AUTOMATIC
REINSURANCE AGREEMENT
(YEARLY RENEWABLE TERM)
Effective August 1, 1998
Between
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
(CEDING COMPANY)
BMA Tower
P.O. Box 419458
Kansas City, MO 64141
And
CONSECO LIFE INSURANCE COMPANY
(REINSURER)
11815 North Pennsylvania Street
Carmel, Indiana 46032
AUTOMATIC
REINSURANCE AGREEMENT
("Agreement")
This Agreement is between BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA, (CEDING
COMPANY), BMA Tower, P.O. Box 419458, Kansas City, MO 64141 and CONSECO LIFE
INSURANCE COMPANY (REINSURER), 11815 North Pennsylvania Street, Carmel, Indiana
46032.
The effective date of this Agreement is September 1, 1998. On or after the
effective date, the REINSURER agrees to reinsure certain portions of the CEDING
COMPANY's life insurance contracts' risk as described in the terms and
conditions of this Agreement.
This reinsurance Agreement constitutes the entire reinsurance agreement between
the parties. The parties have entered into that certain ~ which, as it may be
applicable, is incorporated by reference. In terms of the reinsurance that is
the subject of this Agreement, there are no understandings between the parties
other than as expressed in this Agreement.
Changes or modifications to this Agreement must be in writing and signed by both
parties.
1. REINSURANCE BASIS.
This Agreement is applicable to the reinsurance of life insurance policies,
on a Yearly Renewable Term basis, identified on Schedule A, that are
directly written by the CEDING COMPANY and which are insured by the CEEDING
COMPANY in conformity with the provisions of this Agreement ("Reinsured
Policies"). Each such policy shall be automatically reinsured so long as
the requirements of Section 2 are met.
2. AUTOMATIC REINSURANCE TERMS.
The REINSURER'S automatic acceptance of Reinsured Policies requires that
they be issued in conformity with the following:
a) UNDERWRITING.
Reinsured policies must be underwritten by the CEDING COMPANY in
accordance with the underwriting standards specified in Schedule A.
b) RETENTION.
The CEDING COMPANY must retain an amount of insurance on each life
equal to the retention amount shown in Schedule A. If the CEDING
COMPANY's scheduled retention is zero, automatic reinsurance is not
available.
c) AUTOMATIC ACCEPTANCE LIMITS.
On any one life, the amount automatically reinsured in conjunction with
any other reinsurance agreements that may be applicable, shall not
exceed the Automatic Acceptance Limits shown in Schedule A.
d) AUTOMATIC IN FORCE AND APPLIED FOR LIMIT.
On any one life, the total life insurance in force or applied for with
any company (of which the CEDING COMPANY is aware) cannot exceed the In
Force or Applied For Limits shown in Schedule A.
e) RESIDENCE.
Each insured must be a resident of the United States or Canada at the
time of issue.
f) MINIMUM CESSION.
On any one life, the minimum amount of reinsurance that the REINSURER
will accept is $10,000 and reinsurance will be terminated when the
amount reinsured is less than $10,000.
g) CURRENCY
All premiums must be paid in US dollars.
3. AUTOMATIC REINSURANCE NOTICE PROCEDURE.
After the policy has been paid for and delivered, the CEDING COMPANY shall
submit all relevant individual policy information, as defined in Schedule
C, in its next statement to the REINSURER.
4. TERM OF REINSURANCE COVERAGE.
The term of the REINSURER'S reinsurance coverage on any policy or pre-issue
risk under this Agreement is described below:
a) REINSURANCE.
The REINSURER'S reinsurance coverage for a Reinsurance Policy shall
begin simultaneously with the CEDING COMPANY's contractual liability
but not earlier than the effective date of this Agreement. The
reinsurance under this agreement shall remain in force as long as the
CEEDING COMPANIES contractual liability remains in force or as
specified in Section 15.b), entitled Recapture.
b) PRE-ISSUE COVERAGE.
