Amendment #1
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
MUNICH AMERICAN REASSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
1. SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following:
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share of
the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 17.78% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 22.22% times 50% of the
policy risk amount. M Life Insurance Company's retention limit is $1 million per life. The
portion reinsured with THE REINSURER under this Agreement (17.78% or 22.22%) is known as the YRT
Percentage.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to 62.22%
times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance Company
has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 77.78% times 50% of the policy risk amount.
The total policy risk amount to be reinsured through this Agreement and all Other YRT Agreements
will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A, Section 5.
Example 1 - (M Life has full capacity of $1 million available) - If the policy risk amount
is $10 million, the M Life Insurance Company will retain $1 million (i.e., 10% times $10
million) under the Modco Agreement and THE REINSURER will reinsure $ 889,000 (i.e., 17.78%
times 50% times $10 million) under this Agreement.
Example 2 - (M Life has capacity of $200,000 available) - If the policy risk amount is $10
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $1,066,600 (i.e.,
17.78% times 50% of the first $2 million plus 22.22% times 50% of the policy risk amount in
excess of $2 million) under this Agreement.
Example 3 - (M Life has no capacity) - If the policy risk amount is $10 million, THE
REINSURER will reinsure $ 1,111,000 (i.e., 22.22% times 50% of the policy risk amount)
under this Agreement.
2. SCHEDULE B, Section 6, NET AMOUNT AT RISK, shall be replaced by the following:
The policy net amount at risk is equal to the excess of the death benefit over the contract
fund. The portion of the net amount at risk reinsured under this Agreement is equal to the
product of the YRT Percentage times 50% of the policy net amount at risk.
Changes in the net amount at risk can result from increases, as well as decreases in the face
amount. These changes can also result from changes in the contract fund, i.e., changes due to
unit value fluctuations, the assessment of contract fees and charges, the crediting of interest
and the addition or withdrawal of funds. Changes in the net amount at risk can also result
from changes in the death benefit needed to meet the definition of life insurance once a policy
enters the "corridor."
Changes in the reinsured portion of the net amount at risk will depend on whether the retention
limit of M Life Insurance Company has been reached. These changes will operate as follows:
a. Increase in Policy Net Amount at Risk - (Assumes M Life Insurance Company has
capacity to retain its 10% share up to its retention limit) - An amount equal to
the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at
risk
will be reinsured under this Agreement. In addition, an amount equal to X% times
50%
of the new policy net amount at risk will be reinsured under one or more
Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as follows:
1. For the portion of the policy whereby M Life Insurance Company can retain its 10% share up to
its retention limit, X% is equal to 80% minus the YRT Percentage.
2. For the portion of the policy whereby M Life Insurance Company has exceeded its retention
limit, X% is equal to 100% minus the YRT Percentage.
Example 1 - The policy amount is $1 million, the contract fund is $400,000 and
the net amount at risk is $600,000. With respect to 50% of the policy risk
amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$53,340 i.e., ($600,000 x 17.78% x 50%) is reinsured under this Agreement, and
$186,660 i.e., ($600,000 x (80% - 17.78%) x 50%) is reinsured under one or
more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $60,000 is retained by THE COMPANY
and $240,000 is ceded to the THIRD-PARTY REINSURERS.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $2 million, the net amount at
risk is increased to $1.6 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $160,000 is reinsured with
M Life Insurance Company under the Modco Agreement as described in the
Preamble, $142,240 i.e., ($1.6 million x 17.78% x 50%) is reinsured under this
Agreement, and $497,760 i.e., ($1.6 million x (80% - 17.78%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $160,000 is
retained by THE COMPANY and $640,000 is ceded to the THIRD-PARTY REINSURERS.
Example 2 - The policy amount is $35 million, the contract fund is $5 million
and the net amount at risk is $30 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$3,111,000 i.e., [($10 million x 17.78% x 50%) + ($20 million x 22.22% x
50%)] is reinsured under this Agreement, and $10,889,000 i.e., [($10 million x
(80% - 17.78%) x 50%) + ($20 million x (100% - 22.22%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $3,000,000 is retained
by THE COMPANY and $12,000,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is increased to $40 million, the net amount at risk is
increased to $35 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$3,666,500 i.e., [($10 million x 17.78% x 50%) + ($25 million x 22.22% x
50%)] is reinsured under this Agreement, and $12,833,500 i.e., [($10 million
x (80% - 17.78%) x 50%) + ($25 million x (100% - 22.22%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $3,500,000 is retained
by THE COMPANY and $14,000,000 is ceded to the THIRD-PARTY REINSURERS.
Example 3 - The policy amount is $10.5 million, the contract fund is
$500,000 and the net amount at risk is $10 million. With respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $ 889,000 i.e., ($10 million x 17.78%) x 50%) is reinsured under
this Agreement, and $ 3,111,000 i.e., ($10 million x (80% - 17.78%) x 50%)
is reinsured under one or more Other YRT Agreements with THIRD-PARTY
REINSURERS. With respect to the remaining 50% of the policy risk amount, $1
million is retained by THE COMPANY and $4 million is ceded to the THIRD-PARTY
REINSURERS.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $11 million, the net amount at
risk is increased to $10.5 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $944,550 i.e., [($10 million x 17.78% x 50%) + ($500,000 x 22.22%
x 50%)] is reinsured under this Agreement, and $3,305,450 i.e., [($10
million x (80% - 17.78%) x 50%) + ($500,000 x (100% - 22.22%) x 50%)] is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $1,050,000 is
retained by THE COMPANY and $4,200,000 is ceded to the THIRD-PARTY REINSURERS.
b. Decrease in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as defined in Section 6a
above.
