EXHIBIT 10.2


 


NEW YORK INSURER SUPPLEMENT


 


TO


 


AMENDED AND RESTATED SERVICE AND EXPENSE AGREEMENT


 


WHEREAS,
ALLSTATE INSURANCE COMPANY, an Illinois insurance company (“Allstate”), THE
ALLSTATE CORPORATION, a Delaware corporation (“Allcorp”), ALLSTATE LIFE INSURANCE
COMPANY OF NEW YORK, a New York insurance corporation (“ALNY”) and INTRAMERICA
LIFE INSURANCE COMPANY (“Intramerica”) and, together with ALNY, the “New York
Insurers”) are parties to an Amended and Restated Service and Expense Agreement
(the “Agreement”), together with certain other insurance company affiliates of
Allstate (collectively, the “Affiliates”); and


 


WHEREAS,
Allstate, Allcorp and the New York Insurers wish to supplement and amend the
Agreement, solely as to services and facilities provided to the New York
Insurers thereunder, in order to conform to requirements and restrictions of
the New York Insurance Law that are applicable to the New York Insurers and not
to the other Affiliates.


 


NOW,
THEREFORE, Allstate, Allcorp and the New York Insurers do hereby agree as
follows:


 


1.                                       This
New York Supplement shall apply only to those services and facilities provided
to each of the New York Insurers and shall not alter or amend the Agreement as
respects those provided to or by any other Affiliates thereunder. To the extent
that the provisions of this New York Supplement are inconsistent with those of
the Agreement, the terms of the New York Supplement shall govern.


 


2.                                       As
respects the New York Insurers, both the Agreement and this New York Insurer Supplement
shall take effect as of March 5, 2005.


 


3.                                       For
the purpose of this New York Supplement, the Providing Parties are American
Heritage Service Company, a licensed independent adjuster, for claims
adjustment services relating to accident and health insurance provided on a
payroll deduction basis and Allstate for all other services.


 





















 


4.                                       The
second paragraph of Section 1 of the Agreement is amended to add the
following:


 


[Premiums]


 


After the required processing of premium payments,
Providing Parties will immediately deposit such premiums in one or more bank
accounts established in the name of ALNY or Intramerica, as the case may be,
and subject to the control of officers of the New York Insurers.


 


[Toll Free Number]


 


Providing Parties will establish and maintain one or
more toll free telephone numbers for use by policyholders, insureds,
beneficiaries and applicants of each of the New York Insurers.


 


[Claims Processing]


 


Final claims decisions will be based upon guidelines
and procedures established and approved by the New York Insurers from time to
time and communicated in writing to Providing Parties. The New York Insurers
retain final approval authority on all claim payments. Payment of claims shall
be made using checks of the New York Insurers.


 


5.                                       The
third paragraph of Section 1 of the Agreement is amended to add the
following:


 


[Safeguarding Customer Information]


 


Providing Parties shall implement and maintain
appropriate measures designed to meet the objectives of New York Insurance
Department Regulation No. 173 with respect to safeguarding customer
information and customer information systems of the New York Insurers. Allstate
shall adjust its information security program at the request of the New York
Insurers for any relevant changes dictated by their assessment of risk relating
to their customer information and customer information systems. Confirming
evidence that Allstate has satisfied the obligations hereunder shall be made
available, during normal business hours, for inspection by the New York
Insurers, anyone authorized by them and any governmental agency that has
regulatory authority over their business activities.


 


6.                                       The
fourth paragraph of Section 1 of the Agreement is amended to add the
following after the second sentence thereof;


 


The New York Insurers shall retain all final
underwriting authority.


 


7.                                       Section 6
of the Agreement is amended to add the following new paragraph:


 


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Within fifteen (15) days after the end of each
calendar month, Allstate shall submit to the New York Insurers a written
statement of the charges due from the New York Insurers to Allstate pursuant to
this Agreement in that calendar month, including charges not included in any
previous statements. Any balance payable
or to be refunded as shown in such statement shall be paid or refunded within
fifteen (15) days following receipt of such written statement by the New York
Insurers. The New York Insurers may request
a written statement from Allstate setting forth, in reasonable detail, the
nature of the services rendered or expense incurred and other relevant
information to support the charge.


