AUTOMATIC REINSURANCE AGREEMENT Between FORTIS BENEFITS INSURANCE COMPANY Woodbury, Minnesota And SWISS RE LIFE & HEALTH AMERICA INC. New York, New York This Agreement will be referred to as Agreement No. SA731-98 AUTOMATIC REINSURANCE AGREEMENT Contents
Between
FORTIS BENEFITS INSURANCE COMPANY
Woodbury, Minnesota
And
SWISS RE LIFE & HEALTH AMERICA INC.
New York, New York
This Agreement will be referred to as Agreement No. SA731-98
Contents
| ARTICLE I | Scope of Agreement | |||||||
| ARTICLE II | Commencement & Termination of Liability | |||||||
| ARTICLE III | Oversights - Clerical Errors | |||||||
| ARTICLE IV | Mortality Net Amount at Risk | |||||||
| ARTICLE V | Reinsurance Premiums | |||||||
| ARTICLE VI | Reinsurance Administration | |||||||
| ARTICLE VII | Settlement of Claims | |||||||
| ARTICLE VIII | Tax Credits | |||||||
| ARTICLE IX | Regulatory Compliance | |||||||
| ARTICLE X | Inspection of Records | |||||||
| ARTICLE XI | Insolvency | |||||||
| ARTICLE XII | Arbitration | |||||||
| ARTICLE XIII | Rights of Offsetting Balances Due | |||||||
| ARTICLE XIV | Contract and Program Changes | |||||||
| ARTICLE XV | Federal Taxes | |||||||
| ARTICLE XVI | Parties to Agreement | |||||||
| ARTICLE XVII | Entire Agreement | |||||||
| ARTICLE XVIII | Confidentiality | |||||||
| ARTICLE XIX | Duration of Agreement | |||||||
| ARTICLE XX | Severability | |||||||
| Signature Page | ||||||||
| EXHIBIT A - | Variable Annuities Covered Under This Agreement | |||||||
| EXHIBIT B - | Investment Funds | |||||||
| EXHIBIT C - | Agreements Covered by Minimum Premium Payment | |||||||
THIS AGREEMENT between the FORTIS BENEFITS INSURANCE COMPANY, a corporation organized under the laws of the State of Minnesota, hereinafter referred to as the “Company”, and SWISS RE LIFE & HEALTH AMERICA INC., a corporation organized under the laws of the State of New York, hereinafter referred to as “Swiss Re Life & Health”, WITNESSETH AS FOLLOWS:
ARTICLE I
Scope of Agreement
1. On and after the 1st day of January, 1999, the Company shall automatically reinsure with Swiss Re Life & Health, and Swiss Re Life & Health shall automatically accept, [redacted] as defined in Article IV, generated prior to annuitization or complete surrender by the contract owner, by the Guaranteed Minimum Death Benefit provisions within the variable annuity contracts issued by the Company as set forth in Exhibit A.
2. Swiss Re Life & Health’s maximum aggregate liability in any one calendar year [redacted]
3. [redacted]
4. This Agreement covers only the Company’s liability for claims paid under variable annuity contracts written on the contract forms specified in Exhibit A and supported by funds that were reviewed by Swiss Re Life & Health prior to their issuance.
ARTICLE II
Commencement & Termination of Liability
1. On reinsurance ceded under the terms of this Agreement, the liability of Swiss Re Life & Health shall commence simultaneously with that of the Company, and shall terminate upon the earliest of annuitization, surrender or termination in accordance with Article XIX.
2. Swiss Re Life & Health shall be liable to reimburse claims on only those deaths where the date of death is on or after January 1, 1999, in accordance with Article VII.
ARTICLE III
Oversights - Clerical Errors
1. Should either the Company or Swiss Re Life & Health fail to comply with any of the terms of this Agreement, and if this is shown to be unintentional and the result of a misunderstanding, oversight or clerical error on the part of either the Company or Swiss Re Life & Health, then this Agreement shall not be deemed abrogated thereby, but both companies shall be restored to the position they would have occupied had no such oversight, misunderstanding, or clerical error occurred. Such conditions are to be reported and corrected promptly after discovery.
2. If the Company or Swiss Re Life & Health discovers that the Company did not cede reinsurance on a contract it should have reinsured under this Agreement, the Company may be required to audit its records, at the request of Swiss Re Life & Health, to determine if reinsurance was unreported on any other contracts. The Company is expected to take the necessary actions to ensure that similar oversights do not recur, If Swiss Re Life & Health receives no evidence that the Company has taken action to remedy such a situation, Swiss Re Life & Health reserves the right to limit its liability to reported contracts only.