Example 4 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $160,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$142,240 i.e., ($1.6 million x 17.78% x 50%) is reinsured under this
Agreement, and $497,760 i.e., ($1.6 million x (80% - 17.78%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $160,000 is
retained by THE COMPANY and $640,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is decreased to $1 million, the net amount at risk is
decreased to $600,000. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement, as described in the Preamble,
$53.340 i.e., ($600,000 x 17.78% x 50%) is reinsured under this Agreement,
and $186,660 i.e., ($600,000 x (80% - 17.78%) x 50%) is reinsured under one
or more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $60,000 is retained by THE COMPANY
and $240,000 is ceded to the THIRD-PARTY REINSURERS.
Example 5 - The policy amount is $40 million, the contract fund is $5 million
and the net amount at risk is $35 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M
Life Insurance Company under the Modco Agreement as described in the Preamble,
$3,666,500 i.e., [($10 million x 17.78% x 50%) + ($25 million x 22.22% x
50%)] is reinsured under this Agreement, and $12,833,500 i.e., [($10 million
x (80% - 17.78%) x 50%) + ($25 million x (100% - 22.22%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $3,500,000 is retained
by THE COMPANY and $14,000,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is decreased to $35 million, the net amount at risk is
decreased to $30 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$3,111,000 i.e., [($10 million x 17.78% x 50%) + ($20 million x 22.22% x
50%)] is reinsured under this Agreement, and $10,889,000 i.e., [($10 million
x (80% - 17.78%) x 50%) + ($20 million x (100% - 22.22%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $3,000,000 is retained
by THE COMPANY and $12,000,000 is ceded to the THIRD-PARTY REINSURERS.
Example 6 - The policy amount is $11 million, the contract fund is $500,000
and the net amount at risk is $10.5 million. With respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $944,550 i.e., [($10
million x 17.78% x 50%) + ($500,000 x 22.22% x 50%)] is reinsured under this
Agreement, and $3,305,450 i.e., [($10 million x (80% - 17.78%) x 50%) +
($500,000 x (100% - 22.22%) x 50%)] is reinsured under one or more Other
YRT Agreements with THIRD-PARTY REINSURERS. With respect to the remaining 50%
of the policy risk amount, $1,050,000 is retained by THE COMPANY and
$4,200,000 is ceded to the THIRD-PARTY REINSURERS.
If the face amount is decreased to $10.5 million, the net amount at risk is
decreased to $10 million. In this instance, with respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $889,000 i.e., ($10
million x 17.78% x 50%) is reinsured under this Agreement, and $3,111,000
i.e., ($10 million x (80% - 17.78%)x 50%) is reinsured under one or more
Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $1 million is retained by THE
COMPANY and $4 million is ceded to the THIRD-PARTY REINSURERS.
c. Termination of a non-MPVUL Policy which Results in Additional Capacity at M Life Insurance
Company - The portion of the policy net amount at risk reinsured under this Agreement
will be decreased by the amount of additional capacity at the M Life Insurance Company
made available by the termination of the non-MPVUL policy.
Example 7 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount, $0 is reinsured with M Life Insurance Company under the Modco
Agreement as described in the Preamble (because the M Life Insurance Company
retention limit was reached entirely as a result of a non-MPVUL policy),
$177,760 i.e., i.e., ($1.6 million x 22.22% x 50%) is reinsured under this
Agreement, and $622,240 i.e., ($1.6 million x (100% - 22.22%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $160,000 is
retained by THE COMPANY and $640,000 is ceded to the THIRD-PARTY REINSURERS.
If the non-MPVUL policy is terminated, thereby making available an additional
10% capacity at the M Life Insurance Company, then that capacity will be
utilized for the $2 million MPVUL policy. In that instance, the policy amount
is $2 million, the contract fund is $400,000 and the net amount at risk is
$1.6 million. With respect to 50% of the policy risk amount $160,000 is
reinsured with the M Life Insurance Company under the Modco Agreement as
described in the Preamble, $142,240 i.e., ($1.6 million x 17.78% x 50%) is
reinsured under this Agreement and $497,760 i.e., ($1.6 million x (80% -
17.78%) x 50%) is reinsured under one or more Other YRT Agreements with
THIRD-PARTY REINSURERS. With respect to the remaining 50% of the policy risk
amount, $160,000 is retained by THE COMPANY and $640,000 is ceded to the
THIRD-PARTY REINSURERS.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of
January 1, 2006 .
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY MUNICH AMERICAN
REASSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
Amendment #2
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
MUNICH AMERICAN REASSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
3. SCHEDULE A, Section 2, AUTOMATIC PORTION REINSURED, shall be replaced by the following:
The portion reinsured with THE REINSURER under this Agreement is known as the YRT Percentage.
The YRT Percentage varies depending on the effective date of the policy as described in the
remainder of this section.
For Policies With Effective Dates Prior to January 19, 2005
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share of
the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 17.78% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 22.22% times 50% of the
policy risk amount. For policies effective prior to January 1, 2006, M Life Insurance Company's
retention limit is $400,000 per life. For policies effective prior to January 19, 2005, the YRT
Percentage refers to 17.78% or 22.22%.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to 62.22%
times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance Company
has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 77.78% times 50% of the policy risk amount.
The total policy risk amount to be reinsured through this Agreement and all Other YRT Agreements
will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A, Section 5.
Example 1 - (M Life has full capacity of $400,000 available) - If the policy risk amount is
$4 million, the M Life Insurance Company will retain $400,000 (i.e., 10% times $4 million)
under the Modco Agreement and THE REINSURER will reinsure $ 355,600 (i.e., 17.78% times
50% times $4 million) under this Agreement.
Example 2 - (M Life has capacity of $200,000 available) - If the policy risk amount is $4
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $400,000 (i.e., 17.78%
times 50% of the first $2 million plus 22.22% times 50% of the policy risk amount in excess
of $2 million) under this Agreement.
Example 3 - (M Life has no capacity) - If the policy risk amount is $4 million, THE
REINSURER will reinsure $ 444,400 (i.e., 22.22% times 50% of the policy risk amount) under
this Agreement.