If the CEDING COMPANY issues a conditional receipt or temporary
insurance agreement, the REINSURER reinsurance for such benefits will
be provided under this Agreement if:
i) The REINSUER has agreed to the form and format of the conditional
receipt or temporary insurance agreement.
ii) The conditions for automatic reinsurance coverage under Section 2
of this Agreement are met.
iii) The pre-issue liability applies only once on any given life
regardless of how many receipts were issued or initial premiums
were accepted by the CEDING COMPANY.
iv) After a policy has been issued, no reinsurance benefits are
payable under this pre-issue coverage provision.
v) The REINSURER'S liability under the CEDING COMPANY's conditional
receipt or temporary insurance agreement is limited to the lesser
of i. or ii. below:
(1) The Automatic Acceptance Limits with the REINSURER as shown
in Schedule A.
(2) The amount for which the CEDING COMPANY is liable less its
retention shown in Schedule A, less any amount of
reinsurance with other reinsurers.
5. BASIS OF REINSURANCE AMOUNT AND REINSURANCE PREMIUM RATES.
a) LIFE REINSURANCE.
The amount reinsured for a Reinsured Policy is the automatic portion of
the policy's net amount at risk, as shown in Schedule A. The retention
on each life, or both lives for joint policies, is shown in Schedule A.
The net amount at risk is defined in Schedule A. The reinsurance
premiums per $1000 are shown in Schedule B.
b) PRELIMINARY TERM INSURANCE.
Premiums for reinsurance of preliminary term insurance, covered in
accordance with Section 4.b) are at the second year rate for the
insured's attained age, as shown in Schedule B, for the fraction of a
year covered.
c) TABLE RATED SUBSTANDARD PREMIUMS.
If the CEDING COMPANY's policy is issued with a table rated substandard
premium, the reinsurance premiums shown in Schedule B will apply.
d) FLAT EXTRA PREMIUMS.
If the CEDING COMPANY's policy is issued with a flat extra premium, the
reinsurance premiums shown in Schedule B will apply.
e) RATES NOT GUARANTEED.
The reinsurance premium rates are not guaranteed. The REINSURER
reserves the right to change the rates at any time upon 180 days prior
written notice. Any such change applies only to Reinsured Policies
effective on or after the expiration of the notice period.
f) CASH VALUES OR LOANS.
This Agreement does not provide reinsurance for cash surrender values.
In addition, the REINSURER will not participate in policy loans or
other forms of indebtedness on reinsured business.
6. PAYMENT OF REINSURANCE PREMIUMS
a) PREMIUM DUE.
Reinsurance premiums for each reinsurance cession are due as shown in
Schedule A.
b) FAILURE TO PAY PREMIUMS.
If reinsurance premiums are 60 days past due, for reasons other than
those due to error or omission as defined below in Section 19, the
premiums will be considered in default and the REINSURER may terminate
the reinsurance upon 30 days prior written notice. The REINSURER will
have no further liability as of the termination date. The CEDING
COMPANY will be liable for the prorated reinsurance premiums to the
termination date. The CEDING COMPANY agrees that it will not force
termination under the provisions of this paragraph solely to avoid the
recapture requirements or to transfer the block of business reinsured
to another reinsurer.
c) PREMIUM ADJUSTMENT.
If the CEDING COMPANY overpays in regards any Reinsured Policy the
reinsurance premium and the REINSURER accepts the overpayment, such
acceptance does not create any additional reinsurance liability nor
constitute an acceptance additional reinsurance risk with regard to
such Reinsured policy. In that instance, the REINSURER will only be
liable to the CEDING COMPANY for a credit in the amount of the
overpayment. If a Reinsured Policy terminates, the REINSURER will
refund a portion of the reinsurance premium. This refund will be on a
prorated basis, without interest, from the date of termination of the
policy to the date to which a reinsurance premium has been paid.
