exhibit10ch.htm


     

    

      EXHIBIT
10(ch)

       

      GROUP
EXCESS BENEFIT PLAN

      


      


      


      


      
        	
                POLICY
      NUMBER:

              	
                G -
      00144

              
	 
      	 
      
	
                POLICYHOLDER:

              	
                National
      Western Life Insurance Company

              
	 
      	 
      
	
                POLICY
      EFFECTIVE DATE:

              	
                May
      1, 1990

              
	 
      	 
      
	
                POLICY
      ANNIVERSARY DATES:

              	
                May
      1

              
	 
      	 
      
	
                STATE
      OF DELIVERY:

              	
                TEXAS

              


      

      


      


      This
policy is issued in consideration of the application of the Policyholder and
payment of premiums as provided in the policy.  The Company agrees to
pay group insurance benefits as provided herein with respect to each Insured
Person.

      


      The
initial premium is due on the Policy Effective Date and subsequent premiums
shall be due on the same day of each month thereafter

      


      This
policy is governed by the laws of the state of delivery.

      


      All
periods of insurance hereunder shall begin at 12:01 A.M., Standard Time, at the
Policyholder’s normal place of business.  The policy is amended and restated
effective

      May 1, 2009.

      


      The
following pages are part of the policy as fully as if recited over the
signatures below.

      


      The
Company has caused this policy to be executed on the Policy Effective
Date.

      
 

      


      


      
        	
                /S/J.
      Mark Flippin

                SECRETARY

              	
                /S/G.
      Richard Ferdinandtsen

                PRESIDENT

              


      

      



      
        
           


        

        
           


          
            

          

        

        
           


        

      


      GROUP
EXCESS BENEFIT PLAN

       

      


      


      CONTENTS

      


      


      
        	
                Section

              	
                Page

              	
                Description

              
	 
      	 
      	 
      
	
                1.

              	
                3

              	
                Schedule
      of Benefits

              
	 
      	 
      	 
      
	
                II.

              	
                3

              	
                Definitions

              
	 
      	 
      	 
      
	
                III.

              	
                4

              	
                Premiums

              
	 
      	 
      	 
      
	
                IV.

              	
                6

              	
                Eligibility
      and Effective Date

              
	 
      	 
      	 
      
	
                V.

              	
                8

              	
                Benefits

              
	 
      	 
      	 
      
	
                VI.

              	
                9

              	
                Coordination
      of Benefits

              
	 
      	 
      	 
      
	
                VII.

              	
                11

              	
                Payment
      of Benefits

              
	 
      	 
      	 
      
	
                VIII.

              	
                13

              	
                Termination
      of Insurance

              
	 
      	 
      	 
      
	
                IX.

              	
                14

              	
                General
      Provisions

              
	 
      	 
      	 
      
	
                X

              	
                15

              	
                Continuation

              
	 
      	 
      	 
      
	 
      	 
      	 
      


      

      



      
        
           


        

        
           


          
            

          

        

        
           


        

      


      
        
        

      

      


      
        I.
SCHEDULE OF BENEFITS

      

       

      BENEFITS:   100% of all
Covered Expenses

       

      MAXIMUM
BENEFIT FOR EACH CLASS OF EMPLOYEES:   The Maximum Annual Benefit
for each Benefit Year as specified in the application of the Policyholder and as
approved by the Company.

       

      LIMITATION.   This
Schedule of Benefits is subject to all of the provisions contained in this
policy.

       

      II.
DEFINITIONS

       

      Benefit
Year:  The twelve month period which:

       

      
        	
                1.

              	
                Begins
      on the Effective Date of this policy, and the same date each calendar year
      thereafter; and

              


      

      
        	
                2.

              	
                Ends
      on the day before that date each calendar year thereafter (herein called
      the Anniversary Date).

              


      

       

      Class:  A
classification of its Employees by the Policyholder, which is determined by
salary, position, length of service or other conditions of
employment.  The amount of Coverage under this Policy will be
identical for each covered Unit of the same class.

