Document:

EX-10.11

 Exhibit 10.11 

 
 

 
 Reinsurance Agreement #I486326US-14 

This Automatic Self Administered Coinsurance Reinsurance Agreement 

Effective February 21, 2014 (the “Effective Date”), subject to Exhibit A 

(hereinafter referred to as the “Agreement”) 
 is made
between 
 Fidelity Life Association, A Legal Reserve Life Insurance Company 

an Illinois insurance company 
 (hereinafter referred to as the
“Company”) 
 and 
 Swiss Re Life &
Health America Inc. 
 a Connecticut insurance company 

(hereinafter referred to as the “Reinsurer”) 

  

					
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 Table of Contents 

 

			
	 Article 1

	1.1	  	General
	1.2	  	Scope of Coverage
	
	 Article 2

	2.1	  	Automatic Reinsurance
	2.2	  	Facultative Reinsurance
	
	 Article 3

	3.1	  	Automatic Submissions
	3.2	  	Facultative Submissions
	
	 Article 4

	4.1	  	Commencement of Automatic Reinsurance Liability
	4.2	  	Commencement of Facultative Reinsurance Liability
	4.3	  	Conditional Receipt or Temporary Insurance Agreement Liability
	
	 Article 5

	5.1	  	Premium Accounting
	5.2	  	Currency
	5.3	  	Non-Payment of Premiums
	
	 Article 6

	6.1	  	Right of Offset
	
	 Article 7

	7.1	  	Conversions
	7.2	  	Policy Changes
	7.3	  	Reductions
	7.4	  	Lapses
	7.5	  	Reinstatements
	7.6	  	Reinsurance Limits
	7.7	  	Backdating
	
	 Article 8

	8.1	  	Retention Limit Change
	8.2	  	Recapture
	8.3	  	Waiver of Premium Claims
	
	 Article 9

	9.1	  	Claims Notice and Consultation
	9.2	  	Claims Payment
	9.3	  	Claims Practices
	9.4	  	Contested Claims
	9.5	  	Claims Expenses
	9.6	  	Extra Contractual Obligations
	9.7	  	Misstatement of Age or Sex

  

					
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	 Article 10

	10.1	  	Errors and Omissions in Administration of Reinsurance
	10.2	  	Dispute Resolution
	10.3	  	Arbitration
	10.4	  	Expedited Dispute Resolution Process
	
	 Article 11

	11.1	  	Insolvency
	
	 Article 12

	12.1	  	DAC Tax Election
	12.2	  	Taxes and Expenses
	
	 Article 13

	13.1	  	Entire Agreement
	13.2	  	Inspection of Records
	13.3	  	Utmost Good Faith
	13.4	  	Confidentiality
	13.5	  	OFAC Compliance
	
	 Article 14

	14.1	  	Representations and Warranties
	
	 Article 15

	15.1	  	Business Continuity
	
	 Article 16

	16.1	  	Duration of Agreement
	16.2	  	Severability
	16.3	  	Construction
	16.4	  	Credit for Reinsurance
	16.5	  	Non-Waiver
	16.6	  	Retrocession
	16.7	  	Governing Law
	16.8	  	Interest
	16.9	  	Counterparts
	
	 Article 17

	17.1	  	Financial Conditions
	
	 Execution

	 Exhibits

	A	  	Business Covered
	A-1	  	Business Guidelines
	B	  	Reinsurance Application
	C	  	General Terms
	C-1	  	Rates and Terms for Specific Plans
	D	  	The Company’s Retention Limits
	E	  	Automatic Issue and Acceptance Limits
	F	  	Reinsurance Reports

  

					
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 Article 1 
  

	1.1	 General 

This Agreement is an indemnity reinsurance agreement solely between the Company and the Reinsurer. The acceptance of risks under this Agreement
by the Reinsurer will create no right or legal relation between the Reinsurer and the insured, owner, beneficiary, or assignee of any insurance policy of the Company. 

This Agreement will be binding upon the parties hereto and their respective successors and assigns including any rehabilitator, conservator,
liquidator or statutory successor of either party. Neither party may effect any novation of this Agreement without the other party’s prior written consent. 

Day or days, when used in this Agreement, will mean calendar days. 
  

	1.2	 Scope of Coverage 

This Agreement applies to all directly issued insurance policies and supplemental benefits and riders listed in Exhibit A (hereinafter referred
to as “policies” or “policy”) and issued in a jurisdiction in which the Company is properly licensed. On and after the Effective Date of this Agreement, the Company will cede and the Reinsurer will accept its share of the
benefits specified in Exhibit A in accordance with the terms of this Agreement. The policies accepted by the Reinsurer will be hereinafter referred to as “Reinsured Policies.” 

The Company may not reinsure the retained amounts specified in Exhibit D on any basis without the Reinsurer’s prior written consent. 

This Agreement does not cover the following unless specified elsewhere: 

 

	 	a)	 Noncontractual conversions or group conversions; or 

 

	 	b)	 Policies issued where conventional selection criteria are not applied in underwriting the risk; or

  

	 	c)	 Any conversion of a previously issued policy that had been reinsured with another reinsurer.

 Each Reinsured Policy must provide for the maximum periods of suicide and contestability protection permitted by
applicable law. 

  

					
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 Article 2 
  

	2.1	 Automatic Reinsurance 

The Company will automatically cede and the Reinsurer will automatically accept its share of the Company’s policies provided that, to the
best of the Company’s knowledge: 
  

	 	a)	 The Company has retained on each life the amount set out in Exhibit D according to the age and mortality rating
at the time of underwriting; and 

  

	 	b)	 The total of the new ultimate face amount of reinsurance required, including any contractual increases and the
amount already reinsured on that life under this Agreement and all other life agreements between the Reinsurer and the Company, does not exceed the Automatic Acceptance Limits set out in Exhibit E; and 

 

	 	c)	 The total new ultimate face amount of insurance, including any contractual increases on that life in force with
all companies, including the Company, does not exceed the In Force Limits set out in Exhibit E; and 

  

	 	d)	 The application is on a life for which the current or any previous application had not been submitted by the
Company on a facultative basis to the Reinsurer or any other reinsurer within the last five years, unless the reason for the previous facultative submission was for exceeding Automatic Acceptance Limits or exceeding In Force Limits and no longer
applies; and 

  

	 	e)	 The Policy is not purchased as part of a premium financing program or third party investment program, unless
such programs have been approved in writing by the Reinsurer. 

 For purposes of this Article, “ultimate face
amount” will mean, to the best of the Company’s knowledge, the projected maximum face amount at the time of underwriting, including any contractual increases, that could be reached based on reasonable assumptions made about the policy.

 If the Company is already on the risk for its retention under previously issued policies, the Reinsurer will automatically accept
reinsurance for newly issued policies according to the limits set out in Exhibit E, provided the Company has complied with the business guidelines specified in Exhibit A-1 (hereinafter the “Business
Guidelines”) that would have applied if the new policy had been fully retained by the Company. 
  

	2.2	 Facultative Reinsurance Not applicable. 

 

	2.3	 Exclusions from Automatic Coverage 

Exclusions from automatic coverage under this Agreement shall follow the exclusions in the original policy or rider form. 

  

					
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 Article 3 
  

	3.1	 Automatic Submissions  

The Company will report Reinsured Policies ceded automatically to the Reinsurer according to the terms specified in Exhibit F. 

Upon request, the Company will provide the Reinsurer copies of the application, underwriting papers and other information pertaining to any
automatic cession under this Agreement. 
  

	3.2	 Facultative Submissions  

Not applicable. 

  

					
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 Article 4 
  

	4.1	 Commencement of Automatic Reinsurance Liability 

The Reinsurer’s liability for any Reinsured Policy accepted automatically will begin simultaneously with the Company’s contractual
liability for that policy. 
  

	4.2	 Commencement of Facultative Reinsurance Liability 

Not applicable. 
  

	4.3	 Conditional Receipt or Temporary Insurance Agreement Liability 

Not applicable. 

  

					
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 Article 5 
  

	5.1	 Premium Accounting 

The Company will pay the Reinsurer premiums in accordance with the terms specified in Exhibit C-1. 

The method and requirements for reporting and remitting premiums are specified in Exhibit F. 

 

	5.2	 Currency 

All payments due under this Agreement will be made in U.S. Dollars. 
  

	5.3	 Non-Payment of Premiums 

The payment of reinsurance premiums is a condition to the liability of the Reinsurer for reinsurance provided by this Agreement. If reinsurance
premiums are not paid within 60 days of the due date, the Reinsurer may terminate reinsurance for all Reinsured Policies having reinsurance premiums in arrears. If the Reinsurer elects to terminate any Reinsured Policies after such 60 day period, it
will then give the Company at least 45 days’ prior written notice, to be sent via overnight delivery from a major carrier (Federal Express, USPS, UPS, DHL, etc.) of its intention to terminate such reinsurance. If all reinsurance premiums in
arrears, including any which may become in arrears during such 45 day notice period, are not paid before the end of the notice period, the Reinsurer’s obligations for those Reinsured Policies will be limited to obligations relating to events
arising on or before the last date for which reinsurance premiums have been paid in full for each Reinsured Policy. 
 If reinsurance is
terminated according to this Article, the appropriate amount of benefit reserves to be held in respect of the reinsured amounts being terminated will be paid by the party with the positive balance, determined as of the effective date of termination,
based on U.S. generally accepted accounting principles (“GAAP”) consistent with FASB Accounting Standard Codification Topic 944, Financial Services–Insurance computed using the Reinsurer’s original pricing assumptions without
provision for adverse deviation, less any amount of unamortized deferred acquisition cost assets related thereto and excluding any provisions for adverse deviations or similar deficiency or special reserves net of outstanding balances. 

The Reinsurer’s right to terminate reinsurance will not prejudice its right to collect premiums, and applicable interest as specified in
Exhibit C, for the period reinsurance was in force, through and including the 45 day notice period. 
 The Company may not force termination
through the non-payment of reinsurance premiums to avoid the Agreement’s requirements or to transfer the Reinsured Policies to another party. 

  

					
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 Article 6 
  

	6.1	 Right of Offset 

The Company and the Reinsurer will have the right to offset any undisputed balances, whether on account of premiums, allowances, credits,
claims or otherwise due from one party to the other under this Agreement or under any other reinsurance agreement between the Company and the Reinsurer. 

The rights provided under this Article are in addition to any rights of offset that may exist at common law. The parties’ offset rights
may be enforced notwithstanding any other provision of this Agreement including, without limitation, the provisions of Article 11. 

  

					
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 Article 7 
  

	7.1	 Conversions 

Not applicable. 
  

	7.2	 Policy Changes 

“Policy changes” refers to the variety of actions that may be made to a policy after issue as long as a similar change is made on the
base life policy to which the covered riders, specified in Exhibit A. are attached. These actions include, but are not limited to, replacements, changes in plans, a change in the face amount of the policy or the addition of a covered rider. If there
is a change to the reinsurance on a Reinsured Policy, the Company will inform the Reinsurer in the subsequent Changes and Terminations Report specified in Exhibit F. 

Except as provided in this Article, whenever a Reinsured Policy is changed and the Company’s underwriting guidelines do not require that
full evidence of insurability be obtained, the reinsurance will remain in effect with the Reinsurer, whether the change is made before or after any cancellation of this Agreement for new business. The suicide and contestability periods applicable to
the original Reinsured Policy will apply to the reissued Reinsured Policy and the duration will be measured from the effective date of the original Reinsured Policy. 

Whenever a Reinsured Policy is changed and the Company’s underwriting guidelines require that full evidence of insurability be obtained,
and the suicide and contestability periods are based on the reissued policy date, the reinsurance will remain in effect with the Reinsurer only if the change is made before any cancellation of this Agreement for new business. 

Policy changes to Reinsured Policies will be subject to the Reinsurer’s prior written approval, if: 

 

	 	a)	 The new ultimate face amount of the policy, including any contractual increases, would be in excess of the
Automatic Acceptance Limit in effect at the time of the change, as set out in Exhibit E; or 

  

	 	b)	 The new ultimate face amount of the policy, including any contractual increases, and the amount already in
force in all companies on the same life exceeds the In Force Limits stated in Exhibit E; or 

  

	 	c)	 Evidence of insurability is not obtained if required in the Company’s underwriting guidelines.

 First year premium rates and allowances as specified in Exhibit C-1 will apply
to the amount underwritten for a non-contractual increase. 

  

					
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	7.3	 Reductions 

Unless specified otherwise in this Agreement, if the amount of a Reinsured Policy issued by the Company is reduced and: 

 

	 	a)	 The amount of reinsurance is on an excess basis, then the amount of reinsurance on that life will be reduced
effective the same date by the full amount of the reduction under the original Reinsured Policy. If the amount of insurance terminated equals or exceeds the amount of reinsurance, the full amount of reinsurance will be terminated; or

  

	 	b)	 The amount of reinsurance is on a quota share basis, then the amount of reinsurance on that Reinsured Policy
will be reduced effective the same date by the same proportion as the reduction under the original Reinsured Policy. 

 The
reduction will first apply to any reinsurance on the Reinsured Policy being reduced and then, if applicable, in chronological order according to policy date (“first in, first out”) to any reinsurance on other policies in force on the life.
However, the Company will not be required to assume a risk for an amount in excess of its regular retention for the age at issue and the mortality rating of the policy under which reinsurance is being terminated. 

If the reinsurance for a Reinsured Policy has been placed with more than one reinsurer, the reduction will be applied to all reinsurers pro
rata to the amounts originally reinsured with each reinsurer. 
 A reduction to one of the Company’s policies not reinsured hereunder
will require that the Company maintain its required retention as specified in Exhibit D of this Agreement. 
  

	7.4	 Lapses 

When a policy issued by the Company lapses, after the greater of the number of days for all state mandated grace periods and the number of days
for the Company’s administrative procedures for lapsing policy to take place, the corresponding reinsurance on the Reinsured Policy will be terminated effective the same date. Unless specified otherwise in this Agreement, if a policy fully
retained by the Company lapses, the terms of Article 7.3 will apply. Full retention shall be defined as specified in Exhibit D of this Agreement. 

If a policy issued by the Company lapses and extended term insurance is elected under the terms of that policy, the corresponding reinsurance
on the Reinsured Policy will continue on the same basis as the original Reinsured Policy until the expiry of the extended term period. 
 If
a policy issued by the Company lapses and reduced paid-up insurance is elected under the terms of that policy, the amount of the corresponding reinsurance on the Reinsured Policy will be reduced according to
the terms of Article 7.3. 
 If the Company allows the policy to remain in force under its automatic premium loan regulations, the
corresponding reinsurance on the Reinsured Policy will continue unchanged and in force as long as such regulations remain in effect, except as otherwise provided in this Agreement. 

  

					
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	7.5	 Reinstatements 

If a policy reinsured on an automatic basis is reinstated according to its terms and the Company’s reinstatement rules, the Reinsurer
will, upon notification, automatically reinstate the reinsurance. 
 To the extent the Reinsured Policy requires payment of premiums in
arrears, the Company will pay all reinsurance premiums in arrears on reinstated policies and such premiums will be subject to Article 16.8 and Exhibit F. 
  

	7.6	 Reinsurance Limits 

The Company will not submit a policy to the Reinsurer unless the amount of reinsurance on the policy equals or exceeds the Minimum Initial
Reinsurance Limit ceded to the Reinsurer as specified in Exhibit C. 
  

	7.7	 Backdating 

The Company will have the right to backdate policies up to six (6) months for the purpose of saving age. Such backdated policies will be
covered by this Agreement even if the backdated issue date precedes the effective date of this Agreement. 

  

					
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 Article 8 
  

	8.1	 Retention limit Change 

If the Company changes its retention limit (hereinafter “Retention Limit”), it will provide the Reinsurer with written notice of the
new Retention Limit at least 90 days prior to the effective date. Changes to the Company’s Retention Limits in Exhibit D will not affect the Reinsured Policies in force at the time of such a change except as specifically provided for elsewhere
in this Agreement, and will not affect the Automatic Acceptance Limits in Exhibit E unless mutually agreed in writing by the Company and the Reinsurer. 

If the Company decreases its Retention Limit, no reinsurance may be ceded on an automatic basis until the parties have reviewed and either
expressly affirmed or revised the terms specified in Exhibit C-1 and the Automatic Acceptance Limits set out in Exhibit E. 
  

	8.2	 Recapture 

Reinsured Policies will not be eligible for recapture, whether due to an increase in the Company’s retention or otherwise. The Reinsurer
will consider a request by the Company to recapture, but will agree to the request only if the Company and the Reinsurer agree upon recapture terms. 
  

	8.3	 Waiver of Premium Claims 

Not applicable. 

