Amendment Number 8 to the Second Amended and Restated Automatic Indemnity Reinsurance Agreement
Exhibit 7(a)(vi)
[CERTAIN PORTIONS OF THIS EXHIBIT CONTAIN CONFIDENTIAL INFORMATION. THE
CONFIDENTIAL PORTIONS OF THIS EXHIBIT ARE IDENTIFIED AS [REDACTED] AND HAVE
BEEN OMITTED.]
Amendment Number 8
to the
Second Amended and Restated Automatic Indemnity Reinsurance Agreement
This Amendment between The Lincoln National Life Insurance Company of Fort Xxxxx, Indiana (the “Ceding Company”) and Lincoln National
Reinsurance Company (Barbados) Limited, a Barbados Corporation (“the Reinsurer”) is effective September 16, 2019.
RECITALS
1. |
The Ceding Company and the Reinsurer entered into an Automatic Indemnity Reinsurance Agreement effective July 1, 2003, as amended and restated effective November 1, 2013, and as further
amended by amendments executed June 9, 2016, October 20, 2016, March 30, 2017, July 15, 2017, February 20, 2018, June 28, 2018, and February 25, 2019 (“the Agreement”).
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2. |
Article XVII, Section 8 of this Agreement permits amendments as long as they are made in writing, signed by duly authorized officers of both parties.
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3.
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The Ceding Company and the Reinsurer wish to make such an amendment to add a new rider to the Agreement.
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AGREEMENT
NOWTHEREFORE, in consideration of these premises and the mutual covenants contained herein, the Ceding Company and the Reinsurer agree to
amend the Agreement as follows:
1.
|
Effective September 16, 2019, the Lincoln Wealth PassSM rider shall be added to Schedule A and C of the Agreement.
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2.
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The Ceding Company and the Reinsurer agree that Schedules A and C of the Agreement shall be replaced in their entirety with Schedules A and C attached
hereto.
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All terms, provisions and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment.
In WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.
LINCOLN NATIONAL REINSURANCE THE LINCOLN NATIONAL LIFE COMPANY (BARBADOS) LIMITED INSURANCE COMPANY
By: /s/ Xxxxxx Xxxx By: /s/ Xxxxxxx X. Xxxxxxx
Name: Xxxxxx Xxxx Name: Xxxxxxx X. Xxxxxxx
Title: Assistant Vice President Title: Assistant Vice President
Date: 11/4/2019 Date: 10/31/2019
Reinsurance of Guaranteed Benefits (“GB”)
Effective September 16, 2019
Each contract listed in Schedule B contains one or more GB. GBs which are covered by this Agreement include the following:
Marketing Name of Benefit
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Policy Form Nos.
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Death Benefit Riders
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Guarantee of Principal Death Benefit Rider*
|
32148
|
Enhanced Guaranteed Minimum Death Benefit Rider*
|
32149
|
5% Step-Up Death Benefit Rider*
|
32150
|
7 Year Ratchet Death Benefit on American Legacy I & II*
|
- -
|
Estate Enhancement Death Benefit Rider*
|
32151
|
Highest Anniversary Death Benefit Rider eff. 1/9/17*
|
AR-593
|
Guarantee of Principal Death Benefit Rider eff. 1/9/17*
|
ICC16-32148
|
Guarantee of Principal Death Benefit Rider eff. 1/9/17*
|
32148 (9-16)
|
Earnings Optimizer Death Benefit Rider eff. 11/16/15
|
AR-590
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Lincoln SmartSecurity® Advantage
|
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Variable Annuity Rider
|
32793
|
i4LIFE® Advantage with Guaranteed Income Benefit
|
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Variable Annuity Income Rider
|
I4LA
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Variable Annuity Payment Option Rider
|
I4LA-Q
|
Variable Annuity Payment Option Rider
|
I4LA-NQ
|
Guaranteed Income Benefit
|
GIB
|
Increasing GIB
|
IGIB
|
Annual XXX
|
XXXX
|
Select Guaranteed Income Benefit
|
AR-528
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i4LIFE® Advantage with Guaranteed Income Benefit (Managed Risk) eff. 5/21/12
|
AR-528
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4LATER® Advantage
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Guaranteed Income Later Rider
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4Later
|
4LATER® Advantage (Managed Risk) eff. 7/2/12
|
AR-547 (3-12)
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4LATER® Select Advantage
|
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Guaranteed Income Later Rider effective 1/9/17
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AR-547 (3-12)
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Guaranteed Income Later Rider effective 6/11/18
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AR-547 (03/18)
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Lincoln Lifetime Income SMAdvantage
|
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Variable Annuity Living Benefits Rider
|
AR-512
|
Variable Annuity Living Benefits Rider (LINC Plus)*
|
AR-512P
|
Lincoln Lifetime Income SMAdvantage 2.0 &
|
|
Lincoln Lifetime Income SMAdvantage 2.0 (Managed Risk) eff. 4/2/12