       

      Coverage:  The
Benefits granted by the Company with respect to each Class.  The
maximum amount of such Benefits for each Benefit Year is as specified in the
application of the Policy and as approved by the Company.

       

      Covered
Expenses:  Any bona fide medical or dental expense which
is:

       

      
        	
                1.

              	
                Incurred
      while this Policy is in force and while the Insured Person is covered
      hereunder; and

              


      

      
        	
                2.

              	
                Recognized
      as a covered expense in accordance with the provision of Section 213 of
      the Internal Revenue Code of 1954, as amended, and of the Regulations and
      rulings promulgated thereunder; and

              


      

      
        	
                3.

              	
                Not
      an expense which is payable under any other Plan, regardless of whether
      claim for such payment has been made;
and

              


      

      
        	
                4.

              	
                Not
      an expense due to an injury or illness which is covered by Workers'
      Compensation, maritime, or any occupational disease
  law.

              


      

      
        	
                5.

              	
                Covered
      expenses include Cosmetic Surgery as any procedure that is directed at
      improving the patient's appearance and does not meaningfully promote the
      proper function of the body or prevent or treat
  illness.

              


      

      
        	
                6.

              	
                Covered
      expenses also include Well Baby Care nursing or attendant services for a
      period of 90 days with a doctor’s recommendation due to the health of the
      mother.

              


      

      


      Covered
Unit:  An Insured Employee or an Insured Employee and his
Dependents.  The terms "Insured Employee", "Insured Dependent", and
"Insured Person" are used in this Policy to denote the individuals so covered
where applicable.

      


      Plan:  Refer
to definition provided in Section VI. Coordination of Benefits


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      III.
PREMIUM

       

      
        	
                3.1

              	
                Premium Payment
      Agreement.  The amount and manner of payment of premiums
      due under this Policy is specified in the Premium Payment Agreement
      between the Policyholder and the
Company.

              


      

       

      
        	
                3.2

              	
                Grace
      Period.  Unless the Policyholder has given notice of
      termination, a grace period of 31 days shall apply during which coverage
      under this Policy shall remain in force.  This Policy shall
      automatically terminate at the end of the Grace Period if the Policyholder
      has failed to pay the full amount of any premium due within the time
      required by the Premium Payment Agreement.  This provision does
      not apply to the initial (advance)
premium.

              


      

       

      
        	
                3.3

              	
                Limitation of
      Liability for Premium.  The maximum liability of the
      Policyholder for the payment of Reimbursement Premiums, as defined in the
      Premium Payment Agreement, for each Benefit Year shall be equal to 85% of
      the Aggregate Liability applicable to such year as provided
      below.

              


      

       

      
        	
                 
      

              	
                a.

              	
                Maximum Annual
      Aggregate Liability.  The Maximum Annual Aggregate
      Liability (Aggregate Liability) for each Benefit Year is the sum of the
      Maximum Annual Benefits for each Covered Unit which is insured under this
      Policy at any time during the Benefit
Year.

              


      

       

      
        	
                 
      

              	
                b.

              	
                Initial
      Amount.  The initial amount of the Aggregate Liability is
      the sum of such Maximum Annual Benefits specified in the Policyholder's
      application, as approved by the
Company.

              


      

       

      
        	
                 
      

              	
                c.

              	
                Increases.  A
      Policyholder may, at any time, increase the amount of the Aggregate
      Liability for any Benefit Year by applying to the Company for the addition
      of Covered Units or for an increase in the amount of Coverage applicable
      to a Class of Covered Units.  The increase in the amount of
      Aggregate Liability will take effect upon the Company's approval of a
      written notice from the Policyholder which includes the name of the
      persons to be added and the amount of coverage for
  each.

              


      

       

      
        	
                 
      

              	
                d.

