Document:

Exhibit
10.14

 

COBALT INTERNATIONAL ENERGY,
L.P.

DEFERRED COMPENSATION PLAN

(Amended and Restated as of October 22,
2009)

 

SECTION 1.  Purpose.  Cobalt International Energy, L.P. adopted the
Deferred Compensation Plan (the “Plan”),
effective as of December 31, 2008, to allow certain of its executives to
defer receipt of a portion of their compensation and to encourage and promote
the profitable growth of the Company. 
Cobalt International Energy, L.P. desires to amend and restate the Plan
to provide that no additional deferrals will be permitted under the Plan and to
clarify the treatment of amounts deferred under the Plan on and following the
IPO (as defined in Section 2(j)). 
This document supersedes the document implementing the terms of the Plan
as in effect prior to the date of this amendment and restatement (the “Prior Plan Document”); it being understood
that nothing in this document shall be deemed to provide for distributions with
respect to amounts deferred under the Plan at any times or upon any events
other than as provided under the Prior Plan Document.

 

SECTION 2. 
Definitions.  As used herein,
the following definitions shall apply:

 

(a)                        “Administrator” means (i) the Board or (ii) the
person or persons appointed by the Board to serve as the Administrator pursuant
to Section 11.

 

(b)                       “Account” means an account maintained by the Company for a
Participant to document the amounts deferred by such Participant under the
Plan.

 

(c)                        “Annual Bonus” means the cash bonus, if any, awarded to a
Participant by the Company in 2009 for performance with respect to 2009.

 

(d)                       “Beneficiary” means a person entitled to receive a payment
under the Plan in the event of a Participant’s death.  If no such person is named by such
Participant, or if no Beneficiary designated by such Participant is eligible to
receive a payment under the Plan upon his death, such Participant’s Beneficiary
shall be his estate.

 

(e)                        “Board” means the board of directors of the Company.

 

(f)                          “Change in Control” at any time (i) prior to the IPO shall
have the meaning assigned to it in the Partnership Agreement; provided that clause (iii) of such definition shall not
apply for purposes of the Plan, and (ii) on or following the IPO, shall
have the meaning assigned to it in the LTIP.

 

(g)                       “Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations and guidance promulgated thereunder.

 

 

(h)                       “Company” means (i) prior to the closing of the IPO,
Cobalt International Energy, L.P., and (ii) on and after the closing of the
IPO, Cobalt International Energy, Inc.

 

(i)                           “Disability” means, with respect to a Participant, that such
Participant is:

 

(i)                                     unable to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months; or

 

(ii)                                  by reason of
any medically determinable physical or mental impairment, which can be expected
to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not
less than three months under an accident and health plan covering employees of
the Company.

 

(j)                           “IPO” means the underwritten public offering of shares of
the  common stock of Cobalt International
Energy, Inc. pursuant to Registration Statement No. 333-161734 on Form S-1
filed with the Securities and Exchange Commission.

 

(k)                        “LTIP” means the Cobalt International Energy, Inc. Long
Term Incentive Plan.

 

(l)                           “Plan” means this Cobalt International Energy, L.P. Deferred
Compensation Plan, as amended from time to time.

 

(m)                     “Partnership
Agreement” means the Fourth Amended and Restated Agreement of
Limited Partnership of Cobalt International Energy, L.P. dated as of February 6,
2009.

 

(n)                       “Reorganization Agreement” means the Reorganization Agreement
to be entered into prior to the IPO among Cobalt International Energy, L.P.,
Cobalt International Energy, Inc. and the other parties signatory thereto.

 

(o)                       “Salary” means the base salary paid by the Company to a
Participant in 2009 for personal services to the Company.

 

(p)                       “Separation from Service” means, with respect to a
Participant, the (i) cessation of all services performed by such
Participant for the Company or (ii) permanent decrease in the level of
services performed by such Participant for the Company (whether as an employee
or as an independent contractor) to no more than 20 percent of the average
level of services performed (whether as an employee or an independent
contractor) over the immediately preceding 36-

 

2

 

month period (or the full period of services to the
Company, if such Participant has been providing services to the Company for
less than 36 months).

 

(q)                       “Share” means one share of common stock of Cobalt
International Energy, Inc.

 

Part I

Participation and Deferrals

 

SECTION 3.  Participation.  As of the date of this amendment and
restatement of the Plan, the participants in the Plan are the individuals whose
names are set forth on Appendix A (the “Participants”).  No additional individuals shall be permitted
to participate in the Plan.

