YEARLY RENEWABLE TERM
REINSURANCE AGREEMENT
EFFECTIVE AS OF JUNE 1, 1998
BETWEEN
USAA LIFE INSURANCE COMPANY
OF
SAN ANTONIO, TEXAS,
REFERRED TO IN THIS AGREEMENT AS "USAA," AND
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
OF
FORT ▇▇▇▇▇, INDIANA,
REFERRED TO IN THIS AGREEMENT AS "LINCOLN."
INSPECTED BY E/G
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DATE 9/1/98
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DOC 981056SL.AGM
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CCN/AGMT. NO. 2904 / 24
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TABLE OF CONTENTS
Reinsurance Coverage 1
Automatic Reinsurance 1
Facultative Reinsurance 2
Continuations 3
Terms of Reinsurance 4
Payments by USAA 5
Payments by Lincoln 5
Reinsurance Administration 6
Settlement of Claims 6
Reinstatements 7
Reductions in Insurance 8
Increases in Policy Net Amount at Risk 8
Changes in Retention 8
Assignment of Reinsurance 9
Material Changes 10
Errors 10
Audits of Records and Procedures 10
Arbitration 10
Insolvency of USAA 11
Offset 11
Parties to the Agreement 12
Commencement and Termination 12
Entire Agreement 13
Deferred Acquisition Cost Tax Election 13
Definitions 13
Execution 16
LIFE BENEFITS SCHEDULE 17
ADMINISTRATION SCHEDULE 19
PREMIUM SCHEDULE 22
ARBITRATION SCHEDULE 24
ACCIDENTAL DEATH BENEFIT ADDENDUM 26
INCREASING POLICY ADDENDUM 28
REINSURANCE COVERAGE A. USAA agrees to cede, and Lincoln agrees to
accept, reinsurance of the Policies specified
in the Life Benefits Schedule. (The term
"Policies" and certain other terms used in
this Agreement are defined in the
"Definitions" article.)
B. The death benefits provided by the Policies
are reinsured. Supplemental benefits are
reinsured if and as specified in applicable
Addenda.
C. USAA agrees to either
(1) cede reinsurance of a Policy to
Lincoln as Automatic Reinsurance;
(2) submit the Policy to Lincoln for
consideration as Facultative
Reinsurance; or
(3) cede reinsurance of a Policy as a
Continuation.
AUTOMATIC REINSURANCE A. USAA agrees to cede the Reinsurance Amount of
a Policy as Automatic Reinsurance if the
following conditions are met:
(1) It retains its Retention on the
insured life when the Policy is
issued;
(2) It underwrites and issues the Policy
in accordance with its normal
individual life insurance
underwriting rules and practices
previously disclosed to Lincoln;
(3) The sum of (a) and (b) does not
exceed the sum of its Retention and
the Automatic Limit, where
(a) equals the amount of
individual life insurance
issued by USAA then in force
on the insured life, or in
the case of individual life
insurance with increasing
death benefits, the Ultimate
Amount of such policies; and
(b) equals the amount of life
insurance currently being
applied for from USAA, or in
the case of individual life
insurance with increasing
death benefits, the Ultimate
Amount;
(4) The sum of (a) and (b) does not
exceed the Participation Limit, where
(a) equals the amount of
individual life insurance
then in force on the insured
life in all companies, or in
the case of individual life
insurance with increasing
death
Page 1
benefits, the Ultimate
Amount of such policies; and
(b) equals the amount currently
applied for on the insured
life from all companies, or
in the case of individual
life insurance with
increasing death benefits,
the Ultimate Amounts;
(5) It has not submitted a facultative
application to Lincoln or any other
insurance or reinsurance company for
reinsurance of the current
application; and
(6) The Policy is not a Continuation.
B. Policies issued pursuant to any special
underwriting program adopted by USAA may be
ceded as Automatic Reinsurance only with
Lincoln's consent to reinsure such Policies.
C. A Policy shall not be ceded as Automatic
Reinsurance if the Reinsurance Amount of the
Policy is less than the minimum cession
amount specified in the Administration
Schedule.
FACULTATIVE REINSURANCE A. USAA agrees to submit Policies not satisfying
the conditions for Automatic Reinsurance, and
Policies which it does not wish to cede as
Automatic Reinsurance, for consideration by
Lincoln as Facultative Reinsurance. USAA may
also submit for consideration as Facultative
Reinsurance any individual life insurance
issued on a Policy form that is not specified
in the Life Benefits Schedule provided
reinsurance terms and conditions are
established and agreed upon by means of the
Facultative Reinsurance application process.
B. An application for Facultative Reinsurance
shall be made in the manner set forth in the
Administration Schedule. Copies of all
information which USAA has pertaining to the
insurability of the proposed insured,
including written summaries of any such
information which cannot be copied, shall
accompany the application.
C. Upon receipt of an application, Lincoln
agrees to promptly examine the underwriting
information and communicate
(1) an offer to reinsure the Policy as
applied for;
(2) an offer to reinsure the Policy other
than as applied for;
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(3) an offer to reinsure the Policy
subject to the satisfaction of
additional underwriting requirements;
(4) a request for additional underwriting
information; or
(5) its unwillingness to make an offer to
reinsure the Policy.
D. To accept an offer to reinsure made by
Lincoln, USAA agrees to
(1) satisfy any conditions stated in the
offer to reinsure; and
(2) follow the procedure for placing
reinsurance into effect as specified
in the Administration Schedule.
E. USAA agrees to inform Lincoln immediately of
any additional information pertaining to the
insurability of a proposed insured which is
brought to USAA's attention before the
completion of the procedures for accepting
Lincoln's offer to reinsure. Upon its receipt
of such information, Lincoln may withdraw or
modify its earlier offer to reinsure.
F. The terms of an offer to reinsure shall
supercede the terms of this Agreement to the
extent of any conflicts between the parties.
Otherwise, reinsurance of a Policy ceded as
Facultative Reinsurance shall be in
accordance with the terms of this Agreement.
CONTINUATIONS A. If USAA issues a Continuation of a Policy
within its normal continuation rules and
practices, it agrees to reinsure the
Continuation with Lincoln. Reinsurance shall
continue
(1) under the reinsurance agreement
between USAA and Lincoln which
provides reinsurance of the Policy
form of the Continuation; or
(2) under this Agreement if there is no
such agreement.
B. A Policy which is a Continuation of a Policy
that was not previously reinsured with
Lincoln may only be reinsured under this
Agreement with the written consent of Lincoln
and the original reinsurer.
C. If the original Policy was ceded to Lincoln
as Facultative Reinsurance and USAA approves
an increase in the face amount of the
Continuation based upon receipt of any new
information pertaining to the insurability of
the proposed insured, USAA agrees to submit
the Continuation to
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Lincoln for consideration as Facultative
Reinsurance. In such case, Lincoln shall only
be bound to reinsure the Continuation in
accordance with its offer to reinsure the
Continuation.
D. Reinsurance at issue of the Continuation
shall not exceed the Reinsured Net Amount at
Risk of the original Policy immediately prior
to the issuance of the Continuation.
E. Premiums payable for reinsurance of a
Continuation shall be calculated using the
rate schedule applicable to the Policy form
of the Continuation as specified in the
Premium Schedule. If there is no rate
schedule applicable to the Policy form of the
Continuation, reinsurance premiums shall be
payable using the rate schedule applicable to
the original Policy.
F. If the Continuation results in a change in
the life status of the insured risk from a
single-insured plan to a joint- or
multiple-insured plan, Lincoln must consent
to the Continuation.
TERMS OF REINSURANCE A. The plan of reinsurance shall be yearly
renewable term reinsurance of the Reinsured
Net Amount at Risk of a Policy.
B. Reinsurance of a Policy shall commence on the
Policy date, except
(1) in the case of Facultative
Reinsurance, reinsurance shall
commence on the Policy date only if
Lincoln's offer to reinsure is the
best offer of reinsurance received by
USAA as determined by USAA's
published reinsurance placement rules
in effect as of such date; and
(2) if a premium receipt is issued by
USAA in connection with an
application for the Policy,
reinsurance shall commence prior to
the Policy date only if and as
specified in a Premium Receipt
Addendum.
C. USAA agrees not to use Lincoln's name in
connection with the sale of the Policies.
D. In no event shall reinsurance under this
Agreement be in force with respect to a
Policy unless the issuance and delivery of
the Policy is in compliance with the laws of
all applicable jurisdictions and USAA's
corporate charter.
E. USAA agrees to maintain reinsurance of a
Policy in force in accordance with the terms
of this Agreement for as long as its Policy
remains in force.
Page 4
PAYMENTS BY USAA A. USAA agrees to pay Lincoln premiums for
reinsurance of a Policy equal to the
appropriate rate specified in the Premium
Schedule times the Reinsured Net Amount at
Risk of the Policy.
B. The Premium Schedule specifies other
monetary amounts which USAA agrees to take
into account when calculating the amount due
Lincoln.
C. Reinsurance premiums shall be due and payable
as specified in the Administration Schedule.
D. The payment of reinsurance premiums shall be
a condition precedent to the liability of
Lincoln under this Agreement. If reinsurance
premiums are not paid when due, Lincoln may
give USAA thirty (30) days' written notice of
its intent to terminate reinsurance because
of USAA's failure to pay reinsurance
premiums. Reinsurance of all Policies having
reinsurance premiums in arrears shall
terminate as of the date to which reinsurance
premiums had previously been paid unless all
premiums in arrears are paid before the end
of the thirty (30) day notice period. If
reinsurance on any Policy terminates because
of USAA's failure to pay reinsurance
premiums, reinsurance of Policies with
premiums subsequently becoming due shall
automatically terminate as of the date on
which new reinsurance premiums become due.
E. So that Lincoln need not maintain deficiency
reserves in connection with reinsurance
premiums payable pursuant to this Agreement,
the premium rates specified in the Premium
Schedule shall only be guaranteed for one (1)
Policy year. Nevertheless, Lincoln shall
anticipate continuing to accept reinsurance
on the basis of such rates for all Policies
originally ceded pursuant to such rates.
PAYMENTS BY LINCOLN A. Lincoln agrees to pay USAA the Reinsured Net
Amount at Risk of any claim paid by USAA
pursuant to a Policy in accordance with the
"Settlement of Claims" article.
▇. ▇▇▇▇▇▇▇ agrees to pay the Claims Ratio of any
expenses incurred in connection with Policy
claims except as set forth in the "Settlement
of Claims" article.
C. The Premium Schedule specifies other monetary
amounts that Lincoln agrees to pay USAA
pursuant to this Agreement.
Page 5
REINSURANCE ADMINISTRATION The methods for placing reinsurance into
effect, for paying reinsurance premiums, and
for notifying Lincoln of Policy lapses,
reinstatements, reductions, Continuations,
increases in the Reinsured Net Amount at
Risk; and of other changes affecting
reinsurance shall be specified in the
Administration Schedule.
SETTLEMENT OF CLAIMS A. USAA agrees to give Lincoln prompt written
notice of its receipt of any claim on a
Policy and to keep Lincoln informed of any
legal proceedings or settlement negotiations
in connection with a claim. Copies of written
materials relating to such claim, legal
proceedings or negotiation shall be furnished
to Lincoln upon request.
B. USAA's obligation to provide notice of a
claim on a Policy shall not be construed as a
condition precedent to Lincoln's obligation
to pay the claim. USAA's failure to provide
notice shall be considered a breach of a
promise which may entitle Lincoln to damages.
C. USAA agrees to act in accord with its
standard practices applicable to all claims
in enforcing the terms and conditions of the
Policies and with respect to the
administration, negotiation, payment, denial
or settlement of any claim or legal
proceeding.
▇. ▇▇▇▇▇▇▇ agrees to accept the good faith
decision of USAA in payment or settlement
of any claim for which Lincoln has received
the required notice. Lincoln agrees to pay
USAA the Reinsured Net Amount at Risk on
which reinsurance premiums have been computed
upon receiving proper evidence that USAA has
paid a Policy claim. Payment of the Reinsured
Net Amount at Risk on account of death shall
be made in one (1) lump sum.
▇. ▇▇▇▇▇▇▇'▇ liability shall include
indemnification of the Claims Ratio of any
expenses incurred by USAA in defending or
investigating a Policy claim with the
exception of
(1) salaries of employees or other
internal expenses of USAA;
(2) routine investigative or
administrative expenses;
(3) expenses incurred in connection with
a dispute arising out of conflicting
claims of entitlement to proceeds of
a Policy that USAA admits are
payable;
(4) any gratuitous payments made by USAA;
and
(5) any punitive damages awarded against
USAA, and expenses incurred in
connection with such
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damages, that are based on the acts
or omissions of USAA or its agents.
▇. ▇▇▇▇▇▇▇ agrees to hold USAA harmless from
certain expenses and liabilities that result
from Lincoln's own acts or omissions as
provided in this article. For this purpose,
Lincoln agrees to indemnify USAA for
Lincoln's equitable share of those punitive
and exemplary damages awarded against USAA,
and expenses incurred in connection with a
claim for such damages, if
(1) Lincoln actively participated in the
acts or omissions, including the
decision to deny a claim for Policy
benefits; and
(2) those acts or omissions serve as a
material basis for the punitive or
exemplary damages.
Lincoln's equitable share shall be determined
by an assessment of Lincoln's participation
in the particular case.
G. If USAA should contest or compromise any
claim and the amount of USAA's liability is
thereby reduced, Lincoln's liability shall be
reduced by the Claims Ratio of the reduction.
H. If USAA should recover monies from any third
party in connection with or arising out of
any Policy, USAA agrees to pay Lincoln the
Claims Ratio of the recovery.
I. If the amount of insurance provided by a
Policy is increased or reduced because of a
misstatement of age or sex, Lincoln's
liability shall be increased or reduced by
the Claims Ratio of the amount of the
increase or reduction.
J. If USAA pays interest on a claim, Lincoln
agrees to pay the interest on the Reinsured
Net Amount at Risk computed at the same rate
and for the same period as that paid by USAA,
but in no event later than the date the claim
is finally adjudicated by USAA.
K. If USAA is required to pay penalties and
interest imposed automatically by statute,
Lincoln shall indemnify USAA for the Claims
Ratio of such penalties and interest.
REINSTATEMENTS A. If USAA reinstates a lapsed Policy in
accordance with the terms of the Policy and
USAA's underwriting rules and practices,
Lincoln agrees to reinstate reinsurance of
the Policy automatically unless Lincoln's
offer to reinsure the Policy specifies that
reinsurance of the Policy may only be
reinstated as Facultative Reinsurance.
B. If USAA collects premiums in arrears from the
policy-holder of a reinstated Policy, it
agrees to pay Lincoln all corresponding
reinsurance premiums in arrears in
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connection with the reinstatement, plus
Lincoln's Proportionate Share of any interest
received by USAA in connection with the
reinstatement.
REDUCTIONS IN INSURANCE If individual life insurance on a life
reinsured under this Agreement terminates,
the Reinsurance Amount shall be reduced as
specified in the Administration Schedule.
INCREASES IN POLICY NET A. If the Policy Net Amount at Risk on a Policy
AMOUNT AT RISK increases and the increase is subject to
USAA's underwriting approval, the Reinsured
Net Amount at Risk of the Policy shall only
increase if the conditions of either the
"Automatic Reinsurance" or "Facultative
Reinsurance" articles are satisfied.
B. If the Policy Net Amount at Risk on a Policy
increases causing the Reinsured Net Amount at
Risk to exceed the Reinsurance Amount, and
the increase is not subject to USAA's
underwriting approval, Lincoln agrees to
accept a portion of such increases only if
and as specified in a Increasing Policy
Addendum.
CHANGES IN RETENTION A. If USAA increases its Retention on new
Policies, it agrees to notify Lincoln in
writing within sixty (60) days of such
increase. The notice shall specify the new
Retention and the effective date thereof.
B. Whenever USAA increases its Retention on new
Policies, it also agrees to indicate in its
notice whether it wishes to
(1) continue its previous Retention on in
force Policies; or
(2) increase its Retention on in force
Policies and recapture reinsurance.
If USAA elects (2), USAA's new Retention on
an in force Policy shall be calculated using
the insured's age, mortality class, Policy
form and country of residence at issue of the
Policy.
C. If USAA elects to increase its Retention on
in force Policies pursuant to paragraph B,
its new Retention for such Policies shall
become effective on the later of
(1) the reinsurance renewal date of the
Policy first following the effective
date of its new Retention for new
Policies; and
(2) the Policy anniversary date specified
in the Administration Schedule.
Page 8
If USAA fails to initiate recapture of
reinsurance within one hundred eighty (180)
days of when the first of its Policies
becomes eligible for recapture, its election
to recapture reinsurance shall be considered
waived.
D. If an in force Policy is subject to a waiver
of premium claim on the date the Policy
qualifies for a new Retention, the new
Retention shall nonetheless become effective
on such date for purposes of life
reinsurance.
E. USAA may only elect to increase its Retention
on in force Policies if
(1) it maintained a Retention greater
than zero dollars ($0) at the time
the Policy was issued and retained
its Retention at such time;
(2) it increases its Retention on all
eligible in force Policies; and
(3) it retains the insurance recaptured
from Lincoln at its own risk without
benefit of any proportional or
nonproportional reinsurance other
than catastrophe accident
reinsurance.