              	
                Decreases.  In
      no event will the amount of the Aggregate Liability for a Benefit Year be
      decreased during such year.  Termination of a Covered Unit's
      coverage will not operate to decrease the amount of the Aggregate
      Liability during that Benefit Year.

              


      

      


      
        	
                 
      

              	
                e.

              	
                Renewal Aggregate
      Liability. A Policyholder may establish a new Aggregate Liability
      to take effect as of the Anniversary date for the next Benefit
      Year.  The amount of such Aggregate Liability may be more or
      less than the amount applicable to the prior year, and will take effect
      for the next Benefit Year, provided the Company approves a written notice
      from the Policyholder which includes the names of all persons to be
      covered and the amounts of coverage for each.  All such
      applications must be received at the Company prior to such
      Anniversary.

              


      

       


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


       

      
        	
                3.4

              	
                Liability Not
      Limited.  The limitation of liability for the payment of
      Reimbursement Premiums for each Benefit Year shall not apply with respect
      to each and every one of the
following:

              


      

      
        	
                 
      

              	
                a.

              	
                The
      amount of any Benefits which are not actually paid by the Company during a
      Benefit Year, regardless of whether the expenses were incurred during such
      year.  Any claim for Benefits on which a completed proof of
      loss, which does not require any additional information or follow-up, has
      been received by the Company and which has been date stamped at the Home
      Office of the Company at least 10 days before the end of a benefit year
      will be considered "paid" during such Benefit Year, if subsequently
      app

              


      

       

      
        	
                 
      

              	
                b.

              	
                roved
      by the Company for payment; and

              


      

       

      
        	
                 
      

              	
                c.

              	
                The
      amount of any medical expense incurred prior to the Effective Date of
      coverage; and

              


      

       

      
        	
                 
      

              	
                d.

              	
                The
      amount of any medical expense incurred after the date coverage terminates;
      and

              


      

       

      
        	
                 
      

              	
                e.

              	
                The
      amount of any Benefits paid with respect to an Insured Person, if such
      payment is made during a Benefit Year in which the person is not covered
      under this Policy; and

              


      

       

      
        	
                 
      

              	
                f.

              	
                The
      amount by which the Coverage applicable to an Insured person during the
      Benefit Year in which Benefits have been paid is less than the amount of
      such person's coverage during the immediately preceding Benefit Year;
      and

              


      

       

      
        	
                 
      

              	
                g.

              	
                The
      amount of any and all costs, expenses, and damages, as provided in the
      Indemnification Section of the Premium Payment
  Agreement.

              


      


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      IV.           ELIGIBILITY
AND EFFECTIVE DATE

       

      
        	
                4.1

              	
                Eligible
      Employee. Any person who is:

              


      

      


      
        	
                a.

              	
                I.

              	
                Chairman
      of the Board or his

              	 
      	
                $350,000.00

              
	 
      	 
      	
                surviving
      Dependents

              	 
      	 
      
	 
      	
                II.

              	
                Retired
      Chairman of the Board

              	 
      	
                $350,000.00

              
	 
      	 
      	
                and
      his Dependents or surviving Dependents

              	 
      	 
      
	 
      	 
      	
                of
      same (who has served 7 or more years since 1980)

              	 
      	 
      
	 
      	
                III.

              	
                President

              	 
      	
                $100,000.00

              
	 
      	
                IV.

              	
                Retired
      President

              	 
      	 
      
	 
      	 
      	
                (who
      has served 7 or more years since 1980 and

              	 
      	 
      
	 
      	 
      	
                was
      employed on January 1, 2004)

              	 
      	
                $100,000.00

              
	 
      	
                V.

              	
                Retired
      President

              	 
      	 
      
	 
      	 
      	
                (who
      has served 7 or more years since 1980 and

              	 
      	 
      
	 
      	 
      	
                was
      employed prior to January 1, 2004)

              	 
      	
                $
      50,000.00

              
	 
      	
                VI.

              	
                Executive
      Vice President

              	 
      	
                $
      50,000.00

              
	 
      	
                VII.