For Policies With Effective Dates Between January 19, 2005 and September 27, 2006
US/Canadian Residents
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share
of the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 20.00% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 25.00% times 50% of the
policy risk amount. For policies effective prior to January 1, 2006, M Life Insurance
Company's retention limit is $400,000 per life. For policies effective January 1, 2006 or
later, M Life Insurance Company's retention limit is $1 million per life. For policies
effective on or after January 19, 2005 and prior to September 28, 2006, the YRT Percentage
refers to 20.00% or 25.00%.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to
60.00% times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance
Company has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 75.00% times 50% of the policy risk
amount. The total policy risk amount to be reinsured through this Agreement and all Other YRT
Agreements will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A,
Section 5.
Example 4 - (M Life has full capacity of $1 million available) - If the policy risk amount
is $10 million, the M Life Insurance Company will retain $1 million (i.e., 10% times $10
million) under the Modco Agreement and THE REINSURER will reinsure $ 1,000,000 (i.e.,
20.00% times 50% times $10 million) under this Agreement.
Example 5 - (M Life has capacity of $200,000 available) - If the policy risk amount is $10
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $1,200,000 (i.e.,
20.00% times 50% of the first $2 million plus 25.00% times 50% of the policy risk amount in
excess of $2 million) under this Agreement.
Example 6 - (M Life has no capacity) - If the policy risk amount is $10 million, THE
REINSURER will reinsure $ 1,250,000 (i.e., 25.00% times 50% of the policy risk amount)
under this Agreement.
Non US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement an amount equal to 40.00% times
50% of the policy risk amount regardless of M Life Insurance Company's capacity.
For Policies With Effective Dates of September 28, 2006 or Later
US/Canadian Residents
For policy risk amounts where the M Life Insurance Company has capacity to retain a 10% share
of the mortality risk under the Modco Agreement described in the Preamble, THE REINSURER will
automatically reinsure under this Agreement an amount equal to 22.86% times 50% of the policy
risk amount. Once the M Life Insurance Company has reached its retention limit, THE REINSURER
will automatically reinsure under this Agreement an amount equal to 28.58% times 50% of the
policy risk amount. For policies effective January 1, 2006 or later, M Life Insurance
Company's retention limit is $1 million per life. For policies effective on or after September
28, 2006, the YRT Percentage refers to 22.86% or 28.58%.
For policy risk amounts where the M Life Insurance Company has capacity, THE COMPANY will also
reinsure under one or more Other YRT Agreements with THIRD-PARTY REINSURERS amounts up to
57.14% times 50% of the policy risk amount. For policy risk amounts where the M Life Insurance
Company has exceeded its retention limit, THE COMPANY will reinsure under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS amounts up to 71.42% times 50% of the policy risk
amount. The total policy risk amount to be reinsured through this Agreement and all Other YRT
Agreements will not exceed 50% of the First Layer of Coverage amounts shown in Schedule A,
Section 5.
Example 7 - (M Life has full capacity of $1 million available) - If the policy risk amount
is $10 million, the M Life Insurance Company will retain $1 million (i.e., 10% times $10
million) under the Modco Agreement and THE REINSURER will reinsure $ 1,143,000 (i.e.,
22.86% times 50% times $10 million) under this Agreement.
Example 8 - (M Life has capacity of $200,000 available) - If the policy risk amount is $10
million, the M Life Insurance Company will retain $200,000 (i.e., 10% of the first $2
million) under the Modco Agreement and THE REINSURER will reinsure $1,371,800 (i.e.,
22.86% times 50% of the first $2 million plus 28.58% times 50% of the policy risk amount in
excess of $2 million) under this Agreement.
Example 9 - (M Life has no capacity) - If the policy risk amount is $10 million, THE
REINSURER will reinsure $ 1,429,000 (i.e., 28.58% times 50% of the policy risk amount)
under this Agreement.
Non US/Canadian Residents
THE REINSURER will automatically reinsure under this Agreement an amount equal to 40.00% times
50% of the policy risk amount regardless of M Life Insurance Company's capacity.
4. SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the
Automatic Issue Limits shown in the following tables:
US/Canadian Residents - No Foreign Travel - Non-Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $60,000,000 $55,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $49,000,000 $44,000,000 $35,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $26,500,000 $23,500,000 $16,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $22,000,000 $19,000,000 $11,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $13,500,000 $11,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $5,350,000 $4,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - No Foreign Travel - Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $50,000,000 $50,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $40,000,000 $40,000,000 $34,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $23,500,000 $23,500,000 $15,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $19,000,000 $19,000,000 $10,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $11,500,000 $10,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $4,350,000 $3,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 6,666,000 $ 5,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 5,000,000 $ 3,333,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance
are the First Layer of Coverage amounts shown in the following tables:
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $50,000,000 $35,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $40,000,000 $25,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $35,000,000 $15,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $15,000,000 $10,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $10,000,000 $ 5,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 5,000,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 1,500,000 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 6,666,000 $ 5,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 5,000,000 $ 3,333,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE
REINSURER on that life under this Agreement will not exceed the amounts in the following tables:
For Policies With Effective Dates Prior to January 19, 2005
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $5,555,000 $3,888,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $4,444,000 $2,777,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $3,888,500 $1,666,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $1,666,500 $1,111,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,111,000 $ 555,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 555,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 166,650 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $740,593 $555,500 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $555,500 $370,296 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,222,000 $ 1,666,500 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $1,666,500 $ 1,111,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
For Policies With Effective Dates Between January 19, 2005 and September 27, 2006
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $6,250,000 $4,375,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $5,000,000 $3,125,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $4,375,000 $1,875,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $1,875,000 $1,250,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,250,000 $ 625,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 625,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 187,500 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $833,250 $625,000 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $625,000 $416,625 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,500,000 $1,875,000 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $1,875,000 $1,250,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
For Policies With Effective Dates of September 28, 2006 or Later
US/Canadian Residents - No Foreign Travel
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $7,145,000 $5,001,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $5,716,000 $3,572,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $5,001,500 $2,143,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $2,143,500 $1,429,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,429,000 $ 714,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 714,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 214,350 None
=========== =============== ========================= =============================
US/Canadian Residents - Foreign Travel
===================== ===================== ================== ====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
Ages: 18 - 70 $952,571 $714,500 None
--------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
71 - 75 $714,500 $476,286 None
----------- --------- --------------------- ------------------ --------------------
----------- --------- --------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================== ====================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,858,000 $2,143,500 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $2,143,500 $1,429,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
5. SCHEDULE B, Section 6, NET AMOUNT AT RISK, shall be replaced by the following:
The policy net amount at risk is equal to the excess of the death benefit over the contract
fund. The portion of the net amount at risk reinsured under this Agreement is equal to the
product of the YRT Percentage times 50% of the policy net amount at risk.