  

					
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 Article 9 
  

	9.1	 Claims Notice and Consultation 

The Company is responsible for the settlement of claims in accordance with applicable law and policy terms. It is the Company’s sole
decision to determine whether a claim is payable under the policy. For purposes of this Article, Reinsured Policies include conditional receipts and temporary insurance agreements covered under the terms of this Agreement. It is a condition to the
Reinsurer’s obligation to pay a claim that the Company notify the Reinsurer in writing as soon as possible, but in any event not later than 12 months after the Company receives notice of a claim on a Reinsured Policy. The Company will promptly
provide the Reinsurer with copies of all claims documents in its possession. 
 As a condition to the Reinsurer’s obligation to pay a
claim, before making a claim decision or settlement offer, the Company will seek the Reinsurer’s recommendation on such matters to the extent specified in Exhibit C-1. The Reinsurer will promptly make a
recommendation; failing such, the Company may settle the claim without further consultation. The terms of Exhibit C-1 notwithstanding, the Company may request a recommendation from the Reinsurer on any claim
on a Reinsured Policy. The Company will provide the Reinsurer all information in its possession, including underwriting files, reasonably requested by the Reinsurer for consideration of any claim on a Reinsured Policy. 

The Company, if notified, will notify the Reinsurer of deaths that do not trigger policy benefits. 

 

	9.2	 Claims Payment 

The Reinsurer will be liable to the Company for its share of the benefits owed under the express contractual terms of the Reinsured Policies
and as specified under the terms of this Agreement. The Reinsurer will not participate in any ex gratia payments made by the Company (i.e., payments the Company is not required to make under the Reinsured Policy terms.) The payment of death benefits
by the Reinsurer will be in one lump sum regardless of the mode of settlement under the Reinsured Policy. Benefit payments from the Reinsurer will be due within 30 days of the claim satisfying the requirements established under this Agreement. The
Reinsurer’s share of any interest payable under the terms of a Reinsured Policy or applicable law which is based on the death benefits paid by the Company, will be payable provided that the Reinsurer will not be liable for interest accruing on
or after the date of the Company’s payment of benefits. The Reinsurer’s share will be based upon the same interest rate and days used by the Company to calculate their interest paid. 

The Reinsurer will make payment to the Company for each such claim. 

  

					
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	9.3	 Claims Practices 

It is the Company’s sole decision to determine whether to investigate, contest, compromise or litigate a claim; however, the Company is
responsible for investigating, contesting, compromising or litigating Reinsured Policy claims in accordance with applicable law and policy terms. 

The Company acknowledges that it obtains certified death certificates for death claims, and follows industry standard and investigates claims
with any of the following criteria: 
  

	 	a)	 If the claim occurs within the contestable period as defined by the Reinsured Policy; or 

 

	 	b)	 If there is a reasonable question regarding the validity of the insured’s death or the authenticity of the
proofs of death; or 

  

	 	c)	 If the death occurs outside the United States or Canada; or 

 

	 	d)	 If the insured is missing or presumed dead; or 

 

	 	e)	 If there is a reasonable suspicion of fraud. 

A claim investigation generally includes confirming proof of death, medical records to validate the insured’s medical disclosures and, if
material, financial condition at the time of Policy application. Investigations may also include obtaining police reports, coroner’s reports, financial records, or other information that would be appropriate under the circumstances. 

The Company acknowledges that it does defend against claims meeting the following criteria: 

 

	 	f)	 If a material misrepresentation is found in the Policy application and the policy is within the contestable
period; or 

  

	 	g)	 If fraud is found and there is a legal remedy available; or 

 

	 	h)	 If there is insufficient proof of death. 

 

	9.4	 Contested Claims 

The Company will notify the Reinsurer promptly of its intention to investigate, contest, compromise, or litigate any claim involving a
Reinsured Policy (hereinafter a “Contested Claim”). The Company will provide the Reinsurer all relevant information and documents in its possession, as such become available, pertaining to Contested Claims and will promptly report any
developments during the Reinsurer’s review. If the Reinsurer: 
  

	 	a)	 Does not support the contest of the Claim, the Reinsurer will pay the Company its full share of the reinsurance
benefit, and will not share in any subsequent reduction or increase in liability or in any subsequent expenses incurred by the Company; or 

  

					
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	 	b)	 Supports the Company’s decision to contest the claim and the Contested Claim results in a reduction or
increase in liability, the Reinsurer will share in any reduction or increase in proportion to its share of the risk on the Contested Claim. 

If the Reinsurer supports the decision to contest the claim, the Company will promptly advise the Reinsurer of all significant developments it
has been made aware of, including notice of legal proceedings (including, but not limited to, consumer complaints or actions by governmental authorities) initiated in connection with the Contested Claim. 

If the Company returns premiums to the policy owner or beneficiary as a result of rescinding a policy, or if the Company pays a suicide
benefit, the Reinsurer will refund net reinsurance premiums received on that policy to the Company. 
  

	9.5	 Claims Expenses 

The Reinsurer will pay its share of reasonable investigation and legal expenses incurred in investigating, adjudicating or litigating a claim,
except as otherwise provided in this Agreement. The Reinsurer will not be liable for any routine investigative or administrative claim expenses (such as compensation of salaried employees) or for any expenses incurred in connection with conflicting
claims of entitlement to Reinsured Policy benefits that the Company admits are payable. 
  

	9.6	 Extra Contractual Obligations 

For purposes of this Agreement, “Extra Contractual Obligations” are any obligations or expenses other than contractual obligations
incurred by the Company, its affiliates, directors, officers, employees, agents or other representatives and arising under the express written terms and conditions of a policy, including but not limited to, punitive damages, bad faith damages,
compensatory damages, and other damages or fines or penalties which may arise from the acts, errors or omissions of the Company or its affiliates, directors, officers, employees, agents or other representatives. 

The Reinsurer is not liable for Extra Contractual Obligations associated with a contested claim unless it concurred in writing and in advance
with the claim actions which were the basis for the Extra Contractual Obligations or where the claim was contested based on Section 9.3 f, g or h. In these situations, the Company and the Reinsurer will share in Extra Contractual Obligations;
the Reinsurer’s assessments would be in proportion to the risk accepted for the Reinsured Policy involved. 
 The Reinsurer will not be
liable for any Extra Contractual Obligations resulting from the Company’s failure to implement the agreed upon course of action, such as the filing of timely pleadings or meeting court or statutory deadlines, etc. 

  

					
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	9.7	 Misstatement of Age or Sex  

In the event of a change in the amount payable under a Reinsured Policy due to a misstatement in age or sex, the Reinsurer’s liability
will change proportionately. The Reinsured Policy will be rewritten from commencement on the basis of the adjusted amounts using premiums and amounts at risk for the correct ages and sex, and the proper adjustment for the difference in reinsurance
premiums, without interest, will be made. 

  

					
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 Article 10 
  

	10.1	 Errors and Omissions in Administration of Reinsurance 

Any unintentional or accidental failure to comply with the terms of this Agreement which can be shown to be the result of an oversight,
administrative system error, or clerical error relating to the administration of reinsurance by either party will not constitute a breach of this Agreement. Upon discovery, the error will be promptly corrected so that both parties are restored to
the position they would have occupied had the oversight, administrative system error, or clerical error not occurred. In the event a payment is corrected, the party receiving the payment may charge interest, calculated according to the terms
specified in Exhibit C. Should it not be possible to restore both parties to this position, the party responsible for the oversight or clerical error will be responsible for any resulting liabilities and expenses. The Reinsurer will not be
responsible for deliberate acts of the Company or for recurring errors made by the Company. Both parties will use their best efforts to detect any oversight errors, administrative system errors, or clerical errors it believes are occurring, and will
promptly notify the other party of any such errors. 
 If the Company has failed to cede reinsurance as provided under this Agreement or has
failed to comply with reporting requirements with respect to business ceded hereunder, the Reinsurer may require the Company to audit its records for similar errors and take reasonable actions necessary to correct errors and avoid similar errors.
Failing prompt correction, the Reinsurer may limit its liability to the correctly reported Reinsured Policies. 
  

	10.2	 Dispute Resolution 

As a condition to the parties’ right to arbitration under this Agreement, either the Company or the Reinsurer will give written
notification to the other party of any dispute relating to or arising from this Agreement, including, but not limited to, the formation or breach thereof. Within 45 days of notification, both parties must designate an officer of their respective
companies to attempt to resolve the dispute. The officers will meet at a mutually agreeable location as soon as possible and as often as necessary to attempt to negotiate a resolution of the dispute. During the negotiation process, all reasonable
requests made for information concerning the dispute will be promptly honored. The format for discussions will be determined mutually by the officers. 

If these officers are unable to resolve the dispute within 30 days of their first meeting, the parties may agree in writing to extend the
negotiation period for an additional 30 days. If the matter is not resolved within 30 days of the first meeting or the additional 30 day period, if any, then either party may demand arbitration pursuant to Article 10.3. The discussions and all
information exchanged for the purposes of such discussions will be confidential and without prejudice. 
  

	10.3	 Arbitration 

Except with respect to disputes subject to the Expedited Dispute Resolution Process in Article 10.4, if the Company and Reinsurer are unable to
resolve any dispute arising from this Agreement, including but not limited to the formation or breach thereof, pursuant to Article 10.2, the matter will be referred to arbitration. 

  

					
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 The arbitration will be conducted in accordance with the Procedures for Resolution of U.S.
Insurance and Reinsurance Disputes, Neutral Panel Version, April 2004 (the “Procedures”) available at www.arbitrationtaskforce.org, except as modified herein. 

The arbitration will be held in New York City or another place as the parties may mutually agree. The arbitration will be conducted before a
three person Panel qualified as: 
  

	 	a)	 Current or former officers of life insurance or reinsurance companies, or 

 

	 	b)	 Professionals with no less than 10 years of experience in or serving the life insurance or reinsurance
industries. 

 The parties will select such candidates from the ARIAS-US Certified
Arbitrators List available at www.ARIAS-US.org. 
 The customs and practices of the life
insurance and reinsurance industries may be considered by the Panel to resolve any ambiguities in the Agreement but only insofar as such customs and practices are consistent with the terms of this Agreement. The Panel will not have the authority to
award punitive or exemplary damages. 
 The Panel will award the remedy sought by the party seeking relief to the extent the remedy is
provided for in this Agreement or otherwise reasonably compensates the damaged party for the economic effect of any demonstrated breach. Such remedies may include, but will not be limited to, monetary damages, revisions to the terms of the
Agreement, including adjustments to premiums or allowances paid or to be paid, or any combination of the foregoing. 
 The Panel shall issue
an order, appropriate for confirmation in a court of competent jurisdiction, to resolve all matters in dispute. In addition, the Panel shall issue a written opinion setting forth the reasons for the award, with citations to the record of the hearing
that support the reasoning. 
 The decision of the Panel will be final and binding upon the parties and their respective successors and
assigns. Each party hereby consents to the entry of a judgment confirming or enforcing the award in the United States District Court for the Southern District of New York and/or in any other court of competent jurisdiction. 

Within 20 days after the transmittal of an award, either party, upon notice to the other party, may request the Panel to correct any clerical,
typographical, or computational errors in the award. The other party will be given ten days to respond to the request. The Panel will dispose of the request within 20 days of its receipt of such request and any response thereto. The Panel will not
be empowered to re-determine the merits of any claim already decided. 
 Each party will: 

 

	 	c)	 Bear its own fees and expenses in connection with the arbitration, including the fees of any outside counsel
and witness fees, and 

  

	 	d)	 Share equally in the fees for the members of the Panel and the costs of the arbitration, such as hearing rooms,
court reporters, etc. 

  

					
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 It is the intent of the parties that these arbitration provisions replace and be in lieu of
any statutory arbitration provision, if permitted by law. 
  

	10.4	 Expedited Dispute Resolution Process 

The parties agree that the following types of issues and disputes will be subject to arbitration under the expedited procedures set forth in
this Article: 
  

	 	a)	 Any dispute regarding the obligations of the parties with respect to a single Reinsured Policy, regardless of
the amount in controversy; or 

  

	 	b)	 Any dispute in which the amount in controversy, exclusive of interest or costs, is less than $1 million.

 Arbitration proceedings under this Article will be commenced as specified in Article 10.3, and shall be subject to the
requirements of Article 10.3 to the extent they are not inconsistent with this Article. 
 The proceedings will be held before a single
neutral umpire meeting the qualifications set forth in Article 10.3. If the parties are unable to agree on an umpire within 30 days following commencement of the action, the selection will be made pursuant to the Umpire Selection Procedure of the ARIAS-US Certified Arbitrators List available at www.ARIAS-US.org. No ex parte communication will be permitted with the umpire at any time prior to the conclusion of
the proceedings. 
 Within 21 days from the date the selection of the umpire is agreed upon, the parties and umpire will conduct an
organizational meeting by teleconference to familiarize the umpire with the dispute and to set a timetable for submission of briefs. There will be no discovery, and the dispute will be submitted on briefs and documentary evidence only, unless
otherwise agreed by the parties or ordered by the umpire for good cause. 
 Within 30 days of submission of briefs by the parties, the umpire
will render a written award which will be final and binding on the parties. 

  

					
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 Article 11 
  

	11.1	 Insolvency 

A party to this Agreement will be deemed “insolvent” when it: 

 

	 	a)	 Applies for or consents to the appointment of a receiver, rehabilitator, conservator, liquidator or statutory
successor (hereinafter referred to as the Authorized Representative) of its properties or assets; or 

  

	 	b)	 Is adjudicated as bankrupt or insolvent; or 

 

	 	c)	 Files or consents to the filing of a petition in bankruptcy, seeks reorganization or an arrangement with
creditors or takes advantage of any bankruptcy, dissolution, liquidation, rehabilitation, conservation or similar law or statute; or 

  

	 	d)	 Becomes the subject of an order to rehabilitate or an order to liquidate as defined by the insurance code of
the jurisdiction of the party’s domicile. 

 In the event of the insolvency of the Company, all reinsurance ceded,
renewed or otherwise becoming effective under this Agreement will be payable by the Reinsurer directly to the Company or to its Authorized Representative on the basis of the liability of the Company for benefits under the Reinsured Policies without
diminution because of the insolvency of the Company. 
 The Reinsurer will be liable only for benefits reinsured as benefits become due under
the terms of the Reinsured Policies and will not be or become liable for any amounts or reserves to be held by the Company as to the Reinsured Policies or for any damages or payments resulting from the termination or restructure of the Policies that
are not otherwise expressly covered by this Agreement. The Company or its Authorized Representative will give written notice to the Reinsurer of all pending claims against the Company on any Reinsured Policies within a reasonable time after filing
in the insolvency proceedings. While a claim is pending, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceedings where the claim is to be adjudicated, any defense or defenses which it may deem available to the
Company or its Authorized Representative. 
 The expense incurred by the Reinsurer will be chargeable, subject to court approval, against the
Company as part of the expense of its insolvency proceedings to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. Where two or more reinsurers are
involved in the same claim and a majority in interest elect to interpose a defense to such claim, the expense will be apportioned in accordance with the terms of the Agreement as though such expense had been incurred by the Company. 

In the event of the insolvency of the Reinsurer, the Company may cancel this Agreement for new business by promptly providing the Reinsurer or
its Authorized Representative with written notice of cancellation, to be effective as of the date on which the Reinsurer’s insolvency is established by the authority responsible for such determination, as long as written notice is provided by
the Reinsurer within 90 days of the action resulting in the insolvency or Reinsurer. 

  

					
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 In addition, in the event of the insolvency of the Reinsurer, the Company may provide the
Reinsurer or its Authorized Representative with written notice of its intent to recapture all reinsurance in force under this Agreement regardless of the duration the reinsurance has been in force or the amount retained by the Company on the
Reinsured Policies. The effective date of a recapture due to insolvency will be at the election of the Company but may not be earlier than the date on which the Reinsurer’s insolvency is established by the authority responsible for such
determination. If the Company elects to recapture reinsurance under this Article, the appropriate amount of benefit reserves to be held in respect of the reinsured amounts being recaptured will be paid by the party with the positive balance,
determined as of the effective date of the recapture, based on U.S. generally accepted accounting principles (“GAAP”) consistent with FASB Accounting Standard Codification Topic 944, Financial Services – Insurance computed using the
Reinsurer’s original pricing assumptions without provision for adverse deviation, less any amount of unamortized deferred acquisition cost assets related thereto and excluding any provisions for adverse deviations or similar deficiency or
special reserves, net of outstanding balances. 
 In the event of the insolvency of either party, the rights or remedies of this Agreement
will remain in full force and effect. 

  

					
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 Article 12 
  

	12.1	 DAC Tax Election (If applicable to the Company) 

The Company and the Reinsurer agree to the election pursuant to Section 1.848-2(g)(8) of the
Income Tax Regulations effective December 29, 1992, under Section 848 of the Internal Revenue Code of 1986, as amended (such election being referred to as the “DAC Tax Election”), whereby: 

 

	 	a)	 The party with the net positive consideration for this Agreement for each taxable year will capitalize
specified policy acquisition expenses with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code of 1986, as amended (the “Code”); 

 

	 	b)	 The parties agree to exchange information pertaining to the amount of net consideration under this Agreement
each year to ensure consistency. If requested, the Company will provide supporting information reasonably requested by the Reinsurer. (The term “net consideration” means “net consideration” as defined in Regulation Section 1.848-2(f)); 

  

	 	c)	 This DAC Tax Election will be effective for the first taxable year in which this Agreement is effective and for
all years for which this Agreement remains in effect. 