3. Any negligent or deliberate acts or omissions by the Company regarding the insurance or reinsurance provided are the responsibility of the Company and its liability insurer, if any, but not that of Swiss Re Life & Health. Any negligent or deliberate acts or omissions by Swiss Re Life & Health regarding the reinsurance provided are the responsibility of Swiss Re Life & Health and its liability insurer, if any, but not that of the Company.
ARTICLE IV
Mortality Net Amount at Risk
[redacted]
ARTICLE V
Reinsurance Premiums
1. Reinsurance premiums shall be calculated monthly. The monthly reinsurance premium shall be equal to the product of the current monthly premium rate and Swiss Re Life & Health’s quota share percentage of all average aggregate account values according to issue age groupings below, over each calendar month of all variable annuities reinsured hereunder. [redacted]
The total reinsurance premium in any month, calculated in combination with the Agreements listed under Exhibit C of this Agreement, shall at least equal One Thousand Five Hundred Dollars ($1,500).
2. [redacted]
3. The total reinsurance premium shall be reduced by the ratio of the sum of the mortality net amount at risk in excess of $1 million on any lives reinsured hereunder to Swiss Re Life & Health’s share of the total mortality net amount at risk on all variable annuity contracts.
4. The monthly reinsurance premium shall be due and payable as described in Article VI. Swiss Re Life & Health reserves the right to charge interest on premiums not remitted in accordance with the schedule set forth in Article VI. The interest rate payable by the Company to Swiss Re Life & Health for overdue premiums shall be the 90 Day Federal Government Treasury Xxxx rate as first published in the Wall Street Journal in the month
5
following the end of the billing period plus 50 basis points. The method of calculation shall be simple interest “Bankers’ Rule” (or 360 day year).
5. The reinsurance premium structure described above shall remain in effect as long as the death benefit design, the contract fees, the mortality and expense charges, the administration fees, and the surrender charges in effect at the inception of this Agreement remain unchanged.
ARTICLE VI
Reinsurance Administration
1. Within thirty (30) days of the end of each calendar month, the Company will furnish Swiss Re Life & Health a separate electronic report for each Death Benefit design specified in Exhibit A, valued as of the last day of that month. Each report will indicate for all inforce annuities reinsured hereunder:
a) Annuitant’s name, sex, date of birth, issue age and social security number
b) Owner’s name, sex, date of birth, issue age and social security number
c) Contract number
d) Contract issue date
e) Contract form number
f) Tax status
g) Current contract value in total and by funding vehicle, if any
h) Current cash surrender value
i) Cumulative net considerations
j) Current Minimum Guaranteed Death Benefit
k) Current contract death benefit
l) Current contract mortality risk amount
2. Additionally, within thirty (30) days of the end of each calendar month, the Company will furnish Swiss Re Life & Health with a separate seriatim termination report, indicating the following:
a) Termination by death, including cause of death
b) Termination by lapse
c) Termination by annuitization
3. Additionally, within thirty (30) days of the end of each calendar month, the Company will furnish Swiss Re Life & Health a separate paper report summarizing the following data:
a) Reinsurance premiums due Swiss Re Life & Health
b) Death claim reimbursements due the Company
c) Total number of contracts reinsured
d) Total current contract value, split by sub-account and fixed account
e) Total cumulative net considerations
f) Total current Guaranteed Minimum Death Benefit
g) Total current death benefit
h) Total current mortality risk amount
4. If the net balance is due Swiss Re Life & Health, the amount due shall be remitted with the report statement. If the net balance is due the Company, Swiss Re Life & Health shall remit the amount to the Company within ten (10) days of the receipt of the report.
ARTICLE VII
Settlement of Claims
1. The claims that are eligible for reimbursement are only those that the Company is required to pay on deaths that occur on or after the effective date of this Agreement.
2. In the event the Company provides satisfactory proof of claim to Swiss Re Life & Health, claim settlements made by the Company shall be unconditionally binding on Swiss Re Life & Health.
3. The death claim reimbursed by Swiss Re Life & Health shall be determined as of the date due proof of death is received at the Company’s Annuity Service office.
