Exhibit 10.12
AMENDMENT TO
REINSURANCE AGREEMENT
DATED: December 1,
1993
between
UNIVERSAL GUARANTY LIFE INSURANCE
COMPANY
5250 South Sixth Street
Springfield,
Illinois 62705
(The Ceding Company)
and
OPTIMUM RE INSURANCE
COMPANY
1345 River Bend Drive, Suite
100
Dallas,
TX 75247
(The Reinsurer)
Respecting the Net Amount at
Risk
|
|
1. Effective December 1, 1993, the
Net Amount at Risk (NAR) for the policies reinsured under this
Agreement shall be calculated on a Level basis (Reinsured NAR
Amount is equal to the Policy Death Benefit minus the
Company’s retention). Both parties mutually agree
any modifications to the NAR calculation for policies reinsured
under this Agreement shall be done prospectively.
|
|
|
2.
Signatures
: The terms and
conditions of this Agreement are not changed
in any way except as stated
herein.
|
In witness of
the above, this Amendment is signed in duplicate at the dates and
places indicated.
FOR : UNIVERSAL
GUARANTY LIFE INSURANCE COMPANY
|
DATE:
|
11/18/10
|
SIGNATURE:
|
/s/Theodore C
Miller
|
|
PLACE:
|
Springfield,
IL
|
NAME:
|
Theodore C
Miller
|
|
WITNESS:
|
/s/Fritzie
Wagner
|
TITLE:
|
Accounting
Manager
|
FOR : OPTIMUM
RE INSURANCE COMPANY
|
DATE:
|
10/22/10
|
SIGNATURE:
|
/s/Mario
Georgiev
|
|
PLACE:
|
DALLAS,
TEXAS
|
NAME:
|
MARIO
GEORGIEV
|
|
WITNESS:
|
/s/Jean-Claude
Page
|
TITLE:
|
PRESIDENT
|
ADDENDUM
to the Automatic YRT Pool
Agreement
dated December 1, 1993
between
UNIVERSAL GUARANTY LIFE INSURANCE
COMPANY
Springfield, Illinois
(hereinafter called the CEDING
COMPANY)
and
BUSINESS MEN’S ASSURANCE
COMPANY OF AMERICA
Kansas City, Missouri
(hereinafter called the
BMA)
Purpose: To include
coverage for the C21X plan under this agreement.
|
|
1. BMA shall accept reinsurance
covering the C21X plan (L019585A) on either an automatic or
facultative basis.
|
2. BMA will not participate in the
endowments, or the return of premium features, nor the cash
values.
3. THE EFFECTIVE DATE shall be
November 1, 1995
Except as
herein amended, the provisions of the said Reinsurance Agreement
shall remain unchanged.
IN WITNESS
WHEREOF, this addendum is hereby executed in duplicate between the
parties concerned, and is duly signed by both parties respective
officers as follows:
|
CEDING
COMPANY
|
|
/s/Gay E
Sears
|
|
Senior Vice President
|
|
signature
|
|
title
|
|
|
|
|
|
/s/Christopher
J Heisler
|
|
Assistant Vice President
|
|
signature
|
|
title
|
|
|
11/27/95
|
|
|
|
date
|
|
|
BMA
|
|
/s/Al
Rodriquez
|
|
Senior Vice
President/Reinsurance
|
|
signature
|
|
title
|
|
|
|
|
|
/s/James N.
Mets
|
|
Vice President
Reinsurance Actuary
|
|
signature
|
|
title
|
|
|
12/21/95
|
|
|
|
date
|
|
REINSURANCE AGREEMENT
between
|
UNIVERSAL GUARANTY LIFE INSURANCE
COMPANY
Springfield, Illinois
hereinafter referred to as the
CEDING COMPANY
|
and
Business Men’s Assurance
Company of America
Kansas City, Missouri
hereinafter referred to as
BMA
AUTOMATIC TREATY
TABLE OF CONTENTS
|
ARTICLE...........
|
..........
|
......................................................................................................................................................................................................................................
|
PAGE
|
|
I
|
|
BASIS OF
REINSURANCE……………………………..……………….................................................................................................…………
|
1
|
|
II
|
|
LIABILITY…………………………………………………………………..................................................................................................……….