 The Company and the Reinsurer will each attach a schedule to their
respective federal income tax returns filed for the first taxable year for which this DAC Tax Election is effective. Such schedule will identify the Agreement as a reinsurance agreement for which the DAC Tax Election under Regulation Section 1.848-2(g)(8) has been made. 
 The Company and the Reinsurer represent and warrant that each
is respectively subject to U.S. taxation under either the provisions of subchapter L of Chapter 1 or the provisions of subpart F of subchapter N of Chapter 1 of the Code. 
  

	12.2	 Taxes and Expenses 

No taxes, allowances, or expense will be paid by the Reinsurer to the Company for any Reinsured Policy, except as specifically referred to in
this Agreement. 

  

					
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 Article 13 
  

	13.1	 Entire Agreement 

This Agreement and the Exhibits hereto constitute the entire agreement between the parties with respect to the business reinsured hereunder and
supersede any and all prior representations, warranties, prior agreements or understandings between the parties pertaining to the subject matter of this Agreement. There are no understandings between the parties other than as expressed in this
Agreement and the Exhibits hereto. In the event of any express conflict between the Agreement and the Exhibits hereto, the Exhibits hereto will control. 

Any change or modification to this Agreement and the Exhibits hereto will be null and void unless made by written amendment and signed by both
parties. 
  

	13.2	 Inspection of Records 

The Reinsurer or its duly appointed representatives will have access to records of the Company, whether written or electronic, and including
system view access, concerning the business reinsured hereunder for the purpose of inspecting, auditing and photocopying those records. Such access will be provided at the office of the Company and will be during reasonable business hours. Assuming
the Reinsurer has continued to perform the undisputed portion of its obligations under this Agreement, the Company may not withhold access to information and records on the grounds that the Reinsurer is in breach. The Reinsurer will pay all costs
(such salaries of Reinsurer’s employees, costs of any consultants Reinsurer uses, travel costs for any individuals Reinsurer involves, etc.) of any audits it undertakes. 

The Reinsurer’s right of access as specified above will survive until all of the Reinsurer’s obligations under this Agreement have
terminated or been fully discharged. 
  

	13.3	 Utmost Good Faith 

All matters with respect to this Agreement require the utmost good faith of each of the parties. 

 

	13.4	 Confidentiality 

The parties will keep confidential and not disclose or make competitive use of any shared Proprietary Information, as defined below, unless:

  

	 	a)	 The information becomes publicly available or is obtained other than through unauthorized disclosure by the
party seeking to disclose or use such information; 

  

	 	b)	 The information is independently developed by the recipient; 

 

	 	c)	 The disclosure is required for the purpose of any reinsurance, retrocession, securitization, or structured,
asset-backed or asset-based financing; or 

  

	 	d)	 The disclosure is required by law. 

  

					
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 “Proprietary Information” includes, but is not limited to, underwriting manuals
and guidelines, applications, contract forms, and premium rates and allowances of the Reinsurer and the Company, but shall not include the existence of this Agreement and the identity of the parties. Nothing herein shall preclude either party from
using Proprietary Information for ordinary business operations or developing pricing models and actuarial analyses. Additionally, Proprietary Information may be shared by either party on a need-to-know basis with its employees, affiliates, third party service providers, auditors, consultants or retrocessionaires, or in connection with the dispute process specified in this Agreement. 

In addition, the Reinsurer and its representatives and service providers will protect the confidentiality and security of Non-Public Personal Information, as defined below, by: 
  

	 	e)	 Holding all Non-Public Personal Information in strict confidence;

  

	 	f)	 Maintaining appropriate measures that are designed to protect the security, integrity and confidentiality of Non-Public Personal Information; 

  

	 	g)	 Disclosing and using Non-Public Personal Information received under
this Agreement for purposes of carrying out the Reinsurer’s obligations under this Agreement, for purposes of retrocession, or as may be required or permitted by law. 

“Non-Public Personal Information” is personally identifiable medical, financial, and other
personal information about proposed, current and former applicants, policy owners, contract holders, insureds, annuitants, claimants, and beneficiaries of Reinsured Policies or contracts issued by the Company, and their representatives, that is not
publicly available. Non-Public Personal Information does not include de-identified personal data, i.e., information that does not identify, or could not reasonably be
associated with, an individual. 
 The Company will obtain, as required by law, appropriate consents from its insureds to enable the parties
to fully exercise their rights and perform their obligations under this Agreement. 
  

	13.5	 OFAC Compliance 

The parties represent that they are using, and shall use, best efforts to continue to be in compliance with all laws, regulations, judicial and
administrative orders applicable to the Reinsured Policies as they pertain to the sanction laws administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), as such laws may be amended from time to time
(collectively the “Laws”). Neither party shall be required to take any action under this Agreement that would violate said Laws, including, but not limited to, making any payments in violation of the Laws. 

Should either party discover or otherwise become aware that a reinsurance transaction has been entered into or a payment has been made in
violation of the Laws, the party who first becomes aware of the violation of the Laws shall notify the other party, and the parties shall cooperate in order to take all necessary corrective actions. 

  

					
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 The parties agree that such reinsurance transaction shall be null, void and of no effect from its inception,
to the same extent as if the reinsurance transaction had never been entered into. In such event, each party shall be restored to the position it would have occupied if the violation had not occurred, including the return of any payments received,
unless prohibited by law. 

  

					
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 Article 14 
  

	14.1	 Representations and Warranties 

The Company makes no representations and warranties as to the future experience or profitability arising from the Reinsured Policies. 

Each party represents and warrants that as of the Effective Date of this Agreement and at the time of executing this Agreement, if later, it is
solvent on a statutory basis in all states in which it does business or is licensed. 
 “Material” or “materially” for
purposes of Articles 14 and 15 will mean facts that a prudent reinsurer or insurer would consider as reasonably likely to affect the Reinsurer’s experience under the Agreement. Prior to the execution of this Agreement, the Company has provided
to the Reinsurer the Business Guidelines for use in its assessment of the risks covered hereunder. The Company represents and warrants that, to the best of its knowledge: 
  

	 	a)	 It has disclosed to the Reinsurer all information which is material to the risks being assumed hereunder; and

  

	 	b)	 The Business Guidelines were complete and accurate when disclosed; and 

 

	 	c)	 There has been no material change in the Business Guidelines between the “as of” dates of the
information and the date of Agreement execution. 

 This Article will not terminate or expire until all Reinsured Policies
have been discharged or terminated in full. 

  

					
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 Article 15 
  

	15.1	 Business Continuity 

All Reinsured Policies will be issued and administered in accordance with the Business Guidelines. The Company will notify the Reinsurer of any
change that materially affects the reinsured business, including changes to the Business Guidelines. This Agreement will not cover policies affected by such changes unless the Reinsurer has agreed in writing and in advance with the changes.
Outsourcing of underwriting functions, administrative functions or claims administration with respect to the Reinsured Policies will constitute a material change. If the Reinsurer agrees to accept policies affected by the outsourcing, the Company
will secure the Reinsurer’s right to audit and inspect the party performing such outsourced services. 
 If Reinsured Policies are not
covered due to an unapproved material change, all payments between the Company and the Reinsurer with respect to the affected Policies shall be refunded, excluding items relating to reserves or interest on reserves. No liability shall remain with
the Reinsurer with respect to such Policies. 

  

					
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 Article 16 
  

	16.1	 Duration of Agreement 

This Agreement is unlimited as to its duration. 

The Reinsurer or the Company may terminate this Agreement or any plan listed in Exhibit A with respect to the reinsurance of new business by
giving at least 60 days’ written notice of termination to the other party or pursuant to Article 15.1 or Article 17.1 of this Agreement. During the 60 day notification period, the Company will continue to cede and the Reinsurer will continue to
accept policies covered under the terms of this Agreement. 
 In the event the Company terminates the Agreement with respect to new business
within three (3) years after February 21, 2014, the Company will pay the Reinsurer a fee based on the following schedule: 
  

					
	 Termination Within:
	  	Fee	 
	 First twelve months
	  	$	100,000	 
	 Months thirteen through twenty-four
	  	$	50,000	 
	 Months twenty-five through thirty-six
	  	$	25,000	 

 Any fee owed to the Reinsurer under this Article 16.1 will be due on the effective date of termination for new
business. 
 In exchange for product development support provided, the Reinsurer will have a three (3) year exclusive to reinsure the
plans specified in Exhibit A or any plans replacing the same by the Company or an affiliate. If the Reinsurer exercises any contractual rights that have a material impact on new business terms within three (3) years after February 21,
2014, the fee schedule above and the three (3) year reinsurance exclusivity period will no longer be in effect. 
 In the event that the
Company pays the Reinsurer a fee as described above, the three (3) year reinsurance exclusive will no longer apply. 
 The Reinsurer
remains liable for all Reinsured Policies in force as of the date of the termination, until their natural expiration, unless the parties mutually decide otherwise or as specified otherwise in this Agreement. All provisions of this Agreement will
survive its termination to the extent necessary to carry out its purpose. 
  

	16.2	 Severability 

Determination that any provision of this Agreement is invalid or unenforceable will not affect or impair the validity or the enforceability of
the remaining provisions of this Agreement. 

  

					
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	16.3	 Construction 

This Agreement will be construed and administered without regard to authorship and without any presumption or rule of construction in favor of
either party. This Agreement is between sophisticated parties, each of which has reviewed the Agreement and is fully knowledgeable about its terms and conditions. 
  

	16.4	 Credit for Reinsurance 

The parties intend that the Company will receive statutory reserve credit in its state of domicile for reinsurance provided under this
Agreement. The parties agree to use reasonable efforts to ensure that such reserve credit will remain available to the Company. 
  

	16.5	 Non-Waiver 

A waiver by either party of any violation, or the default by the other party in its adherence to any term of this Agreement, will not
constitute a waiver of any other or subsequent violation or default. No prior transaction or dealing between the parties will establish any custom, usage or precedent waiving or modifying any provision of the Agreement. The failure of either party
to enforce any part of this Agreement will not constitute a waiver of any right to do so. 
  

	16.6	 Retrocession 

The Reinsurer may reinsure or retrocede any risks or business assumed hereunder. 

 

	16.7	 Governing Law 

This Agreement shall be governed by the laws of the State of Illinois. 

 

	16.8	 Interest 

Each party reserves the right to charge interest on undisputed overdue balances, pursuant to the terms of this Agreement. If applicable,
interest will be calculated according to the terms specified in Exhibit C. 
  

	16.9	 Counterparts 

This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one Agreement, and any of the
parties hereto may execute this Agreement by signing any such counterpart. When this Agreement has been fully executed by the Company and the Reinsurer, it will become effective as of the Effective Date specified in Exhibit A. 

  

					
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 Article 17 
  

	17.1	 Financial Conditions 

If the Company’s surplus falls below 300% of the authorized control level, as such RBC control level is defined at inception of this
Agreement, or the Company’s statutory capital and surplus falls below $100,000,000, then the following actions will occur: 
  

	 	a)	 The Reinsurer’s right to terminate this Agreement for new business will be reduced from sixty
(60) days to thirty (30) days. 

  

	 	b)	 For new business written after the trigger event, the allowance structure will move to that outlined in Exhibit
C-1, Section 14.c, Reinsurance Allowance Structure. 

 The Company agrees to
notify the Reinsurer within fifteen (15) business days of the occurrence of a triggering event. In addition, the Company agrees to provide quarterly estimates of RBC control level and statutory capital and surplus levels. 

  

					
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 Execution 

This Agreement has been made in duplicate and hereby executed by both parties. 

Signed for and on behalf of Fidelity Life Association, A Legal Reserve Life Insurance Company  

 

									
	By:	 	/s/ Jim Harkensee	 		 	By:	 	/s/ Chris Kim
					
	Title:	 	President & COO	 		 	Title:	 	CAO
					
	Date:	 	6/16/2014	 		 	Date:	 	6/16/2014

 Signed for and on behalf of Swiss Re Life & Health America Inc.  

 

									
	By:	 	UNDICIPHERABLE	 		 	By:	 	UNDICIPHERABLE
					
	Title:	 	SVP	 		 	Title:	 	VP
					
	Date:	 	5/30/2014	 		 	Date:	 	5/30/2014

  

					
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 Exhibit A 

Business Covered 
 Agreement Effective Date: 

February 21, 2014. The commencement dates for specific plans are shown below. 

Coverage: 
 The policies and riders on the plans shown
below which have policy issue dates falling in the period that begins with the Commencement Date and ends with the Termination Date and that qualify for automatic reinsurance are covered according to the Basis specified below, provided that the
policies are issued to citizens of the United States or legal permanent residents thereof. 
 Basis: 

 

	1.	 80% on a First Dollar Quota Share basis (100% of the total reinsurance) to the maximum Automatic Acceptance
Limits stated in Exhibit E, applicable to policies on lives with surnames commencing with the letters A to Z inclusive. 

Company’s State of Domicile: Illinois 
 Plans,
Riders and Benefits: 
  

											
	 Plan
 Identification
	  	 Exhibit Reference

for Rates
	  	Basis No.	  	 Commencement

Date
	  	 Termination

Date
	 
	 Simplified Issue Final Expense Whole Life to Age 121 (Level Death Benefit)
	  	C-1	  	1.	  	February 21, 2014	  			
	 Accelerated Death Benefit Rider (Terminal Illness)
	  	C-1	  	1.	  	February 21, 2014	  			
	 Guaranteed Issue Graded Benefit Whole Life to Age 121
	  	C-1	  	1.	  	February 21, 2014	  			
	 Accelerated Death Benefit Rider (Terminal Illness)
	  	C-1	  	1.	  	February 21, 2014	  			

  

					
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 Exhibit A-1 

Business Guidelines 
 The Company affirms that the
following have been supplied to the Reinsurer and are in use as of the effective date of this Agreement: 
  

	1.	 Policy Form(s) 

F3010 Accelerated Death Benefit Rider.pdf 

FLA Policy Form – Final Expense (ICC13 F3300).pdf 

FLA Policy Form – Guar Issue GDB (ICC12-F3200-02).pdf 

 

	2.	 Policy Application Form(s) 

FLA_ICC13-F1008E_2013-11-20_2.docx (Final Expense-only App for
the Compact) 
 New Universal Application (SRE only) 20131120.docx (Common App) 

 

	3.	 Premium Rates 

Final Expense Premiums - Second Cut 2013-07-03.xlsx 

GDB Premiums - Second Cut 2013-10-01.xlsx 

FLA_SIFE_AdminFactors_CSV.xls 

FLA_Gl_GDB_AdminFactors_CSV.xls 
  

	4.	 Underwriting Guidelines/Rules 

RD Sr Life UW Guidelines August 2013.doc 

Build Chart - RDSL.docx 

  

					
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 Exhibit B 

Reinsurance Application 
 Not applicable. 

  

					
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 Exhibit C 

General Terms 
  

	1.	 Premium Tax: 

The Reinsurer will not reimburse the Company for premium taxes. 
  

	2.	 Dividend Payments: 

The Reinsurer will not reimburse the Company for dividends paid to policyholders. 

 

	3.	 Policy Loans: The Reinsurer will not participate in policy loans or other forms of indebtedness as
respects the Reinsured Policies. 

  

	4.	 Cash Surrender Values: 

The Reinsurer will reimburse the Company for the Reinsurer’s proportionate share of cash surrender values paid to the policyholder. 

 

	5.	 Reinsurance Limits: 

Minimum Initial Reinsurance Limit ceded to the Reinsurer: $0 

Minimum Final Reinsurance Limit ceded to the Reinsurer: $0 
  

	6.	 Interest Calculation on late Payments: Interest will accrue from the due date at a rate equal to
the Three Month London Interbank Offering Rate (LIBOR) as published in the Wall Street Journal (or if not available, a comparable publication) on the due date or, if the due date is not a business day, on the next business day after the due date,
plus 50 basis points per annum to be compounded and adjusted every three months after such due date. 

  

	7.	 Rates Applicable to Increases: Non-contractual increases which
are underwritten consistently with the Business Guidelines and have the same sales compensation paid as a new issue will be reinsured as a new issue. First year reinsurance premium rates and allowances will apply. 

  

					
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 Exhibit C-1 

Rates and Terms for Simplified Issue Final Expense Whole Life to Age 121 (Level Death Benefit) and Guaranteed Issue Graded Benefit Whole Life to Age 121

  

	1.	 Reinsurance Structure: Coinsurance 

 

	2.	 Age Basis: Age Last Birthday 

 

	3.	 Premium Mode: Reinsurance premium mode will follow the premium mode of the underlying policy, with the
Reinsurer collecting its proportionate share of policy fees and modal loads. 

  

	4.	 Billing Frequency: Monthly 

 

	5.	 Premiums: 

Basic Premiums: 
 The
Company will pay to the Reinsurer a basic premium calculated by multiplying the net amount at risk of the Reinsured Policy, as defined in the Net Amounts At Risk provision of this Exhibit, by the appropriate rate from the set of rates included at
the end of this Exhibit, subject to the allowances shown below. The Company will continue to pay the appropriate premium to the Reinsurer as long as the Reinsured Policy is in force. 