Changes in the net amount at risk can result from increases as well as decreases in the face
amount. These changes can also result from changes in the contract fund, i.e., changes due to
unit value fluctuations, the assessment of contract fees and charges, the crediting of interest
and the addition or withdrawal of funds. Changes in the net amount at risk can also result
from changes in the death benefit needed to meet the definition of life insurance once a policy
enters the "corridor."
Changes in the reinsured portion of the net amount at risk will depend on whether the retention
limit of M Life Insurance Company has been reached. These changes will operate as follows:
All examples in this section assume US/Canadian residents and policy effective dates on or
after September 28, 2006. For policies covering US/Canadian residents with policy effective
dates prior to September 28, 2006 and policies covering non US/Canadian residents, the
calculation would be the same except that the YRT Percentage and M Life Insurance Company's
retention limit may be different.
b. Increase in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as follows:
1. For the portion of the policy whereby M Life Insurance Company can retain its 10% share up to
its retention limit, X% is equal to 80% minus the YRT Percentage.
2. For the portion of the policy whereby M Life Insurance Company has exceeded its retention
limit, X% is equal to 100% minus the YRT Percentage.
Example 1 - The policy amount is $1 million, the contract fund is $400,000 and
the net amount at risk is $600,000. With respect to 50% of the policy risk
amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$68,580 (i.e., $600,000 x 22.86% x 50%) is reinsured under this Agreement, and
$171,420 (i.e., $600,000 x (80% - 22.86%) x 50%) is reinsured under one or
more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $180,000 is retained by THE COMPANY
and $120,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $2 million, the net amount at
risk is increased to $1.6 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $160,000 is reinsured with
M Life Insurance Company under the Modco Agreement as described in the
Preamble, $182,880 (i.e., $1.6 million x 22.86% x 50%) is reinsured under this
Agreement, and $457,120 (i.e., $1.6 million x (80% - 22.86%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $480,000 is
retained by THE COMPANY and $320,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
Example 2 - The policy amount is $35 million, the contract fund is $5 million
and the net amount at risk is $30 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$4,001,000 [i.e., ($10 million x 22.86% x 50%) + ($20 million x 28.58% x
50%)] is reinsured under this Agreement, and $9,999,000 [i.e., ($10 million x
(80% - 22.86%) x 50%) + ($20 million x (100% - 28.58%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $9,000,000 is retained
by THE COMPANY and $6,000,000 is ceded to the THIRD-PARTY REINSURERS under
other reinsurance agreements.
If the face amount is increased to $40 million, the net amount at risk is
increased to $35 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$4,715,500 [i.e., ($10 million x 22.86% x 50%) + ($25 million x 28.58% x
50%)] is reinsured under this Agreement, and $11,784,500 [i.e., ($10 million
x (80% - 22.86%) x 50%) + ($25 million x (100% - 28.58%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $10,500,000 is
retained by THE COMPANY and $7,000,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
Example 3 - The policy amount is $10.5 million, the contract fund is
$500,000 and the net amount at risk is $10 million. With respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $1,143,000 (i.e., $10 million x 22.86%) x 50%) is reinsured under
this Agreement, and $ 2,857,000 (i.e., $10 million x (80% - 22.86%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $3 million is
retained by THE COMPANY and $2 million is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
There is no other insurance retained by M Life Insurance Company on the same
insured. If the face amount is increased to $11 million, the net amount at
risk is increased to $10.5 million. In this instance, with respect to 50% of
the policy risk amount addressed by this Agreement, $1 million is reinsured
with M Life Insurance Company under the Modco Agreement as described in the
Preamble, $1,214,450 [i.e., ($10 million x 22.86% x 50%) + ($500,000 x
28.58% x 50%)] is reinsured under this Agreement, and $3,035,550 [i.e.,
($10 million x (80% - 22.86%) x 50%) + ($500,000 x (100% - 28.58%) x 50%)]
is reinsured under one or more Other YRT Agreements with THIRD-PARTY
REINSURERS. With respect to the remaining 50% of the policy risk amount,
$3,150,000 is retained by THE COMPANY and $2,100,000 is ceded to the
THIRD-PARTY REINSURERS under other reinsurance agreements.
c. Decrease in Policy Net Amount at Risk - (Assumes M Life Insurance Company has capacity to
retain its 10% share up to its retention limit) - An amount equal to the YRT
Percentage, as defined in Schedule A, times 50% of the new policy net amount at risk
will be reinsured under this Agreement. In addition, an amount equal to X% times 50%
of the new policy net amount at risk will be reinsured under one or more Other YRT
Agreements with THIRD-PARTY REINSURERS, where X is derived as defined in Section 6a
above.