F. Notwithstanding the preceding,
(1) the recapture of the Reinsurance
Amount shall be limited to Lincoln's
portion of all reinsurance ceded by
USAA on the Policy; and
(2) if USAA gives notice of its intent to
increase its Retention on in force
Policies within five (5) years
following a merger with another
insurance company or the date it
accepts the Policies by means of an
assignment, the new Retention
applicable to such Policies shall be
limited to one hundred fifty percent
(150%) of the original reinsured's
pre-merger or pre-assignment
Retention.
G. For purposes of this article, Continuations
shall be considered issued on the issue date
of the original Policy.
ASSIGNMENT OF REINSURANCE If USAA sells, assumption reinsures or
otherwise transfers the Policies to another
insurer, it agrees to require that the other
insurer assume all rights and obligations of
USAA under this Agreement. Lincoln may object
to any such transfer that would result in a
material adverse economic impact to Lincoln.
If Lincoln so objects, USAA and Lincoln agree
to mutually calculate a termination charge
that shall be paid by USAA to Lincoln upon
the transfer and this Agreement shall be
terminated with respect to all Policies
transferred by USAA.
Page 9
MATERIAL CHANGES A. USAA agrees to notify Lincoln in writing of
any anticipated Material Change in any terms
or conditions of the Policies, in USAA's
underwriting rules and practices applicable
to the Policies or in USAA's claims practices
and procedures.
B. In the event of a Material Change to the
Policies, to USAA's underwriting rules and
practices or to its claims practices and
procedures, Lincoln may at its option
(1) continue to reinsure the Policies
under current terms;
(2) reinsure Policies under modified
terms to reflect the Material Change;
or
(3) consider future Policies as issued in
a Policy form that is not reinsured
under this Agreement.
ERRORS A. Any Error by either USAA or Lincoln in the
administration of reinsurance under this
Agreement shall be corrected by restoring
both USAA and Lincoln to the positions they
would have occupied had no Error occurred.
Any monetary adjustments made between USAA
and Lincoln to correct an Error shall be
without interest.
B. When a party claims that an Error should be
corrected pursuant to paragraph A, that party
agrees to investigate whether other instances
of the Error have also occurred and agrees to
report its findings to the other party.
AUDITS OF RECORDS A. Lincoln or USAA may audit, at any reasonable
AND PROCEDURES time and at its own expense, all records and
procedures relating to reinsurance under this
Agreement. The party being audited agrees to
cooperate in the audit, including providing
any information requested by the other in
advance of the audit.
B. Upon request, USAA agrees to furnish Lincoln
with copies of any underwriting information
in USAA's files pertaining to a Policy.
ARBITRATION A. If USAA and Lincoln cannot mutually resolve a
dispute that arises out of or relates to this
Agreement, the dispute shall be decided
through arbitration as specified in the
Arbitration Schedule. The arbitrators shall
base their decision on the terms and
conditions of this Agreement plus, as
necessary, on the customs and practices of
the insurance and reinsurance industry rather
than solely on a strict interpretation of
applicable law. There shall be no appeal from
their decision, except that either party may
Page 10
petition a court having jurisdiction over the
parties and the subject matter to reduce the
arbitrators' decision to judgement.
B. The parties intend this article to be
enforceable in accordance with the Federal
Arbitration Act (9 U.S.C. [Sec][Sec]1 et
seq.), including any amendments to that Act
which are subsequently adopted. If either
party refuses to submit to arbitration as
required by paragraph A, the other party may
request a United States Federal District
Court to compel arbitration in accordance
with the Federal Arbitration Act. Both
parties consent to the jurisdiction of such
court to enforce this article and to confirm
and enforce the performance of any award of
the arbitrators.
INSOLVENCY OF USAA A. In the event of the insolvency of USAA and
the appointment of a conservator, liquidator
or statutory successor of USAA, reinsurance
shall be payable to such conservator,
liquidator or statutory successor on the
basis of claims allowed against USAA by any
court of competent jurisdiction or by the
conservator, liquidator or statutory
successor of USAA without diminution because
of the insolvency of USAA or because such
conservator, liquidator or statutory
successor has failed to pay all or a portion
of any claims.
B. In the event of the insolvency of USAA, the
conservator, liquidator or other statutory
successor of USAA agrees to give Lincoln
written notice of the pendency of a claim on
a Policy within a reasonable time after such
claim is filed in the insolvency proceeding.
During the pendency of any such claim,
Lincoln may investigate the claim and
interpose in the proceeding where such claim
is to be adjudicated in the name of USAA
(its conservator, liquidator or statutory
successor), but at its own expense, any
defense or defenses which Lincoln may deem
available to USAA or its conservator,
liquidator or statutory successor.
C. A percentage (calculated as one (1) minus the
Claims Ratio) of the expense thus incurred by
Lincoln shall be charged, subject to court
approval, against USAA as part of the expense
of liquidation.
OFFSET Any debts or credits, matured or unmatured,
liquidated or unliquidated, regardless of
when they arose or were incurred, in favor of
or against either USAA or Lincoln with
respect to this Agreement or any other
reinsurance
Page 11
agreement between the parties, shall be
offset and only the balance allowed or paid.
If either USAA or Lincoln is then under
formal insolvency proceedings, this right of
offset shall be subject to the laws of the
state exercising primary jurisdiction over
such proceedings.
PARTIES TO THE AGREEMENT This is an Agreement for indemnity
reinsurance solely between USAA and Lincoln.
The acceptance of reinsurance under this
Agreement shall not create any right or legal
relation whatever between Lincoln and an
insured, policyholder, beneficiary or any
other party to or under any Policy.
COMMENCEMENT AND A. This Agreement shall be effective as of the
TERMINATION date set forth on the cover page, except that
USAA may issue a Policy dated as much as six
(6) months prior to the Effective Date in
order to save age of the applicant.
B. Either USAA or Lincoln may terminate this
Agreement for new reinsurance by giving
ninety (90) days' written notice to the other
party. In such case, USAA agrees to continue
to cede, and Lincoln agrees to continue to
accept, reinsurance in accordance with this
Agreement of Policies issued prior to the
expiration of the ninety (90) day period. All
reinsurance that has been placed in effect
prior to such date shall remain in effect in
accordance with the terms of this Agreement,
until the earlier of
(1) the termination or expiration of the
Policy; and
(2) the termination of this Agreement
pursuant to paragraphs C or D below.
C. Reinsurance of a Policy shall terminate as of
the reinsurance premium renewal date on which
the Reinsured Net Amount at Risk for such
Policy is less than the automatic termination
amount specified in the Administration
Schedule, provided the reinsurance has been
in force for the period specified in the
Administration Schedule.
▇. ▇▇▇▇▇▇▇ may terminate all reinsurance under
this Agreement in accordance with paragraph D
of the "Payments by USAA" article if USAA
fails to pay reinsurance premiums when due.
Page 12
ENTIRE AGREEMENT A. This Agreement represents the entire
agreement between USAA and Lincoln and
supercedes any prior oral or written
agreements between the parties regarding its
subject matter.
B. No modification of this Agreement shall be
effective unless set forth in a written
amendment executed by both parties.
C. A waiver of a right created by this Agreement
shall constitute a waiver only with respect
to the particular circumstance for which it
is given and not a waiver in any future
circumstance.
DEFERRED ACQUISITION A. Lincoln and USAA each acknowledge that it is
COST TAX ELECTION subject to taxation under Subchapter "L" of
the Internal Revenue Code of 1986 (the
"Code").
B. With respect to this Agreement, Lincoln and
USAA agree to the following pursuant to
Section 1.848-2(g)(8) of the Income Tax
Regulations issued December 1992, whereby:
(1) Each party agrees to attach a
schedule to its federal income tax
return which identifies this
Agreement for which the joint
election under the Regulation has
been made;
(2) The party with net positive
consideration, as defined in the
Regulation promulgated under Code
Section 848, for this Agreement for
each taxable year, agrees to
capitalize specified Policy
acquisition expenses with respect to
this Agreement without regard to the
general deductions limitation of
Section 848(c)(l);
(3) Each party agrees to exchange
information pertaining to the amount
of net consideration under this
Agreement each year to ensure
consistency; and
(4) This election shall be effective for
the year that this Agreement was
entered into and for all subsequent
years that this Agreement remains in
effect.
DEFINITIONS A. AUTOMATIC LIMIT - the amount specified in the
Life Benefits Schedule used to calculate the
maximum Reinsurance Amount that may be ceded
as Automatic Reinsurance.
B. AUTOMATIC REINSURANCE - reinsurance
satisfying certain conditions relating to the
reinsurance as specified in the Agreement
that is ceded to Lincoln without obtaining a
specific offer to reinsure from Lincoln.
Page 13
C. CLAIMS RATIO - the Reinsured Net Amount at
Risk on which reinsurance premiums have been
computed divided by the Policy Net Amount at
Risk calculated as of the date of the last
premium payment.
D. CONTINUATION - a new Policy replacing a
Policy or a change in an existing Policy
issued or made either
(1) in compliance with the terms of the
Policy; or
(2) without
(a) the same new underwriting
information USAA would
obtain in the absence of the
Policy;
(b) a suicide exclusion or
contestable period as long
as those contained in other
new issues of Policies; or
(c) the payment of the same
commissions in the first
year that USAA would have
paid in the absence of the
original Policy.
E. EFFECTIVE DATE - the date specified on the
cover page on which this Agreement becomes
binding on USAA and Lincoln.
F. ERROR - any isolated deviation from the terms
of this Agreement resulting from the act or
omission of an employee of either USAA or
Lincoln whose principal function relates to
the administration of reinsurance, whether
such deviation results from inadvertence or a
mistake in judgment. "Error" shall not
include any failure to comply with the terms
of an offer of Facultative Reinsurance or any
negligent or deliberate deviation from the
terms of this Agreement.
G. FACULTATIVE REINSURANCE - reinsurance that is
ceded to Lincoln only after USAA has obtained
and accepted a specific offer to reinsure
made by Lincoln. Such reinsurance may be
ceded to Lincoln only upon the terms
specified by Lincoln in its offer to reinsure
and the terms of this Agreement that do not
conflict with the specific offer to reinsure.
▇. ▇▇▇▇▇▇▇'▇ PROPORTIONATE SHARE - the
Reinsurance Amount divided by the death
benefit of a Policy as of the date of. issue
or as of the date of a subsequent change to
the Policy that affects the Reinsurance
Amount.
I. MATERIAL CHANGE - a change that a prudent
insurance or reinsurance executive would
consider as likely to impact upon a party's
financial experience under this Agreement.
Page 14
J. PARTICIPATION LIMIT - the amount specified in
the Life Benefits Schedule used as a
condition for ceding Automatic Reinsurance.
K. POLICY - an individual life insurance
contract issued by USAA on any of the Policy
forms specified in the Life Benefits
Schedule. A "Policy" shall include any
attached riders and endorsements specified in
the Life Benefits Schedule or any Addendum to
this Agreement.
L. POLICY NET AMOUNT AT RISK - on the
reinsurance premium renewal date, the death
benefit of a Policy less either the terminal
reserve or, in the case of interest sensitive
Policies, the accumulation account or cash
value on the Policy, such difference taken to
the nearest dollar. The terminal reserve or
cash value shall be disregarded if a Policy
is on either a level term plan of twenty
years or less or on a decreasing term plan.
The basis for determining the Policy Net
Amount at Risk may be modified with the
consent of both USAA and Lincoln without the
need for a formal amendment of this
Agreement.
M. REINSURANCE AMOUNT - the Policy death benefit
at issue less any accumulative value, if
applicable, less the Retention on the Policy
times the percentage of Automatic Reinsurance
ceded to Lincoln as specified in the Life
Benefits Schedule. For Facultative
Reinsurance, the "Reinsurance Amount" is that
amount of the Policy death benefit at issue
for which USAA accepts Lincoln's offer to
reinsure.
N. REINSURED NET AMOUNT AT RISK - Lincoln's
Proportionate Share times the Policy Net
Amount at Risk.
O. RETENTION - the amount specified in the Life
Benefits Schedule that is held by USAA at its
own risk on a life without the benefit of
proportional reinsurance. In calculating the
Retention, the sum retained by USAA on the
life and in force as of the date of issue of
the Policy shall be taken into account.
P. ULTIMATE AMOUNT - the projected maximum
Policy Net Amount at Risk that a Policy could
achieve based on reasonable assumptions made
about the operation of certain
characteristics of the Policy form.
Page 15
EXECUTION USAA and Lincoln, by their respective
officers, executed this Agreement in
duplicate on the dates shown below. As of the
Effective Date, this Agreement consists of
O this Yearly Renewable Term
Reinsurance Agreement numbered 24;
O a Life Benefits Schedule;
O an Administration Schedule;
O a Premium Schedule;
O an Arbitration Schedule;
O an Accidental Death Benefit Addendum;
and
O an Increasing Policy Addendum.
USAA LIFE INSURANCE COMPANY
Signed at /s/ SAN ANTONIO, TX.
---------------------------------------
By /s/
----------------------------------------------
Title AVI ACTUARY
-------------------------------------------
Date 12/7/98
--------------------------------------------
By /s/
----------------------------------------------
Title VP
-------------------------------------------
Date 12/7/98
--------------------------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort ▇▇▇▇▇, Indiana
By /s/
----------------------------------------------
Vice President
Date September 1, 1998
--------------------------------------------
By /s/
----------------------------------------------
Assistant Secretary
Date September 1, 1998
-------------------------------------------
Page 16
LIFE BENEFITS SCHEDULE
(Effective as of June 1, 1998)
to
Agreement Number 24
POLICIES REINSURED: USAA agrees to cede reinsurance in the listed percentages of
Policies issued on the following Policy forms with issue dates from and until
the dates listed below to insureds having surnames beginning with the letters of
the alphabet shown. Any Addenda referred to in the last column shall also be
applicable to reinsurance of the Policy.
Percent of
Reinsurance Policy Issue Alpha Applicable
Policy Form Ceded to Lincoln Dates From/Until Split Addenda
----------- ---------------- ---------------- ----- ----------
Variable Universal
Life(VUL) 10.00% 06-01-98/-- A-Z ADB, IP
RETENTION: USAA agrees to hold ten percent (10%) of each Policy face amount not
to exceed the Retention limit below at its own risk on a life without the
benefit of proportional reinsurance. In calculating its Retention, amounts
retained by USAA on other individual life insurance policies in force as of the
issue date of the Policy shall be taken into account.
Non-Military Lives
------------------
Ages Standard-Table P
---- ----------------
All $600,000
Military Lives
--------------
Rank Standard-Substandard
---- --------------------
WO - 0-3 $250,000
0-4 and Above 350,000
Enlisted Military Personnel
on Active Duty
---------------------------
All $50,000
Page 17
AUTOMATIC LIMITS: To bind Automatic Reinsurance, the maximum amount of life
insurance in force with USAA on a single life, or in the case of individual
life insurance with increasing death benefits, the Ultimate Amounts, plus all
amounts applied for from USAA on that life, or in the case of individual life
insurance with increasing death benefits, the Ultimate Amounts, may not exceed
the sum of the Retention on the life plus the following amounts.
Enlisted Military Personnel
---------------------------
Standard-Table P Over Table P
Flat Extras Flat Extras
Ages $0-$10.00 $0-$10.00
---- ---------------- ------------
0-75 $200,000 None
Over 75 None None
All Other Plans
---------------
Standard-Table P Over Table P
Flat Extras Flat Extras
Ages $0-$10.00 $0-$10.00
---- ---------------- ------------
0-75 $6,600,000 None
Over 75 None None
PARTICIPATION LIMITS: To bind Automatic Reinsurance, the sum of (1) the maximum
amount of individual life insurance in force on the insured in all companies or,
in the case of individual life insurance with increasing death benefits, the
Ultimate Amounts, as of the Policy Date of a Policy and (2) the amount then
being applied for by all companies, or in the case of individual life insurance
with increasing death benefits, the Ultimate Amounts, on the insured, may not
exceed the following amounts.
Ages Standard-Table P
---- ----------------
0-75 $25,000,000
Page 18
ADMINISTRATION SCHEDULE
(Effective as of June 1, 1998)
to
Agreement Number 24
TO PLACE REINSURANCE INTO EFFECT
(1) For Automatic Reinsurance: USAA agrees to cede Automatic Reinsurance of a
Policy by including all required information about the Policy on the new
business segment of the next self-administered statement submitted in accordance
with the REPORTS section below following issuance of the Policy.
(2) For Facultative Reinsurance: USAA agrees to submit an application form for
Facultative Reinsurance in substantial accord with the attached form. It agrees
to allocate reinsurance in accordance with its published facultative placement
rules among those reinsurers making facultative offers to reinsure a Policy. If
according to such rules Lincoln's offer is the one USAA intends to accept, USAA
shall cede Facultative Reinsurance of the Policy by including all required
information about the Policy on the new business segment of the next
self-administered statement submitted in accordance with the REPORTS section
below within one hundred twenty (120) days from date of Lincoln's facultative
offer or the date specified in Lincoln's approval of a written request from USAA
to grant an extension to the facultative offer.
