Exhibit (g)(11)
AUTOMATIC AND FACULTATIVE
REINSURANCE AGREEMENT
YEARLY RENEWABLE TERM
EFFECTIVE November 15, 2000
Between
IDS LIFE INSURANCE COMPANY OF NEW YORK
("CEDING COMPANY")
Albany, New York
And
[NAME OF REINSURANCE COMPANY]
("REINSURER")
[city and state of reinsurance company]
AUTOMATIC AND FACULTATIVE REINSURANCE AGREEMENT
Table of Contents
1. PARTIES TO AGREEMENT..................................................1
2. REINSURANCE BASIS.....................................................1
3. AUTOMATIC REINSURANCE TERMS...........................................1
a. CONVENTIONAL UNDERWRITING.....................................1
b. RETENTION.....................................................2
c. AUTOMATIC ACCEPTANCE LIMITS...................................2
d. AUTOMATIC IN FORCE AND APPLIED FOR LIMIT......................2
e. RESIDENCE.....................................................2
f. MINIMUM CESSION...............................................2
g. AUTOMATIC REINSURANCE FOR FACULTATIVE RISKS...................2
4. AUTOMATIC REINSURANCE NOTICE PROCEDURE................................2
5. FACULTATIVE REINSURANCE...............................................3
6. COMMENCEMENT OF REINSURANCE COVERAGE..................................3
a. AUTOMATIC REINSURANCE.........................................3
b. FACULTATIVE REINSURANCE.......................................3
c. PRE-ISSUE COVERAGE............................................4
7. REINSURANCE RISK AMOUNT AND REINSURANCE PREMIUM RATES.................4
a. REINSURANCE RISK AMOUNT.......................................4
b. REINSURANCE PREMIUMS..........................................5
c. TABLE RATED SUBSTANDARD PREMIUMS..............................5
d. FLAT EXTRA PREMIUMS...........................................5
e. RATES NOT GUARANTEED..........................................5
8. CASH VALUES OR LOANS..................................................5
9. PAYMENT OF REINSURANCE PREMIUMS.......................................6
a. PREMIUM DUE...................................................6
b. FAILURE TO PAY PREMIUMS.......................................6
c. OVERPAYMENT OF REINSURANCE PREMIUM............................6
d. UNDERPAYMENT OF REINSURANCE PREMIUM...........................6
e. RETURN OF REINSURANCE PREMIUM.................................6
f UNEARNED PREMIUMS.............................................7
10. PREMIUM TAX REIMBURSEMENT.............................................7
11. DAC TAX AGREEMENT.....................................................7
12. REPORTS...............................................................8
i
Listing of Schedules:
SCHEDULE A
1. Plans Reinsured
2. Net Amount At Risk
3. Automatic Shares
4. Automatic Acceptance Limits
5. Automatic In Force And Applied For Limit
6. Facultative Shares
7. Premium Due
8. Recapture Period
SCHEDULE B - REINSURANCE PREMIUMS - YEARLY RENEWABLE TERM BASIS
1. Life Insurance
2. Age Basis
SCHEDULE C - REPORTING INFORMATION
Information on Risks Reinsured
Policy Exhibit Summary
Reserve Credit Summary
Accounting Summary
SCHEDULE D - FACULTATIVE FORMS
Application for Reinsurance
Notification of Reinsurance
EXHIBIT I
Underwriting Guidelines for Internal Replacements to Permanent Insurance
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b. RETENTION.
CEDING COMPANY will retain, and not otherwise reinsure, all amount
equal to its full Automatic Share as shown in Schedule A.
c. AUTOMATIC ACCEPTANCE LIMITS.
On any one life the sum of all amounts inforce and applied for with
CEDING COMPANY, excluding amounts being replaced, shall not exceed
the Automatic Acceptance Limits shown in Schedule A.
d. AUTOMATIC IN FORCE AND APPLIED FOR LIMIT.
On any one life, the total amount of life insurance in force and
applied for with all companies, of which CEDING COMPANY is aware,
cannot exceed the Automatic In Force and Applied For Limit shown in
Schedule A.
e. RESIDENCE.
Each insured must be a resident of the United States or Canada, or an
international client meeting CEDING COMPANY's published guidelines,
at the time of issue.
f. MINIMUM CESSION.