 

SECTION 4.  Deferrals.  Appendix A indicates the amount of his Salary
and/or Bonus that each Participant irrevocably elected to defer under the
Plan.  An Account has been established
for each Participant, which has been credited with the amount of deferred
Salary through the date of this amendment and restatement of the Plan and which
shall be credited with the amount of deferred Salary and/or Bonus following
such date.

 

Part II

Account Investments

 

SECTION 5.  Account Investments Prior
to the Closing of the IPO.  Each Account merely provides a record of the
bookkeeping entries relating to the Plan and thus reflects a mere unsecured
promise to pay amounts in the future. 
Prior to the closing of the IPO, Accounts shall be deemed to be invested
in the JPMorgan Prime Money Market Fund or such other investment reference as
determined by the Administrator in good faith (the “Investment
Reference”).  Accounts shall
be deemed to have realized applicable investment earnings and losses based on
the performance of the Investment Reference, which shall be credited or debited
to the Account of each Participant as of the end of each calendar quarter.  The Administer may, but shall not be
obligated to, determine the value of the Accounts more frequently than
quarterly.

 

SECTION 6.  Account
Investments from the Closing of the IPO. 
If the closing of the
IPO occurs prior to the date on which the amounts credited to a Participant’s
Account are distributed pursuant to Section 10, then on and following the
closing of the IPO such amounts shall be deemed to be invested in the number of
Shares that otherwise would have been issuable to such Participant pursuant to
the Reorganization Agreement upon conversion of his Class A Interests in
Cobalt International Energy, L.P. attributable to the amounts set forth on
Schedule II of the Reorganization Agreement under the “Deferred” column that
are treated as part of his Capital Contribution pursuant to Section 3.01
of the Reorganization Agreement.

 

3

 

SECTION 7.  Dividends.  On and
after the closing of the IPO, whenever a cash dividend or any other
distribution is paid with respect to Shares, each Account will be credited with
an additional number of notional Shares, equal to the number of Shares,
including fractional Shares (computed to the second decimal place), that could
have been purchased had such dividend or other distribution been paid to the
Account on the payment date of such dividend or distribution based on the
number of notional Shares in such Account as of such date and assuming the
amount of such dividend or value of such distribution had been used to acquire
additional Shares.  Such additional
notional Shares shall be deemed to be purchased at the average of the high and
low quoted sale price of a Share, as reported on the New York Stock Exchange
Composite Transaction Tape on the payment date for such dividend or other
distribution.  The value of any
distribution in property will be determined by the Administrator.

 

SECTION 8.  Adjustments.  In the
event that, at any time following the closing of the IPO, the Committee
determines that, as a result of any dividend or other distribution (whether in
the form of cash, Shares or other securities), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company, issuance of Shares pursuant to the anti-dilution
provisions of securities of the Company, or other similar corporate transaction
or event affecting the Shares, an adjustment is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan, then the Committee shall adjust equitably the
number of notional Shares credited to each Participant’s Account.

 

Part III

Vesting and Distributions

 

SECTION 9.  Vesting.  Each
Participant shall have a 100% non-forfeitable and vested interest in his
Account at all times.

 

SECTION 10.  Distributions.

 

(a)                        Scheduled
Distribution Date.  Unless
earlier distribution is required pursuant to this Section 10, the amounts
credited to a Participant’s Account shall be distributed to such Participant in
January 2012.  Under no
circumstances shall a Participant be permitted to defer distribution of any
amounts credited to his Account beyond January 2012.

 

(b)                       Death.  In the event of a Participant’s death, the
amounts credited to such Participant’s Account shall be distributed to his
Beneficiary as soon as practicable following his death but in no event later
than 90 days thereafter.

 

(c)                        Disability
or Separation from Service.  In the event of a Participant’s Disability or
Separation from Service other than due to his death, the

 

4

 

amounts credited to his Account shall be distributed
to him on the last day of the calendar quarter following such Disability or
Separation from Service; provided that
if the Administrator considers such Participant to be one of the Company’s “specified
employees,” as defined in Section 409A of the Code, as of the date of such
Disability or Separation from Service, such distribution shall be made on the
date that is six months after the date of such Disability or Separation from
Service, except to the extent that earlier distribution would not result in
such Participant incurring additional tax or interest under Section 409A
of the Code.