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Variable Annuity Living Benefits Rider eff. 4/2/12*
|
AR-529
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Variable Annuity Guarantee Income Benefit (NY version)
|
AR-529
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Variable Annuity Living Benefits Rider eff. 1/20/15
|
AR-566
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Variable Annuity Living Benefits Rider eff. 2/20/18
|
AR-607
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Lincoln Market Select ® Advantage
|
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Variable Annuity Living Benefits Rider eff. 10/5/15
|
AR-587
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Variable Annuity Living Benefits Rider eff. 5/16/16
|
AR-591
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Variable Annuity Guarantee Income Benefit (NY version) eff. 8/29/16
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AR-529
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Variable Annuity Living Benefits Rider eff. 2/20/18
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AR-607
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Lincoln Long-TermCareSMAdvantage Rider
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Long-Term Care Coverage Endorsement
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AE-517
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Long-Term Care Benefits Rider
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AR-518, AR-519
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Core Income Benefit – eff. 2/21/17
|
AR-592
|
Lincoln Max 6 SelectSM Advantage – eff.
5/22/17
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AR-600
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Xxxxxxx XXX Income PlusSM – eff. 1/14/19
|
AR-600
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Lincoln Wealth PassSM – eff. 9/16/19
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AR-623
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* issued by Ceding Company only
SCHEDULE C
Effective September 16, 2019
Initial Reinsurance Premium:
The Initial Reinsurance Premium shall equal the Treaty Reserve applicable to each Individual Policy on the date it is first covered by this Agreement. For all
business the Ceding Company assumes from Lincoln Life & Annuity of New York, the Initial Reinsurance Premium shall equal the Treaty Reserves less an adjustment reflecting the anticipated future profitability on the business assumed by the Ceding
Company effective January 1, 2010. For all business issued by the Ceding Company after the Agreement’s Effective Date, the Initial Premium shall be zero.
Base Reinsurance Premium Rates:
Effective from the Agreement’s Effective Date and the corresponding effective date of any amendment, as appropriate:
Type of Benefit
|
Contracts Issued
|
Contracts Issued
|
Contracts Issued
|
||
Effective Date of Coverage
|
Prior to 7/1/2003
|
Between 7/1/03 and 7/26/2004
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After 7/26/04
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All Contracts
|
|
GMDB Type
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Base Reinsurance Premium Annual Rate
|
Base Reinsurance Premium Annual Rate
|
Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge Annual Rate
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Applied to
|
Guarantee of Principal Death Benefit – Employer VA
|
[REDACTED]
|
[REDACTED]
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[REDACTED]
|
[REDACTED]
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Account Value
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
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Account Value
|
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Enhanced Guaranteed Minimum Death Benefit
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
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[REDACTED]
|
Account Value
|
Enhanced Guaranteed Minimum Death Benefit with 5% Rollup
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
Account Value
|
5% Step-Up Death Benefit
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
Account Value
|
Legacy I and II with 7 Yr Ratchet Benefit
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
Account Value
|
Estate Enhancement Benefit
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
Account Value
|
Estate Enhancement Benefit with 5% Rollup
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
[REDACTED]
|
Account Value
|
GMDB Type
|
Effective Date of Rate Application
|
Rates Applied to Riders Effective
|
Base Reinsurance Premium Annual Rate
|
Expense, Profit, and Risk Charge
|
Applied to
|
|
Earnings Optimizer Death Benefit Rider
|
11/16/15
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Riders effective after 11/16/15
|
[REDACTED]
|
[REDACTED]
|
Greater of:
•Account Value
•Sum of all purchase payments adjusted pro-rata for withdrawals*
|
|
[REDACTED]
|
||||||
Highest Anniversary Death Benefit Rider
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Highest Anniversary Component
|
1/9/17
|
Riders effective on or after 1/9/17
|
[REDACTED]
|
[REDACTED]