There will be no minimum cession for this Agreement.
g. AUTOMATIC REINSURANCE FOR FACULTATIVE RISKS
For risks that have been facultatively submitted to any reinsurer:
i. If a risk has been submitted facultatively to any reinsurer less
than twenty-four months before the current application, it is
not eligible for automatic reinsurance coverage under this
Agreement.
ii. If the current application has been submitted to any reinsurer
for facultative underwriting, it is not eligible for automatic
reinsurance coverage under this Agreement.
iii. If a risk has been submitted facultatively to any reinsurer more
than twenty-four months before the current application, the risk
will be eligible for automatic reinsurance coverage under this
Agreement, subject to the conditions of this Section 3.
4. AUTOMATIC REINSURANCE NOTICE PROCEDURE.
After the policy has been paid for and delivered, CEDING COMPANY shall
submit all relevant individual policy information, as defined in Schedule
C, in its next statement to REINSURER.
2
c. PRE-ISSUE COVERAGE.
REINSURER will not be liable for benefits paid under CEDING COMPANY's
conditional receipt or temporary insurance agreement unless all the
conditions for automatic reinsurance coverage under Section 3 of this
Agreement are met. REINSURER's liability under CEDING COMPANY's
conditional receipt or temporary insurance agreement is equal to
REINSURER's Automatic Reinsurance Share of the lesser of i. or ii.
below:
i. The Automatic Acceptance Limits, defined in Schedule A,
Paragraph 4.
ii. The amount for which CEDING COMPANY is liable.
The pre-issue liability applies only once on any given life
regardless of how many receipts were issued or initial premiums were
accepted by CEDING COMPANY. After a policy has been issued, no
reinsurance benefits are payable under this pre-issue coverage
provision.
In the event that CEDING COMPANY's rules with respect to cash
handling and the issuance of conditional receipt or temporary
insurance are not followed, REINSURER will participate in the
pre-issue contract liability if the conditions for automatic
reinsurance are met and CEDING COMPANY does not knowingly allow such
rules to be violated or condone such a practice. Such liability shall
be limited to the lesser of i. or ii. above. As in all cases, the
provisions of Section 14 apply to such a claim.
7. REINSURANCE RISK AMOUNT AND REINSURANCE PREMIUM RATES.
a. REINSURANCE RISK AMOUNT.
Reinsurance shall be on a first dollar, quota share basis. The
Reinsurance Risk Amount will be REINSURER's Automatic Reinsurance
Share, or Facultative Reinsurance Share, of the Net Amount at Risk.
REINSURER's share of Net Amount of Risk will be the same as
REINSURER's share of the Specified Amount, as set forth in Schedule
A.
Reinsurance Risk Amount will be calculated on the policy or rider
anniversary, unless there is an increase or decrease in the Specified
Amount during a policy year. If the Specified Amount increases or
decreases during the policy year, the Reinsurance Risk Amount will be
recalculated at the time of the increase or decrease.
In calculating Reinsurance Risk Amount, the Policy Account Value used
in the calculation shall be the Policy Account Value at the policy's
most recent monthly deduction.
3
9. PAYMENT OF REINSURANCE PREMIUMS
a. PREMIUM DUE.
The reinsurance premiums for each reinsurance cession are due as
shown in Schedule A and payable to REINSURER within 30 days after the
end of the month in which they become due. The reinsurance premiums
are determined according to Schedule B. On any payment date, monies
payable between REINSURER and CEDING COMPANY under this Agreement may
be netted to determine the payment due.
b. FAILURE TO PAY PREMIUMS.
If the reinsurance premiums are 60 days past due, for reasons other
than those due to error or omission as defined below in Section 18,
the premiums will be considered in default and REINSURER may
terminate the reinsurance upon 30 days' prior written notice.
REINSURER will have no further liability as of the termination date.
CEDING COMPANY will be liable for the prorated reinsurance premiums
to the termination date. CEDING COMPANY agrees that it will not force
termination under the provisions of this paragraph solely to avoid
the recapture requirements or to transfer the block of business
reinsured to another reinsurer.
c. OVERPAYMENT OF REINSURANCE PREMIUM.