 

(d)                       Change
in Control.  Upon, or
within 60 days following, a Change in Control, the amounts credited to a
Participant’s Account shall be distributed to such Participant; provided that upon any such Change in Control that would not
constitute a change in control, as defined in the Prior Plan Document, the
amounts credited to such Participant’s Account shall not be distributed to him;
provided further that upon any change in
control, as defined in the Prior Plan Document, that would not constitute a
Change in Control, the amounts credited to such Participant’s Account shall be
distributed to him upon, or within 60 days following, such change in control.

 

(e)                        Form of
Distribution; Fractional Shares.  In the event that a Participant (or
Beneficiary) becomes entitled to a distribution pursuant to this Section 10
at any time:

 

(i)                                     prior to the
closing of the IPO, the amounts credited to such Participant’s Account shall be
distributed in cash in a lump sum; or

 

(ii)                                  on or following
the closing of the IPO, the amounts credited to such Participant’s Account
shall be distributed in Shares; provided that
any fractional Shares shall be paid in cash in an amount equal to the average
of the high and low quoted sale prices of a Share, as reported on the New York
Stock Exchange Composite Transaction Tape, on the trading day preceding the
distribution.

 

Part IV

General Provisions

 

SECTION 11.  Administration of the Plan.  The Board, or the person or persons appointed
by the Board to serve as Administrator, shall be the Administrator of the
Plan.  The Administrator, in its sole
discretion, is authorized to interpret the Plan, to prescribe, amend and
rescind the rules relating to the Plan, and to make such other
determinations and exercise such other powers and authority as may be necessary
or advisable for the administration of the Plan.  No fee or compensation shall be paid to any
person for non-ministerial services as the Administrator.  The Administrator in its sole discretion may
delegate internally or externally any of its functions, including ministerial
functions, and may pay compensation for services rendered relating to such
ministerial functions.  All
determinations of the Administrator shall be made by at least a majority of the

 

5

 

individuals then appointed to serve as Administrator.  Any determination made by the Administrator
pursuant to the powers set forth herein shall be final, binding and conclusive
upon each Participant and Beneficiary. 
The Administrator shall decide any question that may arise regarding the
rights of Participants and Beneficiaries, and the amounts of their respective
interests.  The Administrator shall
maintain full and complete records of its decisions.  Its records shall contain all relevant data
pertaining to the Participant and his rights and duties under the Plan.  The Administrator shall have the duty to
maintain Account records for the Participants. 
The Administrator shall provide a copy of the Plan to each Participant,
and other documents relating to the Plan shall be available at the principal
office of the Company for inspection by each Participant at reasonable times
determined by the Administrator.

 

SECTION 12.  Successors; Assumption upon
IPO.  The Plan shall be binding
upon and inure to the benefit of the Company and any successor of the Company,
by merger or otherwise.  The Plan shall
also be binding upon and inure to the benefit of each Participant and his
estate.  If the closing of the IPO occurs
prior to the date on which all amounts have been distributed from all the
Participants’ Accounts, then upon the closing of the IPO the Plan shall be assumed
by Cobalt International Energy, Inc.

 

SECTION 13.  Unfunded Status of Plan.  The Plan is intended to be unfunded for tax
purposes.  The Participants have the
status of general unsecured creditors of the Company.  The Plan constitutes a mere promise by the
Company to make payments in the future.

 

SECTION 14.  Continued Employment or Service Not Presumed.  Nothing in the Plan or any document related
to the Plan or describing it shall give a Participant the right to continue in
employment or service with the Company or affect the right of the Company to
terminate the employment or service of such Participant with or without cause.

 

SECTION 15.  Amendment
and Termination of the Plan.

 

(a)                        The Board, in
its sole discretion, may amend, suspend or discontinue the Plan or a
Participant’s deferral at any time; provided that
no amendment, suspension or discontinuance shall reduce such Participant’s
accrued benefit, except to the extent necessary to comply with any provision of
federal, state or other applicable law. 
The Board further has the right, without a Participant’s consent, to
amend or modify the terms of the Plan and such Participant’s deferral to the
extent that the Administrator deems it necessary to avoid adverse or unintended
tax consequences to such Participant under Section 409A of the Code.

 

(b)                       The Board may
terminate the Plan at any time in its discretion, as long as the Company
terminates all similar deferral compensation arrangements that it sponsors and
does not adopt any similar arrangement at any time within three years after the
date on which the Plan is terminated. 
Distribution of

 

6

 

amounts payable under the Plan at the time of its
termination will be paid in a lump sum in the form specified in Section 10(e) on
the earlier of (i) the first anniversary of the date of such termination
or (ii) the date on which such amounts otherwise would have been
distributed pursuant to Section 10.