4. Within thirty (30) days of the end of each month, the Company shall notify Swiss Re Life & Health of the reinsured death benefits paid in that month and Swiss Re Life & Health shall reimburse the Company, as provided in Article VI, for the reinsured benefits.
5. Settlements by Swiss Re Life & Health shall be in a lump sum regardless of the mode of payment made by the Company to the beneficiary.
ARTICLE VIII
Tax Credits
1. Swiss Re Life & Health shall not reimburse the Company for state premium taxes.
ARTICLE IX
Regulatory Compliance
1. Swiss Re Life & Health agrees to comply with all regulatory directives required to permit the Company to receive statutory reserve credit for the reinsurance ceded under this Agreement.
2. The Company warrants that it has secured all necessary federal and state licenses and approvals, and that it is operating in compliance with federal investment laws and state investment and insurance laws and regulations.
ARTICLE X
Inspection of Records
1. Swiss Re Life & Health, or its duly appointed representatives, shall have the right at all reasonable times and for any reasonable purpose to inspect at the office of the Company all records referring to reinsurance ceded to Swiss Re Life & Health.
ARTICLE XI
Insolvency
1. A party to this Agreement will be deemed “insolvent” when it:
(a) Applies for or consents to the appointment of a receiver, rehabilitator, conservator, liquidator or statutory successor (hereinafter referred to as the Authorized Representative) of its properties or assets; or
(b) Is adjudicated as bankrupt or insolvent; or
(c) Files or consents to the filing of a petition in bankruptcy, seeks reorganization or an arrangement with creditors or takes advantage of any bankruptcy, dissolution, liquidation, or similar law or statute; or
(d) Becomes the subject of an order to rehabilitate or an order to liquidate as defined by the insurance code of the jurisdiction of the party’s domicile.
2. In the event of the insolvency of the Company, all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by Swiss Re Life & Health directly to the Company or to its Authorized Representative on the basis of the liability of the Company under the contract or contracts reinsured without diminution because
of the insolvency of the Company. It is understood, however, that in the event of the insolvency of the Company, the Authorized Representative of the insolvent Company shall give written notice of the pendency of a claim against the insolvent Company on the policy reinsured within a reasonable time after such claim is filed in the insolvency proceeding and that, during the pendency of such claim, Swiss Re Life & Health may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses which it may deem available to the Company or to its Authorized Representative
3. It is further understood that the expense thus incurred by Swiss Re Life & Health shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by Swiss Re Life & Health. Where two or more assuming insurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of this Reinsurance Agreement as though such expense had been incurred by the Company.
4. In the event of the insolvency of Swiss Re Life & Health and the appointment of receivers therefor, the liability of Swiss Re Life & Health shall not terminate but shall continue with respect to the reinsurance ceded to Swiss Re Life & Health by the Company prior to the date of such insolvency or appointment. In the event of such insolvency, the Company may elect to cancel this Agreement for new business and/or immediately recapture reinsurance in force under this Agreement by promptly providing Swiss Re Life & Health, its rehabilitator, conservator, liquidator or statutory successor with written notice of the cancellation effective the date on which Swiss Re Life & Health’s insolvency is established by the authority responsible for such determination. Any requirement for a notification period prior to cancellation of the Agreement or recapture of reinsurance in force would not apply under such circumstances.
ARTICLE XII
Arbitration
1. In the event of any difference arising hereafter between the contracting parties with reference to any transaction under this Agreement, the same shall be referred to three arbitrators who must be current or former executive officers of life insurance or life reinsurance companies other than the two parties to this Agreement or their affiliates, each of the contracting companies to appoint one of the arbitrators and such two arbitrators to select the third. If either party refuses or neglects to appoint an arbitrator within 60 days after receipt of the written request for arbitration, the other party may appoint a second arbitrator.
2. If the two arbitrators fail to agree on the selection of a third arbitrator within 60 days of their appointment, each of them shall name three individuals, of whom the other shall decline two, and the decision shall be made by drawing lots.
3. The arbitrators shall consider this Reinsurance Agreement not merely as a legal document but also as a gentlemen’s agreement. In resolving the dispute, the arbitrators will give full consideration to the customs and practices of the life insurance and life reinsurance industry, insofar as they are not in conflict with the specific terms of this Agreement. The arbitrators shall decide by a majority vote. There shall be no appeal from their written decision.
