1
EXHIBIT 8.h
SUPPORT AGREEMENT
This Agreement dated December 31, 1997 by and between Provident Mutual Life
Insurance Company ("PMLIC") and Providentmutual Life and Annuity Company of
America ("PLACA") ("Agreement") provides for the ongoing support of PLACA by
PMLIC in accordance with the following terms:
1. That certain Support Agreement dated April 5, 1993 by and between PMLIC and
PLACA is hereby terminated as of the date hereof.
2. PLACA currently is, and for the term of this Agreement will remain, a
subsidiary of PMLIC.
3. PMLIC agrees to ensure that PLACA's total adjusted capital will remain at the
level of 200% of the company action level for risk-based capital at the end of
each calendar quarter during the term of this Agreement. If PLACA's statutory
total adjusted capital falls below this level, PMLIC agrees to contribute to
PLACA an amount of capital sufficient to attain such level of total adjusted
capital.
4. PMLIC agrees to cause PLACA to maintain cash or cash equivalents from time to
time as may be necessary during the term of this Agreement in an amount
sufficient for the payment of benefits and other contractual claims pursuant to
policies and other contracts issued by PLACA.
5. This Agreement shall be binding on PMLIC, its successor or assigns.
6. This Agreement shall continue indefinitely, unless terminated subject to the
provisions of Paragraph 8, below.
7. It is agreed that the provisions of this Agreement shall inure to the benefit
of the policyholders of PLACA who shall have the right to enforce its terms
through a cause of action for damages or an action in equity.
8. This Agreement may be modified or terminated at any time. The termination
will not be effective unless and until PMLIC has given 60 days prior written
notice to PLACA of such termination. Prior to any material modification or
termination, a determination must be made that such modification or termination
will not have an adverse impact on the policyholders of PLACA. Such
determination shall be based on the ability of PLACA at the time of such
determination to maintain its own financial stability according to the standards
contained in this Agreement.
2
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year first above written.
PROVIDENT MUTUAL LIFE INSURANCE COMPANY
BY:
----------------------------------------
Xxxxxx Xxxxxxx Xxxxx
President & Chief Executive Officer
BY:
-----------------------------------------
Xxxx Xxxx Xxxxxxx
Executive Vice President & Chief Financial Officer
PROVIDENTMUTUAL LIFE AND ANNUITY COMPANY OF AMERICA
BY:
-------------------------------------------
Xxxxxx Xxxxxxx Xxxxx
President
BY:
-------------------------------------------
Xxxx Xxxxxxx Xxxxxx
Vice President & Actuary
DELAWARE INSURANCE DEPARTMENT
BY:
-------------------------------------------
Xxxxx Xxxxx
Chief Examiner - Regulatory Insurance Services