MINIMUM CESSION REQUIREMENT
USAA agrees not to cede any Policy as Automatic Reinsurance if the Reinsurance
Amount of the Policy is less than twenty-five thousand dollars ($25,000).
REPORTS
Within thirty (30) days following the end of each month, USAA agrees to send
Lincoln the following three (3) reports:
(1) A BILLING STATEMENT containing Policy level detail in a form mutually
acceptable to USAA and Lincoln. At a minimum, it shall contain the data
elements specified in the attached Policy Detail Report. If the Policy
contains supplemental benefits that are also reinsured, each segment of
the Billing Statement shall include supplemental benefit detail.
Page 19
The Billing Statement shall be segmented as follows:
o NEW ISSUES and first-year premiums due for new reinsurance.
o BALANCE OF FIRST-YEAR POLICIES (Policies previously reported as
new issues) and corresponding balance of first-year reinsurance
premiums due for the reporting period.
o POLICIES WITH RENEWAL REINSURANCE PREMIUMS due during the
reporting period.
o POLICIES THAT HAVE UNDERGONE A CHANGE that affects reinsurance.
Separate segments may be submitted for any change affecting
reinsurance of a Policy, including
> reissues,
> reinstatements,
> terminations,
> reductions,
> changes in Retention,
> changes in mortality ratings,
> issuance of a Continuation, and
> increases or decreases in the Net Amount at Risk
(2) A SUMMARY ACCOUNTING REPORT that summarizes all financial transactions
during the reporting period. The report shall separately total life and
supplemental benefits for the first year reinsurance premiums are due,
shall total life and supplemental benefits for renewal reinsurance
premiums due, and shall identify all adjustments therefrom.
(3) A POLICY EXHIBIT REPORT in substantial accord with the attached form that
indicates in force reinsurance as of the beginning of the reporting
period, increases during the reporting period (new reinsurance,
reinstatements, recoveries or other increases) and all decreases during
the reporting period (terminations, reductions, surrenders, death claims
or other decreases); and the resulting in force reinsurance as of the end
of the reporting period.
USAA agrees to send Lincoln within ten (10) working days following each
quarter-end a RESERVE REPORT in substantial accord with the attached form.
Lincoln may request a change in the reporting requirements in order to obtain
data it reasonably needs to properly administer this Agreement or to prepare its
financial statements.
REINSURANCE PREMIUMS DUE
Reinsurance premiums are payable annually in advance and are due with the
reports submitted pursuant to the REPORTS section above.
Page 20
INCREASE IN LIMIT OF RETENTION
If USAA elects to increase its Retention on in force Policies, the increased
Retention may not become effective for a Policy until the Policy's tenth (10th)
anniversary date.
REDUCTIONS IN INSURANCE
(1) For purposes of this section only, the term "Policy" shall refer to any life
insurance issued by USAA on the insured person, whether or not reinsured with
Lincoln.
(2) If life insurance retained by USAA on an insured person reduces because a
Policy on that life lapses or reduces in accordance with the terms of a Policy,
the Reinsurance Amount shall be reduced as of the effective date of the
termination or reduction in insurance to restore, as far as possible, the
Retention of USAA on the life.
(3) Reinsurance shall first be reduced on the specific Policy that was
terminated or reduced. The balance, if any, of the reduction in the Reinsurance
Amount shall be applied to reinsurance of other policies on the life beginning
with the last Policy issued.
(4) Notwithstanding the preceding, the reduction of the Reinsurance Amount shall
not exceed the amount of the reduction times Lincoln's share of the total
reinsurance on the life prior to the reduction and shall not include any Policy
ceded as Facultative Reinsurance on which, at the time of issue, USAA retained
less than its Retention on the life.
AUTOMATIC TERMINATION
Reinsurance of a Policy shall continue regardless of the reduction of the amount
of Reinsured Net Amount at Risk and reinsurance shall not automatically
terminate as set forth in paragraph C of the "Commencement and Termination"
article.
CLAIMS ADMINISTRATION
Claims shall be individually reported as incurred using a form in substantial
accord with the attached form. USAA may take credit for unearned reinsurance
premiums from the date of death to the next Policy paid to date on its next
billing statement.
Page 21
***___ Automatic or ___ Facultative TRANSACTION TYPE_______ APPLICATION TO:
___ RPR or ___ Coinsurance (See Reverse Side)
___ Medical or ___ Non-Medical (R)[LOGO OF LINCOLN NATIONAL LIFE INSURANCE CO.]
A part of LINCOLN NATIONAL CORPORATION
--------
STATE OF
---------------------------------------------------------------------------------------------------------------------------------
INSURED'S NAME SEX BIRTHDATE BIRTH RESIDENCE OCCUPATION ISSUE AGE AGE BASIS
---------------------------------------------------------------------------------------------------------------------------------
JOINT INSURED SEX BIRTHDATE BIRTH RESIDENCE OCCUPATION ISSUE AGE JOINT AGE
---------------------------------------------------------------------------------------------------------------------------------
ORIGINAL POLICY NO. ISSUE DATE DATE OF APP SHORT TERM FROM PLAN(S) RATE BOOK ED RESERVE BASIS
---------------------------------------------------------------------------------------------------------------------------------
▇▇▇▇▇ COMPANY > Check Reins. Prem. Type: ____ SMOKER
___NON-SMOKER ____AGGREGATE ___OTHER PREF
---------------------------------------------------------------------------------------------------------------------------------
LIFE
BASE PLAN TERM RIDER DIS ADB Will Policy Contain:
PREVIOUS IN FORCE $__________ $__________ $__________ $__________ ___ Aviation Exclusion Provision
PREVIOUS RETAINED ___________ ___________ ___________ ___________ ___ Guaranteed Insurability Option
ISSUED THIS POLICY ___________ ___________ ___________ ___________ ___ Increasing Insurance Rider
RETAINED THIS POLICY ___________ ___________ ___________ ___________ ___ Term Insurance Dividend Option
RATING, IF SUBSTANDARD ___________ ___________ ___________ ___________ (Is option limited to cash
value ___ Yes ___ No)
RElNSURED THIS CESSION ___________ ___________ ___________ ___________ ___ Check if Applicant has withheld M1B
Authorization
================================================================================================================================
FACULTATIVE UNDERWRITING DATA
Underwriting Papers: Check Appropriate Column
Data Not
Attached Outstanding Obtainted
-------- ----------- ---------
Application ____ ____ ____
Examination ____ ____ ____
HOS ____ ____ ____
EKG (s) ____ ____ ____
X-Ray ____ ____ ____
SMA - Blood Study ____ ____ ____
APS Dr ____________ ____ ____ ____
Dr ____________ ____ ____ ____
IR ____ ____ ____
Questionnaires ____ ____ ____
Financial Data ____ ____ ____
Other (describe) ________________________________________
-------------------------------------------------------------------
Reason for submitting Facultatively:
___ Over Automatic Limit ___ Medical Reasons
___ Financial Reasons ___ Other Non-Medical
Describe: _____________________________________________________
Has money been accepted with the Application? ____ Yes ____ No
Is risk being submitted to other Reinsurers? ____ Yes ____ No
Other companion cases also submitted:
-------------------------------------------------------------------
Remarks:
TE: Unless otherwise stated, LNL's offer to reinsure is valid for 120 days from
date of facultative underwriting action.
Underwriter ___________________
Date ___________________
INSTRUCTIONS
1. Submit Part 1 when making Facultative Application.
2. Submit Part 2 when making Formal Cession of Reinsurance to
Lincoln National (new business or amended cession) or withdrawing
Facultative Application.
3. Retain Part 3 for your records.
4. On RPR cases, please furnish the Disability Premium per unit on
Parts 2 & 3 in the remarks area.
TRANSACTION TYPE CODES AND DEFINITIONS
NEW COVERAGE
CODE LITERAL DEFINITION
NB - New Business New issues, on which the underwriting is within the
ceding company's requirements as per published
guidelines.
SU - New Business New Issues for which the ceding company has a program to
with Special use modified underwriting requirements (e.g., a Special
Underwriting Replacement Program).
CONTINUATION OF COVERAGE - A "continuation" of a policy is a new policy
replacing a policy is issued earlier by the client ("original policy") or a
change in an existing policy issued or made either:
(a) in compliance with the terms of the original policy (such as a
conversion of a term policy or the use of first-year rates for a
re-entry term product)
OR
(b) without the same new underwriting information the client would obtain
in the absence of the original policy, without a suicide exclusion or
contestable period as long as those contained in new issues by the
client, or without the payment of the same first-year commissions
payable in the absence of the original policy.
CODE LITERAL DEFINITION
EX - Exchange A policy which-is replacing a policy previously issued by
the ceding company and for which the company does not
obtain Full Evidence of Insurability requirements as per
published underwriting guidelines it would obtain in the
absence of the replaced policy. (Indicate effective date
in remarks area).
CN - Conversion A newly issued policy based on a contractual provision
contained in the previous policy with limited or no
evidence of insurability. (Indicate effective date and
other pertinent data in the remarks area).
RT - RE-Entry Term A contractual privilege which allows the insured to
present evidence of insurability to obtain a new first
year premium at his then attained age (based on same plan
of insurance originally issued.)
OR - Other Reissues All other reissues not considered to be exchanges,
conversions, or re-entries (e.g., reduction in amount,
rating reduction, return to first-year premium, adding or
terminating benefits, etc.). (Indicate effective date and
other pertinent data in the remarks areas).
OT - Other MUST explain in remarks area.
POLICY DETAIL REPORT
______________, 19___
For each Policy show:
o Client Policy Number
o Effective Date of Tape or Statement
o Automatic/Facultative Indicator
o Name
-- Last Name
-- First Name
-- Middle Initial
o Gender
o Date of Birth
o Smoker Indicator
o Original Plan Code
o Issue Age
o Table Rating
o Flat EXTRA 1 Premium
o Length of Flat EXTRA 1 (YR)
o Flat EXTRA 2 Premium
o Length of Flat EXTRA 2 (YR)
o Current Amount Reinsured
o Issue Month/Day/Century/Year
o Termination Date
o Reinstate Date
o Coverage Face
o Direct Face Issued
o Life Standard Premium
o Life Substandard Premium
o Gross Flat EXTRA 1 Premium
o Gross Flat EXTRA 2 Premium
o W.P. Premium
o ADB Premium
o Policy Fee
o Dividend
o Life Standard Allowance
o Life Substandard Allowance
o Gross Flat EXTRA 1 Allowance
o Gross Flat EXTRA 2 Allowance
o W.P. Allowance
o ADB Allowance
ADDITIONAL DATA ITEMS (not required)
o Par/Nonpar Indicator
o State of Residency
o Type of Evidence
o Underwriting Indicator
o Social Security Number
o Coverage Sequence Number
o Account Number
▇ ▇▇▇/MCX/RPR
o ER/NR
o Age Basis
o Gross Premium
o Allowance
o Tax Interest Rate
o Status Code
o Years From Issue to Conversion
o Reinsurance Premium Mode
o Retention Indicator
o Retention Amount
o Cash Value
o First Year/Renewal Indicator
SPECIAL PRODUCTS (only required if applicable)
o Joint Insured Name
-- Joint Last Name
-- Joint First Name
-- Joint Middle Initial
o Term Additions Indicator
o Accelerated Benefit Indicator
o Purchase Options
Policy Exhibit
______________, 19___
Risk Premium Reinsurance
---------------------------------Current Period---------------------------------
Number Amount of
of Policies Reinsurance
----------- -----------
In-force Beg. of Period
Issues-Automatic
Issues-Facultative
Cancellations (NTO's)
Reinstates from Cancels
Other Increases
(Include other reinstatements)
Total Increases
Deaths
Recaptures
Expiries & Maturities
Lapses & Surrenders
Other Decreases in Coverage
Total Decreases
In-force End of Period
----------------------------------Year-to-Date----------------------------------
Number Amount of
of Policies Reinsurance
----------- -----------
In-force Beg. of Year
Issues-Automatic
Issues-Facultative
Cancellations (NTO's)
Reinstates from Cancels
Other Increases
(Include other reinstatements)
Total Increases
Deaths
Recaptures
Expiries & Maturities
Lapses & Surrenders
Other Decreases in Coverage
Total Decreases
In-force Year-to-Date
Quarterly Reserve Report
Mean Reserves as of End of __________ Quarter, 19___
Risk Premium Reinsurance
Life ___________________
Accidental Death Benefits ___________________
Waiver of Premium ___________________
Mortality Table ___________________
Rate of Interest ___________________
(R)[LOGO OF LINCOLN FRAUD STATEMENT REQUIRED This form should be completed
NATIONAL REINSURANCE] BY SOME STATES and forwarded to: Individual
A part of LINCOLN Life Reinsurance Claims
NATIONAL CORPORATION Any person who knowingly Administration Lincoln
and with intent to defraud National Life Reinsurance
any insurance company or Company
other person files a ▇.▇. ▇▇▇ ▇▇▇
statement of claim ▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
containing any materially (▇▇▇)▇▇▇-▇▇▇▇
false information, or Fax:(▇▇▇)▇▇▇-▇▇▇▇
conceals for the purpose
of misleading, information
concerning any fact
material thereto, commits
a fraudulent insurance
act, which is a crime.
REINSURANCE DEATH CLAIM FORM
================================================================================
1. TO GIVE PRELIMINARY NOTICE OF DEATH COMPLETEITEMS 1-4b AND 11.
Date__________________________ 19__________________
2. a. Name of Insured___________________________ b. Date of Birth__________
▇. ▇▇▇▇ of Death______________ d. State of Residence______________
e. Cause of Death_______________________________________
3. If any policies are CONTESTABLE or involve ADB, have you Initiated a
claim investigation? [ ] No [ ] Yes
4. LIST ALL POLICIES you have on this insured, including terminated
policies and date of termination. Indicate whether any policies
have been reinstated within the past two years.
a. Do you have policies issued, but NOT REINSURED WITH LINCOLN
NATIONAL? [ ] No [ ] Yes
(If so, please complete the following for EACH policy.)
-----------------------------------------------------------------------------------------------------------------------------------
HAS YOUR POLICY LAPSED
FACE AMOUNT RETENTION FOR DATE OF TERMINATION WITHIN LAST TWO YEARS
YOUR POLICY DATE OF ----------------- AGE, PLAN & REINSURED -------------------- ----------------------------------
NUMBER ISSUE LIFE ADB RATE ELSEWHERE LIFE ADB DATE OF REINSTATED
----------- ------- ---- --- ------------- --------- ---- --- ------------- ------------------
$ $ $ $ [ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
[ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
[ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
--------------------------
FACE AMOUNT NOW REINSURED
(NOT NET RISK)
--------------------------
LIFE ADB
---- ---
$ $
--------------------------
--------------------------
--------------------------
b. POLICIES REINSURED WITH LINCOLN NATIONAL. Were any of these policies
issued as a result of a CONVERSION, EXCHANGE, or REPLACEMENT of other
Life coverage in your company? [ ] No [ ] Yes (If yes, furnish
former policy no., issue date, plan, amount, termination date, and
name of prior reinsurer.)
Did any of these policies replace Life coverage from another company?
[ ] No [ ] Yes (If yes, was there full and complete underwriting by
your company? [ ] No [ ] Yes)
-----------------------------------------------------------------------------------------------------------------------------------
HAS YOUR POLICY LAPSED
FACE AMOUNT RETENTION FOR DATE OF TERMINATION WITHIN LAST TWO YEARS
YOUR POLICY DATE OF ----------------- AGE, PLAN & REINSURED -------------------- ----------------------------------
NUMBER ISSUE LIFE ADB RATE ELSEWHERE LIFE ADB DATE OF REINSTATED
----------- ------- ---- --- ------------- --------- ---- --- ------------- ------------------
$ $ $ $ [ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
[ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
[ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
[ ] No [ ] Yes
-----------------------------------------------------------------------------------------------------------------------------------
**al Issued $ $
-------------------
**s Total Terminated $ $
-------------------
**rance Now in Force $ $
-------------------
--------------------------
FACE AMOUNT NOW REINSURED
(NOT NET RISK)
--------------------------
LIFE ADB
---- ---
$ $
--------------------------
--------------------------
--------------------------
--------------------------
Amount Reinsured with LNRC $ $
--------------------------
Plus Amounts reinsured elsewhere $ $
--------------------------
Plus Your Retention $ $
--------------------------
Total $ $
--------------------------
<-----------------These should agree--------------->
================================================================================
5. To ESTABLISH CLAIM FOR REINSURANCE REIMBURSEMENT, COMPLETE QUESTIONS 1-11
Date____________________________, 19___________
---------------------------------------------------
For INCONTESTABLE POLICIES WITHOUT ADB
o If amount reinsured is $25,000 or less
-COMPLETE this Reinsurance Death Claim Form only
o If amount reinsured is greater than $25,000
-COMPLETE this Reinsurance Death Claim Form
-ATTACH Proofs of Death
-ATTACH Application Parts 1,2,3 and Underwriting
Worksheet if caded automatically
---------------------------------------------------
---------------------------------------------------
For CONTESTABLE AND/OR ADB POLICIES
o COMPLETE this Reinsurance Death Claim Form
o ATTACH Proofs of Death
o ATTACH any Investigation Reports
not previously forwarded
o ATTACH Application and Underwriting file
including the Underwriting Worksheet
if ceded automatically
---------------------------------------------------
-----------------------------------------
LIFE ACCIDENTAL DEATH
-----------------------------------------
6. Are you awaiting our advice before making an claim decision? [ ] No [ ] Yes [ ] No [ ] Yes
7. Has your claim been approved for payment in full? If so, send a
copy of your worksheet. [ ] No [ ] Yes [ ] No [ ] Yes
8. Has settlement been sent to your beneficiary? [ ] No [ ] Yes [ ] No [ ] Yes
9. Memorandum_______________________________________________________ -----------------------------------------
10. Reimbursement is requested on the following:
-----------------------------------------------------------------
ACCIDENTAL
LINCOLN NATIONAL LIFE BENEFIT DEATH BENEFIT
POLICY NO. DUE DUE
--------------- ------------ --------------
$ $
-----------------------------------------------------------------
-----------------------------------------------------------------
-----------------------------------------------------------------
**al Requested $ $
-----------------------------------------------------------------
11. Your Company Name__________________________________________________________
Signature__________________________________________________________________
Title______________________________________________________________________
Telephone No.(______) _______________________________________ Ext.