 

SECTION 16.  Severability of Provisions. 
Should any provision of the Plan be determined to be invalid, illegal or
unenforceable, such invalidity, illegality or unenforceability shall not affect
the remaining provisions of the Plan but shall be fully severable, and the Plan
shall be construed and enforced as if such provision had never been inserted
herein.

 

SECTION 17.  Offset Permitted. 
Notwithstanding any provision of the Plan to the contrary, the Company
may, if the Administrator in its sole and absolute discretion shall determine,
offset any amounts to be paid to a Participant (or his Beneficiary) under the
Plan against any amounts that such Participant may owe to the Company; provided that no such offset shall result in or be part of
an acceleration of distribution or substitution payment arrangement with respect
to any non-qualified deferred compensation that would be impermissible under Section 409A
of the Code.

 

SECTION 18.  Withholding.  All
amounts deferred under the Plan with respect to a Participant (or his
Beneficiary) shall be subject to withholding and to such other deductions as
shall at the time of such payment be required under any income tax or other
law, whether of the United States or any other jurisdiction, and, in the case
of payments to the executors or administrators of the estate of a deceased
Participant, the delivery to the Company of such tax waiver, letters
testamentary and other documents as the Administrator may reasonably request.

 

SECTION 19.  Governing Law.  The
Plan shall be governed by the laws of the State of Delaware, without application
of the conflicts of law principles thereof.

 

7

 

Appendix A

 

[Table of Participants and
Amounts Deferred]

 

8Exhibit 10.1

 

EXECUTION COPY

 

INDEMNITY REINSURANCE AGREEMENT

 

 

between

 

 

CONSTITUTION LIFE INSURANCE COMPANY

 

(Ceding Company)

 

 

and

 

 

COMMONWEALTH ANNUITY AND LIFE INSURANCE COMPANY

 

(Reinsurer)

 

Effective as of April 1, 2009

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITION OF TERMS

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
  Section 1.2.

  	
  Construction

  	
  9

  
	
  Section 1.3.

  	
  Headings

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  BASIS OF COINSURANCE

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Coinsurance

  	
  9

  
	
  Section 2.2.

  	
  Duration of Coinsurance;
  Recapture

  	
  9

  
	
  Section 2.3.

  	
  Parties to Coinsurance

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  CLOSING AND CONSIDERATION

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Settlement Amount

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  COOPERATION BETWEEN THE CEDING COMPANY AND THE REINSURER FOLLOWING 

  	
   

  
	
  THE
  COINSURANCE EFFECTIVE DATE 

  	
  12 

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Ceding Company Service
  Period

  	
  12

  
	
  Section 4.2.

  	
  Premium Payments,
  Negotiation of Checks

  	
  12

  
	
  Section 4.3.

  	
  Reserves

  	
  12

  
	
  Section 4.4.

  	
  Reserve Credits

  	
  12

  
	
  Section 4.5.

  	
  Premium Taxes

  	
  12

  
	
  Section 4.6.

  	
  Payments Relating to
  Commissions

  	
  13

  
	
  Section 4.7.

  	
  Guaranty Fund Assessments

  	
  13

  
	
  Section 4.8.

  	
  Reports

  	
  13

  
	
  Section 4.9.

  	
  Monthly Settlement

  	
  13

  
	
  Section 4.10.

  	
  Audit

  	
  14

  
	
  Section 4.11.

  	
  Non-Guaranteed Elements

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  UNDERTAKINGS OF CEDING COMPANY FOLLOWING THE COINSURANCE EFFECTIVE 

  	
  15 

  
	
  DATE 

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Cooperation

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  INDEMNIFICATION

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Indemnification by the
  Ceding Company

  	
  15

  
	
  Section 6.2.

  	
  Indemnification by the
  Reinsurer

  	
  16

  
	
  Section 6.3.

  	
  Indemnification and
  Arbitration Procedures

  	
  17

  
	
  Section 6.4.

  	
  Cooperation

  	
  17

  
	
  Section 6.5.

  	
  Payment in Full for Losses

  	
  17

  
					

 

i

 

	
  ARTICLE VII           INSOLVENCY

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Payment of Benefits under
  an Insolvency

  	
  17

  
	
  Section 7.2.