4. Unless the arbitrators decide otherwise, each party shall bear the expense of its own arbitration, including its arbitrator and outside attorney fees, and shall jointly and equally bear with the other party the expense of the third arbitrator. Any remaining costs of the arbitration proceedings shall be apportioned by the Board of Arbitrators.
ARTICLE XIII
Right of Offsetting Balances Due
1. The Company and Swiss Re Life & Health shall have, and may exercise at any time, the right to offset any balance or balances due one party to the other, its successors or assigns, against balances due the other party under this Agreement or under any other Agreements or Contracts previously or subsequently entered into between the Company and Swiss Re Life & Health. This right of offset shall not be affected or diminished because of insolvency of either party to this Agreement.
ARTICLE XIV
Contract and Program Changes
1. The Company may amend, substitute, add or delete variable investment funds to the underlying investment funds supporting the annuity contract as described in the contract general provisions. No such change will be made by the Company without prior notification to Swiss Re Life & Health and without the prior approval of the Securities and Exchange Commission, if necessary. The Company agrees to maintain at all times a satisfactory selection of core investment options with characteristics similar to those listed in Exhibit B.
2. The Company shall also give Swiss Re Life & Health advance notice of any other changes to its annuity product design, its fees and charges, its distribution systems and/or methods, or the addition of any riders to any contract form reinsured hereunder.
3. Should any such change result in a material increase in the reinsured potential net amount at risk and/or material decrease in the reinsurance premiums due, Swiss Re Life & Health shall have the right to modify any of the terms of this Agreement.
ARTICLE XV
Federal Taxes
1. The Company and Swiss Re Life & Health hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulation issued December 1992, under Section 848 of the Internal Revenue Code of 1986, as amended. This election shall be effective as of the Effective Date of this Agreement and for all subsequent taxable years for which this Agreement remains in effect.
(a) The term “party” will refer to either the Company or Swiss Re Life & Health, as appropriate.
(b) The terms used in this Article are defined by reference to Regulation 1.848-2 in effect December 1992.
(c) The party with the net positive consideration for this Agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1).
(d) Both parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency or as otherwise required by the Internal Revenue Service.
(e) The Company will submit a schedule to Swiss Re Life & Health by May 1 of each year of its calculation of the net consideration for the preceding calendar year. This schedule of calculations will be accompanied by a statement stating that the Company will report such net consideration in its tax return for the preceding calendar year.
(f) Swiss Re Life & Health may contest such calculation by providing an alternative calculation to the Company by June 1. If Swiss Re Life & Health does not so notify the Company, the Company will report the net consideration as determined by the Company in the Company’s tax return for the previous calendar year.
(g) If Swiss Re Life & Health contests the Company’s calculation of the net consideration, the parties will act in good faith to reach an agreement as to the correct amount by July 1. If the Company and Swiss Re Life & Health reach agreement on an amount of the net consideration, each party shall report such amount in their respective tax returns for the previous calendar year.
2. Swiss Re Life & Health and the Company represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code.
ARTICLE XVI
Parties to Agreement
1. This Agreement is an indemnity reinsurance agreement solely between the Company and Swiss Re Life & Health. The acceptance of reinsurance hereunder shall not create any right or legal relation whatever between Swiss Re Life & Health and the annuitant, owner, beneficiary or any other party under any contracts of the Company which may be reinsured hereunder, and the Company shall be and remain solely liable to such parties under such contracts reinsured hereunder.
2. This Agreement shall be binding upon the parties hereto and their respective successors and assigns.
ARTICLE XVII
Confidentiality
1. All matters with respect to this Agreement require the utmost good faith of both parties. Both the Company and Swiss Re Life & Health shall hold confidential and not disclose or make competitive use of any shared proprietary information unless otherwise agreed to in writing, or unless the information otherwise becomes publicly available or the disclosure of which is required for retrocession purposes or has been mandated by law or is duly required by external auditors.
ARTICLE XVIII
Entire Agreement
1. This Agreement shall constitute the entire agreement between the parties with respect to business reinsured hereunder. There are no understandings between the parties other than as expressed in this Agreement and any change or modification of this Agreement shall be null and void unless made by amendment to the Agreement and signed by both parties.
ARTICLE XIX
Duration of Agreement
1. This Agreement shall be unlimited as to its duration but may be reduced or terminated as provided in this Article, below.
2. This Agreement shall be open for new business for a minimum of two years as measured from the effective date of this agreement. Any time on or after the second anniversary of this Agreement and upon 180 days written notice, either the Company or Swiss Re Life & Health may either cancel this Agreement for new business unilaterally or amend the terms of reinsurance for new business by mutual agreement.