PREMIUM SCHEDULE
(Effective as of June 1, 1998)
to
Agreement Number 24
STANDARD REINSURANCE PREMIUMS
Basic Reinsurance Premium Rates: The annual reinsurance premium rates
for reinsurance ceded under this Agreement shall be the attached
rates, age last birthday, charged the insured per thousand dollars of
Reinsured Net Amount at Risk times the following percentages:
Duration
Plan 1 2+
---- - --
Preferred Ultra 0% 35%
Preferred Plus 0 41
Preferred and Standard Plus 0 47
Standard 0 66
ADDITIONAL AMOUNTS PAID BY USAA:
(1) Substandard Premiums: For Policies written on substandard risks,
the appropriate premium rate shall be adjusted by multiplying the rate
by twenty-five percent (25%) for each table assessed the risk and
adding such amount to the reinsurance premiums due.
(2) Temporary Flat Extra Premiums: USAA agrees to pay Lincoln a
temporary flat extra premium equal to the product of the flat extra
premium assigned by USAA or Lincoln on the Policy times the
Reinsurance Amount minus an allowance of fifteen percent (15%) for all
renewal years such premium is payable.
(3) Permanent Flat Extra Premiums: USAA agrees to pay Lincoln any
permanent flat extra premium paid calculated on the Reinsurance Amount
minus an allowance of seventy-five percent (75%) for the first year
such premium is payable and twenty percent (20%) for all renewal years
such premium is payable.
Page 22
(4) Continuations: Premiums payable for reinsurance of a Continuation
shall be based on the age at issue and duration from issue of the
original Policy. If the premium scale applicable to a Continuation
contains a Policy fee, USAA agrees to pay a first-year Policy fee on
the Continuation if a Policy fee was not paid at issue of the original
Policy.
ADDITIONAL AMOUNTS PAID BY LINCOLN:
(1) Premium Taxes: Lincoln shall not reimburse USAA for state premium
taxes.
(2) Experience Refunds: Lincoln shall not pay an experience refund to
USAA.
(3) Unearned Premiums: Lincoln agrees to refund, without interest, any
reinsurance premiums unearned as of the date of death of an insured
person or as of the date of a reduction of reinsurance pursuant to the
"Reductions" article.
Page 23
MALE NON-SMOKER RATE PER 1,000
Duration/
Issue
Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14
0 1.12 0.70 0.47 0.42 0.37 0.32 0.31 0.28 0.27 0.27 0.28 0.33 0.38 0.46
1 0.99 0.60 0.38 0.34 0.29 0.31 0.31 0.22 0.22 0.26 0.30 0.38 0.42 0.48
2 0.81 0.51 0.33 0.29 0.25 0.30 0.32 0.21 0.24 0.33 0.41 0.54 0.56 0.60
3 0.61 0.42 0.30 0.27 0.23 0.29 0.32 0.25 0.30 0.44 0.57 0.75 0.74 0.75
4 0.44 0.36 0.29 0.27 0.24 0.29 0.32 0.31 0.38 0.56 0.73 0.95 0.91 0.89
5 0.31 0.31 0.28 0.27 0.27 0.28 0.33 0.38 0.46 0.66 0.84 1.07 1.02 0.98
6 0.25 0.31 0.27 0.28 0.31 0.36 0.44 0.48 0.55 0.73 0.89 1.06 1.05 0.98
7 0.22 0.31 0.28 0.30 0.39 0.47 0.61 0.63 0.67 0.80 0.93 1.09 1.05 0.97
8 0.22 0.31 0.28 0.34 0.48 0.61 0.79 0.78 0.80 0.87 0.95 1.05 1.02 0.97
9 0.23 0.31 0.31 0.39 0.57 0.73 0.95 0.92 0.90 0.92 0.95 1.00 0.99 0.96
10 0.26 0.31 0.36 0.44 0.56 0.82 1.05 1.00 0.97 0.95 0.95 0.96 0.96 0.96
11 0.33 0.41 0.46 0.52 0.70 0.87 1.04 1.00 0.96 0.95 0.94 0.92 0.93 0.94
12 0.43 0.56 0.58 0.63 0.76 0.89 1.04 1.00 0.96 0.92 0.90 0.88 0.89 0.91
13 0.55 0.72 0.72 0.74 0.62 0.69 0.96 0.95 0.92 0.87 0.85 0.84 0.86 0.88
14 0.66 0.86 0.84 0.84 0.86 0.89 0.92 0.90 0.87 0.83 0.81 0.81 0.83 0.86
15 0.73 0.95 0.92 0.90 0.89 0.89 0.87 0.86 0.84 0.81 0.79 0.80 0.82 0.86
16 0.73 0.95 0.93 0.91 0.88 0.88 0.84 0.84 0.82 0.81 0.80 0.79 0.82 0.86
17 0.74 0.95 0.94 0.92 0.88 0.85 0.81 0.81 0.80 0.82 0.80 0.81 0.84 0.87
18 0.74 0.91 0.91 0.69 0.85 0.81 0.79 0.79 0.79 0.82 0.82 0.84 0.87 0.90
19 0.75 0.85 0.87 0.86 0.82 0.78 0.77 0.78 0.79 0.82 0.84 0.87 0.91 0.92
20 0.75 0.80 0.83 0.83 0.80 0.76 0.76 0.78 0.79 0.83 0.86 0.89 0.93 0.95
21 0.72 0.75 0.78 0.79 0.78 0.76 0.77 0.78 0.80 0.84 0.87 0.90 0.94 0.97
22 0.67 0.68 0.72 0.74 0.75 0.76 0.77 0.81 0.83 0.85 0.88 0.91 0.95 0.99
23 0.62 0.61 0.66 0.69 0.73 0.76 0.79 0.84 0.86 0.87 0.89 0.91 0.95 1.01
24 0.57 0.55 0.60 0.64 0.70 0.76 0.61 0.87 0.89 0.90 0.91 0.92 0.97 1.03
25 0.53 0.51 0.56 0.61 0.70 0.76 0.82 0.89 0.92 0.92 0.93 0.95 1.00 1.08
26 0.50 0.50 0.56 0.61 0.70 0.76 0.83 0.90 0.93 0.94 0.96 0.99 1.05 1.14
27 0.49 0.49 0.56 0.61 0.71 0.76 0.83 0.90 0.94 0.96 0.99 1.04 1.11 1.21
28 0.48 0.46 0.56 0.52 0.71 0.77 0.84 0.91 0.94 0.89 1.03 1.10 1.19 1.29
29 0.47 0.48 0.56 0.55 0.72 0.77 0.84 0.91 0.96 1.02 1.09 1.17 1.28 1.39
30 0.47 0.47 0.56 0.57 0.73 0.78 0.85 0.92 1.00 1.08 1.16 1.26 1.38 1.51
31 0.47 0.47 0.58 0.69 0.76 0.82 0.89 0.97 1.06 1.16 1.25 1.36 1.50 1.65
32 0.48 0.48 0.59 0.72 0.79 0.86 0.94 1.03 1.13 1.25 1.36 1.48 1.63 1.80
33 0.49 0.50 0.62 0.75 0.82 0.91 1.00 1.11 1.22 1.36 1.48 1.62 1.77 1.97
34 0.51 0.52 0.65 0.79 0.87 0.98 1.07 1.20 1.32 1.48 1.62 1.76 1.94 2.17
35 0.52 0.55 0.70 0.84 0.94 1.06 1.16 1.30 1.44 1.61 1.77 1.93 2.13 2.39
36 0.53 0.60 0.76 0.92 1.03 1.15 1.26 1.42 1.57 1.75 1.92 2.10 2.33 2.62
37 0.54 0.66 0.84 1.01 1.13 1.26 1.38 1.54 1.71 1.90 2.08 2.27 2.54 2.86
38 0.54 0.72 0.93 1.11 1.24 1.38 1.51 1.69 1.87 2.06 2.25 2.47 2.77 3.13
39 0.55 0.79 1.01 1.22 1.36 1.51 1.65 1.84 2.04 2.25 2.46 2.71 3.06 3.46
40 0.56 0.85 1.09 1.21 1.47 1.63 1.79 2.00 2.23 2.47 2.71 3.01 3.41 3.87
41 0.59 0.90 1.15 1.39 1.57 1.74 1.92 2.16 2.43 2.72 3.01 3.38 3.84 4.37
42 0.63 0.94 1.21 1.45 1.65 1.84 2.04 2.32 0.64 2.99 3.44 3.81 4.33 4.95
43 0.68 0.99 1.26 1.52 1.75 1.95 2.18 2.50 2.88 3.30 3.72 4.28 4.87 5.59
44 0.74 1.05 1.33 1.60 1.46 2.09 2.34 2.71 3.14 3.63 4.13 4.78 5.45 6.28
45 0.81 1.13 1.43 1.72 2.01 2.27 2.55 2.97 3.45 4.01 4.57 5.30 6.06 6.99
46 0.89 1.24 1.55 1.87 2.19 2.49 2.81 3.27 3.80 4.41 5.03 5.80 6.66 7.71
47 0.98 1.36 1.70 2.03 2.40 2.74 3.10 3.61 4.17 4.84 5.51 6.29 7.27 8.44
48 1.07 1.50 1.06 2.23 2.63 3.03 3.43 3.98 4.59 5.31 6.04 6.83 7.93 9.22
49 1.17 1.65 2.05 2.46 2.90 3.35 3.79 4.39 5.06 5.85 6.64 7.45 8.68 10.09
50 1.27 1.80 2.26 2.73 3.21 3.71 4.19 4.85 5.58 6.46 7.34 8.21 9.55 11.07
51 1.36 1.94 2.51 3.06 3.57 4.11 4.62 5.35 6.15 7.15 8.15 9.12 10.55 12.14
52 1.45 2.09 2.78 3.44 3.98 4.54 5.08 5.68 6.78 7.91 9.04 10.14 11.64 13.28
53 1.55 2.24 3.08 3.86 4.43 5.01 5.58 6.45 7.45 8.74 10.01 11.27 12.84 14.53
54 1.55 2.41 3.40 4.29 4.91 5.52 6.13 7.08 8.19 9.63 11.07 12.48 14.15 15.92
55 1.78 2.60 3.73 4.73 5.40 6.06 6.73 7.78 9.00 10.60 12.19 13.77 15.52 17.50
56 1.92 2.82 4.08 5.19 5.93 6.65 7.38 8.53 9.86 11.60 13.33 15.05 17.05 19.18
57 2.07 3.07 4.47 5.69 6.49 7.28 8.08 9.32 10.76 12.63 14.48 16.33 18.54 20.93
58 2.24 3.33 4.66 6.20 7.07 7.95 8.83 10.18 11.74 13.75 15.74 17.73 20.20 22.89
59 2.43 3.61 5.23 6.67 7.66 8.64 9.63 11.12 12.84 15.01 17.20 19.38 22.15 25.19
60 2.66 3.89 5.57 7.09 8.22 9.35 10.48 12.16 14.09 16.49 18.93 21.40 24.42 27.96
61 2.83 4.17 5.81 7.37 8.67 9.98 11.29 13.21 15.42 18.11 20.92 23.80 27.32 31.18
62 3.23 4.44 5.97 7.52 9.03 10.54 12.04 14.26 16.81 19.83 23.10 26.51 30.45 34.75
63 3.56 4.73 6.14 7.68 9.42 11.16 12.90 15.45 18.37 21.75 25.52 29.49 33.92 38.73
64 3.90 5.07 6.40 7.97 9.98 12.00 14.01 16.91 20.21 23.97 28.21 32.72 37.72 43.13
65 4.24 5.47 6.83 8.53 10.86 13.20 15.53 18.78 22.46 26.59 31.21 36.18 41.83 47.99
66 4.58 5.91 7.42 9.35 12.07 14.81 17.54 21.14 25.15 29.59 34.40 39.67 46.06 53.12
67 4.92 6.38 8.11 10.34 13.53 16.74 19.93 23.89 28.22 32.90 37.75 43.21 50.41 58.49
68 5.27 6.91 8.93 11.50 15.20 18.90 22.59 26.93 31.58 36.55 41.44 47.09 55.19 64.41
69 5.66 7.53 9.89 12.85 17.02 21.21 25.37 30.13 35.19 40.56 45.66 51.60 60.69 71.16
70 6.08 8.29 11.03 14.38 18.97 23.47 28.15 33.40 38.98 44.97 50.57 57.01 67.23 79.04
71 6.55 9.16 12.31 16.05 20.98 25.92 30.84 36.62 42.83 49.65 56.05 63.20 74.63 87.53
72 7.03 10.13 13.70 17.84 23.07 28.31 33.53 39.88 46.80 54.58 61.98 69.97 82.68 97.33
73 7.55 11.21 15.27 19.85 25.35 30.85 36.34 43.33 51.04 59.94 68.56 77.52 91.66 107.67
74 8.11 12.43 17.07 22.13 27.89 33.65 39.42 47.10 55.72 65.93 75.98 86.07 101.81 119.80
75 8.73 13.82 19.13 24.75 30.78 36.82 42.90 51.37 61.01 72.73 84.43 95.80 113.41 133.48
76 9.49 15.66 21.94 28.32 34.61 40.96 47.40 56.90 67.91 81.71 95.74 108.84 128.99 151.84
77 10.25 17.51 24.75 31.89 38.44 45.10 51.89 62.43 74.80 90.69 107.04 121.87 144.57 170.22
78 11.01 19.35 27.56 35.46 42.28 49.24 56.39 67.95 81.70 99.67 118.35 134.91 160.15 188.59
79 11.77 21.20 30.37 39.03 46.11 53.38 60.80 73.48 88.59 108.65 129.66 147.95 175.73 206.97
80 12.54 23.04 33.18 42.60 49.94 57.52 65.38 79.01 95.49 117.63 140.96 160.98 191.31 225.35
Duration/
Issue Attained
Age 15 Ultimate Age
0 0.66 0.84 15
1 0.66 1.07 16
2 0.72 1.02 17
3 0.81 0.98 18
4 0.90 0.96 19
5 0.96 0.96 20
6 0.96 0.96 21
7 0.96 0.96 22
8 0.96 0.96 23
9 0.95 0.96 24
10 0.95 0.96 25
11 0.94 0.96 26
12 0.93 0.96 27
13 0.92 0.96 28
14 0.91 0.96 29
15 0.91 0.96 30
16 0.91 0.96 31
17 0.92 0.96 32
18 0.94 0.97 33
19 0.96 0.98 34
20 0.98 1.00 35
21 1.01 1.03 36
22 1.03 1.07 37
23 1.07 1.13 38
24 1.11 1.20 39
25 1.17 1.28 40
26 1.24 1.37 41
27 1.31 1.46 42
26 1.40 1.55 43
29 1.50 1.65 44
30 1.64 1.78 45
31 1.80 1.94 46
32 1.99 2.16 47
33 2.20 2.42 48
34 2.43 2.73 49
35 2.69 3.06 50
36 2.95 3.42 51
37 3.22 3.78 52
38 3.52 4.11 53
39 3.89 4.45 54
40 4.37 4.88 55
41 4.97 5.44 56
42 5.68 6.21 57
43 6.46 7.18 58
44 7.29 8.30 59
45 8.13 9.48 60
46 8.97 10.63 61
47 9.82 11.70 62
48 10.72 12.68 63
49 11.70 13.63 64
50 12.78 14.64 65
51 13.91 15.80 66
52 15.08 17.10 67
53 16.36 18.47 68
54 17.83 19.95 69
55 19.56 21.67 70
56 21.47 23.75 71
57 23.52 26.24 72
58 25.81 29.03 73