If CEDING COMPANY overpays a reinsurance premium and REINSURER
accepts the overpayment, REINSURER's acceptance will not constitute
nor create a reinsurance liability nor result in any additional
reinsurance. Instead, REINSURER will be liable to CEDING COMPANY for
a credit in the amount of the overpayment, without interest.
d. UNDERPAYMENT OF REINSURANCE PREMIUM.
If CEDING COMPANY fails to make a full premium payment for a policy
or policies reinsured hereunder, due to an error or omission as
defined below in Section 18, the amount of reinsurance coverage
provided by REINSURER shall not be reduced. However, once the
underpayment is discovered, CEDING COMPANY will be required to pay to
REINSURER the difference between the full premium amount and the
amount actually paid, without interest. If payment of the fall
premium is not made within 60 days after the discovery of the
underpayment, the underpayment shall be treated as a failure to pay
premiums and subject to the conditions of Paragraph 9.b., above.
e. RETURN OF REINSURANCE PREMIUM
If CEDING COMPANY returns the policy premiums to the policy owner
rather than pay the policy benefits, REINSURER will refund all of the
reinsurance premiums it received on that policy to CEDING COMPANY,
without interest.
4
e. If REINSURER contests CEDING COMPANY's calculation of the net
consideration, the parties will act in good faith to reach an
agreement as to the correct amount within 30 days of the date
REINSURER submits its alternative calculation. If CEDING COMPANY and
REINSURER reach agreement on the net amount of consideration, each
party will report such amount in their respective tax returns for the
previous calendar year.
Both Parties represent and warrant that they are subject to U.S. taxation
under either Subchapter L of Chapter 1, or Subpart F of Subchapter N of
Chapter 1 of the Internal Revenue Code of 1986, as amended.
12. REPORTS.
The reporting period is monthly. The administrating party is CEDING
COMPANY. For each reporting period, CEDING COMPANY will submit a statement
to REINSURER with information that is substantially similar to the
information displayed in Schedule C. The statement will include
information on the risks reinsured with REINSURER, premiums owed, policy
exhibit activity, and an accounting summary. Within 30 days after the end
of each calendar quarter, CEDING COMPANY will submit a reserve credit
summary similar to that shown in Schedule C.
13. RESERVES FOR REINSURANCE.
Reserves for this YRT Agreement shall be based on 1/2cx using the minimum
valuation mortality table and maximum valuation interest rate. The
statutory reserve basis for the reinsurance will be shown on the reserve
credit summary provided each quarter.
14. CLAIMS.
a. NOTICE OF CLAIM
For all claims, CEDING COMPANY will promptly send a Notice of Claim
to REINSURER. The Notice of Claim will include: the insured's name
and date of birth, the policy number and policy issue date, the
Specified Amount and Reinsured Risk Amount, and the cause and date of
death.
b. REQUEST FOR PAYMENT.
For all claims, CEDING COMPANY will submit to REINSURER a request for
payment of the Reinsurance Risk Amount as follows:
i. For all non-contestable claims and Automatic contestable
claims with a death benefit less than or equal to $200,000,
CEDING COMPANY will send to REINSURER a Proof of Claim which
will include: an itemized statement of the benefits paid by
CEDING COMPANY, copy of proof of payment by CEDING COMPANY,
and insured's death certificate.
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d. ASSIGNMENT OF REINSURANCE CLAIM ADMINISTRATOR:
The role of Reinsurance Claim Administrator will be assigned on the
following alphabetic split of the surname of the insured:
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REINSURANCE CLAIM ADMINISTRATOR SURNAMES
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[name of reinsurance company] A-D
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[name of reinsurance company] E-H
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[name of reinsurance company] I- L
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[name of reinsurance company] M-P
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[name of reinsurance company] Q-Z
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e. AMOUNT AND PAYMENT OF BENEFITS.
