% per table rating multiplied by the appropriate YRT rate. Substandard extras will be based upon the underwriter's assessment regardless of how the policy is issued. Substandard table ratings for a reinsured policy are applicable for the first 20 years after issue or until the policyholder reaches attained age 65, whichever occurs last. EXHIBIT C-1 ON FLAT EXTRA PREMIUMS When a flat extra premium is payable for 5 years or less, an allowance of 10% of the gross flat extra charged by the Company will be made each year. When a flat extra premium is payable for more than 5 years, an allowance of 100% of the gross flat extra charged by the Company will be made in the first year and an allowance of 10% in each year thereafter. ON MULTIPLE EXTRA PREMIUMS The same allowances as those payable on the basic policy. ON TERM PLANS An 80% increase in rates will apply for term policies that are renewed at very high premium levels (e.g. years 11 and later for the 10-year term plan and years 16 and later for the 15-year term plan).