59 28.50 32.15 74
60 31.71 35.73 75
61 35.37 39.85 76
62 39.40 44.56 77
63 43.90 49.75 78
64 48.95 55.47 79
65 54.66 61.82 80
66 60.65 68.94 81
67 67.45 76.90 82
68 74.74 85.66 83
69 82.96 95.18 84
70 92.40 106.29 85
71 103.06 119.52 86
72 114.78 134.10 87
73 127.51 149.51 88
74 141.25 165.20 89
75 155.96 180.95 90
76 173.62 197.00 91
77 191.28 213.45 92
78 208.95 230.12 93
79 226.61 246.83 94
80 244.27 263.19 95
279.29 96
295.80 97
312.73 98
330.06 99
MALE SMOKER RATE PER $1,000
Duration/
Issue
Age 1 2 3 4 5 6 7 8 9 10 11 12 13
0 1.59 0.99 0.67 0.60 0.52 0.45 0.44 0.40 0.38 0.38 0.40 0.47 0.54
1 1.43 0.89 0.58 0.51 0.44 0.38 0.44 0.34 0.35 0.40 0.45 0.57 0.63
2 1.18 0.76 0.51 0.45 0.39 0.33 0.45 0.34 0.38 0.50 0.62 0.81 0.83
3 0.89 0.63 0.45 0.41 0.36 0.32 0.45 0.38 0.45 0.65 0.83 1.09 1.07
4 0.63 0.51 0.42 0.39 0.36 0.34 0.46 0.44 0.55 0.81 1.04 1.35 1.30
5 0.45 0.43 0.39 0.39 0.38 0.39 0.47 0.54 0.65 0.93 1.19 1.52 1.44
6 0.35 0.44 0.38 0.39 0.44 0.50 0.62 0.68 0.78 1.03 1.26 1.52 1.49
7 0.30 0.44 0.38 0.42 0.54 0.66 0.85 0.87 0.94 1.12 1.30 1.53 1.48
8 0.31 0.44 0.38 0.46 0.65 0.84 1.10 1.09 1.11 1.28 1.33 1.47 1.43
9 0.32 0.44 0.42 0.53 0.78 1.02 1.33 1.28 1.26 1.78 1.34 1,40 1.39
10 0.37 0.44 0.51 0.63 0.91 1.16 1.49 1.42 1.37 1.34 1.35 1.35 1.36
11 0.49 0.64 0.70 0.79 1.04 1.27 1.49 1.49 1.44 1.39 1.36 1.35 1.35
12 0.68 0.92 0.95 1.02 1.21 1.37 1.50 1.53 1.48 1.42 1.36 1.35 1.35
13 0.88 1.23 1.23 1.25 1.36 1.45 1.50 1.53 1.48 1.43 1.37 1.35 1.34
14 1.06 1.51 1.47 1.46 1.49 1.50 1.51 1.52 1.49 1.43 1.37 1.35 1.34
15 1.18 1.68 1.63 1.59 1.57 1.50 1.52 1.50 1.47 1.43 1.37 1.34 1.35
16 1.19 1.73 1.68 1.60 1.58 1.51 1.47 1.45 1.43 1.40 1.36 1.34 1.35
17 1.19 1.71 1.67 1.61 1.54 1.45 1.40 1.38 1.36 1.36 1.34 1.34 1.35
18 1.15 1.63 1.61 1.55 1.46 1.37 1.32 1.29 1.27 1.30 1.31 1.34 1.36
19 1.09 1.54 1.53 1.47 1.38 1.29 1.24 1.21 1.20 1.25 1.29 1.34 1.36
20 1.05 1.46 1.46 1.41 1.32 1.23 1.18 1.15 1.15 1.22 1.28 1.34 1.37
21 1.03 1.39 1.39 1.35 1.26 1.18 1.14 1.14 1.15 1.23 1.27 1.34 1.40
22 1.00 1.30 1.30 1.27 1.20 1.14 1.10 1.13 1.16 1.23 1.27 1.35 1.42
23 0.98 1.21 1.21 1.19 1.14 1.11 1.07 1.13 1.16 1.24 1.26 1.36 1.46
24 0.95 1.12 1.13 1.12 1.10 1.08 1.07 1.12 1.17 1.24 1.29 1.40 1.53
25 0.93 1.06 1.07 1.07 1.07 1.09 1.07 1.11 1.17 1.25 1.35 1.48 1.63
26 0.90 1.02 1.03 1.08 1.07 1.09 1.10 1.16 1.24 1.34 1.46 1.61 1.77
27 0.88 0.98 1.00 1.08 1.07 1.11 1.15 1.24 1.33 1.47 1.61 1.77 1.95
28 0.85 0.96 1.00 1.09 1.09 1.15 1.22 1.33 1.45 1.62 1.79 1.96 2.15
29 0.83 0.95 1.00 1.09 1.13 1.20 1.31 1.44 1.59 1.78 1.98 2.17 2.36
30 0.82 0.94 1.01 1.10 1.20 1.29 1.42 1.58 1.74 1.96 2.17 2.38 2.59
31 0.81 0.94 1.04 1.16 1.29 1.40 1.56 1.74 1.91 2.14 2.36 2.58 2.81
32 0.81 0.94 1.08 1.24 1.40 1.55 1.72 1.92 2.11 2.32 2.54 2.78 3.03
33 0.81 0.95 1.14 1.34 1.54 1.71 1.90 2.12 2.32 2.53 2.75 2.99 3.27
34 0.83 0.98 1.22 1.46 1.69 1.89 2.10 2.34 2.55 2.76 2.98 3.24 3.56
35 0.87 1.03 1.32 1.61 1.86 2.08 2.31 2.57 2.80 3.02 3.26 3.55 3.91
36 0.92 1.11 1.45 1.79 2.05 2.28 2.52 2.80 3.06 3.30 3.57 3.90 4.32
37 0.99 1.21 1.62 1.99 2.25 2.49 2.74 3.03 3.32 3.61 3.90 4.28 4.78
38 1.06 1.33 1.80 2.21 2.48 2.72 2.98 3.28 3.60 3.94 4.28 4.72 5.29
39 1.16 1.47 2.00 2.45 2.72 2.98 3.24 3.57 3.93 4.33 4.72 5.22 5.87
40 1.27 1.61 2.20 2.70 2.99 3.26 3.55 3.91 4.33 4.79 5.25 5.82 6.55
41 1.41 1.76 2.40 2.95 3.27 3.56 3.89 4.31 4.80 5.34 5.91 6.56 7.35
42 1.57 1.92 2.61 3.19 3.55 3.89 4.26 4.75 5.33 5.97 6.68 7.43 8.27
43 1.74 2.09 2.83 3.46 3.87 4.24 4.67 5.74 5.90 6.65 7.51 8.35 9.25
44 1.92 2.28 3.08 3.76 4.22 4.63 5.12 5.77 6.51 7.35 8.34 9.26 10.24
45 2.09 2.51 3.37 4.11 4.62 5.09 5.63 6.34 7.15 8.05 9.11 10.08 11.17
46 2.24 2.76 3.69 4.50 5.08 5.61 6.21 6.96 7.80 8.71 9.76 10.73 11.96
47 2.36 3.02 4.04 4.93 5.58 6.20 6.86 7.64 8.48 9.36 10.33 11.74 12.65
48 2.50 3.31 4.42 5.40 6.12 6.83 7.54 8.35 9.20 10.03 10.91 11.77 13.37
49 2.68 3.65 4.85 5.92 6.71 7.48 8.26 9.09 9.96 10.78 11.59 12.44 14.25
50 2.91 4.06 5.36 6.51 7.33 8.15 8.97 9.85 10.76 11.63 12.46 13.39 15.43
51 3.21 4.55 5.96 7.18 8.00 8.81 9.66 10.58 11.56 12.54 13.44 14.55 16.84
52 3.55 5.10 6.63 7.93 8.70 9.47 10.34 11.29 12.35 13.47 14.46 15.84 18.39
53 3.93 5.70 7.36 8.73 9.45 10.17 11.05 12.04 13.21 14.52 15.65 17.34 20.18
54 4.36 6.33 8.10 9.54 10.24 10.93 11.83 12.90 14.22 15.76 17.13 19.18 22.32
55 4.84 6.96 8.82 10.34 11.06 11.77 12.72 13.93 15.46 17.29 19.00 21.44 24.89
56 5.38 7.58 9.52 11.12 11.93 12.72 13.73 15.17 16.98 19.16 21.37 24.25 28.02
57 6.00 8.22 10.21 11.90 12.84 13.77 14.84 16.57 18.73 21.31 24.17 27.53 31.63
58 6.64 8.88 10.92 12.69 13.79 14.87 16.02 18.09 20.64 23.66 27.24 31.12 35.56
59 7.30 9.56 11.65 13.51 14.77 16.00 17.26 19.66 22.61 26.14 30.43 34.84 39.64
60 7.93 10.29 12.42 14.36 15.76 17.13 18.53 21.25 24.59 28.66 33.59 38.50 43.69
61 8.49 11.05 13.22 15.22 16.71 18.11 19.65 22.65 26.39 31.15 36.70 42.14 47.75
62 9.00 11.83 14.04 16.09 17.62 18.95 20.63 23.91 28.06 33.65 39.85 45.89 51.92
63 9.53 12.65 14.89 16.99 18.59 18.90 21.75 25.31 29.87 36.29 43.08 49.68 56.17
64 10.16 13.52 15.79 17.97 19.70 21.16 23.28 27.13 32.08 39.19 46.44 53.48 60.44
65 10.95 14.48 16.76 19.06 21.05 22.97 25.49 29.68 34.96 42.46 49.95 5774 64.67
66 11.94 15.48 17.69 20.13 22.54 25.41 28.53 33.08 38.59 46.03 53.42 60.61 68.48
67 13.09 16.51 18.57 21.16 24.11 28.31 32.21 37.15 42.79 49.83 56.83 63.61 71.91
68 14.33 17.62 19.55 22.34 25.90 31.58 36.33 41.67 47.44 53.95 60.47 66.78 75.54
69 15.64 18.87 20.80 23.86 28.05 35.10 40.67 46.45 52.40 58.51 64.64 70.65 79.94
70 16.95 20.29 22.46 25.92 30.71 38.74 45.02 51.28 57.55 63.60 69.66 75.75 85.69
71 18.24 21.88 24.53 28.49 33.82 42.42 49.26 56.02 62.75 69.14 75.48 82.08 92.81
72 19.55 23.61 26.92 31.45 37.31 46.20 53.51 60.79 68.09 75.07 81.90 89.29 100.90
73 20.91 25.50 29.62 34.83 41.22 50.24 57.99 65.83 73.76 81.50 88.99 97.37 109.95
74 22.37 27.55 32.64 38.64 45.62 54.68 62.89 71.33 79.97 88.57 96.78 106.31 119.97
75 23.98 29.80 35.99 42.92 50.58 59.68 68.41 77.51 86.91 96.40 105.34 116.11 130.93
76 25.97 32.59 40.33 48.55 57.13 66.13 75.52 85.44 95.78 106.34 116.13 128.48 144.75
77 27.96 35.39 44.66 54.18 63.67 72.58 82.63 93.37 104.65 116.29 126.92 140.86 158.58
78 29.95 38.18 49.00 49.81 70.22 79.04 89.74 101.30 113.51 126.23 137.71 153.23 172.40
79 31.94 40.97 53.33 65.44 76.76 85.49 96.84 109.23 122.38 136.17 148.50 165.60 186.23
80 33.93 43.77 57.67 71.07 83.31 91.94 103.95 117.16 131.25 146.12 159.30 177.97 200.05
Duration/
Issue Attained
Age 14 15 Ultimate Age
0 0.65 0.94 1.19 15
1 0.72 0.97 1.52 16
2 0.88 1.07 1.44 17
3 1.08 1.18 1.39 18
4 1.27 1.29 1.36 19
5 1.39 1.36 1.36 20
6 1.38 1.36 1.36 21
7 1.38 1.36 1.36 22
8 1.37 1.36 1.36 23
9 1.36 1.36 1.36 24
10 1.36 1.38 1.36 25
11 1.35 1.36 1.36 26
12 1.35 1.36 1.36 27
13 1.34 1.36 1.36 28
14 1.34 1.36 1.36 29
15 1.34 1.36 1.36 30
16 1.34 1.36 1.36 31
17 1.44 1.36 1.37 32
18 1.45 1.37 1.40 33
19 1.37 1.39 1.44 34
20 1.40 1.44 1.50 35
21 1.45 1.51 1.59 36
22 1.51 1.60 1.70 37
23 1.58 1.71 1.85 38
24 1.68 1.84 2.03 39
25 1.80 1.99 2.22 40
26 1.95 2.15 2.42 41
27 2.13 2.33 2.63 42
28 2.43 2.53 2.82 43
29 2.56 2.76 3.02 44
30 2.60 3.02 3.26 45
31 3.05 3.30 3.55 46
32 3.30 3.60 3.91 47
33 3.58 3.94 4.33 48
34 3.92 4.33 4.81 49
35 4.43 4.81 5.34 50
36 4.81 5.37 5.56 51
37 5.35 6.01 6.66 52
38 5.95 6.71 7.46 53
39 6.63 7.47 8.33 54
40 7.38 8.30 9.27 55
41 8.23 9.17 10.77 56
42 9.17 10.10 11.30 57
43 10.18 11.09 12.31 58
44 11.22 12.18 13.37 59
45 12.28 13.47 14.56 60
46 13.27 14.61 15.99 61
47 14.21 15.89 17.69 62
48 15.22 17.30 19.62 63
49 16.42 18.91 21.75 64
50 17.92 20.83 24.13 65
51 19.69 23.03 26.77 66
52 21.63 25.44 29.70 67
53 23.83 28.11 32.92 68
54 26.35 31.06 36.40 69
55 29.76 34.33 40.11 70
56 32.66 37.97 44.02 71
57 36.49 41.96 48.11 72
58 40.62 46.22 52.39 73
59 44.92 50.66 56.87 74
60 49.24 55.19 61.55 75
61 53.60 59.79 66.44 76
62 58.09 64.51 71.51 77
63 62.69 69.40 76.73 78
64 67.37 74.48 82.13 79
65 72.12 79.80 87.82 80
66 76.53 84.94 93.92 81
67 80.61 89.89 100.41 82
68 84.97 95.24 107.18 83
69 90.22 101.62 114.29 84
70 96.98 109.62 123.58 85
71 105.23 119.48 136.00 86
72 114.55 130.80 150.00 87
73 124.98 143.22 164.74 88
74 136.53 156.40 179.37 89
75 149.22 169.99 193.34 90
76 165.30 185.27 206.75 91
77 181.47 200.55 220.08 92
78 197.45 215.83 233.70 93
79 213.52 231.11 247.95 94
80 229.60 246.40 263.19 95
279.29 96
295.80 97
312.73 98
330.06 99
Duration/
Issue
Age 1 2 3 4 5 6 7 8 9 10 11 12 13
0 0.84 0.33 0.30 0.27 0.24 0.22 0.20 0.18 0.19 0.19 0.21 0.23 0.26
1 0.71 0.25 0.21 0.19 0.16 0.22 0.21 0.12 0.13 0.14 0.16 0.18 0.21
2 0.57 0.21 0.18 0.16 0.14 0.22 0.21 0.12 0.14 0.16 0.19 0.21 0.23
3 0.43 0.20 0.17 0.16 0.15 0.21 0.22 0.17 0.19 0.23 0.26 0.27 0.28
4 0.31 0.20 0.18 0.18 0.17 0.21 0.22 0.22 0.25 0.30 0.34 0.34 0.34
5 0.22 0.21 0.18 0.19 0.19 0.21 0.23 0.26 0.29 0.34 0.38 0.38 0.38
6 0.22 0.21 0.19 0.20 0.21 0.23 0.25 0.28 0.31 0.35 0.38 0.38 0.38
7 0.21 0.21 0.19 0.21 0.24 0.27 0.28 0.31 0.33 0.35 0.38 0.38 0.38
8 0.21 0.21 0.21 0.24 0.27 0.31 0.31 0.33 0.34 0.36 0.38 0.38 0.38
9 0.21 0.22 0.23 0.26 0.31 0.35 0.34 0.35 0.36 0.36 0.38 0.38 0.38
10 0.21 0.22 0.25 0.28 0.33 0.37 0.35 0.36 0.36 0.37 0.37 0.38 0.38
11 0.22 0.24 0.27 0.30 0.34 0.37 0.36 0.36 0.37 0.37 0.37 0.38 0.38
12 0.23 0.27 0.30 0.32 0.34 0.37 0.36 0.36 0.37 0.37 0.37 0.38 0.38
13 0.24 0.30 0.32 0.33 0.35 0.36 0.36 0.36 0.37 0.37 0.36 0.37 0.37
14 0.26 0.33 0.34 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.37