3. Any time on or after the fifteenth (15th) anniversary of this Agreement, the Company may, upon 90 days written notice, irrevocably elect to cancel the reinsurance in force under this Agreement. Upon election, the reinsurance shall be recaptured at a constant rate by reducing the quota share percentage set forth in Article I, paragraph 1, by 2.8% per month. The reduction shall begin in the month of election and continue for 36 consecutive months. The quota share percentage will then be equal to 0% and the reinsurance ceded hereunder will be fully recaptured and this Agreement will then be terminated.
4. Should the Company fail to pay reinsurance premiums when due, Swiss Re Life & Health may give the Company 30 days notice, after reinsurance premiums are 90 days or more in arrears, that reinsurance coverage on the affected reinsurance is suspended. The reinsurance coverage will be reinstated at the option of Swiss Re Life & Health upon receipt of all the overdue premiums. However, Swiss Re Life & Health shall have no liability for claims that occur during a period of suspension. Also, suspension of reinsurance coverage shall not relieve the Company of liability for premiums due Swiss Re Life & Health.
ARTICLE XX
Severability
1. If any provision of this Agreement is determined to be invalid or unenforceable, such determination will not affect or impair the validity or the enforceability of the remaining provisions of this Agreement.
IN WITNESS WHEREOF, the Company and Swiss Re Life & Health have caused their names to be subscribed and duly attested hereunder by their respective Authorized Officers.
FORTIS BENEFITS INSURANCE COMPANY
| By: | /s/ [ILLEGIBLE] | Attest: | /s/ [ILLEGIBLE] | |||||||||||
| Title: | Actuarial Officer - Annuities | Title: | Senior Vice President | |||||||||||
| Date: | 1/19/99 | Date: | 1/27/99 | |||||||||||
SWISS RE LIFE & HEALTH AMERICA INC.
| By: | /s/ [ILLEGIBLE] | Attest: | /s/ Xxxxx Xxxxxxx | |||||||||||
| Title: | [ILLEGIBLE] | Title: | Reinsurance Services Officer | |||||||||||
| Date: | 2/3/99 | Date: | 2/3/99 | |||||||||||
EXHIBIT A
Variable Annuities Covered Under This Agreement
I. Contract Data
Federated Investments Variable Annuity
* Group Certificate:
GCFED60 +
GCFED60
* Group Master Contract:
GFED60 +
GFED60
* Individual Contract:
IFED60 +
IFED60
* including state variations of these policies.
II. Issue Dates Covered
Contracts issued on or after January 1, 1999.
III. Guaranteed Minimum Death Benefit Design
Generally described as:
Issue Ages 0-60
The greater of:
(a) 4% Rollup to attained age 80, GMDB subject to 200% of net considerations, and
(b) Annual Ratchet to attained age 80;
GMDB Frozen Thereafter.
Issue Ages 61-90
The greater of:
(a) 4% Rollup to attained age 75, GMDB subject to 200% of net considerations, and
(b) Annual Ratchet to attained age 75;
GMDB Frozen Thereafter.
Return of Premium for Issue Ages above 75.
The death benefit is fully described in Prospectus No. 4011006A (4/98).
EXHIBIT B
Investment Funds
A. Variable Accounts
Federated American Leaders Fund II
Federated Equity Income Fund II
Federated Fund for U.S. Government Securities II
Federated Growth Strategies Fund II
Federated High Income Bond Fund II
Federated International Equity Fund II
Federated Prime Money Fund II
Federated Utility Fund II
B. Fixed Accounts
Fortis Benefits Fixed Account
Fortis Benefits Guaranteed MVA Account
EXHIBIT C
Agreements Covered by Minimum Premium Payment
The minimum premium of One Thousand Five Hundred Dollars ($1,500) set forth in Article V of this Agreement, shall be calculated, not singly, but in combination with the Agreements between the Company and Swiss Re Life & Health that are listed below:
The Automatic Reinsurance Agreement effective May 1, 1998, referred to as Agreement No. SA709-98.
The Automatic Reinsurance Agreement effective May 1, 1998, referred to as Agreement No. SA710-98.
The Automatic Reinsurance Agreement effective May 1, 1998, referred to as Agreement No. SA720-98.
This Automatic Reinsurance Agreement effective January 1, 1999, referred to as Agreement No. SA731-98.