  	
  Required Notice of and
  Defense against Claims

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII           ARBITRATION

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Agreement to Arbitrate

  	
  18

  
	
  Section 8.2.

  	
  Method

  	
  18

  
	
  Section 8.3.

  	
  Power of Arbitrators

  	
  19

  
	
  Section 8.4.

  	
  Arbitration Fees and
  Expenses; Decision

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX           GENERAL
  PROVISIONS

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Notices

  	
  20

  
	
  Section 9.2.

  	
  Confidentiality

  	
  20

  
	
  Section 9.3.

  	
  Misunderstandings and
  Oversights

  	
  20

  
	
  Section 9.4.

  	
  Reinstatements

  	
  20

  
	
  Section 9.5.

  	
  Entire Agreement

  	
  20

  
	
  Section 9.6.

  	
  Waivers and Amendments

  	
  20

  
	
  Section 9.7.

  	
  No Third Party
  Beneficiaries

  	
  20

  
	
  Section 9.8.

  	
  Binding Effect; No
  Assignment

  	
  21

  
	
  Section 9.9.

  	
  Governing Law

  	
  21

  
	
  Section 9.10.

  	
  Counterparts

  	
  21

  
	
  Section 9.11.

  	
  Severability

  	
  21

  
	
  Section 9.12.

  	
  Exhibits and Schedules

  	
  21

  
	
  Section 9.13.

  	
  Election Statement

  	
  21

  
	
  Section 9.14.

  	
  Additional Tax Provisions

  	
  22

  
	
  Section 9.15.

  	
  Set Off

  	
  22

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3.1

  	
  SETTLEMENT AMOUNT

  	
   

  
	
  SCHEDULE 4.6

  	
  PAYMENTS RELATING TO
  COMMISSIONS

  	
   

  
	
  SCHEDULE 4.9

  	
  MONTHLY SETTLEMENT REPORTS

  	
   

  
	
  EXHIBIT A 

  	
  POLICY FORMS AND PLAN
  CODES, SUM OF ALL RESERVE ITEMS 

  	
   

  
	
  EXHIBIT B

  	
  STATUTORY RESERVES AND
  LIABILITIES BY POLICY

  	
   

  
	
  EXHIBIT C

  	
  TRANSFERRED ASSETS

  	
   

  

 

ii

 

INDEMNITY REINSURANCE AGREEMENT

 

THIS INDEMNITY REINSURANCE AGREEMENT (the “Agreement”), effective as of April 1,
2009, is made and entered into by and between CONSTITUTION
LIFE INSURANCE COMPANY, a Texas stock life and health insurance
company (the “Ceding Company”)
and COMMONWEALTH ANNUITY AND LIFE INSURANCE
COMPANY, a Massachusetts stock life insurance company (the “Reinsurer”).

 

WHEREAS,
the Ceding Company has issued or assumed certain life insurance and annuity
Policies, which are identified by policy form number and/or plan code on Exhibit A attached  hereto; and

 

WHEREAS,
the Ceding Company, together with certain of its Affiliates named therein, and
the Reinsurer have entered into (i) that certain Master Agreement dated November 26,
2008, as amended by Amendment Number 1 to Master Agreement, dated April 24,
2009 (the “Amendment”),
with FAFLIC (collectively, the “Master
Agreement”) and (ii) that certain Joinder Agreement, dated January 9,
2009, with FAFLIC (the “Joinder Agreement”),
pursuant to which, among other things, the Ceding Company and the Reinsurer
have mutually agreed to enter into this Agreement pursuant to which the Ceding
Company shall cede, and the Reinsurer shall indemnity reinsure, the Insurance
Liabilities on a one hundred percent (100%) coinsurance basis on the terms and
conditions stated herein.

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth herein
and in the Master Agreement and Joinder Agreement, and in reliance upon the
representations, warranties, conditions and covenants contained herein and
therein, and intending to be legally bound hereby, the Ceding Company and the
Reinsurer hereby agree as follows:

 

ARTICLE I

 

DEFINITION OF TERMS

 

Section 1.1.
 Definitions.  Capitalized terms used in this Agreement, but
not otherwise defined in this Article I, shall have the meaning
given thereto in the Master Agreement. The following capitalized words and
terms shall have the following meanings when used in this Agreement:

 

(a)                                  “Affiliate” has the meaning ascribed
thereto in the Master Agreement.

 

(b)                                 “Agreement” has the meaning set forth in
the Preamble.

 

(c)                                  “Amendment” has the meaning set forth in
the second recital hereof.

