Exhibit 10.13
Amendment Number 8
To the Reinsurance Agreement
Effective January 1, 1984
between
Allstate Life Insurance Company of New York
(hereinafter called the "Ceding Company")
and
Allstate Life Insurance Company
(hereinafter called the "Accepting Company")
IT IS HEREBY AGREED, that the Reinsurance Agreement effective January 1, 1984,
between the Ceding Company and the Accepting Company, as previously amended by
Amendment Numbers 1 through 7 (hereinafter "Agreement") is hereby amended as
provided below.
A. Effective July 1, 2013, "Schedule A" of the Agreement is replaced with
the attached "Schedule A (Revised, Effective 7/1/2013)"
B. Effective July 1, 2013, "Schedule B" of the Agreement is replaced with
the attached "Schedule B (Revised, Effective 7/1/2013)"
This Amendment does not alter, amend or modify the Agreement other than as set
forth in this Amendment, and it is subject otherwise to all the terms and
conditions of the Agreement.
IN WITNESS WHEREOF, the parties to the Agreement have caused this Amendment
Number 8 to be duly executed by their respective officers on the dates shown
below.
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
By: /s/ Samuel H. Pilch
------------------------------
Name: Samuel H. Pilch
Title: Senior Group Vice President and Controller
Date:
ALLSTATE LIFE INSURANCE COMPANY
By: /s/ Mario Rizzo
------------------------------
Name: Mario Rizzo
Title: Senior Vice President and Treasurer
Date:
SCHEDULE A (Revised, Effective 6/30/2013)
RETENTION LIMITS
LIFE REINSURANCE
Plan Types Issue Ages Standard - Table 16
---------- ---------- -------------------
Single Life Plans 0-69 $2,000,000
Single Life Plans 70+ $2,000,000
Joint Life Plans All Ages $2,000,000
WAIVER OF PREMIUM REINSURANCE
Maximum Amount Retained by Ceding Company: All Amounts Issued
ACCIDENTAL DEATH BENEFIT
Maximum Amount Retained by Ceding Company: Same as Life
AMOUNT CESSION
(One signature from among your Senior Underwriting Staff)
---------------------------------------------------------
Issue Age Standard - Table 4 Table 5 - Table 6 Table 7 - Table 16
--------- ------------------ ----------------- ------------------
18 - 75 $10,000,000 $10,000,000 $5,000,000
76 - 80 $ 2,000,000 $ 2,000,000 $ 0
81 - 85 $ 2,000,000 $ 0 $ 0
86+ $ 0 $ 0 $ 0
(Two signatures from among your Senior Underwriting Staff)
----------------------------------------------------------
Issue Age Standard - Table 4 Table 5 - Table 6 Table 7 - Table 16
--------- ------------------ ----------------- ------------------
18 - 69 $45,000,000 $35,000,000 $20,000,000
70 - 75 $30,000,000 $30,000,000 $15,000,000
76 - 80 $20,000,000 $15,000,000 $10,000,000
81 - 85 $ 5,000,000 $ 0 $ 0
86+ $ 0 $ 0 $ 0
Jumbo
Issue Ages Standard - Table 4 Table 5 - Table 16
---------- ------------------ ------------------
0 - 75 $65,000,000 $65,000,000
76 - 80 $40,000,000 $40,000,000
81 - 85 $30,000,000 $ 0
86+ $ 0 $ 0
SCHEDULE B (Revised, Effective 7/1/2013)
LIFE INSURANCE; STANDARD RISKS
FOR ALL PRODUCTS OTHER THAN LEGACY SECURE SL:
---------------------------------------------
The YRT Rates are 70% of the 2001 Valuation Basic Table, ANB, Select and
Ultimate, Gender and Smoker Distinct for standard risks and are per $1,000 of
life benefit reinsured.
Note:
1. Rates will be attached at end of this Exhibit
FOR LEGACY SECURE SL ONLY:
--------------------------
The renewal premiums per $1,000 reinsured are 70% of the attached 2001 VBT ANB
Table for each issue age, prior to blending ("Frasierizing"). The YRT rates are
guaranteed for one year.
There is a minimum reinsurance premium of 15 cents per $1,000 reinsured in
renewal years applied after the blending of the rates.
Calculation of Blended COI rates (Frasierizing)
-----------------------------------------------
The actuarial formula for last survivor mortality is:
t-1px* t-1py*qx+t-1*qy+t-1 + t-1py* (1 - t-1px) *qy+t-1 + t-1px* (1 - t-1py)*qx+t-1
tqxy = ------------------------------------------------------------------------------------
(t-1px)(t-1py) + (t-1py)(1- t-1px) + (t-1px)(1 - t-1py)
The monthly COI rates for standard individuals are entered into tables in
CK4, and blended to produce the COI rate for the last survivor mortality.
The above formula is translated into COI calculations as follows:
x = Primary insured (younger insured), defined by age, sex, and smoking class
y = Joint insured (older insured), with same defining factors as the primary
insured
Rein Rate(x,t) - Reinsurance rate per 1000 for a single insured x, policy
year t (taken from the attached 2001 VBT table)
Rein Rate(y,t) - Reinsurance rate per 1000 for a single insured y, policy
year t (taken from the attached 2001 VBT table)
q(x,t) =
[Rein Rate(x,t) * {(1 + % subst. per table)* # of tables subst. for x} +
annual flat extra rating for x ] / 1000
(This amount not to exceed 1)
q(y,t) =
[Rein Rate(y,t) * {(1 + % subst. Per table)* # of tables subst. for y} +
annual flat extra rating for y] / 1000
(This amount not to exceed 1)
p(x,t) = 1-q(x,t)
p(y,t) = 1-q(y,t)
P(x,t) = 1 * p(x,1) * p(x,2) * p(x,3) * p(x,4) * ... p(x,t -1)
P(y,t) = 1 * p(y,1) * p(y,2) * p(y,3) * p(y,4) * ... p(y,t -1)
P(x,t)*P(y,t)*q(x,t)*q(y,t) + P(y,t)*(1-P(x,t))*q(y,t) + P(x,t)*(1-P(y,t))*q(x,t)
p(xy,t) = ----------------------------------------------------------------------------------
P(x,t)*P(y,t) + P(x,t)*(1-P(y,t)) + P(y,t)*(1-P(x,t))
Rein Rate(xy,t) = p(xy,t)*1000
SCHEDULE B (Revised, Effective 7/1/2013)
LIFE INSURANCE; SUBSTANDARD RISKS
RATES FOR SUBSTANDARD TABLE RATINGS
For substandard risks issued with a table rating, the standard rate will be
multiplied by the Percent of Standard per assessed Table Rating as specified
in the Table below.
Table Rating % of Standard
------------ -------------
1/A 122%
2/B 145%
3/C 167%
4/D 190%
5/E 212%
6/F 235%
7/G 257%
8/H 280%
9/I 302%
10/J 325%
12/L 370%
16/P 460%
FOR LEGACY SECURE SL ONLY:
--------------------------
Table Rating % of Standard
------------ -------------
1/A 125%
2/B 150%
3/C 175%
4/D 200%
5/E 225%
6/F 250%
7/G 275%
8/H 300%
9/I 325%
10/J 350%
12/L 400%
16/P 500%