 


8.                                       Section 7
of the Agreement is amended by adding the following provisions:


 


[Accounting Services]


 


All records of the New York Insurers shall be
maintained in accordance with New York Insurance Department Regulation No. 152
(11 NYCRR 243). Notwithstanding any other provision of this Section 7,
the books of account of the New York Insurer shall be kept at their principal
office(s) in the State of New York. Backup of the records constituting the
books of account of the New York Insurers shall be maintained, whether as hard
copy or another “durable medium” as defined in New York Insurance Department
Regulation No. 152. Such backup, together with the means to access any
records maintained as any “durable medium” shall be forwarded to the New York
Insurers on a monthly basis and shall be maintained at the principal office(s)
of the New York Insurers in the State of New York.


 


[Ownership and Custody of Records]


 


All records, books, and files established and
maintained by Providing Parties by reason of performance of services under this
Agreement, which absent this Agreement would have been held by the New York
Insurers, shall be deemed the property of the New
York Insurers and shall be maintained in
accordance with applicable law and regulation, including, but not limited to,
Regulation No. 152. Such records should be available, during normal
business hours, for inspection by the service recipient, anyone authorized by
the service recipient, and any governmental agency that has regulatory
authority over the New York Insurers’
business activities. Copies of such records, books and files shall be delivered
to the New York Insurers on demand. All
such records, books and files shall be promptly transferred to the New
York Insurers by Providing Parties upon
termination of this Agreement.


 


[Audits]


 


The Company and persons authorized by it or any
governmental agency having jurisdiction over the New York Insurers shall have the right, at the Providing
Parties’ expense, to conduct an audit of the relevant books, records and
accounts of Providing Parties upon giving reasonable notice of its intent to
conduct such an


 


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audit. In the event of such audit, Providing Parties
shall give to the party requesting the audit reasonable cooperation and access
to all books, records and accounts necessary to audit during normal business
hours.


 


9.                                       Section 8
of the Agreement is amended to add the following provisions:


 


[Maintenance of Books]


 


The Providing Parties and the Service Recipient each
shall maintain its own books, accounts and records in such a way as to disclose
clearly and accurately the nature and detail of the transactions between them
including such accounting information as is necessary to support the
reasonableness of charges under this agreement, and such additional information
as the company may reasonably request for purposes of its internal bookkeeping
and accounting operations. Providing Parties shall keep such books, records and
accounts insofar as they pertain to the computation of charges hereunder
available for audit, inspection and copying by the New York Insurers and
persons authorized by it or any governmental agency having jurisdiction over
the New York Insurers during all
reasonable business hours.


 


10.                                 Section 11
of the Agreement is amended to add the following provisions:


 


This Agreement shall remain in effect until terminated
by either its Providing Parties or the New York Insurers upon giving thirty
(30) days or more advance written notice, provided that the New York Insurers
shall have the right to elect to continue to receive data processing services
and/or to continue to utilize data processing facilities and related software
for up to 180 days from the date of such notice. Subject to the terms
(including any limitations or restrictions) of any applicable software or
hardware licensing agreement then in effect between Providing Parties and
licensors, Providing Parties shall, upon termination of this Agreement, grant
the New York Insurers a perpetual license, without payment of any fee, in any
electronic data processing software developed or used by Providing Parties in
connection with the services provided to the New York Insurers hereunder if
such software is not commercially available and is necessary, in the New York
Insurers’ reasonable judgement, for the New York Insurers to perform subsequent
to termination the functions provided by Providing Parties hereunder. Upon
termination, Providing Parties shall promptly deliver to the New York Insurers
all books and records that are, or are deemed by this Agreement to be, the
property of the New York Insurers.


 


11.                                 [Governing
Law]


 


As respects services and facilities provided to the
New York Insurers, the Agreement and this New York Insurer Supplement shall be
governed by, interpreted under and the rights of the parties determined in
accordance with the laws of the State of New York.


 


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IN
WITNESS WHEREOF, the parties hereto have caused this Supplement No. 1 to
be signed as of the date and year set forth above.


 


 


	
   

  	
  THE ALLSTATE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Controller

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   April 19, 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLSTATE
  INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Group Vice President and Controller

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   April 19, 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLSTATE LIFE
  INSURANCE COMPANY

  
	
   

  	
  OF NEW YORK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Group Vice President and Controller

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   April 19, 2005

  	
   

  
					



 


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  INTRAMERICA LIFE
  INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Samuel H. Pilch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Group Vice President and Controller

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   April 19, 2005

  	
   

  
					



 


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