7. PREMIUM TAX REIMBURSEMENT. Premium taxes shall not be reimbursed.
8. DAC TAX AGREEMENT.
The CEDING COMPANY and the REINSURER herein collectively called, for the
purposes of Section 8 the "Parties", or singularly the "Party", hereby
enter into an election under Treasury Regulations Section 1.848-2(g) (8)
whereby:
a) For each taxable year under this Agreement, the Party with the net
positive consideration, as defined in the regulations promulgated under
Treasury Code Section 848, will capitalize specified policy acquisition
expenses with respect to this Agreement without regard to general
deductions limitation of Section 848 (c) (1);
b) The Parties agree to exchange information pertaining to the net
consideration under this Agreement each year to insure consistency or
as otherwise required by the Internal Revenue Service;
c) The CEDING COMPANY will submit to the REINSURER by May 1 of each year
its calculation of the net consideration for the preceding calendar
year. This schedule of calculations will be accompanied by a statement
signed by an officer of the CEDING COMPANY stating that the CEDING
COMPANY will report such net consideration in its tax return for the
preceding calendar year;
d) The REINSURER may contest such calculation by providing an alternative
calculation to the CEDING COMPANY in writing within 30 days of the
REINSURER'S receipt of the CEDING COMPANY's calculation. If the
REINSURER does not so notify the CEDING COMPANY, the REINSURER will
report the net consideration as determined by the CEDING COMPANY in the
REINSURER'S tax return for the previous calendar year;
e) If the REINSURER contests the CEDING COMPANY's calculation of the net
consideration, the Parties will act in good faith to reach an agreement
as to the correct amount within 30 days of the date the REINSURER
submits its alternative calculation. If the CEDING COMPANY and the
REINSURER reach agreement on the net amount of consideration, each
party shall report such amount in their respective tax returns for the
previous calendar year.
Both Parties represent and warrant that they are subject to U.S. taxation
under either Subchapter L of Chapter 1, or Subpart F of Subchapter N of
Chapter 1 of the Internal Revenue Code of 1986, as amended.
9. REPORTS.
The reporting period shall be monthly. The CEDING COMPANY shall be
responsible for administering this Agreement. For each reporting period,
the CEDING COMPANY will submit a statement to the REINSURER with
information that is substantially similar to the information displayed in
Schedule C. The statement will include information on the risks reinsured
with the REINSURER, premiums owed, policy exhibit activity, and an
accounting summary. Within fifteen days after the end of each calendar
quarter, the CEDING COMPANY will submit a reserve credit summary similar to
that shown in Schedule C.
10. RESERVES FOR REINSURANCE.
The statutory reserve basis for the reinsurance will be shown on the
reserve credit summary provided each quarter.
11. CLAIMS.
a) NOTICE.
The CEDING COMPANY will notify the REINSURER, as soon as reasonably
possible, after it receives a claim for benefits under a Reinsured
Policy.
b) CLAIM INFORMATION.
The CEDING COMPANY will promptly provide the REINSURER with all
information submitted as a "proof of claim," and any other relevant
information concerning the claim including an itemized statement of the
benefits paid by the CEDING COMPANY. The CEEDING COMPANY shall promptly
provide the REINSURER such other information concerning the claim that
the REINSURER shall reasonably request.
c) AMOUNT AND PAYMENT OF BENEFITS.
Upon receipt by REINSURER of the information specified in Section
11.b), the REINSURER will determine if the information is complete. If
additional information is required, the REINSURER shall promptly
request such information. If the information is sufficient, the
REINSURER shall promptly pay the reinsurance benefits due the CEDING
COMPANY.
The CEDING COMPANY's contractual liability for claims is binding on the
REINSURER. However, the maximum benefit payable to the CEDING COMPANY
under each Reinsured Policy is the amount specifically reinsured with
the REINSURER. The CEDING COMPANY shall enter into a situation where
the total reinsurance applicable to a Reinsured Policy, from any
reinsurer, exceeds the CEDING COMPANY's total contractual liability on
the policy, less the amount of risk it retains for such policy. If this
occurs, the excess reinsurance of the total reinsurance in all
companies plus the CEDING COMPANY's retention used on the policy over
its contractual liability under the Reinsured Policy will first be
applied to reduce all reinsurance on the policy. This reduction in
reinsurance will be shared among all the reinsurers in proportion to
their respective amounts of reinsurance prior to the reduction.
d) CONTESTED CLAIMS.