              	
                Senior
      Vice Presidents

              	 
      	
                $
      50,000.00

              
	 
      	
                VIII.

              	
                Vice
      Presidents, hired or promoted

              	 
      	
                $
      50,000.00

              
	 
      	 
      	
                prior
      to May 1, 2007

              	 
      	 
      
	 
      	
                IX.

              	
                Members
      of the Board

              	 
      	
                $
      50,000.00

              
	 
      	
                X.

              	
                General
      Counsel

              	 
      	
                $
      50,000.00

              
	 
      	
                and

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                b.

              	 
      	
                Covered
      as an Insured Person under the Policyholder's Group Health plan named in
      the application, or such other Health Plan, which is accepted by the
      Company

              


      

      


       

      
        	
                4.2

              	
                Eligible
      Dependent.

              


      

       

       

      
        	
                 
      

              	
                a.

              	
                A
      dependent of an Insured Employee who is covered as an Insured Dependent
      under the Policyholder's Group Health Plan or other accepted Health Plan,
      as stated above; or

              


      

       

       

      
        	
                 
      

              	
                b.

              	
                A
      child of the Insured Employee who is incapable of self-support and
      maintenance because of mental disability or physical handicap and is
      chiefly dependent upon the Insured Employee for support and
      maintenance.  The Insured Employee must furnish proof of such
      incapacity and dependency that is satisfactory to the
      Group.  Coverage will be continued as long as the child is
      incapacitated and dependent, unless otherwise terminated in accordance
      with the terms of the Contract.

              


      

       


      
        
           


        

        
           


          
            

          

        

        
           


        

      


       

      


       

      
        	
                4.3

              	
                Effective
      Date.  The insurance of an Employee or an Employee and
      his Dependent will take effect as of the date, and for the amount of
      Coverage, which is specified in the Application, upon approval by the
      Company.  In no event may such date be prior to the beginning
      date of the current fiscal year.

              


      

       

      
        	
                4.4

              	
                Changes.  The
      amount of Coverage may be increased or decreased with respect to each
      Class of Covered Units, and additional Covered Units may become insured at
      any time during a Benefit Year, by written notice from the Policyholder,
      which includes the name of the persons and the amount of Coverage for
      each.  Such increases and additions shall take effect as
      specified in the Application, upon approval by the
  Company.

              


      

       


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


      V.
BENEFITS

       

      
        	
                5.1

              	
                Benefits
      Payable.  Subject to all of the provisions of this
      Policy, the Company will pay, as Benefits, 100% of the Covered Expenses as
      follows:

              


      

       

      
        	
                 
      

              	
                a.

              	
                During
      the First Benefit Year of a Covered Unit's Coverage under this Policy, all
      such Covered Expenses must be Incurred during such Benefit Year. As used
      in this Policy, the date a medical expense in "Incurred" is the date
      treatment or services were actually rendered, or the date an item was
      actually purchased, and

              


      

      


      
        	
                 
      

              	
                b.

              	
                During
      subsequent Benefit Years, all such Covered Expenses must have been
      Incurred while the Covered Unit's insurance under this Policy is in
      effect.  Accordingly, Covered Expenses Incurred in one Benefit
      Year which are not paid during such year will be paid in the subsequent
      Benefit Year, subject to all of the provisions of this
    policy.

              


      

       

      
        	
                5.2

              	
                Maximum
      Benefit.  The maximum amount of Benefits payable under
      this Policy for each Covered Unit during each Benefit Year is the amount
      of the Maximum Annual Benefit in effect for such Covered Unit, as
      specified in the Application, as approved by the
  Company.

              


      

      



      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


      VI.
COORDINATION OF BENEFITS

       

      
        	
                6.1

              	
                Benefits Subject to
      this Provision.  This provision shall be applicable to
      all Benefits under this Policy.