The reinsurance benefit will be limited to REINSURER's share of
CEDING COMPANY's contractual liability for the claim. For purposes of
this Paragraph 14, contractual liability shall mean the benefits
payable by CEDING COMPANY pursuant to the terms and conditions of the
reinsured policy. CEDING COMPANY's contractual liability for claims
is binding on REINSURER. The total reinsurance benefit recovered by
CEDING COMPANY from all reinsurers on a policy must not exceed CEDING
COMPANY's total contractual liability on the policy, less CEDING
COMPANY's quota share retention on the policy. If the total amount of
reinsurance exceeds CEDING COMPANY's contractual liability, the quota
share of CEDING COMPANY and each reinsurer shall be reduced
proportionately.
REINSURER shall pay to CEDING COMPANY the Reinsurance Risk Amount
after REINSURER receives the information required in paragraphs
14(a.), and 14(b.). REINSURER also agrees to pay to CEDING COMPANY
its share of any interest paid out to the claimant by CEDING COMPANY.
f. CLAIM EXPENSES.
REINSURER will pay its share of reasonable investigation expenses and
CEDING COMPANY's legal expenses connected with the litigation or
settlement of contractual liability claims unless REINSURER has
released its liability pursuant to Paragraph 14(c.), above. If
REINSURER has released its liability, REINSURER will not participate
in any expenses after the date of release.
Claim expenses do not include routine claim and administration
expenses, including CEDING COMPANY's home office expenses and any
legal expenses other than defense legal expenses incurred by CEDING
COMPANY. Also, expenses incurred in connection with a dispute or
contest arising out of conflicting claims of entitlement to policy
proceeds or benefits that CEDING COMPANY admits are payable are not a
claim expense under this Agreement.
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o The initial Specified Amount was reinsured automatically.
ii. Increases made pursuant to the Automatic Increasing Benefit
Rider will be reinsured automatically so long as the sum of all
increases made under the Automatic Increasing Benefit Rider have
not exceeded the maximum increase amount available under the
Automatic Increasing Benefit Rider.
CEDING COMPANY's share and REINSURER's share of Specified Amount
after an increase will be the same as their respective shares before
the increase, except CEDING COMPANY will not retain an amount more
than the per policy Retention Limit shown in Schedule A.
If an increase in Specified Amount occurs on a date other than the
policy anniversary, a pro-rata reinsurance premium will be paid to
REINSURER. The reinsurance premium rates will be based on the
original issue age, duration since issuance of the original policy
and the most recent underwriting classification.
c. REDUCTION OR TERMINATION.
If life insurance on a reinsured policy is reduced, then the
reinsurance will be reduced proportionately so that each party's
quota share portion remains the same. If life insurance on a
reinsured policy is terminated, then the reinsurance will cease on
the date of such termination. If a decrease in Specified Amount
occurs on a date other than the policy anniversary, a pro-rata
reinsurance premium will be refunded to CEDING COMPANY.
d. INTERNAL REPLACEMENTS.
If a CEDING COMPANY policy reinsured under this Agreement is replaced
with another CEDING COMPANY policy, reinsurance will continue under
this Agreement or under another agreement between CEDING COMPANY and
REINSURER. Reinsurance premium rates for the new policy will be based
on the issue age and duration since issue of the original policy, but
on the underwriting classification of the new policy.
If a CEDING COMPANY policy not reinsured under this Agreement is
replaced with a CEDING COMPANY policy of the plan covered by this
Agreement, other than as the result of a contractual term conversion,
the new policy will be eligible for reinsurance under this Agreement.
A policy issued as a result of a contractual term conversion will be
eligible for reinsurance under this Agreement if the term policy was
applied for on or after the effective date of this Agreement and
conversion occurs within one year of the policy issue date.
Reinsurance may be ceded automatically subject to the conditions
listed in Section 3. or facultatively as provided by Section 5.
Reinsurance premium rates will be based on the issue age, issue date
and underwriting classification of the new policy.
7
following the expiration of the 90-day notice period to
recapture and the policy anniversary date when the required
minimum of years is attained.
iii. If any reinsurance is recaptured, all reinsurance eligible for
recapture under the provisions of this agreement must be
recaptured. On all policies eligible for recapture, reinsurance
will be reduced by the amount necessary to increase the total
insurance retained up to the new retention limits.
iv. If any policy eligible for recapture is also eligible for
recapture from other reinsurers, the reduction in REINSURER's
reinsurance on that policy will be in proportion to the total
amount of reinsurance on the policy with all reinsurers.