The CEDING COMPANY will notify the REINSURER of its intention to
contest, compromise, or litigate a claim involving a Reinsured Policy.
The REINSURER may elect to participate in such contest not. If the
REINSURER participates and the CEDING COMPANY's contest, compromise, or
litigation results in a reduction in its liability, the REINSURER will
share in the reduction in the proportion that the REINSURER's net
liability bears to the sum of the net liability of all reinsurers on
the insured's date of death. Alternatively, if "extra-contractual"
damages are awarded, the REINSURER shall share in them in the same
fashion as any reductions.
If the REINSURER declines to participate in the contest, compromise or
litigation, the REINSURER will pay the CEDING COMPANY its full share of
reinsurance. The REINSURER shall then be released from all of its
liability with regard such Reinsured Policy and shall not share in any
subsequent reduction or increase in liability.
e) CLAIM EXPENSES.
If the REINSURER has not been released from liability pursuant to
Section 11.e), it will share in the cost of reasonable investigation
and legal expenses specifically attributable to the litigation or
settlement of the Reinsured Policy claim. If the REINSURER has been
released, it will participate in those expenses incurred up to the
date of release. Such claim expenses do not include routine claim and
administration operational expenses, including the CEDING COMPANY's
home office expenses. Expenses incurred in connection with a dispute
or contest arising out of conflicting claims of entitlement to policy
proceeds or benefits that the CEDING COMPANY admits are payable may
not be included as claim expense under this Agreement.
f) PUNITIVE OR EXEMPLARY DAMAGES.
In no event will the REINSURER'S obligations pursuant to this Agreement
include participating in the payment of any punitive or exemplary
damages awarded against the CEDING COMPANY as a result of any act,
omission, or course of conduct committed by the CEDING COMPANY in
connection with a Reinsured Policy subject to this Agreement. Routine
expenses incurred in the normal settlement of uncontested claims,
including the salaries of employees of the CEDING COMPANY, are also
excluded from this provision. For purposes of this provision, "Punitive
or Exemplary Damages" are those damages awarded over and above that,
which will compensate for a loss and are awarded as penalties for the
defendant's behavior.
12. MISREPRESENTATION, MISSTATEMENT AND SUICIDE.
If a misrepresentation or misstatement on an application or a death of an
insured by suicide results in the CEDING COMPANY rescinding the policy, the
REINSURER will refund all of the reinsurance premiums it received on that
policy to the CEDING COMPANY. This refund given by the REINSURER will be in
lieu of all other reinsurance benefits payable on that policy under this
Agreement. If there is an adjustment to the policy benefits due to a
misrepresentation or misstatement of age or sex, a corresponding adjustment
will be made to the reinsurance benefits.
13. POLICY CHANGES.
a) NOTICE.
If a Reinsured Policy is changed, a corresponding change will be made
in the reinsurance for that policy. The CEDING COMPANY will notify the
REINSURER of the change in the CEDING COMPANY's next accounting
statement.
b) INCREASES.
If life insurance on a Reinsured Policy is increased and the increase
is subject to a new underwriting review, then the increase of life
insurance on the Reinsured Policy will be handled the same fashion as
the issuance of a new policy. If the increase is not subject to a new
underwriting review, then the increase shall be automatically accepted
by the REINSURER. Such an increase may not exceed the Automatic
Acceptance Limits shown in Schedule A. Reinsurance rates for an
increase will be based on the original issue age, duration since
issuance of the original policy and the original underwriting
classification.
c) REDUCTION OR TERMINATION.
If life insurance on a Reinsured Policy is reduced, then reinsurance
will be reduced by the amount of the reduction on the date of such
change. If more than one reinsurer participates in the reinsurance, the
reinsurance with each reinsurer will be reduced proportionately. If
life insurance on a Reinsured Policy is terminated, then reinsurance
will cease on the date of such termination.
d) EXTENDED TERM AND REDUCED PAID-UP INSURANCE.