The Reinsurer will pay the following allowances to the Company on the premiums payable hereunder: 

Simplified Issue Final Expense Whole Life to Age 121 (Level Death Benefit): 

 

					
	 Issue Age
	  	First Year	 	Durations 2+
	50 – 85	  	140%	 	23%

 Guaranteed Issue Graded Benefit Whole Life to Age 121: 

 

					
	 Issue Age
	  	First Year	 	Durations 2+
	50 – 79	  	110%	 	9%
	80 – 85	  	110%	 	5%

 Table Extra Premiums/Multiple Extra Premiums: 

Not applicable. 
 Supplementary
Rider(s): 
 The Terminal Illness Rider specified in Exhibit A will be reinsured at no additional cost to the Company. 

  

					
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 Exhibit C-1 

Page 2 
  

	6.	 Other Allowances: 

On Multiple Extra Premiums: Not applicable 

On Supplementary Riders: Not applicable 

On Flat Extra Premiums: Not applicable. 
  

	7.	 Policy Fee: 

The Company will pay the Reinsurer its share of the annual policy fee, subject to the same allowances applicable to that basic Reinsured
Policy. 
  

	8.	 Reinsured Net Amounts At Risk: 

The net amount at risk will be based on the policy face amount, as shown in the policy. 

 

	9.	 Rate Basis: 

The rates in this subsection are on a non-participating basis. 

 

	10.	 Rate Guarantee: The Company’s direct premiums are fully guaranteed for the life of the policy.
Likewise, the reinsurance allowances set out in this Exhibit are guaranteed for the life of the policy. 

  

	11.	 Minimum Recapture Period: 

Recapture not available. 
  

	12.	 YRT Rates for Conversions: 

Not applicable. 
  

	13.	 Conditions Requiring Claims Consultation: Before conceding liability or making settlement to the
claimant, the Company will seek the Reinsurer’s recommendation if: 

  

	 	a)	 The claim occurs during the contestable period and the Company is not contesting the claim; or

  

	 	b)	 The death occurs outside of the United States or Canada; or 

 

	 	c)	 The claim is one for which there is no body, i.e. the insured is missing and presumed dead.

  

					
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 Exhibit C-1 

Page 3 
  

	14.	 Special Conditions: 

 

	 	a)	 Volume Limitations: This Agreement has been approved for new business issued from February 21, 2014
forward, subject to a volume cap on new business issues of $200,000,000 in any calendar year. If new business issues reach this limit, then all additional new business will move to the Reinsurance Allowance Structure described in Section 14.c
below. 

  

	 	b)	 Administration: The Company and the Reinsurer agree to exercise best efforts to get reinsurance
administration fully implemented prior to June 30, 2014. If reinsurance administration is not in place by September 30, 2014, all future reinsurance will move to the Reinsurance Allowance Structure described in Section 14.c below.

  

	 	c)	 Reinsurance Allowance Structure: If any of the conditions described in 

 

	 	i)	 Article 17.1, Financial Conditions, or 

 

	 	ii)	 Exhibit C-1, Section 14.a, Volume Limitations, or

  

	 	iii)	 Exhibit C-1, Section 14.b, Administration 

are met, the following Reinsurance Allowance Structure will be used: 

Simplified Issue Final Expense Whole life to Age 121 (Level Death Benefit): 

 

					
	 Issue Age
	  	First Year	 	Durations 2+
	50 – 85	  	100%	 	30%

 Guaranteed Issue Graded Benefit Whole Life to Age 121: 

 

					
	 issue Age
	  	First Year	 	Durations 2+
	50 – 79	  	100%	 	11%
	80 – 85	  	100%	 	7%

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 FLA Pricing Results - Final Expense Premiums 

6/27/2013 
  

															
	 Key
	  	Gender	  	Class	  	Band	  	Term	  	Age	  	Prem Rate	 
	 M_StdNT_0_WL_50
	  	M	  	StdNT	  	0	  	WL	  	50	  	 	38.68	 
	 M_StdNT_0_WL_51
	  	M	  	StdNT	  	0	  	WL	  	51	  	 	40.29	 
	 M_StdNT_0_WL_52
	  	M	  	StdNT	  	0	  	WL	  	52	  	 	41.90	 
	 M_StdNT_0_WL_53
	  	M	  	StdNT	  	0	  	WL	  	53	  	 	43.51	 
	 M_StdNT_0_WL_54
	  	M	  	StdNT	  	0	  	WL	  	54	  	 	45.11	 
	 M_StdNT_0_WL_55
	  	M	  	StdNT	  	0	  	WL	  	55	  	 	46.72	 
	 M_StdNT_0_WL_56
	  	M	  	StdNT	  	0	  	WL	  	56	  	 	48.33	 
	 M_StdNT_0_WL_57
	  	M	  	StdNT	  	0	  	WL	  	57	  	 	49.94	 
	 M_StdNT_0_WL_58
	  	M	  	StdNT	  	0	  	WL	  	58	  	 	51.55	 
	 M_StdNT_0_WL_59
	  	M	  	StdNT	  	0	  	WL	  	59	  	 	53.16	 
	 M_StdNT_0_WL_60
	  	M	  	StdNT	  	0	  	WL	  	60	  	 	54.77	 
	 M_StdNT_0_WL_61
	  	M	  	StdNT	  	0	  	WL	  	61	  	 	57.07	 
	 M_StdNT_0_WL_62
	  	M	  	StdNT	  	0	  	WL	  	62	  	 	59.37	 
	 M_StdNT_0_WL_63
	  	M	  	StdNT	  	0	  	WL	  	63	  	 	61.67	 
	 M_StdNT_0_WL_64
	  	M	  	StdNT	  	0	  	WL	  	64	  	 	63.97	 
	 M_StdNT_0_WL_65
	  	M	  	StdNT	  	0	  	WL	  	65	  	 	66.26	 
	 M_StdNT_0_WL_66
	  	M	  	StdNT	  	0	  	WL	  	66	  	 	69.83	 
	 M_StdNT_0_WL_67
	  	M	  	StdNT	  	0	  	WL	  	67	  	 	73.39	 
	 M_StdNT_0_WL_68
	  	M	  	StdNT	  	0	  	WL	  	68	  	 	76.95	 
	 M_StdNT_0_WL_69
	  	M	  	StdNT	  	0	  	WL	  	69	  	 	80.52	 
	 M_StdNT_0_WL_70
	  	M	  	StdNT	  	0	  	WL	  	70	  	 	84.08	 
	 M_StdNT_0_WL_71
	  	M	  	StdNT	  	0	  	WL	  	71	  	 	90.40	 
	 M_StdNT_0_WL_72
	  	M	  	StdNT	  	0	  	WL	  	72	  	 	96.72	 
	 M_StdNT_0_WL_73
	  	M	  	StdNT	  	0	  	WL	  	73	  	 	103.05	 
	 M_StdNT_0_WL_74
	  	M	  	StdNT	  	0	  	WL	  	74	  	 	109.37	 
	 M_StdNT_0_WL_75
	  	M	  	StdNT	  	0	  	WL	  	75	  	 	115.69	 
	 M_StdNT_0_WL_76
	  	M	  	StdNT	  	0	  	WL	  	76	  	 	125.34	 
	 M_StdNT_0_WL_77
	  	M	  	StdNT	  	0	  	WL	  	77	  	 	135.00	 
	 M_StdNT_0_WL_78
	  	M	  	StdNT	  	0	  	WL	  	78	  	 	144.66	 
	 M_StdNT_0_WL_79
	  	M	  	StdNT	  	0	  	WL	  	79	  	 	154.31	 
	 M_StdNT_0_WL_80
	  	M	  	StdNT	  	0	  	WL	  	80	  	 	163.97	 
	 M_StdNT_0_WL_81
	  	M	  	StdNT	  	0	  	WL	  	81	  	 	178.45	 
	 M_StdNT_0_WL_82
	  	M	  	StdNT	  	0	  	WL	  	82	  	 	192.93	 
	 M_StdNT_0_WL_83
	  	M	  	StdNT	  	0	  	WL	  	83	  	 	207.41	 
	 M_StdNT_0_WL_84
	  	M	  	StdNT	  	0	  	WL	  	84	  	 	221.90	 
	 M_StdNT_0_WL_85
	  	M	  	StdNT	  	0	  	WL	  	85	  	 	236.38	 
	 M_StdT_0_WL_50
	  	M	  	StdT	  	0	  	WL	  	50	  	 	52.52	 
	 M_StdT_0_WL_51
	  	M	  	StdT	  	0	  	WL	  	51	  	 	54.86	 
	 M_StdT_0_WL_52
	  	M	  	StdT	  	0	  	WL	  	52	  	 	57.20	 
	 M_StdT_0_WL_53
	  	M	  	StdT	  	0	  	WL	  	53	  	 	59.54	 

															
	 Key
	  	Gender	  	Class	  	Band	  	Term	  	Age	  	Prem Rate	 
	 M_StdT_0_WL_54
	  	M	  	StdT	  	0	  	WL	  	54	  	 	61.88	 
	 M_StdT_0_WL_55
	  	M	  	StdT	  	0	  	WL	  	55	  	 	64.22	 
	 M_StdT_0_WL_56
	  	M	  	StdT	  	0	  	WL	  	56	  	 	66.56	 
	 M_StdT_0_WL_57
	  	M	  	StdT	  	0	  	WL	  	57	  	 	68.90	 
	 M_StdT_0_WL_58
	  	M	  	StdT	  	0	  	WL	  	58	  	 	71.37	 
	 M_StdT_0_WL_59
	  	M	  	StdT	  	0	  	WL	  	59	  	 	73.84	 
	 M_StdT_0_WL_60
	  	M	  	StdT	  	0	  	WL	  	60	  	 	76.31	 
	 M_StdT_0_WL_61
	  	M	  	StdT	  	0	  	WL	  	61	  	 	80.16	 
	 M_StdT_0_WL_62
	  	M	  	StdT	  	0	  	WL	  	62	  	 	84.02	 
	 M_StdT_0_WL_63
	  	M	  	StdT	  	0	  	WL	  	63	  	 	87.87	 
	 M_StdT_0_WL_64
	  	M	  	StdT	  	0	  	WL	  	64	  	 	91.72	 
	 M_StdT_0_WL_65
	  	M	  	StdT	  	0	  	WL	  	65	  	 	95.57	 
	 M_StdT_0_WL_66
	  	M	  	StdT	  	0	  	WL	  	66	  	 	100.52	 
	 M_StdT_0_WL_67
	  	M	  	StdT	  	0	  	WL	  	67	  	 	105.46	 
	 M_StdT_0_WL_68
	  	M	  	StdT	  	0	  	WL	  	68	  	 	110.40	 
	 M_StdT_0_WL_69
	  	M	  	StdT	  	0	  	WL	  	69	  	 	115.34	 
	 M_StdT_0_WL_70
	  	M	  	StdT	  	0	  	WL	  	70	  	 	120.29	 
	 M_StdT_0_WL_71
	  	M	  	StdT	  	0	  	WL	  	71	  	 	129.71	 
	 M_StdT_0_WL_72
	  	M	  	StdT	  	0	  	WL	  	72	  	 	139.14	 
	 M_StdT_0_WL_73
	  	M	  	StdT	  	0	  	WL	  	73	  	 	148.56	 
	 M_StdT_0_WL_74
	  	M	  	StdT	  	0	  	WL	  	74	  	 	157.99	 
	 M_StdT_0_WL_75
	  	M	  	StdT	  	0	  	WL	  	75	  	 	167.41	 
	 M_StdT_0_WL_76
	  	M	  	StdT	  	0	  	WL	  	76	  	 	177.76	 
	 M_StdT_0_WL_77
	  	M	  	StdT	  	0	  	WL	  	77	  	 	188.10	 
	 M_StdT_0_WL_78
	  	M	  	StdT	  	0	  	WL	  	78	  	 	198.45	 
	 M_StdT_0_WL_79
	  	M	  	StdT	  	0	  	WL	  	79	  	 	208.79	 
	 M_StdT_0_WL_80
	  	M	  	StdT	  	0	  	WL	  	80	  	 	219.14	 
	 M_StdT_0_WL_81
	  	M	  	StdT	  	0	  	WL	  	81	  	 	238.68	 
	 M_StdT_0_WL_82
	  	M	  	StdT	  	0	  	WL	  	82	  	 	258.22	 
	 M_StdT_0_WL_83
	  	M	  	StdT	  	0	  	WL	  	83	  	 	277.76	 
	 M_StdT_0_WL_84
	  	M	  	StdT	  	0	  	WL	  	84	  	 	297.30	 
	 M_StdT_0_WL_85
	  	M	  	StdT	  	0	  	WL	  	85	  	 	316.84	 
	 F_StdNT_0_WL_50
	  	F	  	StdNT	  	0	  	WL	  	50	  	 	28.62	 
	 F_StdNT_0_WL_51
	  	F	  	StdNT	  	0	  	WL	  	51	  	 	29.83	 
	 F_StdNT_0_WL_52
	  	F	  	StdNT	  	0	  	WL	  	52	  	 	31.03	 
	 F_StdNT_0_WL_53
	  	F	  	StdNT	  	0	  	WL	  	53	  	 	32.24	 
	 F_StdNT_0_WL_54
	  	F	  	StdNT	  	0	  	WL	  	54	  	 	33.45	 
	 F_StdNT_0_WL_55
	  	F	  	StdNT	  	0	  	WL	  	55	  	 	34.66	 
	 F_StdNT_0_WL_56
	  	F	  	StdNT	  	0	  	WL	  	56	  	 	36.15	 
	 F_StdNT_0_WL_57
	  	F	  	StdNT	  	0	  	WL	  	57	  	 	37.64	 
	 F_StdNT_0_WL_58
	  	F	  	StdNT	  	0	  	WL	  	58	  	 	39.14	 
	 F_StdNT_0_WL_59
	  	F	  	StdNT	  	0	  	WL	  	59	  	 	40.63	 
	 F_StdNT_0_WL_60
	  	F	  	StdNT	  	0	  	WL	  	60	  	 	42.13	 

															
	 Key
	  	Gender	  	Class	  	Band	  	Term	  	Age	  	Prem Rate	 
	 F_StdNT_0_WL_61
	  	F	  	StdNT	  	0	  	WL	  	61	  	 	44.20	 
	 F_StdNT_0_WL_62
	  	F	  	StdNT	  	0	  	WL	  	62	  	 	46.26	 
	 F_StdNT_0_WL_63
	  	F	  	StdNT	  	0	  	WL	  	63	  	 	48.33	 
	 F_StdNT_0_WL_64
	  	F	  	StdNT	  	0	  	WL	  	64	  	 	50.40	 
	 F_StdNT_0_WL_65
	  	F	  	StdNT	  	0	  	WL	  	65	  	 	52.47	 
	 F_StdNT_0_WL_66
	  	F	  	StdNT	  	0	  	WL	  	66	  	 	55.23	 
	 F_StdNT_0_WL_67
	  	F	  	StdNT	  	0	  	WL	  	67	  	 	57.99	 
	 F_StdNT_0_WL_68
	  	F	  	StdNT	  	0	  	WL	  	68	  	 	60.75	 
	 F_StdNT_0_WL_69
	  	F	  	StdNT	  	0	  	WL	  	69	  	 	63.51	 
	 F_StdNT_0_WL_70
	  	F	  	StdNT	  	0	  	WL	  	70	  	 	66.26	 
	 F_StdNT_0_WL_71
	  	F	  	StdNT	  	0	  	WL	  	71	  	 	70.54	 
	 F_StdNT_0_WL_72
	  	F	  	StdNT	  	0	  	WL	  	72	  	 	74.82	 
	 F_StdNT_0_WL_73
	  	F	  	StdNT	  	0	  	WL	  	73	  	 	79.10	 
	 F_StdNT_0_WL_74
	  	F	  	StdNT	  	0	  	WL	  	74	  	 	83.38	 
	 F_StdNT_0_WL_75
	  	F	  	StdNT	  	0	  	WL	  	75	  	 	87.66	 
	 F_StdNT_0_WL_76
	  	F	  	StdNT	  	0	  	WL	  	76	  	 	95.11	 
	 F_StdNT_0_WL_77
	  	F	  	StdNT	  	0	  	WL	  	77	  	 	102.55	 
	 F_StdNT_0_WL_78
	  	F	  	StdNT	  	0	  	WL	  	78	  	 	110.00	 
	 F_StdNT_0_WL_79
	  	F	  	StdNT	  	0	  	WL	  	79	  	 	117.44	 
	 F_StdNT_0_WL_80
	  	F	  	StdNT	  	0	  	WL	  	80	  	 	124.89	 
	 F_StdNT_0_WL_81
	  	F	  	StdNT	  	0	  	WL	  	81	  	 	136.38	 
	 F_StdNT_0_WL_82
	  	F	  	StdNT	  	0	  	WL	  	82	  	 	147.87	 
	 F_StdNT_0_WL_83
	  	F	  	StdNT	  	0	  	WL	  	83	  	 	159.37	 
	 F_StdNT_0_WL_84
	  	F	  	StdNT	  	0	  	WL	  	84	  	 	170.86	 
	 F_StdNT_0_WL_85
	  	F	  	StdNT	  	0	  	WL	  	85	  	 	182.36	 
	 F_StdT_0_WL_50
	  	F	  	StdT	  	0	  	WL	  	50	  	 	42.77	 
	 F_StdT_0_WL_51
	  	F	  	StdT	  	0	  	WL	  	51	  	 	44.46	 
	 F_StdT_0_WL_52
	  	F	  	StdT	  	0	  	WL	  	52	  	 	46.15	 
	 F_StdT_0_WL_53
	  	F	  	StdT	  	0	  	WL	  	53	  	 	47.84	 
	 F_StdT_0_WL_54
	  	F	  	StdT	  	0	  	WL	  	54	  	 	49.53	 
	 F_StdT_0_WL_55
	  	F	  	StdT	  	0	  	WL	  	55	  	 	51.22	 
	 F_StdT_0_WL_56
	  	F	  	StdT	  	0	  	WL	  	56	  	 	52.91	 
	 F_StdT_0_WL_57
	  	F	  	StdT	  	0	  	WL	  	57	  	 	54.60	 
	 F_StdT_0_WL_58
	  	F	  	StdT	  	0	  	WL	  	58	  	 	56.68	 
	 F_StdT_0_WL_59
	  	F	  	StdT	  	0	  	WL	  	59	  	 	58.76	 
	 F_StdT_0_WL_60
	  	F	  	StdT	  	0	  	WL	  	60	  	 	60.84	 
	 F_StdT_0_WL_61
	  	F	  	StdT	  	0	  	WL	  	61	  	 	62.92	 
	 F_StdT_0_WL_62
	  	F	  	StdT	  	0	  	WL	  	62	  	 	65.00	 
	 F_StdT_0_WL_63
	  	F	  	StdT	  	0	  	WL	  	63	  	 	68.40	 
	 F_StdT_0_WL_64
	  	F	  	StdT	  	0	  	WL	  	64	  	 	71.80	 
	 F_StdT_0_WL_65
	  	F	  	StdT	  	0	  	WL	  	65	  	 	75.20	 
	 F_StdT_0_WL_66
	  	F	  	StdT	  	0	  	WL	  	66	  	 	78.60	 
	 F_StdT_0_WL_67
	  	F	  	StdT	  	0	  	WL	  	67	  	 	82.00	 