 

(d)                                 “Applicable Law” has the meaning
ascribed thereto in the Master Agreement.

 

(e)                                  “Approved Designee” has the meaning
ascribed thereto in the Services Agreement.

 

1

 

(f)                                    “Books and Records” has the meaning
ascribed thereto in the Master Agreement.

 

(g)                               “Business Day” has the meaning ascribed
thereto in the Master Agreement.

 

(h)                                 “Ceding Company” has the meaning set
forth in the Preamble.

 

(i)                                     “Ceding Company Caused Extra Contractual Liabilities”
means all Extra Contractual Liabilities that are not Reinsurer Caused Extra
Contractual Liabilities or Reinsurer Covered Extra Contractual Liabilities.

 

(j)                                     “Ceding Company Indemnified Parties” has
the meaning set forth in Section 6.2.

 

(k)                                  “Ceding Company Service Period” means
the period commencing on the Closing Date and ending on the Transition Date.

 

(l)                                     “Closing” has the meaning ascribed
thereto in the Master Agreement.

 

(m)                               “Closing Date” has the meaning ascribed
thereto in the Master Agreement.

 

(n)                                 “Closing Date Ceding Commission” means
the “Closing Date Ceding Commission” determined with respect to the Ceding
Company pursuant to the Master Agreement. The Closing Date Ceding Commission
shall be credited to the Ceding Company as a reduction in the Settlement Amount
that would otherwise be payable by the Ceding Company to the Reinsurer at
Closing under Section 2.2 of the Master Agreement and Section 3.1
of this Agreement.

 

(o)                                 “Closing Fee” has the meaning ascribed
thereto in the Amendment.

 

(p)                                 “Code” means the Internal Revenue
Code of 1986, as amended.

 

(q)                                 “Coinsurance Effective Date”  means 12:01 a.m. (New York time) on
the first calendar day of the calendar month in which the Closing occurs.

 

(r)                                    “Conversion Services” has the meaning
ascribed thereto in the Services Agreement.

 

(s)                                  “Cost of Capital”
means the cost of a capital decrease resulting from the establishment of an
Interest Maintenance Reserve liability calculated as follows:

 

The
product of (i) the average of the amounts of the Interest Maintenance
Reserve liability (a) as of the first day of each calendar year (except in
the case of the year in which the Coinsurance Effective Date occurs, which
shall be as of the last day of the calendar quarter preceding the Coinsurance
Effective Date) and (b) as of the last day of each calendar year,
multiplied by (ii) an annual, simple interest rate

 

2

 

equal
to 5% (pro-rated for the year in which the Coinsurance Effective Date occurs)
(in this manner, the Cost of Capital is amortized in accordance with the Ceding
Company’s Interest Maintenance Reserve amortization schedule as reported in its
statutory annual financial statement dated as of and for the period ended December 31,
2008 over a period of ten (10) years).

 

(t)                                    “Dispute Notice” has the meaning set
forth in Section 3.1(d).

 

(u)                                 “ECL Cap” means an amount not to exceed
in the aggregate $10,000,000 in respect of Losses sustained or incurred by, or
asserted against, (x) the Ceding Company Indemnified Parties in respect of
Reinsurer Covered Extra Contractual Liabilities, (y) those other “Ceding
Company Indemnified Parties” in respect of “Reinsurer Covered Extra Contractual
Liabilities” under each of the other “Coinsurance Agreements” (as defined in
the Master Agreement), entered into by the Reinsurer or FAFLIC, as the case may
be, and Affiliates of the Ceding Company of even date herewith, and (z) the
Reinsurer or FAFLIC, as the case may be, in respect of Reinsurer Covered Extra
Contractual Liabilities hereunder and under such other “Coinsurance Agreements”
identified in clause (y), taken as a whole. 
For the avoidance of doubt, any payment made by either the Reinsurer or
FAFLIC, as the case may be, (i) in respect of “Reinsurer Covered Extra Contractual
Liabilities” under any other such “Coinsurance Agreement” shall be applied
against the ECL Cap under this Agreement as if such payment had been made
hereunder, and (ii) under clauses (x), (y) or (z) of this
definition shall be applied against the ECL Cap only one time and shall not be
counted as a payment made pursuant to more than one such clause.