When a Reinsured Policy changes to "extended term" or "reduced paid-up"
insurance, the CEDING COMPANY will notify the REINSURER of the new
amount of reinsurance. Reinsurance rates will remain the same as the
rates used for the original policy and will be based on the original
issue age, duration since issuance of the original policy and the
original underwriting classification.
14. REINSTATEMENTS.
a) AUTOMATIC REINSTATEMENT.
If the CEDING COMPANY reinstates a policy that was originally ceded to
the REINSURER as automatic reinsurance, the REINSURER's reinsurance for
that policy shall be reinstated.
b) PREMIUM ADJUSTMENT.
Reinsurance premiums for the interval during which the policy was
lapsed will be paid to the REINSURER on the same basis as the CEDING
COMPANY charged its policy owner for the reinstatement.
c) NONFORFEITURE REINSURANCE TERMINATION.
If the CEDING COMPANY receives a request to reinstate a policy that was
reinsured while on "extended term" or "reduced paid-up" then such
reinsurance will terminate and either automatic or facultative
reinstatement procedures shall be followed.
15. INCREASE IN RETENTION.
a) NEW BUSINESS.
If the CEDING COMPANY increases its retention limits, then it may, at
its option and with written notice to the REINSURER, increase its
retention shown in Schedule A for policies issued after the effective
date of the retention increase.
b) RECAPTURE.
If the CEDING COMPANY elects to increases its retention limits, then it
may, with 90 days prior written notice to the REINSURER, reduce the
reinsurance in force ("Recapture") subject to the following
requirements:
i) A Reinsured Policy is not eligible for Recapture until it has been
reinsured for the minimum number of years shown in Schedule A. The
effective date for a Reinsured Policy's Recapture shall be the
first policy anniversary following the expiration of the Recapture
notice period and the required minimum number of years is
attained.
ii) On all policies eligible for recapture, reinsurance will be
reduced by the amount necessary to increase the total insurance
retained up to the new retention limits.
iii) If more than one policy per life is eligible for Recapture, then
the eligible policies may be Recaptured beginning with the policy
with the earliest issue date and continuing in chronological order
according to the remaining policies' issue dates.
iv) Recapture of Reinsured Policies automatically reinsured pursuant
to Section 2 is not allowed if the CEDING COMPANY did not keep its
maximum retention (Section 3 of Schedule A) at time of issue. This
does not apply reinsurance was provided on a "facultative" basis.
v) If any policy eligible for recapture is also eligible for
recapture from other reinsurers, the reduction in the REINSURER'S
reinsurance on that policy shall be in proportion to the total
amount of reinsurance on the life with all reinsurers.
16. ERRORS AND OMISSIONS.
Inadvertent delays, errors or omissions made in connection with this
Agreement shall not relieve either party from any liability or duty which
would have attached had such delay, error or omission not occurred,
provided always that such error or omission shall be rectified as soon as
possible after discovery. Failure of either party to complain of any act or
omission on the part of the other party, no matter how long the act or
omission may continue, shall not be deemed to be a waiver of said party of
any of its rights under this Agreement. A waiver by either party at any
time, express or implied, of any breach of any conditions of this Agreement
shall not be deemed a waiver of a breach of any other conditions of this
Agreement nor a consent to any subsequent breach of the same or any other
conditions of this Agreement.
17. INDEMNITY
Regardless of any other provision of this Agreement, both parties agree to
indemnify and hold harmless the other against any and all claims, demands,
causes of action, losses, costs and expenses, including reasonable
attorney's fees, arising out of any willful or negligent act or omission on
the part of itself or its officers, directors or employees.
18. INSOLVENCY.
In the event of the insolvency of CEDING COMPANY, all reinsurance will be
payable directly to the liquidator, receiver or statutory successor of
CEDING COMPANY without diminution because of the insolvency of CEDING
COMPANY.