              


      

       

      
        	
                6.2

              	
                Definition of
      "Plan".  Any group Plan providing benefits or services
      for or by reason of medical or dental care or treatment
  by:

              


      

      


      
        	
                 
      

              	
                a.

              	
                Group,
      blanket, or franchise insurance
coverage;

              


      

      


      
        	
                 
      

              	
                b.

              	
                Blue
      Cross, Blue Shield, group practice and other pre-payment coverage;
      and

              


      

      


      
        	
                 
      

              	
                c.

              	
                Any
      self-funded or self-insured coverage established or maintained by an
      employer for his employees; and

              


      

      


      
        	
                 
      

              	
                d.

              	
                Any
      coverage under governmental programs;
and

              


      

      


      
        	
                 
      

              	
                e.

              	
                Any
      coverage required or provided by
statute.

              


      

       

      In
particular, but not by way of limitation, "Plan" shall mean any of the Plans
described above with respect to which an Insured Employee or Dependent, or both,
meets the eligibility requirements to be an Insured Person at any time while
insured under this Policy.  The term "Plan" shall be construed
separately with respect to each policy, contract or other arrangement for
benefits or services and separately with respect to that portion of any such
policy, contract or other arrangement which reserves the right to take the
benefits or services of other Plans into consideration
in determining its benefits and that portion which does not.

       

      
        	
                6.3

              	
                Effect on
      Benefits.  The amount of Benefits payable under this
      Policy shall be reduced to the extent that the sum of such reduced
      Benefits and the amount of the benefits payable under all other Plans as
      defined in 6.2 of this Section shall not exceed the total amount of the
      Covered Expenses.

              


      

       

      
        	
                6.4

              	
                Order of Benefit
      Determination.  The benefits of all other Plans as
      defined in 6.2 of this Section shall be determined before the Benefits of
      this Policy, except in the case of a governmental plan which is required
      by law to be secondary.

              


      

       

      
        	
                6.5

              	
                Right to Receive and
      Release Necessary Information.  For the purpose of
      determining the applicability of, and implementing the terms of, this
      provision or any provision or similar purpose of any other Plan, the
      Company may, without the consent of, or notice to, any person, release to
      or obtain from any other insurance company or other organization or
      individual, any information with respect to any person, which the Company
      deems to be necessary for such purposes. Any person claiming benefits
      under this policy shall furnish to the Company such information as may be
      necessary to implement this
provision.

              


      


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


      
        	
                6.6

              	
                Right of
      Recovery.  Whenever payments have been made under this
      Policy with respect to Covered Expenses in a total amount, at any time, in
      excess of the maximum amount of payment necessary at that time to satisfy
      the interest of this provision, the Company shall have the right to
      recover such payments, to the extent of such excess, from among one or
      more of the following, as the Company shall
  determine:

              


      

      


      
        	
                 
      

              	
                a.

              	
                Any
      persons to or for or with respect to whom payments were
    made;

              


      

      


      
        	
                 
      

              	
                b.

              	
                Any
      other insurance companies; and

              


      

      


      
        	
                 
      

              	
                c.

              	
                Any
      other organizations.

              


      


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      VII.
PAYMENT OF BENEFITS

       

      
        	
                7.1

              	
                Claims
      Procedure.  The following procedure must be followed by
      Insured Employees to obtain payment of Benefits under this Policy for
      themselves and for their Insured
Dependents.

              


      

       

      
        	
                 
      

              	
                a.

              	
                Notice of
      Claim.  Within 20 days after the date a Covered Expense
      is incurred, written notice must be submitted to the Company, identifying
      the person whose condition, illness, or injury is the basis of a
      claim.

              


      

       

      
        	
                 
      

              	
                b.

              	
                Claim
      Forms.  Claim forms for submitting proof of loss will be
      furnished by the Company upon receipt of notice of a claim.  If
      such forms are not furnished within 15 days after receipt of notice of a
      claim, an Insured Employee may use any written form as a claim form to
      submit a proof of loss which includes information indicating the
      occurrence, character, and extent of the Covered Expense for which a claim
      is made, and the identity of the insured Person incurring such
      expenses.