 

(v)                                 “Excluded Liabilities” means any claim,
obligation or liability arising under, in connection with, or with respect to,
the Policies:

 

(i)                                     for Premium
Taxes, including any litigation or expenses concerning Premium Taxes, to the
extent arising with respect to premiums collected on the Policies attributable
to all periods before the Coinsurance Effective Date, and/or to the extent
based upon assessments relating to all periods prior to the Coinsurance
Effective Date;

 

(ii)                                  (x) in
connection with participation by the Ceding Company, whether voluntary or
involuntary, in any guaranty fund or other residual market mechanism
established or governed by any state or jurisdiction to the extent arising with
respect to premiums attributable to all periods prior to the Coinsurance
Effective Date and/or (y) to the extent based upon regulatory fines or
assessments relating to events which initially occurred or commenced prior to
the Transition Date (provided, that such liability or other obligation
will not be an Excluded Liability if it arose out of any act or omission of the
Ceding Company or its Affiliate that occurred (or in the case of an omission,
failed to occur) on or after the Closing  Date
and was made at the written or express direction or request of the Reinsurer or
its designees);

 

(iii)                               for Ceding
Company Caused Extra Contractual Liabilities;

 

3

 

(iv)                              for escheat
liabilities arising in respect of all periods prior to the Coinsurance
Effective Date;

 

(v)                                 for all
Producer Payments;

 

(vi)                              relating to
disputes, litigation, investigations by Governmental Authorities, arbitrations
or legal proceedings arising out of acts or omissions of the Ceding Company or
its Affiliates that occurred prior to the Closing Date in connection with the
Policies, solely to the extent such liabilities are not Extra Contractual
Liabilities;

 

(vii)                           for all
premiums, payments, fees or other consideration or amounts due at any time with
respect to Reinsurance Coverage;

 

(viii)                        or portions of
the Policies, in each case, to the extent reinsured or purported by the Ceding
Company to be reinsured under Reinsurance Coverage, whether or not such
coverage is collected or collectible;

 

(ix)                                for any payment
to the Internal Revenue Service or any other Person resulting from or
attributable to any act or omission of the Ceding Company (including errors of
product design, language, or administration, or inaccurate or incomplete data
maintained in Books and Records) resulting in non-compliance of any Policy with
the requirements of the Code to the extent such act or omission was not made at
the written or express direction or request of the Reinsurer or its designees;

 

(x)                                   incurred by the
Ceding Company in connection with a breach, or other failure to perform, by the
Ceding Company of the terms of any acquisition agreement pursuant to which any
of the Policies were originally acquired by the Ceding Company, except as such
breach or failure to perform results from acts or omissions by the Ceding
Company made at the written or express direction or request of the Reinsurer or
its designees;

 

(xi)                                arising from
the remediation processes in the States of Wisconsin and New York,
respectively;

 

(xii)                             arising from
any errors or omissions made by the Ceding Company, its Affiliates or designees
in calculating, paying, documenting or administering any surrender charges on
annuity contracts included among the Policies, including those errors that
arose in respect of surrender charges in the State of Utah; and

 

(xiii)                          solely to the
extent arising from changes that are made by the Ceding Company to the
non-guaranteed elements under the Policies without the prior written consent of
the Reinsurer other than such changes that are required by Applicable Law.

 

4

 

Excluded Liabilities shall
not include any gross liabilities and obligations incurred by the Ceding
Company to the extent attributable to acts, errors or omissions of the
Reinsurer or its designees in connection with the Reinsurer’s or its designees’
(x) exercise of contractual rights and privileges of the Ceding Company
under the Policies pursuant to the Transaction Agreements, including pursuant
to Sections 2.1(a) and 4.11 hereof or (y) performance
of Required Services after the Transition Date. In no event shall the term
“designees” as used in this paragraph or in Section 6.2(d)(i) include
the Ceding Company, its Affiliates or their designees.

 

(w)                               “Extra Contractual Liabilities” means
all liabilities, obligations and other losses (including lost profits) incurred
or arising at any time under or relating to any Policy that are not covered by,
or that are in excess of, the contractual benefits arising under the express
terms and conditions of such Policies, whether to Policyholders, Producers,
Governmental Authorities or any other Person, which liabilities and obligations
or losses shall include any liability for fines, penalties, forfeitures, excess
or penalty interest, punitive, exemplary, special or any other form of extra
contractual damages relating to the Policies, and attorneys’ fees and expenses
awarded, and which arise from any act, error or omission of a party or its
designees, whether or not intentional, negligent, in bad faith or otherwise,
including any act, error or omission of a party or its designees relating to (i) the
marketing, underwriting, production, issuance, cancellation or administration
of the Policies, (ii) the investigation, defense, trial, settlement or
handling of claims, benefits or payments arising out of or relating to the
Policies, or (iii) the failure to pay or the delay in payment, or errors
in calculating or administering the payment, of benefits, claims or any other
amounts due or alleged to be due under or in connection with the Policies.