															
	 Key
	  	Gender	  	Class	  	Band	  	Term	  	Age	  	Prem Rate	 
	 F_StdT_0_WL_68
	  	F	  	StdT	  	0	  	WL	  	68	  	 	84.58	 
	 F_StdT_0_WL_69
	  	F	  	StdT	  	0	  	WL	  	69	  	 	87.16	 
	 F_StdT_0_WL_70
	  	F	  	StdT	  	0	  	WL	  	70	  	 	89.74	 
	 F_StdT_0_WL_71
	  	F	  	StdT	  	0	  	WL	  	71	  	 	95.91	 
	 F_StdT_0_WL_72
	  	F	  	StdT	  	0	  	WL	  	72	  	 	102.07	 
	 F_StdT_0_WL_73
	  	F	  	StdT	  	0	  	WL	  	73	  	 	108.24	 
	 F_StdT_0_WL_74
	  	F	  	StdT	  	0	  	WL	  	74	  	 	114.41	 
	 F_StdT_0_WL_75
	  	F	  	StdT	  	0	  	WL	  	75	  	 	120.57	 
	 F_StdT_0_WL_76
	  	F	  	StdT	  	0	  	WL	  	76	  	 	127.64	 
	 F_StdT_0_WL_77
	  	F	  	StdT	  	0	  	WL	  	77	  	 	134.71	 
	 F_StdT_0_WL_78
	  	F	  	StdT	  	0	  	WL	  	78	  	 	141.78	 
	 F_StdT_0_WL_79
	  	F	  	StdT	  	0	  	WL	  	79	  	 	148.85	 
	 F_StdT_0_WL_80
	  	F	  	StdT	  	0	  	WL	  	80	  	 	155.92	 
	 F_StdT_0_WL_81
	  	F	  	StdT	  	0	  	WL	  	81	  	 	172.01	 
	 F_StdT_0_WL_82
	  	F	  	StdT	  	0	  	WL	  	82	  	 	188.10	 
	 F_StdT_0_WL_83
	  	F	  	StdT	  	0	  	WL	  	83	  	 	204.20	 
	 F_StdT_0_WL_84
	  	F	  	StdT	  	0	  	WL	  	84	  	 	220.29	 
	 F_StdT_0_WL_85
	  	F	  	StdT	  	0	  	WL	  	85	  	 	236.38	 

 Exhibit D 

The Company’s Retention Limits 
 Life: 

The Company will retain 20% of each Reinsured Policy, not to exceed its Retention Limits stated below. This applies to all business reinsured under this
Agreement. 
  

			
	 Issue Ages
	  	Preferred/Standard to Table D
	16 – 75	  	$300,000

 It is understood that the amount retained by the Company includes its retention under any in force policies without the
benefit of other reinsurance. 
 Any change in the net amount at risk due to changes in the cash value applicable to the policy will be shared
proportionately between the Company and its reinsurers. 

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit E 

Automatic Issue and Acceptance Limits 
 The Reinsurer will
automatically accept 80% of each Policy, not to exceed the limits specified below on a per life basis. If the Company has filled its maximum retention on the life as specified in Exhibit D, the percentage the Reinsurer will automatically accept will
increase to 100%, but the limits stated below will not change. 
  

					
	 Simplified Issue Final Expense Whole Life to Age 121 (Level Death Benefit):
	  	$	35,000	 
		
	 Guaranteed Issue Graded Benefit Whole Life to Age 121:
	  	$	20,000	 

 In Force Limits: 
 In
force and applied for on any one life: $300,000 
 Conditional Receipt or Temporary Insurance Agreement Liability: Not applicable 

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F 

Reinsurance Reports 
 The Company acknowledges that timely
and correct compliance with the reporting requirements of this Agreement are a material element of the Company’s responsibilities hereunder and an important basis of the Reinsurer’s ability to reinsure the risks hereunder. Consistent and
material non-compliance with reporting requirements, including extended delays, will constitute a material breach of the terms of this Agreement. 

Remittance Reporting: 
 The Company will self-administer
reinsurance transactions. Reinsurance premiums are payable as specified in the Premium Mode provision of Exhibit C-1. During each accounting period, as defined below, the Company will report to the Reinsurer
all first year and renewal premiums which became due during the previous accounting period. Reporting of business transactions should begin within 90 days of the latter of the effective date or the execution date of the Agreement, including policies
with zero first year premium. Any adjustments made necessary by changes in reinsurance effective during a previous accounting period will also be reported. 

The Company will take credit, without interest, for any unearned premiums arising due to reductions, cancellations or death claims. The unearned premiums
refunded will be net of allowances and policy fees. 
 The Company will pay the balance of premiums in arrears due under a reinstated Reinsured Policy. 

If a net balance is due to the Reinsurer, the Company will forward a remittance in settlement with its report. If the net balance is due to the Company, the
Reinsurer will forward a remittance in settlement within 30 days of receipt of the report. 
 Report Requirements: 

The Company will send to the Reinsurer the following reports electronically, by the times indicated below: 

 

							
	 	  	Report	  	Accounting Period	  	Due Date
	1.	  	 New Business
 (New issues only – first time
policy reported to the Reinsurer)
	  	Monthly	  	21st day after month end
				
	2.	  	 Renewal Business
 (Policies with renewal dates
within Accounting Period)
	  	Monthly	  	21st day after month end
				
	3.	  	 Changes & Terminations
 (including
conversions, replacements reinstatements, increases, decreases, recaptures, lapses, claims, etc.)
	  	Monthly	  	21st day after month end
				
	4.	  	 lnforce List
 (Listing of each policy in
force)
	  	Quarterly	  	21st day after quarter end

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F 

Page 2 
  

							
	5.	  	Accounting Information	  	Monthly	  	21st day after month end
		  	 (only required for Paper Reporting)
 (See
Exhibit F-1 for Sample Summary Reporting Form, Section I)
	  		  	
				
	6.	  	Statutory Reserves	  	Quarterly	  	21st day after quarter end
		  	(See Exhibit F-1 for Sample Summary Reporting Form, Section II)	  		  	
				
	7.	  	Policy Exhibit	  	Monthly	  	21st day after month end
		  	(only required for Paper Reporting)
(See Exhibit F-1 for Sample Summary Reporting Form, Section Ill)	  		  	
				
	8.	  	Valuation Reserve Certification	  	Annually	  	October 31st
		  	(See Exhibit F-2 for Sample)	  		  	
				
	9.	  	Tax Reserve Certification	  	Annually	  	June 1st
		  	(See Exhibit F-3 for Sample)	  		  	

 Minimum Data Requirements for Electronic Administration: 

Policy record details for new business, renewal business and changes and terminations (Reports #1, 2 and 3 in Report Requirements, above) may be reported as
separate reports or combined into one report, hereinafter referred to as the Billings and Transactions Report. Nonetheless, the data elements specified below for the Billings and Transactions Report must be provided for each reported record. 

Billings and Transactions Report: 
  

					
	 General
	  	
	1.	  	Reporting Period Dates	  	Specifies the beginning and ending date of the reporting period represented on the statement file.
	Insured Data	  	
	2.	  	Last Name	  	Represents the surname or family name of the insured; must be specified for each insured on joint policy types; name fields are required to be parsed out into these listed components
			
	3.	  	First Name	  	Represents the given name of the insured; must be specified for each insured on joint policy types; name fields are required to be parsed out into these listed components.
			
	4.	  	Middle Name or Middle Initial (if available)	  	Represents the middle name of the insured; must be specified for each insured on joint policy types; name fields are required to be parsed out into these listed
components.

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F 

Page 3 
  

					
	5.	  	Date of Birth	  	Specifies the date on which the insured was born; this field must be provided on each insured on a joint policy.
			
	6.	  	Sex	  	Indicates the gender of the insured; this field must be provided on each insured on a joint policy.
			
	7.	  	Tobacco Use Code	  	Indicates whether the insured is a smoker or user of tobacco products.
			
	8.	  	Rating	  	Indicates whether the insured is standard, substandard, or uninsurable.
			
	9.	  	Residence	  	State, province, or other geographical code that indicates where the insured resides.
			
	10.	  	Insured Sequence Number	  	Specifies the number assigned by the ceding company to delineate one insured from another on a policy with multiple insureds.
		
	Coverage Data	  	
			
	11.	  	Currency	  	Indicates the currency to be applied in calculating monetary amounts, if currency within this treaty is a variable on a by policy basis.
			
	12.	  	Reinsurance Method	  	Indicates whether the policy is being ceded on an automatic or facultative basis.
			
	13.	  	Policy Number	  	Specifies the number assigned by the ceding company to the policy record.
			
	14.	  	Coverage Sequence Number	  	Specifies the number assigned by the ceding company to delineate one coverage or benefit from another on a policy with multiple coverages or benefits.
			
	15.	  	Issue Date	  	The date the policy or benefit was issued.
			
	16.	  	Reinsurance Effective Date (if different than issue date)	  	Specifies the date upon which the reinsurance coverage goes into effect, if it goes into effect on a date other than the issue date. Can also be used to specify the original Policy Issue Date on a contractual policy
conversion.
			
	17.	  	Plan Code	  	Specifies the plan of insurance being provided to the insured; there must be a separate plan code for each coverage.
			
	18.	  	Joint Life Indicator	  	Indicates that the coverage is a joint coverage and that multiple lives are involved with the coverage.
			
	19.	  	Smoker Code	  	Indicates that the coverage has been issued at either non-smoker or smoker rates.
			
	20.	  	Preferred Risk Class	  	Indicates the level of classification between the preferred and standard categories; there may be more than one level of the preferred classification available, and this will indicate the specific level for this policy.
			
	21.	  	Mortality Rating	  	Specifies the exact rating assigned to the policy; premium rates will be based on this rating; this rating is generally expressed as a percentage.
			
	22.	  	Flat Extra Rate	  	Specifies a flat rate per thousand to be charged on the policy.
			
	23.	  	Flat Extra Duration	  	Specifies the number of years that the flat extra rating will be charged.

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F 

Page 4 
  

					
	24.	  	Direct Face Amount	  	Specifies the face amount of the benefit issued to the insured before the purchase of any reinsurance.
			
	25.	  	Reinsured Face Amount	  	Specifies the face amount of the reinsurance purchased.
			
	26.	  	Reinsured Amount at Risk	  	Specifies the net amount at risk for the current year’s reinsurance benefits.
			
	27.	  	Death Benefit Option	  	Specifies the option used to calculate the policy net amount at risk on Universal Life products, only.
			
	28.	  	Coverage Maturity or Expiry Date	  	Specifies the date on which the insurance coverage will cease, based on the type of plan issued to the insured.
			
	29.	  	Issue Age	  	From date of issue, the age at which premiums will be charged when the case does not use a rated age.
			
	30.	  	Rated Age	  	From the date of issue, the age at which premiums will be charged when the age is increased for substandard reasons, or when the age is an equivalent age for joint products.
			
	31.	  	Transaction Code	  	Indicates the specific action that has occurred to cause a policy to appear on the billing or transaction report, such as New Business, Renewal, Lapse, Death etc.
			
	32.	  	Transaction Effective Date	  	Specifies the date on which the transaction is applied to the insured’s policy.
			
	33.	  	Standard Premium	  	The premium to be paid for the reinsured benefit; this must be specified for each benefit provided on a policy record.
			
	34.	  	Substandard Premium	  	In the event that a mortality rating has been assigned, this is the substandard portion of the premium to be paid for the reinsured benefit; this must be specified for each benefit provided on a policy record.
			
	35.	  	Flat Extra Premium	  	The premium to be paid the reinsurer for any flat extra premiums assigned to the policy.
			
	36.	  	Fees	  	Any additional fees to be charged, such as policy fees
			
	37.	  	Standard Allowance	  	The allowance to be taken for the reinsured benefit; this must be specified for each benefit provided on a policy record.
			
	38.	  	Substandard Allowance	  	In the event that a mortality rating has been assigned, this is the portion of the allowance to be taken for the substandard premium; this must be specified for each benefit provided on a policy record.
			
	39.	  	Flat Extra Allowance	  	In the event a flat extra rating has been assigned to the policy, this is the portion of the allowance to be taken on the flat extra premium; this must be specified for each flat extra premium provided on a policy record.
			
	40.	  	Fee Allowance	  	The allowance to be taken for any fees paid on the record.
			
	41.	  	Underwriting Method (mandatory if Agreement covers policies with less than full underwriting)	  	The underwriting method applies to the reinsured policies, i.e., Simplified or Guaranteed Issue

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F 

Page 5 
  

 lnforce list: 

As required, a complete listing of all policy records considered to be in force under this Agreement must also be provided to the Reinsurer (Report #4 in
Report Requirements, above). Each record on the lnforce List must contain data elements 1–30, as specified in the above listing of data requirements. 

Reporting System: The system used by the Company to administer its reinsurance is: TAI. 

The Company will inform the Reinsurer at least one reporting period in advance of any change in the reporting format or data prior to its use in reports to
the Reinsurer. The Company will provide the Reinsurer with a test file containing such a change prior to its implementation in the production of reports. 

Additional Information: Upon request, the Company will promptly provide the Reinsurer with any additional information related to the Reinsured Policies
and which the Reinsurer requires in order to complete its financial statements. 

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F-1 

Swiss Re Life & Health America Inc. 

SELF ADMINISTERED REINSURANCE SUMMARY REPORTING FORM 
  

			
	Ceding Company                                   
                          	  	Reinsurer
                                         
                          
		
	Treaty/Account #
                                         
                    	  	Period Experience is for
                                         
   
		
	Coin          YRT          Mod Co         
Other         	  	Interest Sensitive: Yes          No         

									
	
	Reinsurance Premium Mode:           Monthly           
          Quarterly           
        Annual              In Advance         
    In Arrears       
	
	Reinsurance Reporting Mode:         Monthly            
          Quarterly                    Annual
        

					
			
	Contact                                     
                	  	Date                             	  	Phone #                                    
                         

 SECTION I – ACCOUNTING 
  

													
	 	  	 * * Premiums * *
	  	 * * Allowances Other * *
	  	 
	 	  	 First Year
	  	 Renewal Year
	  	 First Year
	  	 Renewal Year Benefit
	  	 Total

	 Life
	  		  		  		  		  		  	
	 ADB
	  		  		  		  		  		  	
	 Waiver of Premium
	  		  		  		  		  		  	
	 TOTAL
	  		  		  		  		  		  	

 SECTION II – RESERVE INFORMATION 

 

															
	 Amount of Rein (000)
	  	Issue	  	 Reserves Reinsured

	 Life
	  	 ADB
	  	 Year
	  	 Life
	  	 ADB
	  	 Waiver
	  	 Subst’d
	  	 Deficiency

		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	
		  		  		  		  		  		  		  	

 SECTION III – POLICY EXHIBIT INFORMATION 

 

																					
	 	 	 	  	Current Period	 	  	 	  	Year to Date	 
	 	 	 	  	No. of
Policies	 	  	Amt of *
Rein (000)	 	  	 	  	No. of
Policies	 	  	Amt. of *
Rein (000)	 
	A. In force Beg. of Period	 		  				  				  	A.	  				  			
	   1. New Business
	 	Auto	  	 	                	 	  	 	                	 	  	1. Auto	  	 	                	 	  	 	                	 
		 	Fac	  				  				  	    Fac	  				  			
	   2. Conversions/Replacements - On
	  				  				  	2.	  				  			
	   3. Reinstatements
	 		  				  				  	3.	  				  			
	   4. Other Increases
	  				  				  	4.	  				  			
	   5. Not Takens
	  				  				  	5.	  				  			
	 a) Total Inc (1 + 2 + 3 + 4-5)
	  				  				  	   a)	  				  			
	   6. Death
	 		  				  				  	6.	  				  			
	   7. Conversions/Replacements - Off
	  				  				  	7.	  				  			
	   8. Lapses
	 		  				  				  	8.	  				  			
	   9. Surrenders
	 		  				  				  	9.	  				  			
	 10. Expiry
	 		  				  				  	10.	  				  			
	 11. Recapture
	 		  				  				  	11.	  				  			
	 12. Other Decreases
	  				  				  	12.	  				  			
	 b) Total Dec (6 + 7 + 8 + 9 + 10 + 11 + 12)
	  				  				  	   b)	  				  			
	B. In force End of Period (A + a-b)	  				  				  	B.	  				  			