Example 4 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $160,000 is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$182,880 (i.e., $1.6 million x 22.86% x 50%) is reinsured under this
Agreement, and $457,120 (i.e., $1.6 million x (80% - 22.86%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $480,000 is
retained by THE COMPANY and $320,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
If the face amount is decreased to $1 million, the net amount at risk is
decreased to $600,000. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $60,000 is reinsured with M Life
Insurance Company under the Modco Agreement, as described in the Preamble,
$68,580 (i.e., $600,000 x 22.86% x 50%) is reinsured under this Agreement,
and $171,420 (i.e., $600,000 x (80% - 22.86%) x 50%) is reinsured under one
or more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $180,000 is retained by THE COMPANY
and $120,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
Example 5 - The policy amount is $40 million, the contract fund is $5 million
and the net amount at risk is $35 million. With respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M
Life Insurance Company under the Modco Agreement as described in the Preamble,
$4,715,500 [i.e., ($10 million x 22.86% x 50%) + ($25 million x 28.58% x
50%)] is reinsured under this Agreement, and $11,784,500 [i.e., ($10 million
x (80% - 22.86%) x 50%) + ($25 million x (100% - 28.58%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $10,500,000 is
retained by THE COMPANY and $7,000,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
If the face amount is decreased to $35 million, the net amount at risk is
decreased to $30 million. In this instance, with respect to 50% of the policy
risk amount addressed by this Agreement, $1 million is reinsured with M Life
Insurance Company under the Modco Agreement as described in the Preamble,
$4,001,000 [i.e., ($10 million x 22.86% x 50%) + ($20 million x 28.58% x
50%)] is reinsured under this Agreement, and $9,999,000 [i.e., ($10 million
x (80% - 22.86%) x 50%) + ($20 million x (100% - 28.58%) x 50%)] is reinsured
under one or more Other YRT Agreements with THIRD-PARTY REINSURERS. With
respect to the remaining 50% of the policy risk amount, $9,000,000 is retained
by THE COMPANY and $6,000,000 is ceded to the THIRD-PARTY REINSURERS under
other reinsurance agreements.
Example 6 - The policy amount is $11 million, the contract fund is $500,000
and the net amount at risk is $10.5 million. With respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $1,214,450 [i.e.,
($10 million x 22.86% x 50%) + ($500,000 x 28.58% x 50%)] is reinsured under
this Agreement, and $3,035,550 [i.e., ($10 million x (80% - 22.86%) x 50%) +
($500,000 x (100% - 28.58%) x 50%)] is reinsured under one or more Other
YRT Agreements with THIRD-PARTY REINSURERS. With respect to the remaining 50%
of the policy risk amount, $3,150,000 is retained by THE COMPANY and
$2,100,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
If the face amount is decreased to $10.5 million, the net amount at risk is
decreased to $10 million. In this instance, with respect to 50% of the
policy risk amount, $1 million is reinsured with M Life Insurance Company
under the Modco Agreement as described in the Preamble, $1,143,000 (i.e., $10
million x 22.86% x 50%) is reinsured under this Agreement, and $2,857,000
(i.e., $10 million x (80% - 22.86%)x 50%) is reinsured under one or more
Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $3 million is retained by THE
COMPANY and $2 million is ceded to the THIRD-PARTY REINSURERS under other
reinsurance agreements.
d. Termination of a non-MPVUL Policy which Results in Additional Capacity at M Life Insurance
Company - The portion of the policy net amount at risk reinsured under this Agreement
will be decreased by the amount of additional capacity at the M Life Insurance Company
made available by the termination of the non-MPVUL policy.
Example 7 - The policy amount is $2 million, the contract fund is $400,000 and
the net amount at risk is $1.6 million. With respect to 50% of the policy
risk amount, $0 is reinsured with M Life Insurance Company under the Modco
Agreement as described in the Preamble (because the M Life Insurance Company
retention limit was reached entirely as a result of a non-MPVUL policy),
$228,640 (i.e., $1.6 million x 28.58% x 50%) is reinsured under this
Agreement, and $571,360 (i.e., $1.6 million x (100% - 28.58%) x 50%) is
reinsured under one or more Other YRT Agreements with THIRD-PARTY REINSURERS.
With respect to the remaining 50% of the policy risk amount, $480,000 is
retained by THE COMPANY and $320,000 is ceded to the THIRD-PARTY REINSURERS
under other reinsurance agreements.
If the non-MPVUL policy is terminated, thereby making available an additional
10% capacity at the M Life Insurance Company, then that capacity will be
utilized for the $2 million MPVUL policy. In that instance, with respect to
50% of the policy risk amount, $160,000 is reinsured with the M Life Insurance
Company under the Modco Agreement as described in the Preamble, $182,880
(i.e., $1.6 million x 22.86% x 50%) is reinsured under this Agreement and
$457,120 (i.e., $1.6 million x (80% - 22.86%) x 50%) is reinsured under one or
more Other YRT Agreements with THIRD-PARTY REINSURERS. With respect to the
remaining 50% of the policy risk amount, $480,000 is retained by THE COMPANY
and $320,000 is ceded to the THIRD-PARTY REINSURERS under other reinsurance
agreements.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of
January 19, 2005.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY MUNICH AMERICAN REASSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
Amendment #3
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
MUNICH AMERICAN REASSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
6. Section 7, AUTOMATIC REINSURANCE TERMS, shall be replaced by the following:
THE REINSURER agrees to automatically accept contractual risks on the life insurance policies shown
in Schedule A, subject to the following requirements:
a. CONVENTIONAL UNDERWRITING. Automatic reinsurance applies only to insurance applications fully
underwritten by THE COMPANY according to THE COMPANY's conventional underwriting and issue
rules and practices. Upon request, THE COMPANY shall provide THE REINSURER with a copy of its
current underwriting and issue rules and practices.
From time to time, it may be appropriate for THE COMPANY or THE REINSURER to request of the
other party changes in the underwriting rules and practices. The party requesting the change
must provide a 120-day advance written notice to the other party before the effective date of
such change. Recognition of reinsurance premium rates related to these changes must be
determined within the 120-day period. If the underwriting change or rate change is
unacceptable to either party, this Agreement may be unilaterally terminated for acceptance of
new business with a 90-day written termination notice to the other party.
b. RESIDENCE AND TRAVEL. To be eligible for automatic reinsurance, each insured must either be a
resident of the United States or Canada at the time of issue or be a resident of another
country that meets THE COMPANY's special underwriting requirements pertaining to foreign
residence.