              


      

       

      
        	
                 
      

              	
                c.

              	
                Proof of
      Loss.  A completed claim form together with the original
      bills for medical expenses incurred, a statement from the attending
      physician and a proof of settlement from all other Plans pursuant to
      paragraph 6.4 above, must be submitted to the Home Office of the Company
      within 90 days after the date a Covered Expense is
      incurred.  The Policyholder's statement on each such claim for
      shall be a representation that the person with respect to whom claim is
      made was an Insured Person on the date the Covered Expense was
      incurred.

              


      

      


      
        	
                7.2

              	
                Payment of
      Benefits.  All Benefits under this Policy will be paid to
      the Insured Employee for Covered Expenses incurred by him or his Insured
      Dependent.  Such payment shall be made immediately upon receipt
      of due proof of loss.

              


      

       

      In the
event of the death or incapacity of the Insured Employee, Benefits will be paid
to his estate or legally appointed guardian, respectively.

       

      No
assignment of all or any portion of any Benefit payable under this Policy shall
be binding or enforceable against the Company, regardless of whether the Company
has prior notice of such assignment.

       

      
        	
                7.3

              	
                Rights of
      Company.  The Company reserves the right to have a
      physician of its own choosing examine any Insured Person whose condition,
      illness, or injury is the basis of a claim.  All such
      examinations shall be at the expense of the Company.  This right
      may be exercised when and as often as the Company may reasonable require
      during the pendency of a claim.  The opportunity to exercise
      this right shall be a condition for obtaining payment of benefits for the
      claim.

              


      

       


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


       

      The
Company reserves the right to have an autopsy performed upon any deceased
Insured Person whose condition, illness, or injury is the basis of a
claim.  This right may be exercised only where not prohibited by
law.

       

      The
Company reserves the right to deduct from any benefits payable under this Policy to an Insured
Employee, the amount of any prior payment which has been made to such Insured
Employee:

       

      
        	
                 
      

              	
                a.

              	
                In
      error; or

              


      

       

      
        	
                 
      

              	
                b.

              	
                Pursuant
      to a misstatement contained in a proof of loss;
  or

              


      

       

      
        	
                 
      

              	
                c.

              	
                Pursuant
      to a misstatement made to obtain coverage under this Policy within 2 years
      after the date such coverage begins;
or

              


      

       

      
        	
                 
      

              	
                d.

              	
                With
      respect to an ineligible person; or

              


      

       

      
        	
                 
      

              	
                e.

              	
                Pursuant to a claim for which
      benefits are recoverable under any Plan or act of law providing for
      coverage for occupational or maritime injury or
      disease.

              


      

       

      This
provision shall not be deemed to require the Company to pay benefits under this
Policy in any such instance.  Such deduction may be made against any
claim for benefits under this Policy by the Insured Employee or by any of his
Insured Dependents, if such payment is made with respect to such Insured
Employee or any person covered or asserting coverage as a Dependent of such
Insured Employee.

      


      
        	
                7.4

              	
                Discharge of
      Liability.  Any payment made in accordance with the
      provisions of this Section shall fully discharge the liability of the
      Company to the extent of such
payment.

              


      

       

      
        	
                7.5

              	
                Legal
      Action.  No action at law or in equity shall be brought
      under this Policy prior to the expiration of 60 days after proper written
      proof of loss has been furnished in accordance with the requirements of
      this Policy.  No such action shall be brought after the
      expiration of 3 years after the time written proof of loss is required to
      be furnished in accordance with the requirements of this
      Policy.

              


      

       


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


      VIII.
TERMINATION OF INSURANCE

       

      
        	
                8.1

              	
                Termination of
      Policy.  This policy may be terminated at any time by
      written agreement between the Policyholder and the
  Company.