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F-2 

Valuation Reserve for Self-Administered Business Ceded to Swiss Re Life & Health America Inc. from Fidelity Life Association, A Legal Reserve Life
Insurance Company 
  

			
	In force and Reserves at	  	200x:
		
	Plan:	  	Type: SM/NSM/AGGR/TOTAL
		
	In force Reinsured Amount:                         	  	
	
	In force Number of Reinsured Policies:                         
		
	Valuation Reserve as at	  	200x:

  

									
	Type	  	 Reserve

Amount ($)
	 	  	 Reserve Basis

(Table, interest

rate and method)
	 
	 Active Life Reserve
	  				  			
	 Unearned Premium Reserve
	  				  			
	 Disabled Life Reserve
	  				  			
	 Liability for Incurred But Not Reported Claims (IBNR)
	  				  			
	 Liability for Due and Unpaid Claims
	  				  			
	 Liability for claims in Course of Settlement
	  				  			
	 Other* * (specify)
	  				  			
	 Total
	  				  			

  

	* *	 If credit for deficiency reserves is being taken, please specify under “other”.

 As the valuation actuary of the above named company I certify that the information above is correct as shown. * 

Name: 
 Signature: 

Actuarial Designation: 
 Title: 

Date: 
  

	*	 Required only for Year End Valuation Reserves. 

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)
	  		  	

 Exhibit F-3 

Tax Reserve Certification for Self Administered Business Ceded to Swiss Re Life & Health America Inc. from Fidelity Life Association, A Legal
Reserve Life Insurance Company 
 In force and Reserves at December 31, 200x: 

 

			
	Plan:	  	Type: SM/NSM/AGGR/TOTAL
		
	In force Reinsured Amount:                            	  	
		
	In force Number of Reinsured
Policies:                                	  	
		
	Tax Reserve as at December 31, 200x:	  	

  

									
	Type	  	 Reserve

Amount ($)
	 	  	Reserve Basis
(Table, interest
rate and method)	 
	Active Life Reserve	  				  			
	Unearned Premium Reserve	  				  			
	Disabled Life Reserve	  				  			
	Liability for Incurred But Not Reported Claims (IBNR)	  				  			
	Liability for Due and Unpaid Claims	  				  			
	Liability for Claims in Course of Settlement	  				  			
	Other* * (specify)	  				  			
	Total	  				  			

  

	* *	 If credit for deficiency reserves is being taken, please specify under “other”.

 As the valuation actuary of the above named company I certify that the information above is correct as shown. 

Name: 
 Signature: 

Actuarial Designation: 
 Title: 

Date: 

  

					
	 I486326US-14 (02-21-2014)
 (QT
#06655US13)EX-10.12

 Exhibit 10.12 

Execution Counterpart 

AMENDED AND RESTATED PURCHASE AND SALE AGREEMENT 

THIS AMENDED AND RESTATED PURCHASE AND SALE AGREEMENT (this “Agreement”) is made as of this 20 day of April, 2018, by and
between HANNOVER LIFE REASSURANCE COMPANY OF AMERICA (BERMUDA) LTD., a Bermuda insurance company (“Purchaser”), FIDELITY LIFE ASSOCIATION, a Legal Reserve Life Insurance Company organized under the laws of the State of
Illinois (“Seller”), and EFINANCIAL, LLC, a Washington limited liability company (“Seller’s Designee”). 

WHEREAS, Seller desires from time to time to sell to Purchaser certain compensation, commissions and related rights, as described herein, that
would otherwise be payable by Seller to Seller’s Designee under those certain agency commission agreements most recently provided by Seller’s representatives to Purchaser’s representatives (collectively, the “Underlying
Insurance Agreements”); 
 WHEREAS, Seller and Seller’s Designee are affiliates, and Seller’s Designee and Vericity (as
defined below), the common parent to Seller and Seller’s Designee, receive good and valuable consideration from the agreements set forth herein; 

WHEREAS, Purchaser shall acquire such compensation, commissions and related rights, as described herein, in consideration of making purchase
price payments as set forth herein; 
 WHEREAS, Seller’s Designee agrees to forfeit its rights to receive compensation, commissions and
related rights as described herein from its affiliate, Seller, in return for purchase price payments made by Purchaser as set forth herein; and 

WHEREAS, the parties desire to enter into this Agreement which will control their course of dealing with respect to the purchase and sale of
such compensation, commissions and other rights; 
 WHEREAS, Seller, Seller’s Designee and Hannover Life Reassurance Company of
America, a reinsurance company domiciled within the United States in the State of Florida (“HLRA”) entered into that certain Purchase and Sale Agreement dated as of January 26, 2018 (the “Original PSA”); 

WHEREAS, immediately prior to the effectiveness of this Agreement, HLRA, as Purchaser, under the Original PSA, assigned all of its rights,
title, interests, liabilities and obligations under the Original PSA to Purchaser pursuant to a certain Assignment and Assumption dated as of even date herewith (the “Assignment and Assumption”), pursuant to which, as of the date
thereof and immediately prior to the effectiveness of this Agreement, Purchaser assumed all such rights, title, interests, liabilities and obligations of HLRA under the Original PSA; 

WHEREAS, the parties hereto desire to amend and restate the Original PSA to, among other things, amend the deadline and dollar cap contained
within the definition of Funding Termination Date under the Original PSA; 
 WHEREAS, the parties to this Agreement desire to enter into
this Agreement to amend and restate in its entirety the Original PSA, the terms of which are entirely superseded by the terms and provisions of this Agreement; 

NOW, THEREFORE, Purchaser, Seller and Seller’s Designee do hereby agree, in consideration of the mutual promises herein contained and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all parties, as follows: 

  
 1 

 Section 1. Definitions. 

“Allocation and Payment Report” has the meaning set forth in Schedule A. attached hereto and made a part
hereof. 
 “Assignment and Assumption” shall have the meaning set forth in the Recitals above. 

“Business Day” shall mean any day other than a Saturday, Sunday or other day on which commercial banks in Chicago, Illinois
or Orlando, Florida are authorized or required by law to close. 
 “Cancellations & Rescissions”
shall mean that, as set forth herein, for any Subject Policy which is terminated due to a policyholder’s cancellation or insurer’s recision rights, Seller shall pay to Purchaser on the next Settlement Date following such cancellation or
recision an amount equal to the Initial Amount previously paid by Purchaser for such Subject Policy. 
 “Commissionable
Premium” shall mean with respect to each Subject Policy, the total, gross amount of all premiums and other sums paid by the policyholder during each Policy Year that such policy is in force during such policy’s level premium period
(including, for the avoidance of doubt, for Settlement Periods after the Funding Termination Date), minus policy fees not exceeding $65.00 per policy per Policy Year. Commissionable Premium shall not be reduced by any Initial Amount Offsets
that are payable or that have been paid. 
 “Conversions Exchanges & Replacements” shall mean, as set forth
herein, for any Subject Policy that is converted, replaced with or exchanged for (i) a new insurance policy issued by Seller or one of its affiliates, or (ii) any new policy issued by any other insurance company that is caused by, or which
results from, directly or indirectly, the efforts, marketing, sales or other actions of Seller, Seller’s Designee or one of their affiliates, Seller shall pay to Purchaser on the next Settlement Date an amount equal to the unamortized
percentage of the Initial Amount previously paid by Purchaser for such policy, as such unamortized percentage is shown on Schedule B attached hereto and made a part hereof, applicable to the Policy Year in which such conversion,
exchange or replacement occurs. 
 “Conveyed Property” shall mean, collectively, the Percent of Premium Fees and the
Related Rights applicable to a particular Subject Policy. 
 “Default” shall have the meaning set forth in Section 7
below. 
 “Dispute” shall mean any dispute, deduction, claim, offset, defense or counterclaim of any kind pertaining to the
Percent of Premium Fees or to the other Conveyed Property asserted by Seller’s Designee, Seller, one of their affiliates, a governmental regulator or other authority, or any other party, regardless of the final outcome or merit thereof. 

“Event of Default” shall have the meaning set forth in Section 7 below. 

“First Year Lapse” shall mean that, as set forth herein, for any Subject Policy which is lapsed due to the
policyholder’s non-payment of premium during the first Policy Year, Seller shall pay to Purchaser on the next Settlement Date following such lapse an amount equal to (i) twelve (12) minus the number
of months the Subject Policy was in force divided by (ii) twelve (12) multiplied by (iii) the Initial Amount with respect to such policy. 

“Funding Termination Date” shall mean that date which is the earlier of (i) December 31, 2018 and (ii) that date
when the aggregate of all Initial Amounts which have been funded by Purchaser hereunder equals or exceeds $20 million, net of all Initial Amount Offsets and all Percent of Premium Fees which Purchaser has received to date in accordance with the
terms hereof. 
 “HLRA” shall have the meaning set forth in the Recitals above. 

  
 2 

 “Initial Amount” shall mean the purchase price payable by Purchaser to
Seller’s Designee as to a particular New Subject Policy in consideration of Seller’s conveyance to Purchaser of the Percent of Premium Fees and other Conveyed Property pertaining to such Subject Policy. The Initial Amount for a particular
Subject Policy shall be in an amount equal to (i) the Initial Amount Percentage applicable to such policy multiplied by (ii) the annualized Commissionable Premium during the first Policy Year for such policy. 

“Initial Amount Offsets” shall mean all amounts due and payable to Purchaser by Seller on a particular Settlement Date as a
result of (i) Conversions, Exchanges & Replacements, (ii) First Year Lapse, and (iii) Cancellations & Rescissions, which in each case, have occurred during the immediately preceding Settlement Period. 

“Initial Amount Percentage” shall be that percentage applicable to a particular Subject Policy of a specific term, as set
forth on Schedule C, attached hereto and made a part hereof. 
 “Liens” shall mean any statutory or other
lien, pledge, hypothecation, mortgage, assignment, preference, priority, security interest, encumbrance, setoff right, offset or other charge on, against or affecting any Conveyed Property or any portion thereof or any interest therein, including
without limitation, any financing lease or similar transaction, any financing statement or similar instrument under the Uniform Commercial Code or comparable law, any mechanics, materialmen’s or other similar liens or encumbrances. 

“New Subject Policy” shall mean a Subject Policy satisfying all of the following conditions: 

 

	 	(i)	 such Subject Policy is not a Subject Policy in respect of which Purchaser has previously paid an Initial
Amount; and 

  

	 	(ii)	 such Subject Policy is currently in force and all premiums then due and payable thereunder have been fully paid
by the applicable policyholder. 

 “Obligations” shall have the meaning set forth in Section 9 below. 

“Original PSA” shall have the meaning set forth in the Recitals above. 

“Percent of Premium Fee Rate” shall mean the percentage rate applicable to a particular Subject Policy of a
specific term, as set forth on Schedule C, attached hereto and made a part hereof. 
 “Percent of Premium
Fees” shall mean an amount of money equal to (i) the Percent of Premium Fee Rate for a particular Subject Policy of a specific term, multiplied by (ii) the Commissionable Premium for such Subject Policy. 

“Policy Year” shall mean with respect to a Subject Policy, the one calendar year period commencing upon the issuance date of
the policy, and each one calendar year period thereafter, in each case commencing on the anniversary date of the policy’s issuance date. 

“Related Rights” shall mean all consent, amendment, termination and any other substantive rights held by Seller under the
Underlying Insurance Agreements that could impact the term, duration or persistency of any Subject Policy or the continued payment of Percent of Premium Fees hereunder, but shall not include any obligations, duties or liabilities of Seller
thereunder, Without limiting the generality of the foregoing, the parties hereto understand that the Related Rights include, without limitation, any Lien, security interest, guaranty, offset, debit, setoff or other rights previously held by Seller
pertaining to the Commissionable Premium or the payment by Seller of the Percent of Premium Fees as well as any rights and remedies that Seller may have under the Underlying Insurance Agreements pertaining to the same. 

“Settlement Date” shall generally mean the 5th Business Day following the end of the previous Settlement Period. 

  
 3 

 “Settlement Period” hereunder shall mean each calendar month, with each
such period ending on the last day of such calendar month; provided, however, (a) the first Settlement Period shall be deemed to have commenced as of March 1, 2018 and ended on March 31, 2018, and (b) the second Settlement Period
commenced on April 1, 2018 and ended on April 30, 2018. For the avoidance of doubt, it is understood that Settlement Periods shall continue after the Funding Termination Date. 

“Subject Policy” shall mean each and every RAPI Decision Life 10, 15, 20, and 30 year term life insurance policies sold by
Seller’s Designee and issued by Seller, in accordance with the representations, warranties and covenants hereof (including without limitation, the covenants set forth in Section 11(1) below), from and after October 1, 2017 and prior
to the Funding Termination Date. 
 “Vericity” shall mean Vericity Holdings, Inc., a Delaware corporation. 

Section 2. Purchase and Sale of Conveyed Property. 

Seller hereby sells, assigns, transfers, conveys and delivers to Purchasers, and Purchaser hereby purchases and receives from Seller, free and clear of any
Liens or Disputes all rights, title and interests of Seller in and to the Conveyed Property. Seller makes the warranties set forth in Section 10 below as to itself and the Conveyed Property. As set forth below, Seller hereby indemnifies and
holds Purchaser harmless from and against any claims or damages from any person or entity regarding Seller’s grant of The Conveyed Property to Purchaser absent the gross negligence or willful misconduct of Purchaser. Any amounts advanced by
Purchaser pursuant to any future purchase and sale of Conveyed Property will be deemed to be a future advance by Purchaser, and the corresponding obligations of the Seller with respect to such property shall be deemed to be an obligation covered by
this Agreement. 
 Section 3. Purchase Price; Percent of Premium Fees. 

In reliance on the representations and warranties set forth herein and subject to satisfaction of all conditions precedent as set forth herein or in any other
agreement between Seller and Purchaser, Purchaser hereby agrees to pay to Seller, in consideration of the conveyance to Purchaser of the Conveyed Property, a purchase price calculated as set forth in this Section 3 and payable as set forth in
Section 4. With respect to each New Subject Policy, prior to the Funding Termination Date and so long as no Event of Default exists hereunder, Purchaser shall pay to seller, c/o Seller’s Designee, pursuant to the Efinancial account
information set forth on Schedule D attached hereto and made a part hereof, a purchase price equal to the Initial Amount for a particular Subject Policy. Thereafter, no additional Initial Amount payments or any other payments shall be
made by Purchaser with respect to that Subject Policy Upon receipt of the Initial Amount, Seller acknowledges that the Conveyed Property shall be fully and absolutely assigned and conveyed to Purchaser free and clear of any Liens or Disputes. In
addition, thereafter, Seller shall pay to Purchaser on each succeeding Settlement Date all Percent of Premium Fees which Seller has received, directly or indirectly, from the policyholder of that Subject Policy during the preceding Settlement
Period. Seller’s obligation to pay Purchaser Percent of Premium Fees shall extend for so long as the particular Subject Policy from which such fees derive remains in force, even if such time periods are after the Funding Termination Date.
Seller hereby acknowledges that any and all rights it may claim to any Commissionable Premium, including all offset, setoff, debit and similar rights, are subject and subordinate, in all respects, to Purchaser’s rights to the Percent of Premium
Fees derived therefrom. Seller’s Designee hereby acknowledges that any rights or interests it may claim to any Percent of Premium Fees, Initial Amount Offsets or other consideration periodically paid by Seller to Purchaser hereunder are fully
and completely waived, relinquished and forfeited in consideration of Purchaser’s payment of each Initial Amount to Seller, an affiliate of Seller’s Designee, in accordance with the terms and provisions of this Agreement. 

Section 4. Purchase Price Payments and Offsets. 