Applications with Foreign Travel qualify for automatic reinsurance except when such travel is
to a country specifically not allowed under THE COMPANY's foreign travel requirements.
"Foreign Travel" is defined as no more than three months outside the United States or Canada.
c. OCCUPATION. To be eligible for automatic reinsurance, the insured must not be employed in an
occupation as shown in the Occupation Exclusion List in Schedule A.
f. AUTOMATIC ACCEPTANCE LIMIT. For any policy to be reinsured under automatic reinsurance, the
face amount shall not exceed the Automatic Acceptance Limit as shown in Schedule A.
g. JUMBO LIMIT. For any policy to be reinsured under automatic reinsurance, the total amount of
insurance in force and applied for in all companies shall not exceed the Jumbo Limit as shown
in Schedule A.
h. MINIMUM CESSION. The minimum amount of reinsurance per cession that THE REINSURER will accept
is shown in Schedule A.
i. FACULTATIVE QUOTES. The risk shall not have been submitted on a facultative basis to THE
REINSURER or any other reinsurer.
7. SCHEDULE A, Section 5, AUTOMATIC ACCEPTANCE LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the face amount will not exceed the
Automatic Issue Limits shown in the following tables:
US/Canadian Residents - Non-Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $60,000,000 $55,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $49,000,000 $44,000,000 $35,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $26,500,000 $23,500,000 $16,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $22,000,000 $19,000,000 $11,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $13,500,000 $11,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $5,350,000 $4,350,000 None
=========== =============== ========================= ============================= ============================
US/Canadian Residents - Smoker
=========================== ========================= ============================= ============================
Issue Age of Insured No Substandard Rating Class A - D Class E - H
--------------------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
Ages: 18 - 65 $50,000,000 $50,000,000 $40,000,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
66 - 70 $40,000,000 $40,000,000 $34,500,000
--------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
71 - 75 $40,000,000 $40,000,000 $23,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
76 - 77 $23,500,000 $23,500,000 $15,000,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
78 - 80 $19,000,000 $19,000,000 $10,500,000
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
81 - 85 $11,500,000 $10,500,000 None
----------- --------------- ------------------------- ----------------------------- ----------------------------
----------- --------------- ------------------------- ----------------------------- ----------------------------
86 - 90 $4,350,000 $3,350,000 None
=========== =============== ========================= ============================= ============================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
=========== ========= ===================== ================= =====================
For any policy to be reinsured under automatic reinsurance, the amounts subject to reinsurance are
the First Layer of Coverage amounts shown in the following tables:
US/Canadian Residents
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $50,000,000 $35,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $40,000,000 $25,000,000
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $35,000,000 $15,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $15,000,000 $10,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $10,000,000 $ 5,000,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 5,000,000 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 1,500,000 None
=========== =============== ========================= =============================
Non US/Canadian Residents
===================== ===================== ================= =====================
Pref. Best - Class C Class D - E Class F - H
--------------------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
Ages: 18 - 70 $ 20,000,000 $ 15,000,000 None
--------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
71 - 75 $ 15,000,000 $ 10,000,000 None
----------- --------- --------------------- ----------------- ---------------------
----------- --------- --------------------- ----------------- ---------------------
00 - 00 Xxxx Xxxx Xxxx
----------- --------- --------------------- ----------------- ---------------------
For any policy to be reinsured under automatic reinsurance, the amounts reinsured with THE
REINSURER on that life under this Agreement will not exceed the amounts in the following tables:
US/Canadian Residents
=========================== ========================= =============================
Issue Age of Insured Pref. Best - Class D Class E - H
--------------------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
Ages: 18 - 65 $7,145,000 $5,001,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
66 - 70 $5,716,000 $3,572,500
--------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
71 - 75 $5,001,500 $2,143,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
76 - 77 $2,143,500 $1,429,000
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
78 - 80 $1,429,000 $ 714,500
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
81 - 85 $ 714,500 None
----------- --------------- ------------------------- -----------------------------
----------- --------------- ------------------------- -----------------------------
86 - 90 $ 214,350 None
=========== =============== ========================= =============================
Non US/Canadian Residents
======================= =================== ================== ====================
Pref. Best - Class D - E Class F - H
Class C
----------------------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
Ages: 18 - 70 $2,858,000 $2,143,500 None
----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
71 - 75 $2,143,500 $1,429,000 None
----------- ----------- ------------------- ------------------ --------------------
----------- ----------- ------------------- ------------------ --------------------
00 - 00 Xxxx Xxxx Xxxx
=========== =========== =================== ================== ====================
3. SCHEDULE A, Section 6, JUMBO LIMIT, shall be replaced by the following:
For any policy to be reinsured under automatic reinsurance, the total amount of insurance in force
and applied for in all companies will not exceed the amounts in the following tables:
US/Canadian Residents
===================== ===================== =================== ===================
No Substandard Class A - D Class E - H
Rating
--------------------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
Ages: 18 - 80 $65,000,000 $65,000,000 $65,000,000
----------- --------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
81 - 85 $30,000,000 $30,000,000 $30,000,000
----------- --------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
86 - 90 $10,000,000 $10,000,000 $10,000,000
=========== ========= ===================== =================== ===================
Note: When a policy is reinsured under automatic reinsurance and the total amount in force and
applied for in all companies exceeds $50,000,000, THE REINSURER must be notified and THE COMPANY
shall provide the amount being issued.
Non US/Canadian Residents
===================== ===================== =================== ===================
No Substandard Class A - D Class E - H
Rating
--------------------- --------------------- ------------------- -------------------
----------- --------- --------------------- ------------------- -------------------
Ages: 18 - 75 $35,000,000 $35,000,000 $35,000,000
=========== ========= ===================== =================== ===================
4. SCHEDULE A, Section 8, FOREIGN TRAVEL EXCLUSIONS is deleted from this Agreement.
5. SCHEDULE A, Section 9, FOREIGN RESIDENCE EXCLUSIONS is deleted from this Agreement.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of
December 1, 2007.