15 0.27 0.34 0.34 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.37
16 0.28 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.38 0.36 0.37 0.37
17 0.28 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.36 0.36 0.37 0.37
18 0.29 0.35 0.34 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.37 0.37
19 0.30 0.34 0.34 0.35 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.37 0.38
20 0.29 0.34 0.33 0.34 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.38 0.38
21 0.29 0.33 0.33 0.34 0.34 0.34 0.35 0.35 0.36 0.36 0.37 0.39 0.40
22 0.28 0.31 0.32 0.33 0.34 0.34 0.35 0.36 0.37 0.37 0.36 0.41 0.42
23 0.27 0.29 0.30 0.32 0.33 0.34 0.35 0.36 0.38 0.38 0.40 0.43 0.45
24 0.26 0.27 0.29 0.32 0.33 0.33 0.35 0.36 0.38 0.40 0.43 0.45 0.49
25 0.26 0.26 0.29 0.32 0.33 0.34 0.36 0.36 0.39 0.42 0.46 0.49 0.53
26 0.25 0.26 0.29 0.32 0.33 0.34 0.37 0.38 0.42 0.45 0.50 0.53 0.58
27 0.25 0.25 0.29 0.32 0.33 0.35 0.39 0.41 0.45 0.49 0.54 0.53 0.64
28 0.25 0.25 0.29 0.33 0.34 0.37 0.42 0.44 0.48 0.53 0.59 0.64 0.71
29 0.25 0.25 0.29 0.33 0.36 0.40 0.45 0.48 0.53 0.58 0.64 0.70 0.78
30 0.25 0.25 0.29 0.34 0.38 0.43 0.49 0.53 0.58 0.64 0.71 0.78 0.87
31 0.26 0.26 0.31 0.37 0.42 0.47 0.53 0.58 0.64 0.71 0.79 0.87 0.96
32 0.26 0.27 0.34 0.41 0.46 0.51 0.58 0.64 0.71 0.78 0.87 0.96 1.07
33 0.27 0.28 0.38 0.46 0.51 0.56 0.63 0.70 0.78 0.87 0.96 1.07 1.18
34 0.27 0.30 0.41 0.51 0.57 0.61 0.69 0.78 0.67 0.96 1.06 1.18 1.30
35 0.28 0.32 0.45 0.56 0.63 0.68 0.76 0.86 0.96 1.06 1.17 1.30 1.43
36 0.31 0.35 0.49 0.61 0.69 0.76 0.85 0.96 1.06 1.16 1.28 1.41 1.56
37 0.35 0.38 0.52 0.66 0.76 0.85 0.95 1.06 1.17 1.27 1.38 1.52 1.70
38 0.39 0.41 0.56 0.71 0.83 0.94 1.05 1.18 1.29 1.39 1.50 1.64 1.84
39 0.43 0.45 0.60 0.76 0.90 1.04 1.17 1.30 1.41 1.52 1.64 1.79 2.02
40 0.47 0.49 0.64 0.80 0.96 1.13 1.28 1.43 1.56 1.68 1.81 1.98 2.23
41 0.50 0.52 0.68 0.84 1.00 1.21 1.39 1.56 1.72 1.87 2.03 2.22 2.49
42 0.52 0.55 0.70 0.85 1.03 1.28 1.49 1.69 1.89 2.08 2.28 2.51 2.79
43 0.54 0.59 0.70 0.86 1.07 1.35 1.59 1.83 2.07 2.31 2.55 2.82 3.11
44 0.56 0.63 0.74 0.90 1.12 1.44 1.72 1.99 2.27 2.55 2.84 3.14 3.45
45 0.59 0.70 0.81 0.98 1.22 1.58 1.89 2.19 2.50 2.81 3.13 3.46 3.79
46 0.62 0.79 0.91 1.10 1.37 1.77 2.11 2.43 2.76 3.09 3.42 3.76 4.12
47 0.65 0.89 1.04 1.25 1.55 1.99 2.36 2.71 3.06 3.39 3.72 4.05 4.45
48 0.68 1.01 1.18 1.43 1.75 2.25 2.64 3.01 3.38 3.70 4.03 4.35 4.80
49 0.72 1.14 1.35 1.63 1.98 2.50 2.91 3.31 3.69 4.01 4.35 4.68 5.18
50 0.78 1.27 1.54 1.86 2.22 2.75 3.17 3.58 3.98 4.33 4.68 5.05 5.62
51 0.86 1.42 1.76 2.12 2.48 2.98 3.40 3.81 4.23 4.62 5.01 5.45 6.09
52 0.95 1.59 2.01 2.42 2.76 3.22 3.61 4.01 4.46 4.90 5.32 5.86 6.58
53 1.06 1.76 2.28 2.74 3.06 3.45 3.82 4.22 4.69 5.19 5.66 6.32 7.13
54 1.16 1.92 2.54 3.05 3.37 3.69 4.04 4.44 4.95 5.53 6.07 6.85 7.77
55 1.26 2.05 2.78 3.36 3.66 3.95 4.28 4.70 5.27 5.93 6.56 7.48 8.53
56 1.35 2.15 3.00 3.66 3.94 4.21 4.52 4.98 5.62 6.37 7.11 8.16 9.36
57 1.43 2.23 3.21 3.96 4.22 4.47 4.75 5.28 5.98 6.82 7.69 8.88 10.24
58 1.52 2.29 3.41 4.26 4.51 4.74 5.01 5.60 6.39 7.34 8.36 9.70 11.24
59 1.60 2.36 3.60 4.54 4.79 5.04 5.32 6.00 6.90 7.99 9.18 10.70 12.47
60 1.69 2.44 3.77 4.79 5.09 5.38 5.70 6.51 7.55 8.81 10.21 11.97 14.00
61 1.77 2.53 3.90 4.97 5.35 5.71 6.12 7.07 8.28 9.75 11.37 13.40 15.74
62 1.85 2.62 3.98 5.08 5.57 6.03 6.55 7.65 9.06 10.77 12.62 14.95 17.63
63 1.94 2.72 4.07 5.20 5.82 6.41 7.06 8.35 9.99 11.96 14.08 16.76 19.82
64 2.03 2.85 4.20 5.40 6.17 6.91 7.73 9.24 11.14 13.43 15.88 18.96 22.45
65 2.15 3.02 4.44 5.74 6.69 7.61 8.61 10.39 12.61 15.26 18.16 21.69 25.68
66 2.27 3.20 4.78 6.26 7.42 8.56 9.75 11.87 14.48 17.60 21.14 25.17 29.67
67 2.38 3.40 5.20 6.92 8.32 9.71 11.10 13.61 16.70 20.37 24.74 29.31 34.33
68 2.52 3.63 5.68 7.65 9.32 10.99 12.61 15.54 19.14 23.38 28.61 33.78 39.40
69 2.71 3.94 6.21 8.43 10.37 12.32 14.21 17.59 21.66 26.43 32.40 38.27 44.63
70 2.99 4.37 6.79 9.21 11.40 13.62 15.87 19.66 24.15 29.33 35.79 42.45 49.76
71 3.35 4.90 7.40 9.96 12.39 14.86 17.52 21.69 26.51 31.96 38.61 46.16 54.61
72 3.76 5.51 8.05 10.72 13.37 16.08 19.20 23.73 28.83 34.46 41.10 49.61 59.35
73 4.24 6.22 8.76 11.52 14.39 17.36 20.99 25.89 31.24 37.00 43.48 53.04 64.25
74 4.80 7.04 9.54 12.38 15.50 18.74 22.97 28.28 33.87 39.72 45.97 56.72 69.60
75 5.45 7.99 10.40 13.33 16.74 20.29 25.23 31.00 36.86 42.80 48.80 60.88 75.68
76 6.35 9.31 11.51 14.52 16.31 22.28 28.21 34.58 40.74 46.73 52.35 66.17 83.56
77 7.24 10.64 12.61 15.72 19.88 24.26 31.18 38.15 44.62 50.66 55.90 71.45 91.45
78 8.14 11.96 13.72 16.91 21.44 26.25 34.16 41.73 48.50 54.59 59.44 76.74 99.33
79 9.04 13.28 14.82 18.10 23.01 28.24 37.13 45.30 52.38 58.52 62.99 82.03 107.22
80 9.93 14.61 15.93 19.29 24.58 30.23 40.11 48.88 56.26 62.46 66.54 87.31 115.10
Duration/
Issue Attained
Age 14 15 Ultimate Age
0 0.29 0.34 0.38 15
1 0.24 0.35 0.38 16
2 0.25 0.35 0.38 17
3 0.30 0.36 0.38 18
4 0.35 0.37 0.38 19
5 0.38 0.37 0.38 20
6 0.38 0.38 0.38 21
7 0.38 0.38 0.38 22
8 0.38 0.38 0.38 23
9 0.38 0.38 0.38 24
10 0.38 0.38 0.38 25
11 0.38 0.38 0.38 26
12 0.38 0.38 0.38 27
13 0.38 0.38 0.38 28
14 0.38 0.38 0.38 29
15 0.36 0.38 0.38 30
16 0.38 0.39 0.38 31
17 0.39 0.40 0.38 32
18 0.39 0.40 0.40 33
19 0.40 0.41 0.42 34
20 0.40 0.42 0.45 35
21 0.42 0.45 0.49 36
22 0.46 0.49 0.53 37
23 0.49 0.53 0.58 38
24 0.54 0.58 0.64 39
25 0.59 0.64 0.70 40
26 0.65 0.71 0.78 41
27 0.71 0.78 0.86 42
26 0.78 0.86 0.96 43
29 0.87 0.95 1.06 44
30 0.96 1.06 1.17 45
31 1.06 1.18 1.30 46
32 1.18 1.31 1.44 47
33 1.30 1.45 1.60 48
34 1.44 1.60 1.78 49
35 1.59 1.77 1.96 50
36 1.75 1.95 2.17 51
37 1.91 2.14 2.39 52
38 2.08 2.35 2.63 53
39 2.28 2.58 2.88 54
40 2.52 2.84 3.16 55
41 2.80 3.13 3.47 56
42 3.10 3.44 3.80 57
43 3.44 3.78 4.16 58
44 3.79 4.14 4.54 59
45 4.16 4.54 4.96 60
46 4.53 4.96 5.44 61
47 4.91 5.39 5.96 62
48 5.31 5.86 6.51 63
49 5.75 6.39 7.10 64
50 6.27 6.99 7.77 65
51 6.82 7.64 8.54 66
52 7.40 8.32 9.41 67
53 8.05 9.08 10.33 68
54 8.81 9.98 11.34 69
55 9.72 11.05 12.51 70
56 10.71 12.23 13.91 71
57 11.77 13.48 15.52 72
58 12.98 14.92 17.28 73
59 14.44 16.66 19.23 74
60 16.27 18.81 21.52 75
61 18.35 21.27 24.31 76
62 20.62 23.96 27.63 77
63 23.24 27.05 31.39 78
64 28.35 30.68 35.59 79
65 30.12 35.03 40.37 80
66 34.64 40.07 45.87 81
67 39.79 45.71 52.11 82
68 45.46 51.95 59.01 83
69 51.48 56.83 66.59 84
70 57.73 66.35 75.59 85
71 63.98 74.51 86.39 86
72 70.32 83.29 98.35 87
73 77.08 92.71 111.01 88
74 84.61 102.79 123.87 89
75 93.24 113.54 136.66 90
76 104.71 126.30 149.51 91
77 116.18 139.05 162.61 92
78 127.65 151.81 176.05 93
79 139.12 164.56 189.90 94
80 150.59 177.32 204.04 95
218.50 96
233.50 97
249.04 98
265.12 99
Duration
Issue
Age 1 2 3 4 5 6 7 8 9 10 11 12 13
0 1.57 0.62 0.56 0.50 0.45 0.41 0.37 0.34 0.36 0.36 0.39 0.43 0.49
1 1.41 0.54 0.48 0.43 0.37 0.41 0.32 0.29 0.32 0.33 0.38 0.42 0.47
2 1.15 0.48 0.42 0.38 0.34 0.40 0.31 0.31 0.35 0.39 0.45 0.47 0.51
3 0.86 0.44 0.38 0.36 0.33 0.40 0.34 0.37 0.41 0.48 0.55 0.56 0.59
4 0.59 0.41 0.36 0.36 0.34 0.39 0.39 0.43 0.49 0.57 0.65 0.65 0.66
5 0.41 0.40 0.35 0.37 0.35 0.39 0.43 0.48 0.54 0.63 0.71 0.71 0.71
6 0.40 0.39 0.35 0.38 0.39 0.44 0.47 0.53 0.58 0.67 0.71 0.71 0.71
7 0.40 0.40 0.37 0.41 0.45 0.51 0.54 0.58 0.62 0.69 0.71 0.71 0.71
8 0.39 0.40 0.40 0.45 0.52 0.60 0.60 0.63 0.66 0.70 0.70 0.71 0.71
9 0.39 0.41 0.44 0.50 0.58 0.66 0.65 0.67 0.68 0.70 0.70 0.71 0.71
10 0.39 0.42 0.47 0.53 0.62 0.70 0.66 0.67 0.68 0.71 0.69 0.70 0.71
11 0.39 0.45 0.50 0.55 0.62 0.69 0.67 0.67 0.67 0.69 0.69 0.70 0.71
12 0.40 0.51 0.54 0.57 0.62 0.65 0.63 0.63 0.63 0.65 0.67 0.69 0.71
13 0.41 0.57 0.57 0.58 0.60 0.60 0.58 0.58 0.58 0.61 0.65 0.69 0.71
14 0.42 0.62 0.60 0.58 0.57 0.55 0.53 0.53 0.53 0.57 0.63 0.68 0.70
15 0.42 0.64 0.60 0.58 0.55 0.51 0.50 0.50 0.50 0.55 0.62 0.67 0.71
16 0.43 0.64 0.60 0.57 0.53 0.49 0.49 0.49 0.50 0.55 0.62 0.67 0.71
17 0.42 0.61 0.58 0.54 0.50 0.46 0.49 0.49 0.50 0.55 0.62 0.67 0.72
18 0.40 0.58 0.54 0.50 0.48 0.45 0.48 0.48 0.51 0.55 0.62 0.67 0.72
19 0.38 0.54 0.51 0.47 0.46 0.44 0.47 0.48 0.51 0.55 0.62 0.67 0.73
20 0.37 0.50 0.48 0.45 0.45 0.44 0.48 0.47 0.51 0.55 0.62 0.67 0.74
21 0.36 0.46 0.46 0.45 0.45 0.45 0.48 0.50 0.55 0.59 0.66 0.72 0.80
22 0.34 0.41 0.43 0.45 0.46 0.47 0.51 0.54 0.59 0.65 0.72 0.79 0.88
23 0.33 0.36 0.41 0.45 0.47 0.50 0.54 0.58 0.65 0.71 0.78 0.88 0.98
24 0.31 0.31 0.39 0.45 0.49 0.53 0.58 0.64 0.72 0.79 0.86 0.97 1.09
25 0.31 0.29 0.39 0.45 0.51 0.56 0.62 0.69 0.78 0.86 0.94 1.06 1.20
26 0.31 0.29 0.39 0.46 0.53 0.59 0.66 0.74 0.84 0.93 1.02 1.14 1.31
27 0.31 0.29 0.39 0.47 0.55 0.62 0.71 0.80 0.90 1.00 1.10 1.22 1.41
28 0.31 0.31 0.41 0.48 0.58 0.66 0.76 0.86 0.97 1.08 1.18 1.31 1.53
29 0.31 0.33 0.43 0.51 0.62 0.71 0.82 0.93 1.05 1.17 1.29 1.43 1.68
30 0.31 0.37 0.47 0.56 0.67 0.77 0.89 1.01 1.15 1.29 1.43 1.58 1.86
31 0.34 0.41 0.53 0.63 0.75 0.86 0.98 1.11 1.27 1.43 1.59 1.76 2.07
32 0.38 0.47 0.60 0.72 0.84 0.96 1.08 1.23 1.40 1.58 1.76 1.97 2.31
33 0.43 0.53 0.68 0.83 0.95 1.08 1.20 1.35 1.55 1.76 1.96 2.21 2.58
34 0.50 0.60 0.77 0.94 1.06 1.19 1.31 1.49 1.71 1.96 2.20 2.49 2.89
35 0.57 0.68 0.86 1.04 1.16 1.30 1.43 1.63 1.89 2.20 2.50 2.83 3.25
36 0.66 0.77 0.95 1.13 1.25 1.38 1.53 1.76 2.06 2.46 2.86 3.22 3.67
37 0.77 0.87 1.05 1.22 1.33 1.44 1.60 1.87 2.23 2.75 3.26 3.67 4.14
38 0.88 0.98 1.15 1.31 1.41 1.50 1.69 2.00 2.43 3.07 3.71 4.16 4.65
39 1.00 1.08 1.25 1.42 1.52 1.61 1.83 2.18 2.68 3.43 4.19 4.68 5.20
40 1.10 1.18 1.36 1.54 1.67 1.78 2.05 2.45 3.01 3.85 4.70 5.23 5.78
41 1.19 1.27 1.46 1.68 1.86 2.03 2.37 2.84 3.46 4.35 5.25 5.82 6.4!