In the event of the insolvency of CEDING COMPANY, the liquidator, receiver,
or statutory successor will immediately give written notice to REINSURER of
all pending claims against CEDING COMPANY on any policies reinsured. While
a claim is pending, REINSURER may investigate and interpose, at its own
expense, in the proceedings where the claim is adjudicated, any defense or
defenses which it may deem available to CEDING COMPANY or its liquidator,
receiver or statutory successor. The expense incurred by REINSURER will be
chargeable, subject to court approval, against CEDING COMPANY as part of
the expense of liquidation to the extent of a proportionate share of the
benefit which may accrue to CEDING COMPANY solely as a result of the
defense undertaken by REINSURER. Where Two or more reinsurers are
participating in the same claim and a majority in interest elect to
interpose a defense or defenses to any such claim, the expense will be
apportioned in accordance with the terms of the reinsurance agreement as
though such expense had been incurred by CEDING COMPANY.
Any debts or credits, matured or unmatured, liquidated or unliquidated in
favor of or against either the REINSURER or the CEDING COMPANY with respect
to this Agreement or with respect to any other claim of one party against
the other are deemed mutual debts or credits, as the case may be, and will
be offset, and only the balance will be allowed or paid.
In the event of the insolvency of REINSURER, REINSURER will be bound by any
legal directions imposed by its liquidator, receiver or statutory
successor. However, if not in conflict with such legal directions, CEDING
COMPANY shall have the right to cancel this Agreement as respects
occurrences taking place on or after the date REINSURER first evidences
insolvency, by giving to REINSURER (or its liquidator, receiver or
statutory successor) written notice stating that such recapture is thereby
effected and REINSURER (or its liquidator, receiver or statutory
successor), in lieu of a premature recapture fee, will not be required to
reimburse CEDING COMPANY any unearned premium hereunder.
19. ARBITRATION.
a) GENERAL.
All disputes and differences under this Agreement that cannot be agreed
upon by the parties will be decided by arbitration. The arbitrators
will have the authority to interpret this Agreement and, in doing so,
will consider the customs and practices of the life and life
reinsurance industries. The arbitrators will consider this Agreement an
honorable engagement rather than merely a legal obligation, and they
are relieved of all judicial formalities and may abstain from following
the strict rules of the law.
b) NOTICE.
To initiate arbitration, one of the parties will notify the other, in
writing, of its desire to arbitrate. The notice will state the nature
of the dispute and the desired remedies. The party to which the notice
is sent will respond to the notification in writing within 10 days of
receipt of the notice. At that time, the responding party will state
any additional dispute it may have regarding the subject of
arbitration.
c) PROCEDURE.
Arbitration will be heard by a panel of three arbitrators. The
arbitrators will be executive officers of life insurance or reinsurance
companies that are not a party, an affiliate of a party or involved in
a joint-venture with a party. Each party will appoint one arbitrator.
Notice of the appointment of these arbitrators will be given by each
party to the other party within 30 days of the date of mailing of the
notification initiating the arbitration. These two arbitrators will, as
soon as possible, but no longer than 45 days after the day of the
mailing of the notification initiating the arbitration, then select the
third arbitrator. Should either party fail to appoint an arbitrator or
should the two initial arbitrators be unable to agree on the choice of
a third arbitrator, each arbitrator will nominate three candidates, two
of whom the other will decline, and the decision will be made by
drawing lots on the final selection. Once chosen, the three arbitrators
will have the authority to decide all substantive and procedural issues
by a majority vote. The arbitration hearing will be held on the date
fixed by the arbitrators at a location agreed upon by the parties. The
arbitrators will issue a written decision from which there will be no
appeal. Either party may reduce this decision to a judgment before any
court which has jurisdiction of the subject of the arbitration.
d) COSTS.
Each party will pay the fees of its own attorneys, the arbitrator
appointed by that party, and all other expenses connected with the
presentation of its own case. The two parties will share equally in the
cost of the third arbitrator.
20. TERM OF THIS AGREEMENT.
The CEDING COMPANY will maintain and continue the reinsurance provided in
this Agreement as long as the policy to which it relates is in force or has
not been fully Recaptured. This Agreement may be terminated, without cause,
for the acceptance of new reinsurance after 180 days written notice of
termination by either party to the other. The REINSURER will continue to
accept reinsurance during this 180 day period. The REINSURER'S acceptance
will be subject to both the terms of this Agreement and the CEDING
COMPANY's payment of applicable reinsurance premiums. In addition, this
Agreement may be terminated immediately for the acceptance of new
reinsurance by either party if one of the parties materially breaches this
Agreement, or becomes insolvent or financially impaired.