18. ERRORS AND OMISSIONS.
Any unintentional or accidental failure of CEDING COMPANY or REINSURER to
comply with the terms of this Agreement which can be shown to be the
result of an oversight, misunderstanding or clerical error, will not be
deemed a breach of this Agreement. Upon discovery, the error will be
corrected so that both parties are restored to the position they would
have occupied had the oversight, misunderstanding or clerical error not
occurred. Should it not be possible to restore both parties to such a
position, CEDING COMPANY and REINSURER shall negotiate in good faith to
equitably apportion any resulting liabilities and expenses.
This provision applies only to oversights, misunderstandings or clerical
errors relating to the administration of reinsurance covered by this
Agreement. This provision does not apply to the administration of the
insurance provided by CEDING COMPANY to its insured or any other errors or
omissions committed by CEDING COMPANY with regard to the policy reinsured
hereunder.
19. INSOLVENCY.
In the event that CEDING COMPANY is deemed insolvent, all reinsurance
claims payable hereunder will be payable by REINSURER directly to CEDING
COMPANY, its liquidator, receiver or statutory successor, without
diminution because of the insolvency of CEDING COMPANY. It is understood,
however, that in the event of such insolvency, the liquidator, receiver or
statutory successor of CEDING COMPANY will give written notice to
REINSURER of the pendency of a claim against REINSURER on a risk reinsured
hereunder within a reasonable time after such claim is filed in the
insolvency proceeding. Such notice will indicate the policy reinsured and
whether the claim could involve a possible liability on the part of
REINSURER.
During the pendency of such claim, REINSURER may investigate such claim
and interpose, at its own expense, in the proceeding where such claim is
to be adjudicated, any defense or
8
d. COSTS.
Each party will pay the fees of its own attorneys, the arbitrator
appointed by that party, and all other expenses connected with the
presentation of its own case. The two parties will share equally in
the cost of the third arbitrator.
The arbitrators shall operate in a fair but cost efficient manner.
For example, the arbitrators are not bound by technical rules of
evidence and may limit the use of depositions and discovery.
21. GOOD FAITH; FINANCIAL SOLVENCY.
CEDING COMPANY agrees that all matters with respect to this Agreement
require its utmost good faith. REINSURER or its representatives have the
right at any reasonable time to inspect CEDING COMPANY's records relating
to this Agreement. Each party represents and warrants to the other party
that it is solvent on a statutory basis in all states in which it does
business or is licensed. Each party agrees to promptly notify the other if
it is subsequently financially impaired. REINSURER has entered into this
Agreement in reliance upon CEDING COMPANY's representations and
warranties.
CEDING COMPANY affirms that it has disclosed and will continue to disclose
to REINSURER all matters material to this Agreement and each reinsurance
cession. Examples of such matters are a change in underwriting or issue
practices or philosophy, a change in underwriting management personnel, or
a change in CEDING COMPANY's ownership or control.
22. TERM OF THIS AGREEMENT.
CEDING COMPANY will maintain and continue the reinsurance provided in this
Agreement as long as the policy to which it relates is in force or has not
been fully recaptured. This Agreement may be terminated, without cause,
for the acceptance of new reinsurance after 90 days' written notice of
termination by either party to the other. REINSURER will continue to
accept reinsurance during this 90-day period. REINSURER's acceptance will
be subject to both the terms of this Agreement and CEDING COMPANY's
payment of applicable reinsurance premiums.
In addition, this Agreement may be terminated immediately for the
acceptance of new reinsurance by either party if one of the parties
materially breaches this Agreement or becomes insolvent.
23. MEDICAL INFORMATION BUREAU.
REINSURER is required to strictly adhere to the Medical Information Bureau
Rules, and CEDING COMPANY agrees to abide by these Rules, as amended from
time to time. CEDING COMPANY will not submit a preliminary notice,
application for reinsurance, or reinsurance cession to REINSURER unless
CEDING COMPANY has an authentic, signed
9
SCHEDULE A
1. PLANS REINSURED:
The policy plans and supplemental benefits automatically and facultatively
reinsured are:
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Plans Plan Codes
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Variable Universal Life III Base Policy UVI001, UVI002, UVI003, UVI004
Automatic Increasing Benefit Rider (AIBR) AIBR02, AIBR03, AIBR04, AIBR05,
AIBR06, AIBR07, AIBR08
Other Insured Rider (OIR) ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇
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2. NET AMOUNT AT RISK:
The net amount at risk on the policies and riders eligible for reinsurance
under this Agreement, is defined below:
Option 1 Base Policy: The Net Amount at Risk is the Death Benefit minus
the Policy Account Value, where Death Benefit is the greater of Specified
Amount or Policy Account Value times tax corridor.