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Highest Anniversary Value
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Guarantee of Principal Component
|
1/9/17
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Riders effective on or after 1/9/17
|
[REDACTED]
|
[REDACTED]
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Account Value
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1/9/17
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Riders effective after 1/9/17
|
[REDACTED]
|
[REDACTED]
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Account Value
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|
[REDACTED]
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Type of Benefit
|
|||||
LTC Type
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Effective Date of Rate Application
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Rates Applied to Riders Effective
|
Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge
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Applied to
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Long-Term Care Benefit Rider
XX-000, XX-000 xxx XX-000
Accelerated Benefit
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4/1/2011
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Riders effective after 4/1/2011
|
[REDACTED]
|
[REDACTED]
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Guaranteed Amount (#)
|
[REDACTED]
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Type of Benefit
|
|||||
GLB Type
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Effective Date of Rate Application
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Rates Applied to Riders Effective
|
Base Reinsurance Premium Annual Rate
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Expense, Profit, and Risk Charge
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Applied to
|
Lincoln SmartSecurity Advantage – 5 Yr Optional Reset
|
7/1/2003
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All In Force Riders effective prior to 5/15/2004
|
[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
|
5/15/2004
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All In Force Riders effective 5/15/2004 thru 1/19/2009
|
[REDACTED]
|
[REDACTED]
|
||
1/20/2009
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Riders effective or reset on or after 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
||
12/3/2012
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Riders effective or reset on or after 12/3/2012
|
[REDACTED]
|
[REDACTED]
|
||
Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset
|
|
Riders effective before 1/20/2009
|
[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
|
1/20/2009
|
Riders effective or reset on or after 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
||
12/3/2012
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Riders effective or reset on or after 12/3/2012
|
[REDACTED]
|
[REDACTED]
|
||
Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset - Single Life Option with Lifetime Withdrawals
|
|
Riders effective before 1/20/2009
|
[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
|
1/20/2009
|
Riders effective or reset on or after 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
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12/3/2012
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Riders effective or reset on or after 12/3/2012
|
[REDACTED]
|
[REDACTED]
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Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset – Joint Life Option with Lifetime Withdrawals
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Riders effective before 1/20/2009
|
[REDACTED]
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[REDACTED]
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Guaranteed Benefit (#)
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|
1/20/2009
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Riders effective or reset on or after 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
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12/3/2012
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Riders effective or reset on or after 12/3/2012
|
[REDACTED]
|
[REDACTED]
|
||
4LATER Advantage
(and transitioning to i4LIFE)
|
7/1/2003
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All In Force Riders effective prior to 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
1/20/2009
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Riders effective or reset on or after 1/20/09
|
[REDACTED]
|
[REDACTED]
|
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4LATER Advantage (Managed Risk) (and transitioning to i4LIFE)
|
7/2/2012
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Riders effective after 7/2/2012
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
[REDACTED]
|
|||||
4LATER® Select Advantage
(and transitioning to i4LIFE)
|
1/9/2017
|
Riders effective after 1/9/2017
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
[REDACTED]
|
|||||
Guaranteed Income Benefit on i4Life
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Riders effective before 10/1/2009
|
[REDACTED]
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[REDACTED]
