EXHIBIT (i)(3)
ADDENDUM NO. 2
TO
SERVICE AND EXPENSE AGREEMENT
between
AMERICAN HOME ASSURANCE COMPANY
AMERICAN INTERNATIONAL INSURANCE COMPANY
BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA
COMMERCE AND INDUSTRY INSURANCE COMPANY
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.
THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA
TRANSATLANTIC REINSURANCE COMPANY
and
AMERICAN INTERNATIONAL GROUP, INC.
The Service and Expense Agreement made February 1, 1974 between American
Home Assurance Company, American International Insurance Company, Birmingham
Fire Insurance Camp any of Pennsylvania, Commerce and Industry Insurance
Company, National Union Fire Insurance Company of Pittsburgh, Pa., The Insurance
Company of the State of Pennsylvania, Transatlantic Reinsurance Company and
American International Group, Inc. (the "Agreement") is hereby amended in the
following respects:
1. The title of the Agreement is hereby amended to read in its entirety
as follows:
SERVICE AND EXPENSE AGREEMENT
between
AMERICAN HOME ASSURANCE COMPANY
AMERICAN INTERNATIONAL INSURANCE COMPANY
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK
BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA
COMMERCE AND INDUSTRY INSURANCE COMPANY
DELAWARE AMERICAN LIFE INSURANCE COMPANY
LIFE INSURANCE COMPANY OF NEW HAMPSHIRE
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.
THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA
TRANSATLANTIC REINSURANCE COMPANY
and
AMERICAN INTERNATIONAL GROUP, INC.
2. The preamble of the Agreement is hereby amended by adding to the
parties set forth therein which are collectively called the
"Companies, the following: "AMERICAN INTERNATIONAL LIFE ASSURANCE
COMPANY OF NEW
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YORK, DELAWARE AMERICAN LIFE INSURANCE COMPANY and LIFE INSURANCE
COMPANY OF NEW HAMPSHIRE."
3. Paragraph 4 of the Agreement is hereby amended to read in its entirety
as follows:
"4. Notwithstanding anything contained above to the contrary, the
basis upon which charges are computed by AIG's Comptroller's
Department or by the entity furnishing the service or facilities shall
be billed to the Companies in accordance with Regulation 30, or
Regulation 33, as applicable, of the New York Insurance Department and
shall not exceed cost to AIG. AIG will cause the departments
responsible for supplying the services and performing the functions
herein specified to make an analysis at least once during each
calendar year of the expenses incurred by the department and of the
percentage thereof allocable to the Companies."
4. Paragraph 6 of the Agreement is hereby amended to read in its entirety
as follows:
"6. Except as provided below with respect to electronic data
processing, any party may cancel this agreement by giving ninety days
written notice to all the others, provided that this agreement shall
automatically terminate as to any of the Companies, except American
International Life Assurance Company of New York, which ceases to be a
subsidiary or affiliate of AIG. Six months' notice shall be required
to cancel this agreement with respect to electronic data process
services provided to American International Life Assurance Company of
New York."
5. A new paragraph shall be added to the Agreement as follows:
"11. American International Life Assurance Company of New York shall
develop standards and guidelines for all services to be furnished to
it under this Agreement which require the exercise of judgement and
the party furnishing such standards and guidelines with respect to
such services."
IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be
executed in New York, New York by their duly authorized representatives this
23/rd/ day of September, 1975.
AMERICAN HOME ASSURANCE COMPANY
by: /s/
-------------------------------
Vice President
AMERICAN INTERNATIONAL INSURANCE
COMPANY by: /s/
-------------------------------
Vice President
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AMERICAN INTERNATIONAL LIFE
ASSURANCE COMPANY OF NEW YORK by: /s/
-------------------------------
Vice President
BIRMINGHAM FIRE INSURANCE COMPANY
OF PENNSYLVANIA by: /s/
-------------------------------
Vice President
COMMERCE AND INDUSTRY INSURANCE
COMPANY by: /s/
-------------------------------
Vice President
DELAWARE AMERICAN LIFE INSURANCE
COMPANY by: /s/
-------------------------------
Vice President
LIFE INSURANCE COMPANY OF
NEW HAMPSHIRE by: /s/
-------------------------------
Vice President
NATIONAL UNION FIRE INSURANCE
COMPANY OF PITTSBURGH, PA. by: /s/
-------------------------------
Vice President
THE INSURANCE COMPANY OF THE STATE
OF PENNSYLVANIA by: /s/
-------------------------------
Vice President
TRANSATLANTIC REINSURANCE COMPANY
by: /s/
-------------------------------
Vice President
AMERICAN INTERNATIONAL GROUP, INC.
by: /s/
-------------------------------
Vice President & Comptroller
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