42 1.27 1.34 1.56 1.82 2.08 2.34 2.77 3.31 4.00 4.93 5.84 6.47 7.09
43 1.34 1.42 1.67 1.98 2.33 2.69 3.22 3.84 4.59 5.54 6.46 7.13 7.80
44 1.42 1.50 1.79 2.17 2.60 3.07 3.69 4.39 5.18 6.15 7.06 7.79 8.50
45 1.50 1.59 1.94 2.38 2.89 3.45 4.14 4.90 5.74 6.72 7.64 8.41 9.18
46 1.58 1.69 2.11 2.62 3.21 3.86 4.61 5.41 6.29 7.26 8.19 9.00 9.83
47 1.66 1.78 2.30 2.90 3.57 4.31 5.11 5.95 6.85 7.81 8.73 9.57 10.48
48 1.75 1.89 2.50 3.19 3.95 4.76 5.61 6.48 7.39 8.33 9.25 10.13 11.12
49 1.85 2.01 2.73 3.50 4.32 5.19 6.06 6.95 7.87 6.81 9.75 10.66 11.72
50 1.96 2.15 2.97 3.82 4.66 5.55 6.42 7.33 8.27 9.23 10.20 11.17 12.30
51 2.10 2.33 3.24 4.14 4.96 5.81 6.64 7.55 8.52 9.54 10.58 11.62 12.60
52 2.27 2.53 3.54 4.48 5.22 5.99 6.74 7.65 8.63 9.76 10.89 12.02 13.23
53 2.45 2.75 3.85 4.83 5.49 6.15 6.81 7.71 8.71 9.95 11.18 14.41 13.65
54 2.61 2.95 4.17 5.20 5.78 6.35 6.93 7.82 8.85 10.18 11.51 12.83 14.13
55 2.74 3.12 4.48 5.59 6.13 6.65 7.18 8.08 9.14 10.54 11.93 13.33 14.73
56 2.81 3.22 4.77 6.00 6.54 7.05 7.58 8.49 9.55 10.96 12.35 13.78 15.32
57 2.85 3.28 5.04 6.44 6.99 7.52 8.07 8.98 10.04 11.40 12.72 14.14 15.85
58 2.87 3.32 5.32 6.89 7.48 8.05 8.63 9.56 10.61 11.94 13.20 14.62 16.53
59 2.93 3.41 5.63 7.37 8.00 8.62 9.23 10.22 11.32 12.66 13.92 15.41 17.56
60 3.06 3.59 5.99 7.87 8.55 9.23 9.92 10.98 12.19 13.63 15.03 16.70 19.13
61 3.28 3.86 6.40 8.40 9.14 9.89 10.64 11.85 13.26 14.91 16.61 18.60 21.34
62 3.56 4.21 6.84 8.94 9.77 10.60 11.42 12.84 14.50 16.45 18.55 20.98 24.04
63 3.88 4.60 7.32 9.52 10.43 11.36 12.25 13.90 15.87 18.17 20.75 23.69 27.11
64 4.22 5.02 7.83 10.11 11.11 12.13 13.11 15.00 17.30 19.98 23.09 26.57 30.42
65 4.55 5.47 8.36 10.73 11.61 12.90 13.97 16.11 18.73 21.81 25.44 29.46 33.84
66 4.85 5.90 8.89 11.35 12.47 13.57 14.70 17.07 20.01 23.49 27.69 32.27 37.26
67 5.15 6.34 9.44 11.97 13.09 14.16 15.32 17.90 21.17 25.08 29.90 35.11 40.77
68 5.46 6.81 10.01 12.62 13.76 14.82 16.02 18.85 22.46 26.82 32.28 38.12 44.52
69 5.82 7.38 10.66 13.35 14.56 15.67 17.02 20.13 24.11 28.95 35.01 41.43 48.67
70 6.26 8.09 11.39 14.17 15.59 16.89 13.54 22.00 26.38 31.72 38.28 45.20 53.37
71 6.77 8.92 12.21 15.09 16.84 18.46 20.55 24.42 29.22 35.08 42.04 49.35 58.52
72 7.35 9.85 13.10 16.10 18.25 20.29 22.91 27.23 32.48 38.86 46.16 53.79 64.01
73 7.98 10.89 14.07 17.18 19.83 22.38 25.66 30.48 36.20 43.14 50.72 58.62 70.00
74 8.67 12.06 15.12 18.34 21.57 24.72 28.80 34.20 40.45 48.00 55.82 63.96 76.65
75 9.43 13.39 16.25 19.59 23.46 27.32 32.38 38.45 45.27 53.50 61.54 69.91 84.11
76 10.39 15.14 17.64 21.09 25.83 30.69 37.21 44.20 51.75 60.85 69.02 77.55 93.80
77 11.34 16.90 19.02 22.59 28.20 34.07 42.05 49.95 58.24 68.19 76.50 85.20 103.49
78 12.30 18.65 20.41 24.09 30.57 37.44 46.88 55.70 64.72 75.54 83.98 92.34 113.18
79 13.25 20.41 21.80 25.58 32.93 40.82 51.72 61.45 71.20 82.89 91.45 100.48 122.87
80 14.21 22.16 23.18 27.08 35.30 44.19 56.55 67.20 77.69 90.23 98.93 108.13 132.56
Duration/
Issue Attained
Age 14 15 Ultimate Age
0 0.54 0.64 0.71 15
1 0.52 0.60 0.71 16
2 0.55 0.61 0.71 17
3 0.61 0.65 0.71 18
4 0.67 0.69 0.71 19
5 0.71 0.71 0.71 20
6 0.71 0.71 0.71 21
7 0.71 0.71 0.71 22
8 0.71 0.71 0.71 23
9 0.71 0.71 0.71 24
10 0.71 0.71 0.71 25
11 0.71 0.71 0.71 26
12 0.71 0.71 0.71 27
13 0.71 0.71 0.71 28
14 0.70 0.71 0.71 29
15 0.71 0.71 0.71 30
16 0.71 0.73 0.71 31
17 0.72 0.75 0.74 32
18 0.74 0.78 0.82 33
19 0.77 0.83 0.90 34
20 0.82 0.90 1.00 35
21 0.90 1.00 1.12 36
22 0.99 1.11 1.26 37
23 1.10 1.24 1.40 38
24 1.23 1.39 1.56 39
25 1.36 1.55 1.74 40
26 1.49 1.72 1.94 41
27 1.63 1.89 2.16 42
28 1.78 2.08 2.40 43
29 1.96 2.29 2.66 44
30 2.17 2.54 2.95 45
31 2.41 2.81 3.26 46
32 2.68 3.11 3.60 47
33 2.98 3.43 3.96 48
34 3.32 3.80 4.34 49
35 3.71 4.22 4.76 50
36 4.16 4.70 5.23 51
37 4.65 5.22 5.78 52
38 5.19 5.79 6.38 53
39 5.77 6.40 7.04 54
40 6.38 7.04 7.75 55
41 7.04 7.74 8.48 56
42 7.76 8.48 9.23 57
43 8.51 9.26 10.03 58
44 9.26 10.06 10.86 59
45 9.99 10.84 11.70 60
46 10.71 11.63 12.56 61
47 11.44 12.45 13.45 62
48 12.16 13.26 14.37 63
49 12.85 14.04 15.32 64
50 13.30 14.76 16.25 65
51 14.03 15.32 17.10 66
52 14.47 15.75 17.76 67
53 14.90 16.18 18.13 68
54 15.43 16.76 18.39 69
55 16.16 17.64 18.84 70
56 16.97 18.72 19.78 71
57 17.78 19.90 21.41 72
58 18.79 21.33 23.63 73
59 20.16 23.14 26.30 74
60 22.08 25.46 29.38 75
61 24.60 28.30 32.81 76
62 27.60 31.57 36.32 77
63 30.99 35.26 40.48 78
64 34.70 39.36 44.79 79
65 38.64 43.87 49.55 80
66 42.65 43.60 54.91 81
67 46.77 53.56 60.91 82
68 51.27 59.02 67.43 83
69 56.37 65.25 74.51 84
70 62.32 72.50 83.43 85
71 68.97 80.88 94.84 86
72 76.15 90.22 107.64 87
73 84.09 100.36 120.98 88
74 93.03 111.15 133.98 89
75 103.20 122.45 146.00 90
76 116.74 135.45 157.10 91
77 130.23 148.46 167.85 92
78 143.82 161.46 178.87 93
79 157.36 174.46 190.75 94
80 170.90 187.47 204.04 95
218.50 96
233.50 97
249.04 98
265.12 99
PROFIT NUMBER REQUEST/UPDATE
CCN: 2904 COMPANY NAME: USAA STATE: TX
---- ----------------------------------- -----
REQUESTED BY: TWIS DATE: 8-14-98
--------------------------------- -------------
-----------------------------------------------------------------------------------------
PLAN ID PLANS/SMOKING
AGMT. /ACCT STATUS EFF.
NO. NO. /COMPOSITE DATE PVP PVRXP-E ROI% INV. PVE VA
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
VUL 6/1/98 1.22 13.88 13.8 1.49 .21 .25
-----------------------------------------------------------------------------------------
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10/96
ARBITRATION SCHEDULE
(Effective as of June 1, 1998)
to
Agreement Number 24
To initiate arbitration, either USAA or Lincoln agrees to notify the other party
in writing of its desire to arbitrate, stating the nature of its dispute and the
remedy sought. The party to which the notice is sent agrees to respond in
writing to the notification within ten (10) days of its receipt.
The arbitration hearing shall be held before a panel of three (3) arbitrators,
each of whom must be a present or former officer of a life insurance company. An
arbitrator may not be a present or former officer, attorney or consultant of
USAA or Lincoln, or either's affiliates.
USAA and Lincoln agree to each name five (5) candidates to serve as an
arbitrator. Each agree to choose one (1) candidate from the other's list, and
these two (2) candidates shall serve as the first two (2) arbitrators. If one
(1) or more candidates so chosen decline to serve as an arbitrator, the party
that named the candidate shall add an additional candidate to its list, and the
other party agrees to again choose one (1) candidate from the list. This process
shall continue until two (2) arbitrators have been chosen and have accepted.
USAA and Lincoln agree to present their initial lists of five (5) candidates by
written notification to the other party within twenty-five (25) days of the date
of the mailing of the notification initiating the arbitration. Any subsequent
additions to the list which are required shall be presented within ten (10) days
of the date the naming party receives notice that a candidate who has been
chosen declines to serve.
The two (2) arbitrators shall select the third arbitrator from the eight (8)
candidates remaining on the lists of USAA and Lincoln within fourteen (14) days
of the acceptance of their positions as arbitrators. If the two (2) arbitrators
cannot agree on the choice of a third, then this choice shall be referred back
to USAA and Lincoln. USAA and Lincoln agree to take turns striking the names of
the remaining candidates from the initial eight (8) candidates until only one
(1) candidate remains. If the candidate so chosen shall decline to serve as the
third arbitrator, the candidate whose name was stricken last shall be nominated
as third arbitrator. This process shall continue until a candidate has been
chosen and accepted. This candidate shall serve as the third arbitrator. The
first turn at striking the name of a candidate shall belong to the party that is
responding to the other party's initiation of arbitration. Once chosen, the
arbitrators are empowered to decide all substantive and procedural issues by a
majority of votes.
Page 24
It is agreed that each of the three (3) arbitrators should be impartial
regarding the dispute and should resolve the dispute on the basis described in
the "Arbitration" article. At no time shall either USAA or Lincoln contact or
otherwise communicate with any person who is to be or has been designated as a
candidate to serve as an arbitrator concerning the dispute, except upon the
basis of jointly drafted communications provided by both USAA and Lincoln to
inform those candidates actually chosen as arbitrators of the nature and facts
of the dispute. Likewise, any written or oral arguments provided to the
arbitrators concerning the dispute shall be coordinated with the other party and
shall be provided simultaneously to the other party or shall take place in the
presence of the other party. Further, at no time shall any arbitrator be
informed that he or she has been named or chosen by one party or the other.
The arbitration hearing shall be held on the date and in the location set by the
arbitrators. In no event shall this date be later than six (6) months after the
appointment of the third arbitrator. As soon as possible, the arbitrators shall
establish prearbitration procedures as warranted by the facts and issues of the
particular case. At least ten (10) days prior to the arbitration hearing, each
party agrees to provide the other party and the arbitrators with a detailed
statement of the facts and arguments it will present at the arbitration hearing.
The arbitrators may consider any relevant evidence and agree to give the
evidence such weight as they deem appropriate after consideration of any
objections raised concerning it. The party initiating the arbitration shall have
the burden of proving its case by a preponderance of the evidence. Each party
may examine any witnesses who testify at the arbitration hearing. Within twenty
(20) days after the end of the arbitration hearing, the arbitrators shall issue
a written decision that sets forth their findings and any award to be paid as a
result of the arbitration, except that the arbitrators may not award punitive or
exemplary damages. In their decision, the arbitrators shall apportion the costs
of arbitration, which shall include, but not be limited to, their own fees and
expenses.
Page 25
ACCIDENTAL DEATH BENEFIT ADDENDUM
(Effective as of June 1, 1998)
to
Agreement Number 24
The provisions of the Agreement shall apply in all respects to reinsurance of
Accidental Death Benefits provided by the Policies except as otherwise set forth
in this Addendum.
This Addendum is referred to as "ADB" in the "Applicable Addendum" column of the
POLICIES REINSURED section of the Life Benefits Schedule.
1. DEFINITIONS
1.1. ADB - life insurance provided by the Policies which is payable in
the event of the accidental death of the insured.
1.2. ADB Reinsurance Amount - the face amount of ADB provided by a Policy
less USAA's ADB Retention.
2. REINSURANCE TERMS
2.1. USAA agrees to cede, and Lincoln agrees to accept, the ADB
Reinsurance Amount as Automatic Reinsurance if
2.1.1. USAA retains the following amounts of ADB on a life:
$0
2.1.2. the sum of ADB issued by USAA then in force on the insured
life and the amount of ADB then being applied for from USAA
does not exceed the sum of USAA's ADB Retention and the
following amounts:
Ages Standard-Table F Over Table F
---- ---------------- ------------
0-70 $100,000 None
Over 70 None None
Page 26
2.1.3. the sum of the amount of ADB then in force on the insured
life in all companies and the amount of ADB then being
applied for on the insured life from all companies does not
exceed the following amounts:
Ages Standard-Table F
---- ----------------
0-70 $150,000
2.2. Notwithstanding paragraph 2.1, ADB shall not be ceded if the ADB
Reinsurance Amount at issue is less than five hundred dollars ($500).
2.3. USAA agrees to place ADB reinsurance into effect by following the
procedures for placing life reinsurance into effect as set forth in the
Administrative Schedule of the Agreement.
2.4. Reinsurance of ADB shall be yearly renewal term reinsurance. ADB
reinsurance premiums shall equal the ADB Reinsurance Amount times the
appropriate rate shown below.
Based on the classification of the occupational manual of USAA:
Classification First Year Renewal
-------------- ---------- -------
Standard $ .25 $ .90
1 1/2 x Standard .40 1.25
2 x Standard .50 1.60
3 x Standard .75 2.35
5 x Standard 1.25 3.80
Reinsurance premiums are payable with the same frequency as, and due with, the
associated life reinsurance premium. ADB reinsurance premiums shall be due even
if a Policy is subject to a waiver of premium claim.
2.5. Lincoln shall pay the ADB Reinsurance Amount of all ADB claims
incurred during the term of this Addendum. Claims shall be reported and paid as
incurred.
2.6. USAA may increase its ADB Retention, and elect to recapture
reinsurance of in force ADB, in accordance with the procedures set forth in the
Agreement.
2.7. Either USAA or Lincoln may terminate this Addendum for new ADB
reinsurance by giving ninety (90) days' advance written notice to the other
party.
Page 27
INCREASING POLICY ADDENDUM
(Effective as of June 1, 1998)
to
Agreement Number 24
The provisions of the Agreement shall apply in all respects to reinsurance of an
Increasing Policy except as otherwise set forth in this Addendum.
This Addendum is referred to as "IP" in the "Applicable Addendum" column of the
POLICIES REINSURED section of the Life Benefits Schedule.
1. DEFINITIONS
1.1. Increasing Policy - a Policy, including any attached riders or
endorsements, that provides an increasing death benefit where the increases are
not subject to USAA's underwriting approval.
1.2. Maximum Amount - three hundred fifty percent (350%) of the
Reinsurance Amount.
2. TERMS OF REINSURANCE
2.1. USAA's Retention for Increasing Policies shall be set forth in the
Life Benefits Schedule.
2.2. Lincoln agrees to automatically accept Lincoln's Proportionate Share
of all increases on the Increasing Policy up to, but not to exceed, the Maximum
Amount.
2.3. For purposes of changes in Retention, increases in an increasing
Policy's Net Amount at Risk shall be considered issued on the issue date of the
original Policy.
Page 28
AMENDMENT
to the Yearly Renewable Term Agreement (the "Agreement")
effective June 1, 1998, between
USAA LIFE INSURANCE COMPANY of San Antonio, Texas,
hereinafter referred to as the "USAA,"
and
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY of Fort ▇▇▇▇▇, Indiana,
hereinafter referred to as "Lincoln."
1. Effective the first day of June, 1998, the Life Benefits Schedule under
the Agreement shall be replaced with the Life Benefits Schedule, attached
hereto.
2. Effective the first day of June, 1998, the Waiver of Premium Benefit
Addendum attached hereto, shall be added to the Agreement.
3. The provisions of this amendment shall be subject to all the terms and
conditions of the Agreement which do not conflict with the terms hereof.