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Variable Account Value
|
10/1/2009
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Riders effective or reset on or after 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
||
Increasing Guaranteed Income Benefit
|
|
Riders effective before 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
Variable Account Value
|
10/1/2009
|
Riders effective or reset on or after 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
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Annual Step-Up Guaranteed Income Benefit
|
|
Riders effective before 10/1/2009
|
[REDACTED]
|
[REDACTED]
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Variable Account Value
|
10/1/2009
|
Riders effective or reset on or after 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
||
Lincoln Lifetime Income Advantage (and transitioning to i4LIFE)
|
|
All In Force Riders effective prior to 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
Guaranteed Benefit (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
1/20/2009
|
Riders effective or reset after 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
||
Lincoln Lifetime Income Advantage (and transitioning to i4LIFE GIB)
|
|
Riders effective before 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
Variable Account Value
|
10/1/2009
|
Riders effective or reset on or after 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
||
Lincoln Lifetime Income Advantage Plus (and transitioning to i4LIFE)
|
|
Riders effective before 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
Guaranteed Benefit (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
1/20/2009
|
Riders effective or reset on or after 1/20/2009
|
[REDACTED]
|
[REDACTED]
|
Lincoln Lifetime Income Advantage Plus (and transitioning to i4LIFE GIB)
|
|
Riders effective before 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
Variable Account Value
|
10/1/2009
|
Riders effective or reset on or after 10/1/2009
|
[REDACTED]
|
[REDACTED]
|
||
Lincoln Lifetime Income Advantage 2.0 (and transitioning to i4LIFE)
|
9/1/2010
|
Riders effective after 9/1/2010
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
[REDACTED]
|
|||||
Lincoln Lifetime Income Advantage 2.0 (Managed Risk) (and transitioning to i4LIFE)
|
4/2/2012
|
Riders effective after 4/2/2012
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
[REDACTED]
|
|||||
5/21/2018
|
Riders effective on or after 5/21/2018 subject to state approval
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
|
[REDACTED]
|
|||||
Guaranteed Income Benefit on i4Life (AR-528 only)
|
9/1/2010
|
Riders effective between 9/1/2010 and 8/28/2016
|
[REDACTED]
|
[REDACTED]
|
Variable Account Value
|
[REDACTED]
|
|||||
8/29/16
|
Riders effective on or after 8/29/2016
|
[REDACTED]
|
|||
[REDACTED]
|
|||||
i4LIFE®Advantage with Guaranteed Income Benefit (Managed Risk)
|
5/21/2012
|
Riders effective 5/21/2012
|
[REDACTED]
|
[REDACTED]
|
Variable Account Value
|
[REDACTED]
|
|||||
5/21/2018
|
Riders effective 5/21/2018
|
[REDACTED]
|
[REDACTED]
|
Variable Account Value
|
|
[REDACTED]
|
|||||
Lincoln Market Select ® Advantage (and transitioning to i4LIFE)
|
10/5/2015
|
Riders effective between 10/5/2015 and 5/15/2016
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
|
[REDACTED]
|
|||||
5/16/2016
|
Riders effective between 5/16/2016 and 8/28/2016 subject to state approval
|
[REDACTED]
|
|||
[REDACTED]
|
|||||
8/29/2016
|
Riders effective on or after 8/29/2016 subject to state approval
|
[REDACTED]
|
|||
[REDACTED]
|
|||||
Core Income Benefit
|
2/21/2017
|
Riders effective on or after 2/21/2017
|
[REDACTED]
|
[REDACTED]
|
Greater of:
•Deposits (adjusted for excess withdrawals)
•Contract Value
|
Lincoln Max 6 SelectSM Advantage
|
5/22/2017
|
Riders effective on or after 5/22/2017 subject to state approval
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#)
|
[REDACTED]
|
Xxxxxxx XXX Income PlusSM Advantage
|
1/14/2019
|
Riders effective on or after 1/14/2019
|
[REDACTED]
|
[REDACTED]
|
Current Income Base (#)
|
Lincoln Wealth PlusSM
|
9/16/2019
|
Riders effective on or after 9/16/2019
|
[REDACTED]
|
[REDACTED]
|
Protected Amount (#)
|
[REDACTED]
|
(#) Guaranteed Benefit, Guaranteed Amount, Current Income Base, and Protected Amount are as calculated by the terms of the applicable riders
(*) Excludes i4LIFE® Advantage payments
(**) [REDACTED]
.
(***) [REDACTED]
Reinsurance premium shall step up to the current charge for any Policy that resets for all benefits except for Lincoln Market Select® Advantage contracts
issued with policy form AR-587.
Reinsurer’s Expense, Profit, and Risk Charge (EPRC):
EPRC shall equal the annual rates shown above, payable monthly in arrears computed in the manner as more fully described below.
Monthly Payment of Reinsurance Premium:
Both the Base Reinsurance Premium and the EPRC are payable in arrears after the end of each calendar month. The monthly payment for all benefit types shall be
computed by adding the appropriate Base Reinsurance Premium annual rate to the EPRC annual rate, then dividing the total by twelve and multiplying the result times the end of the month Guaranteed Benefit Amount, the Current Income Base or the
Variable Account Value, as applicable.