Option 2 Base Policy: The Net Amount at Risk is the Death Benefit minus
the Policy Account Value, where Death Benefit is the greater of Specified
Amount plus Policy Account Value or Policy Account Value times tax
corridor.
Other Insured Rider: The Net Amount at Risk is the Specified Amount of the
Rider.
For purposes of this Agreement, the following will apply:
"Specified Amount" is the amount CEDING COMPANY uses to determine the
death benefit and proceeds payable under the policy upon death prior to
the insured's age 100 anniversary. The initial Specified Amount will be
shown in the Policy Data of the policy.
"Policy Account Value" is the sum of the policy fixed account value and
the variable account value.
Redacted] VUL3NY (11/15/2000) 10/20/2000
SCHEDULE A, CONTINUED
5. AUTOMATIC IN FORCE AND APPLIED FOR LIMIT:
CEDING COMPANY may not cede reinsurance automatically if the sum of all
amounts inforce and applied for on the same life in all companies,
including amounts being replaced, exceed the following limits:
---------------------------------------------------
Issue Ages Limit
---------------------------------------------------
[ages] [dollar amount]
---------------------------------------------------
[ages] [dollar amount]
---------------------------------------------------
In comparing against Automatic Inforce and Applied For Limits:
a. Potential increases in Specified Amount of a reinsured policy
pursuant to the Automatic Increasing Benefit Rider will not be
included as amounts inforce or applied for, so long as the total of
all increases to the Specified Amount of the Policy can not exceed
$750,000.
b. If the risk is insured under, or has applied for, a joint life
policy, the full joint life amount must be included.
6. FACULTATIVE SHARES:
Facultative reinsurance will also be on a first dollar, quota share basis,
with shares assigned on the basis of Specified Amount. Facultative shares
will be determined on a case by case basis, according to CEDING COMPANY's
standard facultative placement procedures. CEDING COMPANY will retain an
agreed upon Facultative Share of the Specified Amount on a particular
policy or rider, up to its per policy Retention Limit of $750,000.
7. PREMIUM DUE:
Reinsurance premiums are due annually in advance. These premiums become
due on the issue date and each subsequent policy anniversary.
8. RECAPTURE PERIOD:
The minimum number of years for a cession to be reinsured before it is
eligible for recapture is 10 years.
Redacted] VUL3NY (11/15/2000) 10/20/2000
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IDS LIFE INSURANCE COMPANY OF NEW YORK
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Basis for VUL III Reinsurance Premiums
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ALB ANNUAL COST OF INSURANCE RATES PER $1000 (BEFORE ALLOWANCES)
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Male Male Male Female Female Female
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Attained Preferred Standard Standard Preferred Standard Standard
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Age Nonsmoker Nonsmoker Smoker Nonsmoker Nonsmoker Smoker
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0
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Redacted] VUL3NY (11/15/2000) 10/20/2000
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IDS LIFE INSURANCE COMPANY OF NEW YORK
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Basis for VUL III Reinsurance Premiums
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ALB ANNUAL COST OF INSURANCE RATES PER $1000 (BEFORE ALLOWANCES)
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Male Male Male Female Female Female
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Attained Preferred Standard Standard Preferred Standard Standard
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Age Nonsmoker Nonsmoker Smoker Nonsmoker Nonsmoker Smoker
--- --------- --------- ------ --------- --------- ------
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Redacted] VUL3NY (11/15/2000) 10/20/2000
SCHEDULE C, CONTINUED
SAMPLE
POLICY EXHIBIT SUMMARY
(LIFE REINSURANCE ONLY)
CEDING COMPANY:
---------------------------------------------------------
REINSURER:
---------------------------------------------------------
ACCOUNT NO:
---------------------------------------------------------
PREPARED BY: Phone: ( )
