AMENDMENT NO. 1 TO
AUTOMATIC REINSURANCE AGREEMENT
EFFECTIVE AS OF DECEMBER 1, 2004
(Agreement)
between
METROPOLITAN LIFE INSURANCE COMPANY
(Cedent)
and
EXETER REASSURANCE COMPANY, LTD.
(Reinsurer)
The Agreement is hereby amended, as of May 1, 2005, as follows:
1. The following is added to paragraph F of Schedule A, Reinsured
Contracts
8. Guaranteed Minimum Income Benefit Form ML-560-2 (05/05)
2. The following paragraph amends and, as amended, restates paragraph C.2
of Article I, Scope of Agreement:
2. This Agreement covers only the Cedent's contractual liability for
reinsured claims that are realized upon annuitization or exercise
of the Guaranteed Principal Option if applicable under the
contractual terms of the Income Program within the variable
annuity contract forms specified in Schedule A.
3. The following paragraph amends and, as amended, restates paragraph C
of Article IV, Net Amount at Risk:
C. The IBNAR (Income Benefit Net Amount at Risk) for each variable
annuity contract ceded hereunder shall be equal to (i) or (ii),
where:
(i) IBNAR = Maximum [(IBB * (MAPR/SAPR) - Account Value), 0] *
Reinsurer's Percentage
where:
. The INCOME BENEFIT BASE (IBB) is as defined in Schedule A
. The MINIMUM ANNUITY PURCHASE RATE (MAPR) per $1000 is
calculated using the following assumptions:
Mortality Table Annuity 2000 (Exhibit I)
Age Setback 7 Years
Mortality Improvement None
Unisex Blend: Sex distinct only
Interest Rate: 2.5% all years
Expenses: None
Premium Taxes: Applied by state of residence
and market
Age: Attained age on exercise date
Frequency of payment Monthly
Annuity form:
1. Individual Basis: Limited to a Life Annuity with a Period Certain. The
number of years of Period Certain is as defined below:
Age at Annuitization Period Certain Years
-------------------- --------------------
Up to 79 10
80 9
81 8
82 7
83 6
84-85 5
2. Joint Basis: Limited to a Joint and 100% Survivor Annuity with 10-Year
Period Certain
.. The SETTLEMENT ANNUITY PURCHASE RATE (SAPR) per $1000, which is used at
time of annuitization for reinsurance claims settlement shall be equal to
the fixed annuity purchase rate that the Cedent would provide to an
annuitant in the same class.
Annuity form:
1. Individual Basis: Limited to a Life Annuity with a Period Certain The
number of years of Period Certain is as defined below:
Age at Annuitization Period Certain Years
-------------------- --------------------
Up to 79 10
80 9
81 8
82 7
83 6
84-85 5
2. Joint Basis: Limited to a Joint and 100% Survivor Annuity with 10-Year
Period Certain
(ii) The Guaranteed Principal Adjustment if the Income Benefit contains a
Guaranteed Principal Option or 0 otherwise.
4. The following paragraph amends and, as amended, restates paragraph A of
Article VII, Settlement of Claims:
A. GMDB and EPB: The Reinsurer shall indemnify the Cedent under this
Agreement only for benefit claims that the Cedent paid as
contractually required under a Reinsured Contract with respect to
deaths that occur on or after the Effective Date.
GMIB: The Reinsurer shall indemnify the Cedent under this Agreement
only for benefit claims that the Cedent paid as contractually required
under a Reinsured Contract on or after the expiration of the waiting
period and upon exercise of benefits under the terms of the Income
Program where such events occur, on the policies reinsured hereunder,
on or after the Effective Date.
GWB: The Reinsurer shall indemnify the Cedent under this Agreement
only for benefit claims that the Cedent paid as contractually required
under a Reinsured Contract under the terms of the Withdrawal Program
on or after the Effective Date.
5. The following paragraph amends and, as amended, restates paragraph C of
Article VII, Settlement of Claims:
C. GMDB and EPB: Within thirty (30) days after the end of each calendar
month, the Cedent shall notify the Reinsurer of the ceded contractual
death benefit claims paid in respect of Reinsured Contracts in that
month, based on the net amount at risk definition, set forth in
Article IV, and the Reinsurer shall indemnify the Cedent as provided
in Article VI for the ceded benefit claim liabilities.
GMIB: Within thirty (30) days of the end of each calendar month, the
Cedent shall notify the Reinsurer of the ceded contractual Income
Program benefits paid in respect of Reinsured Contracts in that month,
based on the definition set forth in Article IV, and the Reinsurer
shall indemnify the Cedent as provided in Article VI for the ceded
benefits.
GWB: Within thirty (30) days of the end of each calendar month, the
Cedent shall notify the Reinsurer of the ceded contractual Withdrawal
Program benefits paid in respect of Reinsured Contracts in that month,
based on the WBNAR definition set forth in Article IV, and the
Reinsurer shall indemnify the Cedent as provided in Article VI for the
ceded benefits.
6. The following paragraph amends and, as amended, restates paragraph D of
Schedule A, Plans of Reinsurance:
D. GMIB (Contractual Income Program Benefit) Ceded:
Income Benefit Base (IBB)
-------------------------
Version 1 - Greater of an Annual Ratchet to attained age 80 and a 6% Rollup
to attained age 80; frozen thereafter.
Version 2 - Greater of an Annual Ratchet to attained age 80 and a 5% Rollup
to attained age 85; frozen thereafter.
Version 3 - Greater of an Annual Ratchet to attained age 80 and a 5% Rollup
to attained age 85; frozen thereafter.
Annuitization
-------------
Annuitization under the Income Program means that the annuitant is
receiving guaranteed fixed income payments based on the IBB and the MAPR
under one of the life annuity forms specified in the contract.
Guaranteed Principal Option
---------------------------
Under version 3, Contractholders can exercise the Guaranteed Principal
Option in lieu of electing income payments based on the IBB.
Contract Provisions
-------------------
All contract provisions are as specified in the contract forms identified
in Schedule A, Paragraph F.
7. The following paragraph amends and, as amended, restates paragraph B of
Exhibit II, Reinsured Premiums:
B. Income Program
REINSURANCE PREMIUM
INCOME PROGRAM PRODUCTS COVERED (BASIS POINTS)
-------------------- --------------------------------- -------------------
Income Program Rider All Products sold prior to 35.00
February 15, 2003
Income Program Rider All Products sold after April 30, 45.00
2003 and before May 1, 2005
if GMDB program is Annual Step or
Max of Annual Step and Rollup
Income Program Rider All other Products sold after 50.00
February 14, 2003 and before
May 1, 2005
Income Program Rider All Version 1 and Version 2 50.00
Products sold after April 30,
2005
Income Program Rider All Version 3 Plus Products sold 75.00
after April 30, 2005
This Amendment No. 1 does not alter, amend or modify the Agreement other than as
set forth herein, and the terms and conditions of the Agreement, as amended
herein, continue in effect without other change.
In Witness whereof, the parties have caused this Amendment No. 1 to be signed in
duplicate counterparts as of the date first above written.
METROPOLITAN LIFE INSURANCE COMPANY
By: /s/ [signature illegible]
---------------------------------
Title: [title illegible]
------------------------------
EXETER REASSURANCE COMPANY, LTD.
By: /s/ [signature illegible]
---------------------------------
Title: President
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