Prior to the date hereof, under the Original PSA, HLRA, as the purchaser, advanced an aggregate amount of Initial Amounts equal to $4,468,150, net of all
Percent of Premium Fees and all Initial Amount Offsets for all Subject Policies issued thereunder and received by HLRA through February 28, 2018, at which time the “Funding Termination Date” under the Original PSA had been reached. Also,
prior to the date hereof, pursuant to a Letter of Intent between Seller and HLRA (which Letter of Intent is superceded hereby), HLRA has made an initial purchase price payment of $1,138,818, which represents an estimate of the Initial Amounts of all
Subject Policies issued or to be issued during the first Settlement Period, net of 

  
 4 

 
Percent of Premium Fees and Initial Amount Offsets for the Settlement Period of February, 2018 for all Subject Policies issued prior to February 28, 2018, all subject to the Original PSA. Also,
subsequent to the Assignment and Assumption and substantially concurrently with the execution of this Agreement, Purchaser has made an initial purchase price payment of $1,035,370, which represents an estimate of the Initial Amounts of all Subject
Polices issued or to be issued during the second Settlement Period, net of Percentage of Premium Fees and Initial Amount Offsets for the first Settlement Period for all Subject Policies issued during the first Settlement Period, all subject to this
Agreement. As a result, as of the date of this Agreement a total of $6,642,338, net of Percent of Premium Fees and Initial Amount Offsets, has been paid by Purchaser or Purchaser’s predecessor -in
-interest for all Conveyed Property, and such amount is hereby acknowledged by Seller to be outstanding and due and payable to Purchaser in accordance with the provisions of this Agreement. 

On the next Settlement Date after the date of this Agreement and on each succeeding Settlement Date until the funding Termination Date, provided no Event of
Default then exists, based on the representations, warranties and covenants set forth below, including without limitation, the covenants set forth in Section 11(1) below, Purchaser shall make, for each New Subject Policy that was issued during the
preceding Settlement Period and for which no Initial Amount was previously paid, an aggregate Initial Amount payment to Seller’s Designee, in an amount equal to 

(a) $1.2 million plus; 

(b) the excess, if any, that the Initial Amounts in respect of Subject Policies issued during the immediately preceding Settlement Period
exceeds $1.2 million as an estimate of Initial Amounts in respect of Subject Policies expected to be issued during the Settlement Period in which the Settlement Date falls minus; 

(c) the amount, if any, that the Initial Amounts in respect of Subject Policies issued during the immediately preceding Settlement Period is
less than $1.2 million minus: 
 (d) the total Percent of Premium Fees actually received by Purchaser during the immediately
preceding Settlement Period minus: and 
 (e) the total of Initial Amount Offsets arising during the immediately preceding Settlement
Period. 
 Notwithstanding the foregoing, in no event shall any monthly Initial Amount calculated in accordance with clauses (a) through (c) above be
more than $2 million or less than the lesser of (x) such amount as is unfunded and remains available for funding by Purchaser in accordance with the definition of Funding Termination Date above and (y) $0.5 million; any carry-over shall be
applied to the following Settlement Date and Settlement Period. If during any Settlement Period, the amount of (d) plus (e) immediately above exceeds the amount of (a) plus (b) minus (c), in each case, immediately above, Seller
understands and agrees that it shall pay to Purchaser such excess amount within one (1) Business Day of demand by Purchaser. 
 From and after the
Funding Termination Date, Seller shall continue to be obligated to pay (a) any Percent of Premium Fees and (b) any Initial Amount Offsets, in each case, not previously included in a Settlement Date calculation or otherwise paid under this Agreement
Accordingly, on each Settlement Date following the end of each Settlement Period after the Funding Termination Date, Seller shall pay Purchaser any Percent of Premium Fees and any Initial Amount Offsets that arose during any prior Settlement Period,
in each case, to the extent not previously included in a Settlement Date calculation or otherwise paid under this Agreement. 

Section 5. Conditions Precedent to Purchase. 

Prior to Purchaser paying the purchase price for the Conveyed Property on any Settlement Date and being otherwise bound by the terms of provisions of this
Agreement, Seller shall execute and deliver this Agreement, legal opinions and such other information regarding the Underlying Insurance Agreements, the commissionable Premium, the Subject Policies and other matters related thereto as Purchaser may

  
 5 

 
reasonably require, all in form and content reasonably satisfactory to Purchaser. 

Section 6. [Intentionally Omitted]. 

Section 7. Events of Default. 

An “Event of Default” shall be deemed to exist under this Agreement in the event of any of the following 

(a)     Seller defaults in the payment or performance of any obligations under this Agreement or any other agreement by and
between Purchaser and Seller; 
 (b)     Seller or Purchaser discovers or determines that any representation or warranty
made by Seller or Seller’s Designee in the Agreement or any document executed in connection with this Agreement is false or misleading in any respect; 

(c)     Any Dispute arises with respect to any portion of the Conveyed Property; 

(d)     Seller or Seller’s Designee breaches any covenant or agreement contained in this Agreement or any other
document executed in connection with this Agreement; 
 (e)    Dissolution, insolvency, cessation or termination of
Seller’s business, or should Seller’s business be placed in receivership or any bankruptcy or insolvency proceeding; 

(f)     The loss, sale, levy, destruction, attachment, seizure or other encumbrance of the Percent of Premium Fees; and

 (g)    Seller and/or Seller’s Designee at any time is not directly or indirectly majority-owned and controlled by
Vericity. As used herein, “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the subject person or entity, whether through the ability to
exercise voting power, by contract or otherwise. 
 The occurrence of any Event of Default under this Agreement shall be a
“Default” which entitles Purchaser to exercise any applicable rights and remedies under. 
 Regardless of the foregoing,
with respect to any non-monetary Event of Default, Seller shall have 5 Business Days’ notice and opportunity to cure such Event of Default prior to it becoming a Default hereunder. However, Purchaser
maintains the express rights of setoff and recoupment, which it may exercise at any time with or without notice upon any Event of Default. 

Section 8. Purchaser’s Remedies upon Seller’s Default. 

In the event Seller is in Default, Purchaser shall have the right, in addition to any other right or remedy available under applicable law, but not the
obligation, in Purchaser’s own name, or in the name of Seller, to take any one or more of the following actions, simultaneously or in such sequence as Purchaser shall determine in Purchaser’s sole discretion: 

(a)     exercise all recoupment or setoff rights which Purchaser may have under this Agreement or under applicable law;

 (b)     require Seller to repurchase, for cash, all or any part of the Conveyed Property sold to Purchaser under this
Agreement for the purchase price paid by the Purchaser for such property minus any payments previously received by Purchaser from Seller related to such purchase price, as set forth in Section 4 above; 

(c)     refuse to fund any further Initial Amounts following the issuance of New Subject Policies; and 

(d)     exercise all other rights and remedies available to Purchaser. 

  
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 Section 9. Interest on Obligations. 

As used herein, “Obligations” shall mean all payment obligations owed by Seller to Purchaser hereunder, including without limitation, the
payment of Percent of Premium Fees, all Initial Amount Offsets, all indemnification obligations of Seller set forth herein, and all fees and costs incurred by Purchaser hereunder. All Obligations of Seller to Purchaser which become due and unpaid
upon Seller’s Default pursuant to Section 7 of this Agreement shall bear interest at the rate of 16% (Sixteen per cent) per annum, Interest will accrue on unpaid Obligations during the period beginning on the tenth day following the date
on which Purchaser makes demand on Seller to repurchase the Conveyed Property(s) and ending on the date the Obligations are fully satisfied. 

Section 10. Representations and Warranties of Seller. 

Seller hereby represents, warrants and guarantees to Purchaser on the date hereof and on each Settlement Date as follows: 

(a) that the information with respect to the Subject Policies, Seller’s financial statements and all other materials previously or
hereafter submitted to Purchaser by Seller or Seller’s Designee in connection herewith are true, correct and complete in all material respects; 

(b) all federal, state and other material tax returns and payments of any kind due or owing by Seller have been timely filed and paid , except
those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP; 

(c) execution of this Agreement by Purchaser and payment of the purchase price set forth herein will thereby vest in Purchaser absolute
ownership of the Conveyed Property (for each existing Subject Policy and for each future Subject Policy) free from any security interests, liens, claims or equities of third parties; 

(d) prior to its sale to Purchaser hereunder, Seller is the sole owner of and has good, free and unencumbered title to the Percent of Premium
Fees, 
 (e) execution and delivery of this Agreement and the conveyance by Seller of the Conveyed Property has been duly authorized by all
necessary company actions, has received all necessary governmental and third-party approvals (if any shall be required), and does not and will not contravene or conflict with any provision of the organizational documents of Seller, any applicable
law, any Underlying Insurance Agreement or any other material agreement, indenture, instrument, order or decree which is binding upon Seller, and this Agreement and all the other documents executed in connection herewith are legal, valid and binding
obligations of Seller, enforceable against Seller in accordance with their terms, except as enforceability may be limited, by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law); 
 (f) no other,
sale, assignment, lien, security interest or pledge exists against any Conveyed Property; 
 (g) Seller’s chief executive office and the
location where all books and records pertaining to the Conveyed Property are kept are at the address shown below for notice to Seller or such other address as Seller has notified Purchaser in writing, in advance; 

(h) Seller is solvent, properly licensed and authorized to operate its business under the name designated herein, and is in good standing with
and duly organized under the laws of the jurisdiction under which it was organized or incorporated, and has the requisite authority to transact business in each state in which it is engaged in business; 

(i) Seller currently uses no trade name that has not been disclosed to Purchaser in writing; 

  
 7 

 (j) no petition in bankruptcy naming Seller as a debtor has been filed by or against Seller
nor has Seller filed any petition seeking an arrangement of its debts or for any other relief under the Bankruptcy Code of the United States; 

(k) that no application for appointment of a receiver or trustee for all or a substantial part of Seller’s property is pending; 

(l) Seller has made no general assignment for the benefit of creditors; 

(m) there is not of record, in any jurisdiction or filing office, any financing statement, notice of lien, tax lien, notice of assessment,
assessment, assignment, charge, or other instrument of any kind covering any Conveyed Property; 
 (n) Seller is not in default (beyond all
applicable notice and cure periods) in any material respect under any loan agreement, indenture, mortgage, security agreement, or other material agreement or obligation to which it is a party or by which any of its properties may be bound; 

(o) there is no action, suit, investigation, or proceeding before any court, governmental authority, or arbitrator pending, or to the knowledge
of Seller, threatened against or affecting Seller, that would, if adversely determined, have a material adverse effect on the financial condition or operations of Seller; 

(p) there are no outstanding judgments against Seller that would have a material adverse effect on the financial condition or operations of
Seller; 
 (q) neither Seller, Seller’s Designee, any affiliates of either of them, any reinsurers of Seller, any finance company, any
other lender, nor any other person or party holds any ownership interest in, security interest in, lien rights on, or offset rights against, any of the Conveyed Property or any of the Commissionable Premium arising under any of the Subject Policies;

 (r) other than Seller’s Designee, no other agent, producer, broker or other person or party is paid, receives or withholds any
commission, fees or other compensation with respect to the Commissionable Premium; 
 (s) the exercise of any remedies by Purchaser under
this Agreement or under applicable law relating to the Percent of Premium Fees and the other Conveyed Property will not contravene or conflict with any Underlying Insurance Agreements or applicable law, and will not require the consent or approval
of Seller, any reinsurer or any other person or entity having any rights or interests pertaining to a Subject Policy; 
 (t) the Underlying
Insurance Agreements delivered to Purchaser are in full force and effect, have not been amended, modified or waived and are enforceable on accordance with their terms. There are no other agreements, side letters or other documents of any sort
pertaining to or affecting the Underlying Insurance Agreements; 
 (u) Seller has fully disclosed in writing to Purchaser all current
pricing, sales, marketing and other business practices that are currently used regarding the sales and distribution of the Subject Policies; and 

(v) Seller does not hold, and hereby fully relinquishes and releases to the extent it may be deemed to hold, any claim or cause of action
against HLRA and/or Purchaser pertaining to the Original PSA, the Assignment and Assumption or otherwise. 
 THE PARTIES HAVE CAREFULLY CONSIDERED THE
REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN AS THEY RELATE TO EACH SUBJECT POLICY AND THE PERCENT OF PREMIUM FEES AND THE RELATED RIGHTS ASSOCIATED THEREWITH, AND UNDERSTANDS THAT ALL REPRESENTATIONS AND WARRANTIES 

  
 8 

 MADE BY SELLER SHALL BE DEEMED REAFFIRMED BY SELLER UPON ITS ENTERING INTO EACH NEW SUBJECT POLICY AND
PURCHASER’S DELIVERY TO THE SELLER OF AN INITIAL AMOUNT PURCHASE PRICE ASSOCIATED THEREWITH. THE PARTIES ACKNOWLEDGE THAT ANY KNOWING OR RECKLESS ERROR OR OMISSION MADE BY THE OTHER PARTY IN THE REPRESENTATIONS OR WARRANTIES MADE HEREIN MAY
SUBJECT THAT PARTY TO CIVIL PENALTIES, IN ADDITION TO CIVIL LIABILITY. 
 Section 11. Certain Covenants of Seller and
Seller’s Designee. 
 Seller and Seller’s Designee covenant and agree that neither will, without prior written approval from Purchaser;

 (a) move either Seller’s chief executive office or the location where books and records pertaining to the Conveyed Property are kept
to a location outside of the location specified in the section entitled “Notices”, below without giving prior written notice to Purchaser; 

(b) use any trade name without giving prior written notice to Purchaser; 

(c) change its name or convert its corporate structure without giving prior written notice to Purchaser; 

(d) take or omit taking any actions that would render any of Seller’s representations and warranties incorrect or incomplete; 

(e) merge or consolidate with any other corporation or entity unless Seller is the continuing and surviving person; 

(f) dissolve or cease its operations as they are now conducted; 

(g) take, consent to or acquiesce in any action that would result in (i) Vericity failing to own and control, of record and beneficially,
100% of the outstanding voting membership interests of Seller or take any action to sell all or substantially all of Seller’s assets, or (ii) Vericity failing to own and control, of record and beneficially, at least a
majority of the outstanding voting membership interests of Seller’s Designee or take any action to sell all or substantially all of Seller’s Designee assets; 

(h) neither Seller nor Seller’s Designee will directly or indirectly solicit, encourage, support or permit the replacement of any Subject
Policy; 
 (i) amend, modify or supplement any of the approved forms of Subject Policies from those forms which exist as the date of this
Agreement, or amend, modify or supplement any of the Underlying Insurance Agreements; 
 (j) neither Seller nor Seller’s Designee will
convey any security interest in, liens rights on, or offset rights against any of the Conveyed Property or any of the Commissionable Premium arising under any of the Subject Policies; 

(k) pay to or withhold from any agent, producer, broker or other person or party any commission, fees or other compensation with respect to the
Commissionable Premium; or 
 (l) neither Seller, Seller’s Designee, or any affiliates of either of them will make any material changes
to the pricing, sales, marketing or other business practices that are used as of the date hereof regarding the sales and distribution of the Subject Policies. 

Seller and Seller’s Designee each covenants that it will notify Purchaser in writing promptly upon the imposition or assessment of any,
tax lien, assessment or similar levy against Seller or any of Seller’s assets, and upon any Dispute arising with respect to any Conveyed Property. 

  
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 Section 12. Reports. 

Seller shall provide to Purchaser: 
 (a) As soon
as available, but in any event not later than the 3rd Business Day of each Settlement Period after the date hereof, an Allocation and Payment Report for the most recently ended Settlement Period, as well as seriatim files for all new Subject
Policies in form and content reasonably acceptable to Seller and Purchaser. 
 (b) As soon as available, but in any event not later than two
(2) Business Days after delivery thereof, copies of (i) any written or electronic reports or other information provided or received by Seller under any of the Underlying Insurance Agreements and (ii) any default or termination notices
or other material notices given or received with respect to any Underlying Insurance Agreements and the actions being taken to cure or enforce the same. 

(c) Within two (2) Business Days of becoming aware of any of the following, inform Purchaser of the same together with a reasonably
detailed description of the steps being taken by Seller with respect thereto; (i) the occurrence of an Event of Default; or (ii) any litigation, arbitration or governmental investigation or preceding which have been instituted or, to the
knowledge of Seller, is threatened against Seller, Seller’s Designee, the Commissionable Premium, the Conveyed Property or to which any of the Seller’s property is subject, including, without limitation, any actions taken by the department
of insurance, insurance regulator or other governmental authority regarding any material actions involving Seller or Seller’s Designee. 

(d) From time to time such other information concerning the Conveyed Property, any Underlying Insurance Agreements or the transactions
hereunder as Purchaser may reasonably request, subject to any legal or contractual confidentiality restrictions. 
 Section 13.
Books and Records. 
 Seller agrees, upon reasonable prior notice, to permit Purchaser access, not to exceed once per fiscal quarter unless
an Event of Default has occurred and is continuing, to all books and records of the Seller, and as applicable, Seller’s Designee, including access to computer files and databases, during normal business hours. 

Section 14. Resolution of Disputes. 

Each party shall immediately notify the other party of the assertion by any party or person of any Dispute. Seller shall settle, at its own expense, all
Disputes, subject to Purchaser’s approval, but Purchaser shall have the right, in its discretion, to settle any Dispute directly with the party or person involved upon such terms as Purchaser may deem advisable and at Seller’s expense
without waiving Purchaser’s right to declare a Default, and any deficiency resulting from such settlement shall be the responsibility of Seller. 

Seller specifically acknowledges and agrees that Purchaser is not assuming any liability or obligation of any kind to Seller’s customers or in any way
relating to the Conveyed Property or any of Seller’s other accounts receivable, except as caused by Purchaser’s gross negligence or willful misconduct. 