IN WITNESS WHEREOF the parties hereto have caused this amendment to be
executed in duplicate on the dates shown below.
USAA LIFE INSURANCE COMPANY
Signed at /s/ SAN ANTONIO, TX.
----------------------------
By /s/ By /s/
----------------------------------- -----------------------------------
Title AVP ACTUARY Title VP
-------------------------------- --------------------------------
Date 1/6/99 Date 1/7/99
--------------------------------- ---------------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Signed at Fort ▇▇▇▇▇, Indiana
By /s/ By /s/
----------------------------------- -----------------------------------
Vice President Assistant Secretary
Date December 16, 1998 Date 12-15-98
--------------------------------- ---------------------------------
Page 1
LIFE BENEFITS SCHEDULE
(Effective as of June 1, 1998)
to
Agreement Number 24
POLICIES REINSURED: USAA agrees to cede reinsurance in the listed percentages of
Policies issued on the following Policy forms with issue dates from and until
the dates listed below to insureds having surnames beginning with the letters of
the alphabet shown. Any Addenda referred to in the last column shall also be
applicable to reinsurance of the Policy.
Percent of
Reinsurance Policy Issue Alpha Applicable
Policy Form Ceded to Lincoln Dates From/Until Split Addenda
----------- ---------------- ---------------- ----- ----------
Variable Universal
Life(VUL) 10% 06-01-98/-- A-Z ADB, IP, WP
RETENTION: USAA agrees to hold ten percent (10%) of each Policy face amount not
to exceed the Retention limit below at its own risk on a life without the
benefit of proportional reinsurance. In calculating its Retention, amounts
retained by USAA on other individual life insurance policies in force as of the
issue date of the Policy shall be taken into account.
Non-Military Lives
------------------
Ages Standard-Table P
---- ----------------
All $600,000
Military Lives
--------------
Rank Standard-Substandard
---- --------------------
WO - 0-3 $250,000
0-4 and Above 350,000
Enlisted Military Personnel
on Active Duty
---------------------------
All $50,000
Page 2
AUTOMATIC LIMITS: To bind Automatic Reinsurance, the maximum amount of life
insurance in force with USAA on a single life, or in the case of individual life
insurance with increasing death benefits, the Ultimate Amounts, plus all amounts
applied for from USAA on that life, or in the case of individual life insurance
with increasing death benefits, the Ultimate Amounts, may not exceed the sum of
the Retention on the life plus the following amounts.
Enlisted Military Personnel
---------------------------
Standard-Table P Over Table P
Flat Extras Flat Extras
Ages $0-$10.00 $0-$10.00
---- ---------------- ------------
0-75 $200,000 None
Over 75 None None
All Other Plans
---------------
Standard-Table P Over Table P
Flat Extras Flat Extras
Ages $0-$10.00 $0-$10.00
---- ---------------- ------------
0-75 $6,600,000 None
Over 75 None None
PARTICIPATION LIMITS: To bind Automatic Reinsurance, the sum of (1) the maximum
amount of individual life insurance in force on the insured in all companies or,
in the case of individual life insurance with increasing death benefits, the
Ultimate Amounts, as of the Policy Date of a Policy and (2) the amount then
being applied for by all companies, or in the case of individual life insurance
with increasing death benefits, the Ultimate Amounts, on the insured, may not
exceed the following amounts.
Ages Standard-Table P
---- ----------------
0-75 $25,000,000
Page 3
WAIVER OF PREMIUM BENEFIT ADDENDUM
(Effective as of June 1, 1998)
to
Agreement Number 24
The provisions of the Agreement shall apply in all respects to reinsurance of
the Waiver of Premium Benefit provided by the Policies except as otherwise set
forth in this Addendum.
This Addendum is referred to as "WP" in the "Applicable Addendum" column of the
POLICIES REINSURED section of the Life Benefits Schedule.
1. DEFINITIONS
1.1. Lincoln's Proportionate Share - 10% of Waiver of Premium Reinsured.
1.2. Policy Premiums - the insurance premiums, cost of insurance rates or
other specified amounts due for the life insurance benefit of a Policy.
1.3. Waiver of Premium Benefit - a benefit provided pursuant to a Policy
wherein USAA agrees to relinquish its right to Policy Premiums in the event of
the Policyowner's disability until such disability is ended.
2. REINSURANCE TERMS
2.1. USAA agrees to cede, and Lincoln agrees to accept, Lincoln's
Proportionate Share of the Waiver of Premium Benefit if the following conditions
are met:
2.1.1. USAA retains the following amounts of Waiver of Premium Benefit
on a life:
Ages Standard-Substandard
---- --------------------
15-55 $600,000 Face Amount
Page 4
2.1.2. The sum of Waiver of Premium Benefit issued by USAA then in
force on the insured life and the amount of Waiver of Premium
Benefit then being applied for from USAA does not exceed the
sum of USAA's Waiver of Premium Retention and the following
amounts:
Ages Standard-Table F
---- ----------------
0-44 $3,000,000
45-65 1,500,000
Over 65 None
2.1.3. The sum of the amount of Waiver of Premium Benefit then in
force on the insured life in all companies and the amount of
Waiver of Premium Benefit then being applied for on the insured
life from all companies does not exceed the following amounts:
Ages Standard-Table F
---- ----------------
0-65 $5,000,000
Over 65 None
2.2. USAA agrees to place Waiver of Premium reinsurance into effect by
following the procedures for placing life reinsurance into effect as set forth
in the Administrative Schedule of the Agreement.
2.3. Waiver of Premium Benefits shall be coinsured with Lincoln.
Reinsurance shall follow the forms of USAA. USAA agrees to pay Lincoln
reinsurance premiums for Waiver of Premium reinsurance equal to Lincoln's
Proportionate Share of the appropriate premium rates as attached to the Premium
Schedule less an allowance of
Twenty-five percent (25%) of such premium in all years.
Waiver of Premium reinsurance premiums are payable with the same frequency as,
and due with, the associated life reinsurance premium. Waiver of Premium
reinsurance premiums shall not be due while a Waiver of Premium Benefit is being
paid. However, while a Waiver of Premium Benefit is being paid, USAA agrees to
continue to pay Lincoln premiums for reinsurance of other benefits provided by
the Policy in accordance with the Agreement or applicable addenda.
Page 5
2.4. USAA agrees to give Lincoln prompt notice of any Waiver of Premium
claim, and upon request, agrees to provide proof of the insured person's
continuing disability. Lincoln's reinsurance liability for Waiver of Premium
claims shall equal Lincoln's Proportionate Share of Policy Premiums waived by
USAA under the Policy. USAA agrees to notify Lincoln upon the termination of a
Waiver of Premium claim and agrees to resume paying Waiver of Premium
reinsurance premiums starting with the beginning of the first month following
the date the person is no longer eligible for such Waiver of Premium Benefit.
2.5. USAA may elect to recapture reinsurance of in force Waiver of Premium
reinsurance in accordance with the procedures set forth in the Agreement. If
USAA elects to recapture such reinsurance but an insured person is subject to a
Waiver of Premium claim when an increase of its Waiver of Premium Retention
would otherwise become effective, Waiver of Premium reinsurance shall remain at
the current Retention until the Policy returns to a premium-paying status. After
such time, the intended recapture shall occur.
Page 6
VARIABLE UNIVERSAL LIFE INSURANCE
WAIVER OF MONTHLY DEDUCTION (WMD)
MALE / FEMALE
NON-SMOKER / SMOKER
----------------------------------------------------------------------------------------
AGE COST PER $1.00 MONTHLY DEDUCTION AGE COST PER $1.00 MONTHLY DEDUCTION
----------------------------------------------------------------------------------------
15 0.050 40 0.082
16 0.050 41 0.087
17 0.050 42 0.092
18 0.050 43 0.097
19 0.050 44 0.103
20 0.050 45 0.109
21 0.050 46 0.118
22 0.050 47 0.128
23 0.050 48 0.138
24 0.050 49 0.149
25 0.050 50 0.161
26 0.050 51 0.173
27 0.050 52 0.186
28 0.050 53 0.199
29 0.050 54 0.213
30 0.050 55 0.227
31 0.053 56 0.240
32 0.056 57 0.253
33 0.059 58 0.265
34 0.062 59 0.277
35 0.066
36 0.069
37 0.072
38 0.075
39 0.078
----------------------------------------------------------------------------------------
Waiver of Monthly Deduction
[LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY CCN 2904
--------------------------------------------------------
November 27, 2000
▇▇▇▇▇ ▇. ▇▇▇▇▇
Second Vice President
Lincoln National Reinsurance
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Dear ▇▇▇▇▇:
In an effort to continually improve and streamline our self-administration
reinsurance process, USAA has developed a standard waiver of premium claim form
and income replacement claim form (see attachments). The two forms, waiver of
premium and income replacement, are similar in content, wording, and overall
design to the death claim form, which you have reviewed. For your convenience,
I have included the death claim form and the approval letter, dated 7-25-2000,
as attachments too.
If you agree with the design and scope of the waiver of premium and income
replacement claim forms, please sign and date in the spaces indicated below and
return the duplicated copy to my attention. Thank you for your assistance on
this matter.
USAA Life Insurance Company THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
FORT ▇▇▇▇▇, INDIANA
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, /s/ ▇▇▇ ▇▇▇▇▇,
------------------------------ ------------------------------
Signature Signature
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, VP Actuary ▇▇▇ ▇▇▇▇▇, Vice President
------------------------------ ------------------------------
Name & Title Name & Title
November 27, 2000 3/23/01
------------------------------ ------------------------------
Date Date
ATTEST: /s/
------------------------
Assistant Secretary
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ 1-800-531-8000
In San Antonio 498-8000
31710-0198
----------
[LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY
USAA LIFE INSURANCE COMPANY OF NEW YORK
REINSURANCE WAIVER OF PREMIUM CLAIM FORM
----------------------------------------
--------------------------------------------------------------------------------
I. CLAIM DATA
--------------------------------------------------------------------------------
REINSURANCE COMPANY: Lincoln National LIC STATUS
--------------------
INSURED: ________________________________________ [ ] INCONTESTABLE
DATE OF BIRTH: __________________________________ [ ] CONTESTABLE
DATE OF DISABILITY: _____________________________ [ ] UNDER INVESTIGATION
CAUSE OF DISABILITY: ____________________________ [ ] SETTLED
DATE BENEFITS EXPIRE:____________________________
CLAIM TYPE: [ ] ACCIDENT [ ] SICKNESS
DIAGNOSIS:
--------------------------------------------------------------------------------
II. NOTIFICATION
--------------------------------------------------------------------------------
[ ] PRELIMINARY [ ] PERIODIC [ ] NOTIFICATION OF CONTEST/ [ ] REQUEST FOR
NOTICE REVIEW COMPROMISE/*LITIGATION PAYMENT
--------------------------------------------------------------------------------
POLICIES ISSUED AS A RESULT OF EXCHANGE OR REPLACEMENT OF OTHER
USAA LIFE INSURANCE COVERAGE:
[ ] YES IF YES, PLEASE PROVIDE THE FOLLOWING INFORMATION: ORIGINAL
POLICY DATE: ORIGINAL $:
[ ] NO POLICY #s: POLICY #s: POLICY #s:
--------------------------------------------------------------------------------
*This claim form is notification of USAA's intention to contest, compromise, or
litigate a claim in accordance with the treaty terms. Unless Reinsurer notifies
USAA Life, in writing, that it declines to be a party to such action. Reinsurer
will pay its share of any settlement up to the maximum that would have been
payable under the specific policy plus its share of specific expenses and
damages, if any, in connection with the contest, compromise, or litigation. For
incontestable claims, we will process all requirements and proceed with claim
payment unless notified otherwise as specified in the provision of the
Reinsurance Treaty.
--------------------------------------------------------------------------------
POLICY NUMBER DATE OF FACE AMOUNT DATE OF REINSTATEMENT AMOUNT OF
ISSUE TERMINATION DATE REINSURANCE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Issued: Amount reinsured w/Reinsurer:
--------------------------------------------------------------------------------
Less Terminated: Amount w/other Reinsurers:
--------------------------------------------------------------------------------
USAA Retention:
--------------------------------------------------------------------------------
Amount in Force: TOTAL:
--------------------------------------------------------------------------------
III. FINAL DISPOSITION/REQUEST FOR PAYMENT
--------------------------------------------------------------------------------
[ ] Claim has been [ ] Temporary WP benefit [ ] Permanent WP
approved approved to _____ (date) benefit approved
[ ] Claim Denied [ ] WP benefits ceased - contract
provision _____ (date)
[ ] Policy Rescinded [ ] WP continuance approved to _______ (date)
--------------------------------------------------------------------------------
Policy Number Annual Premium Amount Reinsured Amount
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sub Total:
-----------------------------------------------------
Investigation Expense:
-----------------------------------------------------
Legal Expense:
-----------------------------------------------------
TOTAL REQUESTED:
--------------------------------------------------------------------------------
COMMENTS:
--------------------------------------------------------------------------------
INCONTESTABLE CLAIMS REQUIREMENTS: CONTESTABLE CLAIMS REQUIREMENTS:
---------------------------------- --------------------------------
-Complete this form & attach proof IF CEDED FACULTATIVELY:
of disability -Attach proof of disability, complete this
form & investigation reports
IF CEDED AUTOMATICALLY:
-Attach proof of disability, complete this
form, investigation reports & underwriting
papers
--------------------------------------------------------------------------------
Date: Ceding Company Name: USAA Wire Information:
Completed By: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ --------------------
----------------- Address: Attn: Reinsurance Dept., F-2-E Nations Bank, Dallas
------------------------------ --------------------
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇. ABA #▇▇▇▇▇▇▇▇▇
Title: Reinsurance Specialist ----------------------- --------------
---------------------- ▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ Account#7110373357
-------------------------- ------------------
Phone#: ▇▇▇-▇▇▇-▇▇▇▇ Account Name - USAA LIFE
------------ ------------------------
Fax#: ▇▇▇-▇▇▇-▇▇▇▇
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[LOGO OF USAA](R) USAA LIFE INSURANCE COMPANY
USAA LIFE INSURANCE COMPANY OF NEW YORK
REINSURANCE DEATH CLAIM FORM
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I. CLAIM DATA
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REINSURANCE COMPANY: Lincoln National LIC STATUS -------------------- INSURED:
________________________________________ [ ] INCONTESTABLE DATE OF BIRTH:
__________________________________ [ ] CONTESTABLE DATE OF DEATH:
__________________________________ [ ] UNDER INVESTIGATION CAUSE OF DEATH:
_________________________________ [ ] SETTLED
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II. NOTIFICATION
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[ ] PRELIMINARY NOTICE [ ] NOTIFICATION OF CONTEST/ [ ] REQUEST FOR PAYMENT
COMPROMISE/*LITIGATION
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POLICIES ISSUED AS A RESULT OF CONVERSION, EXCHANGE OR REPLACEMENT
OF OTHER USAA LIFE INSURANCE COVERAGE:
[ ] YES IF YES, PLEASE PROVIDE THE FOLLOWING INFORMATION: ORIGINAL
POLICY DATE: ORIGINAL $:
[ ] NO POLICY #s: POLICY #s: POLICY #s:
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*This claim form is notification of USAA's intention to contest, compromise, or
litigate a claim in accordance with the treaty terms. Unless Reinsurer notifies
USAA Life, in writing, that it declines to be a party to such action, Reinsurer
will pay its share of any settlement up to the maximum that would have been
payable under the specific policy plus its share of specific expenses and
damages, if any, in connection with the contest, compromise, or litigation. For
incontestable claims, we will process all requirements and proceed with claim
payment unless notified otherwise.
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Policy Number Date of Face Amount Date of Reinstatement Amount of
Issue Termination Date Reinsurance
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Total Issued: Amount reinsured w/Reinsurer:
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Less Terminated: Amount w/other Reinsurers:
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USAA Retention:
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Amount in Force: TOTAL:
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III. FINAL DISPOSITION/REQUEST FOR PAYMENT
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[ ]Claim has been [ ]Settlement has been sent [ ]Claim Denied [ ]Policy
approved to the beneficlary Rescinded
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Policy Number Reinsured Amount Interest Total
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Sub Total:
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Investigation Expense:
INTEREST PAID AT _____% ---------------------------------------------------
FOR_____DAYS. Legal Expense:
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TOTAL REQUESTED:
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COMMENTS:
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INCONTESTABLE CLAIMS REQUIREMENTS: CONTESTABLE CLAIMS REQUIREMENTS:
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- Complete this form & attach proof IF CEDED FACULTATIVELY:
of death -Attach proof of death, complete this
form & investigation reports
IF CEDED AUTOMATICALLY:
-Attach proof of death, complete this
form, investigation reports &
underwriting papers
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Date: Completed By: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Title: Reinsurance Specialist
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Ceding Company Name: USAA Phone#: ▇▇▇-▇▇▇-▇▇▇▇ Fax#: ▇▇▇-▇▇▇-▇▇▇▇
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Address: Attn: Reinsurance Dept., F-2-E Wire Information: Nations Bank, Dallas
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▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇. ABA #▇▇▇▇▇▇▇▇▇
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▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ Account #7110373357
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Account Name- USAA LIFE
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