------------------------------------------------------------ -------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY MUNICH AMERICAN REASSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
Amendment #4
to the
AUTOMATIC AND FACULTATIVE
YEARLY RENEWABLE TERM REINSURANCE AGREEMENT
EFFECTIVE December 15, 2003
Between
PRUCO LIFE INSURANCE COMPANY
(THE COMPANY)
And
MUNICH AMERICAN REASSURANCE COMPANY
(THE REINSURER)
The parties hereby agree to the following:
Section 29, CONFIDENTIALITY, shall be replaced by the following:
29. CONFIDENTIALITY AND PRIVACY OF PERSONAL INFORMATION
a. Confidentiality of Company Confidential Information
THE REINSURER agrees to regard and preserve as confidential all information and material
which is related to THE COMPANY's business that may be obtained by THE REINSURER from any
source as a result of this Agreement. THE REINSURER will not, without first obtaining THE
COMPANY's prior written consent disclose to any person, firm or enterprise, or use for its
own benefit or for the benefit of any third party any Company Confidential Information.
"Company Confidential Information" includes, but is not limited to any and all financial
data, statistics, programs, research, developments, information relating to THE COMPANY's
insurance and financial products, planned or existing computer systems architecture and
software, data, and information of THE COMPANY as well as third party confidential
information to which THE COMPANY has access. THE REINSURER will keep and maintain all
Company Confidential Information in confidence, using such degree of care as is appropriate
to avoid unauthorized use or disclosure and will use and disclose Company Confidential
Information solely: i) for the purposes for which such information, or access to it, is
provided pursuant to the terms of this Agreement; ii) to fulfill its obligation under the
Agreement; or (iii) in order to aggregate data with other companies' data for the purpose
of creating studies or models, provided the data is not personally identifiable as
belonging to a party or an insured. Company Confidential Information does not include
Personal Information as defined and discussed below.
Notwithstanding the foregoing, the provisions of this 'Confidentiality of Company
Confidential Information' section shall not apply with respect to disclosing of the
Product, the specifications and/or Company Confidential Information which is already known
to THE REINSURER or is or becomes publicly known through no wrongful act of THE REINSURER;
or is received from a third party without similar restriction and without breach of this
Agreement; or is independently developed by THE REINSURER; or is approved for release by
written authorization of THE COMPANY; or is placed in or becomes part of the public domain
pursuant to or by reason of operation of law.
Consistent with the foregoing, THE REINSURER shall be permitted to disclose Company
Confidential Information only to its employees having a need to know such information in
connection with the performance under this Agreement. THE REINSURER shall instruct all
employees who access Company Confidential Information as to their obligations under this
Agreement, and THE REINSURER shall be responsible for all such employees' compliance with
the terms of this Agreement. If THE REINSURER is required by law to disclose Company
Confidential Information, THE REINSURER shall promptly notify THE COMPANY in writing in
advance of such disclosure, and provide THE COMPANY with copies of any related information
so that THE COMPANY may take appropriate action to protect the Company Confidential
Information.
Notwithstanding the foregoing, it is understood and agreed that THE REINSURER may disclose
Company Confidential Information as required by an arbitration panel deciding a dispute
arising under this agreement or in accordance with applicable law, court order, or as
required by any regulatory authority having jurisdiction over THE REINSURER. THE REINSURER
shall be permitted to disclose Company Confidential Information if the proposed recipient
of Company Confidential Information has agreed in writing to protect the Company
Confidential Information to substantially similar standards as the standards of this
section in the following circumstances: (1) for purposes of retrocession of the reinsured
business; (2) during the course of external audits; (3) to consult any tax advisor
regarding the U.S. federal income tax treatment or tax structure of this Agreement; (4) to
subcontractors that require Company Confidential Information in order to provide services
to THE REINSURER; or (5) to affiliates of THE REINSURER for purposes of risk review and
analysis.
In the event that Company Confidential Information in THE REINSURER's possession is
disclosed to an unauthorized third party, THE REINSURER shall immediately advise THE
COMPANY and take steps to prevent further disclosure.
b. Confidentiality of Personal Information
"Personal Information," which means information provided by or at the direction of THE
COMPANY, or to which access was provided in the course of THE REINSURER's performance of
the Agreements that (i) identifies an individual (by name, signature, address, telephone
number or other unique identifier), or (ii) that can be used to authenticate that
individual (including, without limitation, passwords or PINs, biometric data, unique
identification numbers, answers to security questions, or other personal identifiers). An
individual's social security number, even in isolation, is Personal Information. THE
COMPANY business contact information is not by itself Personal Information.
THE REINSURER acknowledges that in the course of its engagement by THE COMPANY, THE
REINSURER may receive or have access to Personal Information. In recognition of the
foregoing, THE REINSURER covenants and agrees that:
o It will keep and maintain all Personal Information in strict confidence, using such degree of
care as is appropriate to avoid unauthorized use or disclosure;
o It will use and disclose Personal Information solely for the purposes for which such
information, or access to it, is provided pursuant to the terms of this Agreement,
and will not use or disclose such information for THE REINSURER's own purposes or
for the benefit of anyone other than THE COMPANY, except that THE REINSURER may
use Personal Information for its own internal risk management;
o It will not, directly or indirectly, disclose Personal Information to anyone outside THE
COMPANY, except with THE COMPANY's prior written consent as permitted under the
terms of this Agreement unless Personal Information is disclosed to an affiliate
of THE REINSURER for purposes of performance under this Agreement; and
o It shall, upon the earlier of (i) completion of an engagement or termination of this Agreement,
(ii) determination that it has no need for Personal Information, or (iii) at any
time THE COMPANY requests, dispose of all records, electronic or otherwise
(including all backup records and/or other copies thereof) regarding or including
any Personal Information that THE REINSURER may then possess or control.