Section 15. INDEMNIFICATION. 

The parties hereby unconditionally and irrevocably, jointly and severally, agrees to indemnify, defend and hold harmless (each such party providing such
indemnification being the “Indemnifying Party”) the other party and, its officers, servants, employees, agents, attorneys, principals, directors, affiliates, shareholders, parents, subsidiaries, predecessors, successors, and assigns
(collectively, the “Indemnified Parties”) from and against any and all Losses (as hereinafter defined) that any Indemnified Party may suffer, pay or incur as a result of, arising from or connected with any Claim (as hereinafter
defined) threatened or asserted against any Indemnified Party, by any person or entity, except to the extent such Losses are attributable to the bad faith, willful misconduct or gross negligence of the Indemnified Party. 

For purposes hereof, ‘‘Claims” shall mean all, claims, demands, lawsuits, causes of action, choses in action and other legal,
governmental and/or administrative actions and proceedings of whatever 

  
 10 

 nature or kind threatened, brought, or asserted against any Indemnified Party whether by reason or in
consequence of direct action, counterclaim, cross-claim, third party claim, intervention, interpleader, or otherwise, even if groundless, false, meritless or fraudulent, and whether or not caused directly or indirectly, by any error, omission, act
or negligence of any Indemnified Party so long as the claim, lawsuit, cause of action, chose in action or other legal action or proceeding is alleged or determined, directly or indirectly, to arise out of, result from, relate to, or be based upon,
in whole or in part: (i) the obligations, duties, responsibilities, activities, acts or omissions of any Indemnifying Party, in connection with this Agreement; or (ii) as to matters where Purchaser and its related parties are the only
Indemnified Parties, any matter whatsoever relating to any of the Percent of Premium Fees, other Conveyed Property or Initial Amount Offsets, including, without limitation, the use, ownership, sale, conversion, disposition, or collection of all or
any portion of the Percent of Premium Fees, other Conveyed Property or Initial Amount Offsets (including compliance with laws). 
 For purposes
hereof, “Losses” shall mean any losses, costs, damages, expenses, judgments, liabilities, obligations and penalties of whatever nature or kind, including, without limitation, attorneys’, accountants, and other professional
fees; reasonable litigation expenses and court costs and expenses; amounts paid in settlement; amounts paid to discharge judgments, penalties, fines and amounts payable to or incurred by any Indemnified Party to any other person or entity, directly
or indirectly, resulting from, arising out of or relating to one or more Claims. 
 In the event that an Indemnifying Party fails or refuses to
defend any Indemnified Party as required herein, or an Indemnifying Party fails or refuses to engage independent counsel to defend any Indemnified Party to avoid any possible conflict of interest that results from joint representation of that party
and any Indemnified Party by the same counsel, then, in such event, Indemnified Party, at its option, may engage counsel to defend the Indemnified Party and the Indemnifying Party consents, covenants and agrees to bear and pay all such reasonable
legal fees and related costs just as though that party had incurred the same for its own account. 
 Section 16.
Taxes. 
 All taxes and governmental charges imposed with respect to the sales of the goods related to the Conveyed Property shall be charged to
Seller. 
 Section 17. Termination. 

This Agreement shall automatically terminate upon the occurrence of the Funding Termination Date. Termination of this Agreement shall not terminate any of
Seller’s other liabilities or obligations hereunder, including but not limited to (i) payment of Initial Offset Amounts not previously included in a Settlement Date calculation or otherwise paid under this Agreement, (ii) payment of
all Percent of Premium Fees payable after the Funding Termination Date for any Subject Policy which then remains in force, and (iii) any obligations that may arise under Seller’s indemnification obligation described above. 

Section 18. Waiver. 
 Any
failure by Purchaser to exercise any of its rights hereunder shall not be deemed to be a waiver by Purchaser of such or any other rights, nor in any manner impair the subsequent exercise of the same or any other right, and any waiver by Purchaser of
any Event of Default or Default shall not constitute a waiver of any subsequent Event of Default or Default. 
 Section 19.
Choice of Law; Venue, Service of Process. 
 This Agreement shall be construed according to the laws of the State of New York, without regard to
choice of law principles. Any action or proceeding against Seller under or in connection with this Agreement or any other agreement executed in connection herewith shall be brought in any state or federal court in New York, New York, and Seller
hereby irrevocably submits to the exclusive jurisdiction of such courts and waives any objection it may now or hereafter have as to the venue of any such court as an inconvenient forum. 

Section 20. WAIVER OF JURY TRIAL; CLASS ACTION WAIVER. 

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN 

  
 11 

 ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 Section 21. Assignment; Successors and Assigns. 

Purchaser may from time to time, without the consent of, but with prior written notice to, Seller, assign its rights, or sell participation interests, in and
under this Agreement to any affiliate of Purchaser or to any other person or entity, and the assignee or participant shall be entitled to all of the rights and remedies of Purchaser under this Agreement, including its rights as a secured party. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective administrators, legal representatives, successors and assigns; however, Seller may not assign its obligations or rights under this Agreement without
the written consent of Purchaser. 
 Section 22. Further Assurances. 

Seller agrees to execute and deliver to Purchaser such notices of assignment and other documents as Purchaser may reasonably request to further document the
sale and assignment of the Conveyed Property hereunder. 
 Section 23. Severability. 

If any provision of this Agreement shall, for any reason, be held to violate any applicable law, then the remaining portion of this Agreement shall remain in
full force and effect. 
 Section 24. Headings, Construction. 

The headings contained in this Agreement are for reference purposes only and shall not modify or affect the terms of this Agreement in any manner. 

Section 25. Saturday, Sunday or Legal Holiday. 

If any day provided in this Agreement for the performance of any obligation should fall on a day which is not a Business Day, the compliance with such
obligation or delivery shall be deemed acceptable on the next Business Day following such day. 
 Section 26. Notices. 

All notices and requests hereunder shall be in writing (including email or facsimile transmission) and shall be sent to any party to the following address or
to such other address as such party may, by written notice to the other parties, have designated as its address for such purpose: 

If to Seller; 

Fidelity Life Association 

8700 W. Bryn Mawr Avenue 

Suite 900S 

Chicago, IL 60631 

Attention:  Deputy General Counsel 

Email:      michael.gooding@fidelitylife.com 

Attention:  Chief Actuary 

Email:       marc.cagen@fidelitylife.com 

  
 12 

 If to Seller’s Designee. 

Efinancial, LLC 

8700 W. Bryn Mawr Avenue 

Suite 900S 

Chicago, IL 60631 

Attention: Deputy General Counsel 

Email: michael.gooding@fidelitylife.com 

Attention: Chief Actuary 

Email: marc.cagen@fidelitylife.com 

If to Purchaser: 

Hannover Life Reassurance Company of America (Bermuda) Ltd. 

c/o Appleby (Bermuda) Ltd. 

Canon’s Court, 22 Victoria Street 

Hamilton HM12, Bermuda 

Email 1: FSOps@hlramerica.com 

Email 2: FSReporting@hlramerica.com 

with a copy of any notice to Purchaser being simultaneously sent to: 

Hannover Life Reassurance Company of America 

200 South Orange Avenue, Suite 1900 

Orlando, FL 32801, 

Attention: General Counsel 

Email 1:    FSOps@hlramerica.com 

Email 2:    FSReporting@hlramerica.com 

Notices sent by email or facsimile transmission shall be deemed to have been given upon receipt by the sender of confirmation, via email transmission, of
receipt thereof; notices sent by mail shall be deemed to have been given three (3) Business Days after the date when sent by registered or certified mail, postage prepaid; notices sent by overnight courier shall be deemed to have been given one
(1) Business Day after the date sent by reputable overnight courier, postage prepaid; and notices sent by hand delivery or overnight courier shall be deemed to have been given when received. The parties hereto authorize each other party to rely
upon and comply with instructions or directions sent via unsecured email transmission and each party shall not be liable for any loss, liability or expense of any kind incurred by another party due to such party’s reliance upon and compliance
with instructions or directions given by unsecured email transmission, provided, however, that such losses have not arisen from the gross negligence or willful misconduct of the receiving party, it being understood that the failure of the receiving
party to verify or confirm that the person providing the instructions or directions, is, in fact, an authorized person does not constitute gross negligence or willful misconduct. 

Section 27. Costs of Enforcement. 

In the event of any default or breach by Seller under this Agreement, or any portion hereof, whether or not such enforcement becomes necessary by reason of a
breach or default by Seller and/or in the event it becomes necessary for Purchaser to employ an attorney and incur other expenses to collect any Conveyed Property or Obligation, or to negotiate or otherwise render advice on this Agreement, Seller
agrees to pay to Purchaser on demand, from time to time as such amounts are reasonably incurred by Purchaser, an amount or amounts equal to all reasonable fees, expenses, attorneys’ fees and costs incurred by Purchaser including but not limited
to court costs and reasonable attorneys’ fees. The costs described in this section shall become Obligations under Section 9 of this Agreement. Furthermore, Seller agrees to reimburse Purchaser on demand for the actual amount of all
reasonable costs and expenses, including reasonable attorneys’ fees, which Purchaser has incurred or may incur in: 
 (a) protecting,
preserving or enforcing any right granted by Seller to Purchaser or arising under applicable law, whether or not suit is brought, including but not limited to the defense of any claims or Disputes; and 

  
 13 

 (b) complying with any subpoena or other legal process attendant to any litigation in which
Seller is a party, including photocopying and travel expenses 
 Section 28. Electronic Signatures. 

Seller agrees that any executed facsimile (faxed), electronic copy of documents, electronic signatures, or signature-stamped documents, received by Purchaser
relating to this Agreement shall be deemed to be of the same force and effect as the original, manually executed documents. 

Section 29. Obligations Absolute. 

Seller agrees that its obligations shall not be released, diminished, impaired or affected by the occurrence of any one or more of the following events, all of
which may occur without notice to or consent of Seller: 
 (a) Any release, partial release, subordination or loss of any security or
guaranty at any time existing in connection with the obligations contained herein; 
 (b) The insolvency, bankruptcy, disability or
incapacity of any Seller, any guarantor, or any other party now or hereafter obligated hereon; 
 (c) Any renewal, extension, and/or
rearrangement of all or any portion of the obligations contained herein; 
 (d) Any neglect, delay, omission, failure or refusal of Purchaser
to take or prosecute any action for the collection of the obligations provided herein; 
 (e) The unenforceability for any reason of all or
any part of the obligations contained herein against any Seller, guarantor or other party; 
 (f) The finding of any payment by any Seller to
constitute a preference under bankruptcy or similar debtor relief law; 
 (g) Any release or partial release of liability of any Seller,
guarantor or other party; or 
 (h) Any other action that might impair rights in the nature of contribution or subrogation that Seller might
otherwise have. 
 Section 30. Entire Agreement: Amendment. 

This Agreement and the other instruments executed and delivered by Seller and Purchaser in connection herewith represents and embodies the final, entire
agreement between the parties hereto and supersedes any and all prior commitments, agreements, representations and understandings, whether written or oral relating to the subject matter hereof, including any written proposal any letter of intent and
the Original PSA, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements between the parties hereto. The provisions of this
Agreement may not be amended or modified except by a written instrument executed by Purchaser, Seller’s Designee, and Seller. 

Section 31. Conflict. 
 Unless
otherwise expressly stated in any other agreement between Purchaser and Seller, if a conflict exists between the provisions of this Agreement and the provisions of such other agreement, the provisions of this Agreement shall control. 

Section 32. Nature of Agreement. 

Seller and Purchaser have, for all legal and business purposes, characterized the sale of Percent of Premium and Related Rights by Seller to Purchaser pursuant
to this Agreement as a purchase and sale transaction, and not a transaction for the use, forbearance or detention of money. 

  
 14 

 Section 33. Authority. 

The individual signing below warrants and represents that s/he has the requisite authority to bind the entity on whose behalf s/he signs. Purchaser may rely on
any Schedule that purports to come from the Seller and is under no duty to verify its authenticity or genuineness or the authority of the signatory. 

Section 34. Confidentiality. 

The parties agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its
affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the party to whom such disclosure is made will be informed of the confidential nature of such Information
and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other
party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to any assignee of or participant in, or any prospective assignee of or participant in, any of a party’s rights under this Agreement, (g) with the consent of the other
parties, or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (j) becomes available to such party on a non-confidential basis from a source other than Purchaser or
Seller, as the case may be. For the purposes of this Section, “Information” as used herein means all financial information received from a party to this Agreement, other than any such information that is available to such party on a
non-confidential basis prior to disclosure. Any party required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such party has exercised the same degree
of care to maintain the confidentiality of such Information as such party would accord to its own confidential information. It is specifically agreed that invoices and other documents evidencing a Conveyed Property or other payment right sold
hereunder shall not be confidential, and Purchaser may share such information as necessary in its collection efforts. 
 Section 35.
Agreement Supersedes Original PSA.  
 The parties hereto acknowledge and agree that the terms of this Agreement amend and
restate the Original PSA in its entirety and the terms and provisions of such Original PSA have been entirety superseded by the terms and provisions of this Agreement. The parties further acknowledge that, as of the date hereof,
Purchaser is the sole “Purchaser” under the Original PSA, as amended and restated by this Agreement. 

  
 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day first above written. 
  

			
	PURCHASER:
	
	HANNOVER LIFE REASSURANCE COMPANY OF AMERICA (BERMUDA) LTD., a
	Bermuda insurance company
		
	By:	 	 /s/ Dale Mensik

	Name:	 	Dale Mensik
	Title:	 	Senior Vice President
		
	By:	 	 /s/ Jeffrey R. Birt

	Name:	 	Jeffrey R. Birt
	Title:	 	CEO

  
 16 

 
			
	SELLER:
	
	FIDELITY LIFE ASSOCIATION, A LEGAL RESERVE LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Jim Harkensee

	Name:	 	Jim Harkensee
	Title:	 	President
	
	SELLER’S DESIGNEE:
	
	 EFINANCIAL, LLC,
 a
Washington limited liability company

		
	By:	 	 /s/ Christopher Campbell

	Name:	 	Christopher Campbell
	Title:	 	President

  
 17 

 SCHEDULE A 

Form of Allocation and Payment Report 

(See Attached) 

 Hannover/FLA Commission Financing/Acquisition Agreement 

Allocation and Payment Report 
 As Of:
                                         
                                         
   
  

									
	(1)	 	Estimate Initial Amount (Previous Settlement Period)	  		  		  	                                      
    
					
	(2)	 	Initial Amount on actual production, previous settlement period	  		  		  	

  

															
	 	 	 	  	 	  	 Annualized

Premium
	  	Policy Count	  	 Commissonable

Premium
	  	 Initial Amount

Percentage
	  	Initial Amount
		 	 (a)
	  	10 Year Term	  		  		  		  	135%	  	
		 	 (b)
	  	15 Year Term	  		  		  		  	135%	  	
		 	 (c)
	  	20 Year Term	  		  		  		  	145%	  	
		 	 (d)
	  	30 Year Term	  		  		  		  	145%	  	
		 	 (e)
	  	Total	  		  		  		  		  	

  

									
	(3)	 	Estimate Initial Amount (Current Settlement Period)	  		  		  	                                      
    
					
	(4)	 	Percentage of Premium Fees, current settlement period	  		  		  	                                     
     

  

															
	 	 	 	  	 	  	 Earned

Premium
 (level term only)
	  	Policy Count	  	 Commissonable

Premium (level
 term only)
	  	 Percent of

Premium Fee
 Rate
	  	 Percent of

Premium Fee

		 	 (a)
	  	10 Year Term	  		  		  		  	28%	  	
		 	 (b)
	  	15 Year Term	  		  		  		  	28%	  	
		 	 (c)
	  	20 Year Term	  		  		  		  	21%	  	
		 	 (d)
	  	30 Year Term	  		  		  		  	21%	  	
		 		  		  		  		  		  		  	  

		 	 (e)
	  	Total	  		  		  		  		  	                                   
 

  

									
	(5)	 	Chargebacks (Initial Amount Offsets)	  		  		  	                                    

					
	(6)	 	Net Settlement (2) - (1) + (3) - (4) - (5)	  		  		  	

 SCHEDULE B 
  

					
	 Policy Year
	  	Unamortized
Percentage	 
	 1
	  	 	100	% 
	 2
	  	 	90	% 
	 3
	  	 	80	% 
	 4
	  	 	70	% 
	 5
	  	 	60	% 
	 6
	  	 	50	% 
	 7
	  	 	40	% 
	 8
	  	 	30	% 
	 9
	  	 	20	% 
	 10
	  	 	10	% 
	 11 and (thereafter)
	  	 	0	% 

 SCHEDULE C 
  

					
	Subject Policy Type	  	Initial Amount Percentage	 	Percent of Premium Fee Rate
	 10 Year Term
	  	135%	 	28%
	 15 Year Term
	  	135%	 	28%
	 20 Year Term
	  	145%	 	21%
	 30 Year Term
	  	145%	 	21%

 SCHEDULE D 

Efinancial Payment Account Information 
  

					
	Name of Bank	  	US Bank	 
	 ABA Number
	  	 	1250000105	 
	 Account Name
	  	 	Efinancial, LLC	 
	 Account Number
	  	 	1 535 9239 7209

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]