21. MISCELLANEOUS.
a) Audit
Either party, as the case may be, shall have the right, at any
reasonable time, to inspect and audit all books and documents of the
other party regarding the business or policies reinsured hereunder.
b) MEDICAL INFORMATION BUREAU.
The parties agree to adhere to the Medical Information Bureau Rules as
they are amended from time to time.
c) Non-Transferable
Neither party shall, without prior consent of the other, sell, assign,
transfer, or otherwise dispose of this Agreement or any interest in
this Agreement by voluntary or involuntary act, and any such purported
action shall be null and void and of no force and effect.
d) Status of Reinsurer
REINSURER shall at all times be licensed to conduct insurance business
and to act as a reinsurer in CEEDING COMPANY'S state of domicile and in
any other state where failure of REINSURER to be so licensed or
accredited would cause CEEDING COMPANY to be ineligible for reserve
credit for the reinsurance ceded under this Agreement
e) Notices
Any notice or other communication made or contemplated by this
Agreement shall be in writing and shall be deemed given when delivered
by hand or when mailed by United States mail, postage prepaid and
addressed as follows, unless otherwise provided herein:
CEEDING COMPANY: Business Men's Assurance Company of America
Attn: Treasurer
P.O. Box 419458
Kansas City, Missouri 64141
REINSURER: CONSECO LIFE INSURANCE COMPANY
Attn:
11815 North Pennsylvania Street
Carmel, Indiana 46032
f) Severability
If any provision of this Agreement proves to be or is held by any
court, tribunal, or other entity of competent jurisdiction to be
invalid, then such invalid provision shall be null and void, but
invalidation of any provision shall not otherwise impair or affect this
Agreement or any of its provisions or terms.
g) Headings
The headings used herein are for information purposes only and are not
a part of this Agreement.
h) Singular and Plural
Whenever an item is referred to in the singular, it includes the
plural.
i) Counterparts
This Agreement may be executed in two or more counterparts, each of
which taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their respective officers duly authorized so to do as of the date set forth
above.
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA CONSECO LIFE INSURANCE COMPANY
By: __________________________________ By: __________________________________
Title:__________________________________ Title:__________________________________
Date:___________________________________ Date:__________________________________
SCHEDULE A
1. PLANS REINSURED:
2. AUTOMATIC PORTION REINSURED:
3. AUTOMATIC RETENTION LIMITS:
4. AUTOMATIC ACCEPTANCE LIMITS:
The amount to be ceded automatically shall not exceed the following limits:
5. AUTOMATIC IN FORCE AND APPLIED FOR LIMITS:
6. PREMIUM DUE:
7. RECAPTURE PERIOD:
NET AMOUNT AT RISK:
The net amount at risk for purposes of this agreement is the death benefit
amount less the policy account value.