Notwithstanding the preceding sentence, REINSURER may retain one copy of the
Personal Information if it is required to do so by applicable law, regulation, or
its written records retention program. All such Personal Information shall be
protected as required by this section, which shall survive termination of this
Agreement. Disposal may be achieved, at THE COMPANY's option, through prompt
delivery of the records to THE COMPANY or destruction pursuant to THE REINSURER's
written policy governing such destruction and in a manner that renders the records
unreadable and undecipherable by any means. REINSURER agrees to destroy all such
personal information at expiration of period for which it is required to retain
personal information to the standard of this Agreement. Upon any occurrence of
(i), (ii), or (iii) above, THE REINSURER shall promptly certify in writing to THE
COMPANY, in a form acceptable to THE COMPANY and executed by an authorized officer
of THE REINSURER, that all such Personal Information has been destroyed or
returned.
THE REINSURER shall be permitted to disclose Personal Information only to its employees
having a need to know such information in connection with the performance of this
Agreement. THE REINSURER shall instruct all employees as to their obligations under this
Agreement. THE REINSURER shall be responsible for all employees' compliance with the
terms of this Agreement. If THE REINSURER is required by law to disclose Personal
Information, THE REINSURER shall promptly notify THE COMPANY in writing in advance of
such disclosure, and provide THE COMPANY with copies of any related information so that
THE COMPANY may take appropriate action to protect the Personal Information.
Notwithstanding the foregoing, it is understood and agreed that THE REINSURER may
disclose Personal Information as required by an arbitration panel deciding a dispute
arising under this agreement or in accordance with applicable law, court order, or as
required by any regulatory authority having jurisdiction over THE REINSURER. THE
REINSURER shall be permitted to disclose Personal Information if the proposed recipient
of Personal Information has agreed in writing to protect the Personal Information to
substantially similar standards as the standards of this section in the following
circumstances: (1) for purposes of retrocession of the reinsured business; (2) during the
course of external audits; (3) to consult any tax advisor regarding the U.S. federal
income tax treatment or tax structure of this Agreement; (4) to subcontractors or
affiliates of THE REINSURER that require Personal Information in order to provide
services to THE REINSURER; or (5) to affiliates of THE REINSURER for purposes of risk
review and analysis.
THE REINSURER acknowledges that the disclosure of Personal Information may cause
irreparable injury to THE COMPANY and damages, which may be difficult to ascertain.
Therefore, THE COMPANY shall, upon a disclosure or threatened disclosure of any Personal
Information, be entitled to injunctive relief, and THE REINSURER shall not object to the
entry of an injunction or other equitable relief against THE REINSURER on the basis of an
adequate remedy at law, lack of irreparable harm or any other reason.
THE REINSURER shall notify THE COMPANY, promptly and without unreasonable delay, but in
no event more than two (2) business days of learning that unauthorized access to,
disclosure of, or breach in the security of Personal Information may have occurred or
been attempted (a "Security Incident") provided, however, that unsuccessful attempts
against THE REINSURER's systems firewalls are not Security Incidents for the purposes of
this Agreement. Thereafter, THE REINSURER shall, at its own cost and expense:
o Promptly furnish to THE COMPANY full details of the Security Incident;
o Assist and cooperate fully with THE COMPANY in THE COMPANY's investigation of THE REINSURER,
employees or third parties related to the Security Incident, including but not
limited to providing THE COMPANY with reasonable physical access to the facilities
and operations affected, facilitating interviews with employees and others
involved in the matter, and making available all relevant records, logs, files,
and data;
o Cooperate with THE COMPANY in any litigation or other formal action against third parties
deemed necessary by THE COMPANY to protect its rights; and
o Promptly use its best efforts to prevent a recurrence of any such Security Incident.
In addition to the foregoing, THE REINSURER agrees that in the event of a Security
Incident, THE COMPANY shall have the sole right to determine (i) whether notice is to be
provided to any individuals, regulators, law enforcement agencies, consumer reporting
agencies, or others as required by law or regulation, or in THE COMPANY's discretion; and
(ii) the contents of such notice, whether any type of remediation may be offered to
affected persons, and the nature and extent of any such remediation. Any such notice or
remediation shall be at THE REINSURER's sole cost and expense.
THE REINSURER certifies that its treatment of Personal Information is in compliance with
applicable laws and/or regulations with respect to privacy and data security and that it
has implemented and currently maintains an effective information security program that
includes administrative, technical, and physical safeguards to (a) ensure the security
and confidentiality of Personal Information; (b) to protect against any anticipated
threats or hazards to the security or integrity of such Personal Information; and (c) to
protect against unauthorized access to, destruction, modification, disclosure or use of
Personal Information which could result in substantial harm to THE COMPANY, or
substantial harm or inconvenience to any person who may be identified by such Personal
Information. THE REINSURER shall immediately notify THE COMPANY if THE REINSURER is in
material breach of this Section. At THE COMPANY's request, but no more frequently than
annually, THE REINSURER agrees to certify in writing to THE COMPANY, its compliance with
the terms of this Section.
If THE REINSURER no longer has an information security program that meets the
requirements of the Gramm Xxxxx Xxxxxx Act for the handling of Personal Information or
THE REINSURER is unable to prevent a recurrence of a Security Incident as described
above, THE COMPANY reserves the right to terminate this agreement for new business and/or
recapture all inforce business immediately upon written notice to THE REINSURER.
In witness of the above, THE COMPANY and THE REINSURER have by their respective officers executed and
delivered this Agreement in duplicate on the dates indicated below, with an effective date of October
1, 2007.
----------------------------------------------------------- --------------------------------------------------------
PRUCO LIFE INSURANCE COMPANY MUNICH AMERICAN REASSURANCE COMPANY
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
By:________________________________ By:______________________________
Title:_______________________________ Title:_____________________________
Date:_______________________________ Date:_____________________________
----------------------------------------------------------- --------------------------------------------------------