              


      

       

      The
Policyholder may terminate this policy by written notice to the Company on or
before any Premium Due Date, effective on said Premium Due Date.

       

      The
Company may cancel this policy on any Premium Due Date after it has been in
effect for 12 months.  Written notice will be given to the
Policyholder at least 31 days in advance of the termination date.

       

      This
policy will terminate for non-payment of premiums as stated under Grace
Period.

       

      When this
policy terminates:

       

      
        	
                 
      

              	
                1.

              	
                The
      Company shall promptly return any unearned premium paid;
    and

              


      

       

      
        	
                 
      

              	
                2.

              	
                The
      Policyholder agrees to pay, and shall be liable for, any earned premium
      which has not been paid.

              


      

       

      


      
        	
                8.2

              	
                Termination of
      Employee Insurance.  An Insured Employee's insurance will
      end on the date:

              


      

      
        	
                 
      

              	
                a.

              	
                This
      Policy terminates; or

              


      

      


      b.           Such
Employee ceases to be as Eligible Employee (as defined in section 4.1);
whichever is earlier.

       

      


      
        	
                8.3

              	
                Termination of
      Dependent Insurance.  The Dependent insurance of any
      Insured Employee will end on the
date:

              


      

      
        	
                 
      

              	
                a.

              	
                The
      Insured Employee's insurance ends;
or

              


      

      


      
        	
                 
      

              	
                b.

              	
                All
      Dependent Insurance under this policy is
  deleted;

              


      

      whichever
is earlier.

      


      Insurance
for each Dependent will end on the date he ceases to be an Eligible Dependent
(as defined in section 4.2).


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      IX.
GENERAL PROVISIONS

       

      
        	
                 
      

              	
                9.1

              	
                Entire
      Contract.  This policy, the Premium Payment Agreement,
      and the Application of the Policyholder, which is attached hereto,
      constitute the entire contract between the Policyholder and the
      Company.

              


      

       

      All statements made by:

       

      
        	
                 
      

              	
                a.

              	
                The
      Policyholder; or

              


      

       

      
        	
                 
      

              	
                b.

              	
                An
      Insured Person.

              


      

       

      shall be
deemed representations and not warranties.  No such statement shall be
used in any contest unless a written copy of the statement is, or has been,
furnished to the Insured Person or his beneficiary.

       

      
        	
                9.2

              	
                Certificates.  The
      Company shall furnish to the Policyholder, for distribution to his Insured
      Employees, Certificates of Insurance describing the essential provisions
      of this policy.

              


      

       

      
        	
                9.3

              	
                Conformity With
      Law.  If any provision of this policy is in conflict with
      any law to which it is subject, such provision is hereby amended to
      conform with the law.

              


      

       

      
        	
                9.4

              	
                Clerical
      Error.  No clerical error (by the Policyholder or the
      Company) shall:

              


      

      


      
        	
                 
      

              	
                a.

              	
                Provide
      insurance to which a person is not entitled;
nor

              


      

      


      
        	
                 
      

              	
                b.

              	
                Prevent
      insurance to which he is entitled; under the terms of this
      policy.

              


      

      


       

      Premiums
will be adjusted (retro-active for no more than 12 months) when such an error is
found.

       

      
        	
                9.5

              	
                Workers'
      Compensation.  This policy is not a Workers' Compensation
      policy. It does not replace nor satisfy any requirement for such
      insurance.

              


      

       

      
        	
                9.6

              	
                Use of
      Pronouns.  A masculine pronoun, when used herein shall
      include the feminine, unless the context clearly indicates
      otherwise.

              


      


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      X.
CONTINUATION

       

      Continuation of
Coverage.  Insurance may be continued for an Insured Employee
and his Insured Dependents for up to 18 months after it would otherwise end due
to:

      
        	
                1.

              	
                Termination
      of employment; or

              


      

      
        	
                2.

              	
                Reduction
      in hours of work.