|
3
|
|
III
|
|
ADMINISTRATIVE
REPORTING……………………...………………................................................................................................…………
|
3
|
|
IV
|
|
PLANS OF
REINSURANCE…………………………….………………................................................................................................…………
|
5
|
|
V
|
|
REINSURANCE
PREMIUM…………………………….………………................................................................................................…………
|
5
|
|
VI
|
|
PREMIUM
ACCOUNTING………………………………..……………................................................................................................…………
|
6
|
|
VII
|
|
OVERSIGHTS……………………………………………………………….................................................................................................………
|
7
|
|
VIII
|
|
REDUCTIONS,
TERMINATIONS AND
CHANGES….………………...............................................................................................…………
|
7
|
|
IX
|
|
INCREASE IN
RETENTION AND
RECAPTURES……………………................................................................................................…………
|
8
|
|
X
|
|
REINSTATEMENTS…………………………………….……………….................................................................................................…………
|
9
|
|
XI
|
|
EXPENSE OF
ORIGINAL
POLICY…………………….…………………..................................................................................................………
|
9
|
|
XII
|
|
CLAIMS………………………………………………….……………..................................................................................................……………
|
9
|
|
XIII
|
|
TAX
CREDITS…………………………………………..……………..................................................................................................……………
|
11
|
|
XIII
|
|
DAC
TAX………………………………………………...………….................................................................................................………………
|
11
|
|
XIV
|
|
INSPECTION OF
RECORDS……………………………………….................................................................................................………………
|
11
|
|
XV
|
|
INSOLVENCY……………………………………………………….................................................................................................………………
|
11
|
|
XVI
|
|
ARBITRATION…………………………………………..…………................................................................................................………………
|
12
|
|
XVII
|
|
PARTIES TO
AGREEMENT…………………………….………................................................................................................…………………
|
13
|
|
XVIII
|
|
TERMINATION OF
AGREEMENT……………………..………………...............................................................................................…………
|
13
|
|
SCHEDULES
|
|
|
|
|
|
A
|
|
SPECIFICATIONS
|
|
B
|
|
BENEFITS AND
NAR CALCULATIONS
|
|
C
|
|
ADDITIONAL
INFORMATION AND EXCEPTIONS
|
|
EXHIBITS
|
|
|
|
|
|
I
|
|
RETENTION
LIMITS
|
|
IA
|
|
UNDERWRITING
GUIDELINES
|
|
II
|
|
REINSURANCE
PREMIUMS
|
|
III
|
|
COMMISSIONS AND
ALLOWANCES (COINSURANCE)
|
ARTICLE I
BASIS OF
REINSURANCE
Reinsurance
under this agreement must be individual insurance. The
CEDING COMPANY shall automatically reinsure the life insurance for
the plan(s) as stated in Schedule A and any additional benefits
listed in Schedule B.
1. REQUIREMENTS FOR AUTOMATIC
REINSURANCE
A. The
individual risk must be a permanent resident of the United States
or Canada.
|
|
B. The
individual risk must be underwritten by the CEDING COMPANY
according to the standard underwriting practices and guidelines as
shown in Exhibit IA. The CEDING COMPANY shall
immediately notify BMA of any changes in underwriting practices or
guidelines. Any risk falling into a category of special
underwriting programs shall be excluded from this
Agreement.
|
|
|
C. Any
risk offered on a facultative basis to BMA or any other reinsurer
shall not qualify for automatic reinsurance.
|
|
|
D. The
maximum issue age on any risk shall be age 70. Issue
ages over 70 must be submitted facultatively.
|
|
|
E. The
mortality rating on any one risk must not exceed Table 8, or 300%,
or its equivalent on a flat extra premium basis. Cases
exceeding Table 8, or 300%, or its equivalent must be submitted
facultatively.
|
|
|
F. The
maximum amount of insurance issued and applied for in all companies
on any one risk shall not exceed the Jumbo limits as stated in
Schedule A.
|
|
|
G. On
any risk, the CEDING COMPANY must retain the amounts of insurance
as stated in Exhibit I.
|
|
|
H. The
maximum amounts of insurance to be reinsured on any one life shall
not exceed the automatic binding limits as stated in Schedule
A.
|
|
|
I. The
minimum amount of insurance to be ceded shall be $5,000.
|