8. ADDITIONAL UNDERWRITING REQUIREMENTS:
SCHEDULE B
AUTOMATIC REINSURANCE PREMIUMS - YEARLY RENEWABLE TERM BASIS
1. LIFE INSURANCE:
SCHEDULE C
REPORTING INFORMATION
INFORMATION ON RISKS REINSURED
1. Type of Transaction
2. Effective Date of Transaction
3. Automatic/Facultative Indicator
4. Policy Number
5. Full Name of Insured
6. Date of Birth
7. Sex
8. Smoker/Nonsmoker
9. Policy Plan Code
10. Insured's State of Residence
11. Issue Age
12. Issue Date
13. Duration from Original Policy Date
14. Face Amount Issued
15. Reinsured Amount (Initial Amount)
16. Reinsured Amount (Current Amount at Risk)
17. Change in Amount at Risk Since Last Report
18. Death Benefit Option (For Universal Life Type Plans)
19. ADB Amount (If Applicable)
20. Substandard Rating
21. Flat Extra Amount Per Thousand
22. Duration of Flat Extra
23. Premiums
SCHEDULE C, CONTINUED
SAMPLE
POLICY EXHIBIT SUMMARY
(Life Reinsurance Only)
CEDING COMPANY:_________________________________________________________________
REINSURER:______________________________________________________________________
ACCOUNT NO:_____________________________________________________________________
PREPARED BY:________________________________Phone:( )_________________________
DATE PREPARED:__________________________________________________________________
TYPE OF REINSURANCE:
Yearly Renewable Term __________________________________
Coinsurance __________________________________
Modified Coinsurance __________________________________
Other __________________________________
VALUATION DATE: _____________________
NUMBER OF AMOUNT OF
POLICIES REINSURANCE
A. In Force Beginning _________ ____________
of Period / /
B. New Paid Reinsurance Ceded _________ ____________
C. Reinstatements _________ ____________
D. Revivals _________ ____________
E. Increases (Net) _________ ____________
F. Conversion In _________ ____________
G. Transfers In _________ ____________
H. Total Increases (B - G) _________ ____________
I. Deaths _________ ____________
J. Maturities _________ ____________
K. Cancellations _________ ____________
L. Expiries _________ ____________
M. Surrenders _________ ____________
N. Lapses _________ ____________
O. Recaptures _________ ____________
P. Other Decreases (Net) _________ ____________
Q. Reductions _________ ____________
R. Conversions Out _________ ____________
S. Transfers Out _________ ____________
T. Total Decreases (I - S) _________ ____________
U. Current In Force / / _________ ____________
(A + H - T)
SCHEDULE C, CONTINUED
SAMPLE
RESERVE CREDIT SUMMARY
CEDING COMPANY:_________________________________________________________________
REINSURER:______________________________________________________________________
ACCOUNT NO:_____________________________________________________________________
PREPARED BY:________________________________Phone:( )_________________________
DATE PREPARED:__________________________________________________________________
TYPE OF REINSURANCE:
Yearly Renewable Term __________________________________
Coinsurance __________________________________
Modified Coinsurance __________________________________
Other __________________________________
VALUATION DATE: _____________________
TYPE OF RESERVES:
Statutory __________________________________
GAAP __________________________________
Tax __________________________________
ISSUE
VALUATION BASIS YEAR IN FORCE IN FORCE RESERVE
MORTALITY INTEREST VALUATION RANGE COUNT AMOUNT CREDIT
A. Life Insurance
-------------- ------------- -------------- ------------- ------------- ------------- ------
-------------- ------------- -------------- ------------- ------------- ------------- ------
B. Accidental
Death Benefit
-------------- ------------- -------------- ------------- ------------- ------------- ------
C. Disability
Active Lives
-------------- ------------- -------------- ------------- ------------- ------------- ------
D. Disability
Disabled Lives
-------------- ------------- -------------- ------------- ------------- ------------- ------
E. Other
Please Explain
-------------- ------------- -------------- ------------- ------------- ------------- ------
GRAND TOTAL:
-------------
SCHEDULE C, CONTINUED
SAMPLE
ACCOUNTING SUMMARY
CEDING COMPANY:_________________________________________________________________
REINSURER:______________________________________________________________________
ACCOUNT NO:_____________________________________________________________________
PREPARED BY:________________________________Phone:( )_________________________
DATE PREPARED:__________________________________________________________________
TYPE OF REINSURANCE:
Yearly Renewable Term __________________________________
Coinsurance __________________________________
Modified Coinsurance __________________________________
Other __________________________________
VALUATION DATE: _____________________
LIFE WP AD TOTAL
Premiums
First Year _____ ______ _______ __________
Renewal _____ ______ _______ __________
Allowances
First Year _____ ______ _______ __________
Renewal _____ ______ _______ __________
Adjustments
First Year _____ ______ _______ __________
Renewal _____ ______ _______ __________
Net Due REINSURER
First Year _____ ______ _______ __________
Renewal _____ ______ _______ __________
TOTAL DUE _____ ______ _______ __________
(The above information should be a summary of the detail
information provided to REINSURER.)