              


      

       

      If such
Employee or his Insured Dependent is determined under The Social Security act to
have been disabled at the time of the Qualifying Event named above, this
Coverage may be continued for up to 29 months. Proof of this determination must
be sent to the Company:

      
        	
                1.

              	
                Within
      60 days after such determination is made;
and

              


      

      
        	
                2.

              	
                Before
      the 18 month continuation ends.

              


      

      


      If an
Insured Employee who is on the 18 month continuation dies, or becomes entitled
to benefits under Medicare, his Insured Dependents will be entitled to a total
of 36 months of continued coverage. This shall be counted from the date of the
original Qualifying Event.

       

      Insurance
may be continued for Insured Dependents only for up to 36 months after it would
otherwise end due to:

      
        	
                1.

              	
                Death
      of the Insured Employee; or

              


      

      
        	
                2.

              	
                Divorce
      or legal separation; or

              


      

      
        	
                3.

              	
                The
      Insured Employee becoming entitled to benefits under Medicare;
      or

              


      

      
        	
                4.

              	
                An
      Insured Dependent child ceasing to satisfy the definition of an Eligible
      Dependent.

              


      

      


      Requirements.  The
Insured Person who wants to continue his coverage must:

      1.           Elect
this continue coverage within 60 days of the later of

      
        	
                 
      

              	
                a.

              	
                The
      date his insurance would otherwise end;
or

              


      

      
        	
                 
      

              	
                b.

              	
                The
      date he received notice from the Plan Administrator of the right to
      continue his coverage; and

              


      

      


      
        	
                2.

              	
                Pay
      the required premium to his Employer. The first premium must be paid
      within 45 days after he elects this Continuation. It shall include the
      time from the date insurance would have ended to one month past the date
      Continuation was elected. Subsequent premiums must be paid monthly, in
      advance. For the first 18 months of Continuation the required premium
      shall be 102% of the group premium.  For an Employee who
      qualifies for the 29 months continuation due to disability, the premium
      for the additional 11 months of coverage shall be increased to
      150%.

              


      

      


      No
Evidence of Insurability is required for this Continuation.

      


      Notice.  The
Insured Employee is required to notify the Plan Administrator within 30 days
after a Dependent's insurance would end due to:

      
        	
                1.

              	
                Divorce
      or legal separation; or

              


      

      
        	
                2.

              	
                A
      Dependent child no longer being
eligible.

              


      


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      


      Termination of Continued
Coverage.  This continued coverage will end on the earliest of
the following dates:

      
        	
                1.

              	
                The
      end of the last period for which the required premium was paid;
      or

              


      

      
        	
                2.

              	
                The
      date this policy terminates (The Employee or Dependent may be entitled to
      coverage under another health plan the Employer provides for his
      employees); or

              


      

      
        	
                3.

              	
                The
      date the Insured Person becomes covered under another group health plan
      which does not contain any exclusion or limitation with respect to any
      pre-existing condition of such Insured Person;
  or

              


      

      
        	
                4.

              	
                The
      date the Insured Person becomes entitled to benefits under Medicare;
      or

              


      

      
        	
                5.

              	
                For
      a Continuation due to termination of employment or reduction in hours, the
      end of a period of 18 months following the date insurance would have
      otherwise ended, unless extended to 29 months due to determination of
      disability; or

              


      

      
        	
                6.

              	
                For
      a Continuation for any reason except termination of employment or
      reduction in hours, the end of a period of 36 months following the date
      insurance would have otherwise
ended.

              


      

       

      COMPLAINT
NOTICE: Should any dispute arise about your premium or about a claim that you
have filed, write to:

       

      American
National Insurance Company

      Health
Claims Department

      One Moody
Plaza

      Galveston,
Texas 77550.

       

      If the
Problem is not resolved, you may also write to the:

       

      State
Board of Insurance Department C

      1110 San
Jacinto Austin, Texas 78786.

       

      This
notice of complaint procedure is for information only, and does not become a
part or condition of this policy.