AMENDMENT #5
applying to
TREATY 0708-OCO
between
AMERICAN CAPITOL LIFE INSURANCE COMPANY
and
CROWN LIFE INSURANCE COMPANY
The above referenced treaty is hereby amended to as follows:
Schedule A "Policies and Risk Reinsured" shall be amended to allow for the
cession of additional traditional life policies in the same proportion as
the original ceded policies reinsured hereunder assumed by the Company
from World Services Life Insurance Company of America and its subsidiary
South Texas Bankers Life Insurance Company (collectively hereinafter
referred to as the Ceders) under an assumption reinsurance treaty
effective May 31, 1996 (hereinafter collectively referred to as the World
Service Policies) and described in Attachment A which is attached hereto
and made a part hereof by this reference.
Paragraph 3.01 "Initial Portfolio Transfer" shall be amended to allow for
an additional initial portfolio transfer, as of the Effective Date of this
Amendment, on the World Service Policies in an amount calculated as set
forth therein as applied to the World Service Policies only.
Paragraph 3.02 "Initial Consideration" shall be amended for an additional
initial consideration with regards to the New Policies only, to be paid
simultaneously with the payment defined above in an amount equal to: One
Million and Nine Hundred Thousand Dollars ($1,900,000). Such amount will
be adjusted for the actual policies in force as determined by the May 31st
Actuarial Appraisal as of the date of assumption as provided for in
Section 4.2(a) of the Reinsurance and Assumption Agreements between the
Ceders and the Company. Should the Company, as of March 31, 1998, pay to
the Ceders, an additional "ceding fee" (as defined in Section 4.2(b) of
the Reinsurance and Assumption Agreements between the Company and the
Ceders, the Reinsurer shall pay to the Company such amounts, effective
simultaneously with that of the Company. In no event shall such
additional ceding consideration exceed Four Hundred Thousand Dollars
($400,000) in total.
Paragraph 3.07 "Administration" shall be amended to included additional
monthly administration allowances to be applied on the World Services
Policies only as follows:
a) For all World Service Policies in premium paying status $1.38
b) For all World Service Policies that are Paid-up reduced $0.85
Paid-up or on an extended term basis
Plus 2% of the Reinsurance Premiums as defined in Paragraph 3.02 of
this Treaty for the World Service Policies only
Schedule C.02 "Experience Refund Formula" shall be amended to specifically
include the additional initial consideration as defined above to be
included in the formula as initial consideration as provided for therein.
Schedule D.03 "Determination of Segregated Asset Account Balance" shall be
amended to specifically include the initial premium (initial portfolio
transfer as described above) and initial ceding commission as described
above on the World Services Policies only for purposes of determining the
new Segregated Asset Account Balance.
The net amount payable to the Reinsurer as of the effective date of this
Amendment by virtue of having accepted these additional policies for
reinsurance may be directly deposited by the Company, into the Segregated
Asset Account and any and all such deposit shall be deemed receipt by the
Reinsurer.
EFFECTIVE DATE AND EXECUTION OF AMENDMENT
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate, with an Effective Date of June 30, 1996.
AMERICAN CAPITOL INSURANCE COMPANY (Company)
Attest:
By: /s/Xxxx X. Xxxxxxx, President By: /s/Xxxx X. Xxxxxx, Secretary
Date: July 10, 1996 Date: July 10, 1996
CROWN LIFE INSURANCE COMPANY (Reinsurer)
Attest:
By: /s/Xxxx X. Xxxxx By: /s/Xxxxx Xxxxx
VP Reinsurance Operations
Date: July 12, 1996 Date: July 12, 1996