------------------------------ ------- ---------------
DATE PREPARED:
---------------------------------------------------------
TYPE OF REINSURANCE:
Yearly Renewable Term
--------------------------------
Coinsurance
--------------------------------
Modified Coinsurance
--------------------------------
Other
--------------------------------
VALUATION DATE:
-------------
NUMBER OF AMOUNT OF
POLICIES REINSURANCE
A. In Force Beginning of Period __/__/__
---------------- -------------------
B. New Paid Reinsurance Ceded
---------------- -------------------
C. Reinstatements
---------------- -------------------
D. Revivals
---------------- -------------------
E. Increases (Net)
---------------- -------------------
F. Conversion In
---------------- -------------------
G. Transfers In
---------------- -------------------
H. Total Increases (B - G)
---------------- -------------------
I. Deaths
---------------- -------------------
J. Maturities
---------------- -------------------
K. Cancellations
---------------- -------------------
L. Expiries
---------------- -------------------
M. Surrenders
---------------- -------------------
N. Lapses
---------------- -------------------
O. Recaptures
---------------- -------------------
P. Other Decreases (Net)
---------------- -------------------
Q. Reductions
---------------- -------------------
R. Conversions Out
---------------- -------------------
S. Transfers Out
---------------- -------------------
T. Total Decreases (I - S)
---------------- -------------------
U. Current In Force __/__/__
(A + H - T) ---------------- -------------------
Redacted] VUL3NY (11/15/2000) 10/20/2000
SCHEDULE C, CONTINUED
SAMPLE
ACCOUNTING SUMMARY
CEDING COMPANY:
---------------------------------------------------------
REINSURER:
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ACCOUNT NO:
---------------------------------------------------------
PREPARED BY: Phone: ( )
------------------------------ ------- ---------------
DATE PREPARED:
---------------------------------------------------------
TYPE OF REINSURANCE:
Yearly Renewable Term
--------------------------------
Coinsurance
--------------------------------
Modified Coinsurance
--------------------------------
Other
--------------------------------
VALUATION DATE:
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LIFE WP AD TOTAL
Premiums
First Year
---------- ----------- ----------- -----------
Renewal
---------- ----------- ----------- -----------
Allowances
First Year
---------- ----------- ----------- -----------
Renewal
---------- ----------- ----------- -----------
Adjustments
First Year
---------- ----------- ----------- -----------
Renewal
---------- ----------- ----------- -----------
Net Due REINSURER
First Year
---------- ----------- ----------- -----------
Renewal
---------- ----------- ----------- -----------
TOTAL DUE
---------- ----------- ----------- -----------
(The above information should be a summary of the detail
information provided to REINSURER.)
Redacted] VUL3NY (11/15/2000) 10/20/2000
EXHIBIT I
Underwriting Guidelines for Internal Replacements to Permanent Insurance
EVEN EXCHANGES AND NOT REQUESTING OR NOT ELIGIBLE FOR PREFERRED CLASS
o No underwriting
EVEN EXCHANGES WITH REQUEST FOR PREFERRED RATES
Within three years (use last date underwritten):
o Application
Three to ten years:
o Application
o MIG (if necessary for new age and full amount of new policy)
o Blood, urine and physical measures
More than ten years:
o Full underwriting for new age and full amount of new policy
Exchanges with Increases
o If the original policy was underwritten non-medically, full underwriting
for new age and full amount of new policy is required
INCREASE OF $25,000 OR LESS:
o Follow guidelines for even exchanges with request for preferred rates
o Exception: Three to ten years - blood, urine and physical measures are
required only if necessary for new age and full amount of new policy
INCREASES GREATER THAN $25,000:
Within three years (use last date underwritten):
o Application
o Full underwriting for new age and AMOUNT OF INCREASE
Three to ten years:
o Application
o MIG, blood, urine and physical measures (if necessary for new age and full
amount of new policy)
o Full underwriting for new age and AMOUNT OF INCREASE
More than ten years:
o Full underwriting for new age and FULL AMOUNT OF NEW POLICY
Redacted] VUL3NY (11/15/2000) 10/20/2000