AMENDMENT NO. I
To the Automatic Reinsurance Agreement known as SA731-98
Between the
FORTIS BENEFITS INSURANCE COMPANY
And
SWISS RE LIFE & HEALTH AMERICA INC.
Except as hereinafter specified, all terms and conditions of the Automatic Reinsurance Agreement effective the 1st day of January, 1999, amendments and addenda attached thereto, shall apply, and this Amendment is to be attached to and made a part of the aforesaid Agreement.
It is mutually agreed that effective the 1st day of June, 1999, Exhibit B, Investment Funds, is expanded, as attached.
IN WITNESS WHEREOF, the Company and Swiss Re Life & Health have caused their names to be subscribed and duly attested hereunder by their respective Authorized Officers.
FORTIS BENEFITS INSURANCE COMPANY
| By: | /s/ [ILLEGIBLE] | Attest: | /s/ [ILLEGIBLE] | |||||||||||
| Title: | Actuarial Officer | Title: | 2nd VP | |||||||||||
| Date: | 6/3/99 | Date: | 6/3/99 | |||||||||||
SWISS RE LIFE & HEALTH AMERICA INC.
| By: | /s/ [ILLEGIBLE] | Attest: | /s/ [ILLEGIBLE] | |||||||||||
| Title: | VP | Title: | 2nd VP | |||||||||||
| Date: | 6/16/99 | Date: | 6/17/99 | |||||||||||
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EXHIBIT B
Investment Funds
A. Variable Accounts
| Federated American Leaders Fund II | |||||
| Federated Equity Income Fund II | |||||
| Federated Fund for U.S. Government Securities II | |||||
| Federated Growth Strategies Fund II | |||||
| Federated High Income Bond Fund II | |||||
| Federated International Equity Fund II | |||||
| Federated Prime Money Fund II | |||||
| Federated Utility Fund II | |||||
| Federated Small Cap Strategies Fund II | (added June 1, 1999) | ||||
| Federated Strategic Income Fund II | (added June 1, 1999) | ||||
B. Fixed Accounts
Fortis Benefits Fixed Account
Fortis Benefits Guaranteed MVA Account
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AMENDMENT NO. II
(SA731-98)
Between the
FORTIS BENEFITS INSURANCE COMPANY
And
SWISS RE LIFE & HEALTH AMERICA INC.
Except as hereinafter specified, all terms and conditions of the Automatic Reinsurance Agreement effective the 1st day of January, 1999, amendments and addenda attached thereto, shall apply, and this Amendment is to be attached to and made a part of the aforesaid Agreement.
It is mutually agreed that effective the 3rd day of August, 1999, the Company has revised the Guaranteed Minimum Death Benefit Design as generally described in Paragraph III of Exhibit A. Specifically, the Return of Premium calculation in the event of withdrawals has been revised from a pro-rata reduction to a dollar-for-dollar reduction. All other components of the Guaranteed Minimum Death Benefit Design remain unchanged.
It is further agreed that no additional liability shall accrue to Swiss Re Life & Health as a result of this calculation modification. Swiss Re Life & Health’s liability shall continue to be based on a pro-rata reduction in the Return of Premium as described in the Contract Forms and Prospectus in effect on the original effective date of this Agreement. The Company agrees to perform both a pro-rata calculation and a dollar-for-dollar calculation when death benefits on a Return of Premium basis are being requested from Swiss Re Life & Health. The Company shall retain any additional liability that may result on account of the dollar-for-dollar reduction calculation.
IN WITNESS WHEREOF, the Company and Swiss Re Life & Health have caused their names to be subscribed and duly attested hereunder by their respective Authorized Officers.
FORTIS BENEFITS INSURANCE COMPANY
| By: | /s/ [ILLEGIBLE] | Attest: | /s/ [ILLEGIBLE] | |||||||||||
| Title: | [ILLEGIBLE] | Title: | [ILLEGIBLE] | |||||||||||
| Date: | 9/01/99 | Date: | 9-22-99 | |||||||||||
SWISS RE LIFE & HEALTH AMERICA INC.
| By: | /s/ [ILLEGIBLE] | Attest: | [ILLEGIBLE] | |||||||||||
| Title: | [ILLEGIBLE] | Title: | [ILLEGIBLE] | |||||||||||
| Date: | 9/3/99 | Date: | 9/14/99 | |||||||||||
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