 

(x)                                 “Final Settlement Amount” has the
meaning set forth in Section 3.1(b).

 

(y)                                 “Final Settlement Date” has the meaning
set forth in Section 3.1(e).

 

(z)                                   “Governmental Authority” has the
meaning ascribed thereto in the Master Agreement.

 

(aa)                            “Independent Accountant” means Deloitte &
Touche LLP; provided, that if such accounting firm is either unable or
unwilling to accept such engagement, the Ceding Company and the Reinsurer shall
jointly request the American Arbitration Association to appoint, within ten (10) Business
Days from the date of such request, an internationally recognized firm of
public accountants independent of both the Ceding Company and the Reinsurer to
serve as Independent Accountant.

 

(bb)                          “Insurance Liabilities”
means all claims, obligations, indemnities, losses or liabilities (and no
others) arising under, in connection with, or with respect to, the Policies
(other than, in all cases, Excluded Liabilities):

 

(i)                                     prior to or
after the Coinsurance Effective Date under the express terms of the Policies,
including (x) any right to purchase additional coverage and obligations
arising under legal or regulatory requirements, (y) any loss settlements
within Policy limits, and (z) all such liabilities relating to actions,
suits or claims instituted at or after the Coinsurance Effective Date by a
Person;

 

5

 

(ii)                                  for Reinsurer
Caused Extra Contractual Liabilities and Reinsurer Covered Extra Contractual
Liabilities, subject to the limitations contained in Section 6.2;

 

(iii)                               for all Premium
Taxes, including any litigation expenses (but only if initiated by or at the
request of Reinsurer) concerning Premium Taxes, to the extent arising with
respect to premiums on the Policies attributable to periods on or after the
Coinsurance Effective Date, and/or to the extent based upon assessments
relating to all periods on or after the Coinsurance Effective Date;

 

(iv)                              (x) in
connection with participation by the Ceding Company, whether voluntary or
involuntary, in any guaranty fund or other residual market mechanism
established or governed by any state or jurisdiction to the extent arising with
respect to premiums on the Policies attributable to periods on or after the
Coinsurance Effective Date and/or (y) to the extent based upon regulatory
fines or assessments relating to periods on or after (A) the Closing Date,
but only to the extent such regulatory fines or assessments arose out of any
act or omission of the Ceding Company or its Affiliate that occurred (or in the
case of an omission, failed to occur) on or after the Closing Date and was made
at the written or express direction or request of the Reinsurer or its designees,
or (B) the Transition Date;

 

(v)                                 for all
out-of-pocket loss adjustment expenses incurred from and after the Transition
Date by the Ceding Company with respect to the Policies (other than in
connection with the Ceding Company’s participation in such expenses under the
Services Agreement);

 

(vi)                              for escheat
liabilities for checks issued by the Reinsurer on or after the Coinsurance
Effective Date; and

 

(vii)                           for amounts
payable on or after the Coinsurance Effective Date for returns or refunds of
premiums under the Policies.

 

(cc)                            “Interim Services” has the meaning
ascribed thereto in the Services Agreement.

 

(dd)                          “Joinder Agreement” has the
meaning ascribed thereto in the second recital hereof.

 

(ee)                            “Loss” or “Losses”
has the meaning ascribed thereto in the Master Agreement.

 

(ff)                                “Master Agreement” has the meaning
set forth in the second recital hereof.

 

(gg)                          “Ongoing Services” has the meaning
ascribed thereto in the Services Agreement.

 

6

 

(hh)                          “Permitted Transactions” has the meaning
ascribed thereto in the Master Agreement.

 

(ii)                                  “Person” has the meaning ascribed
thereto in the Master Agreement.

 

(jj)                                  “Policies” means each of those insurance
policy contracts and/or annuity contracts issued or assumed by the Ceding
Company (i) prior to 12:01 a.m. (New York time) on the Coinsurance
Effective Date  and that are
identified by policy form number and/or plan code on Exhibit A attached hereto and that
are in effect on the Coinsurance Effective Date or (ii) that are
reinstated in, or otherwise the subject of, a Permitted Transaction.  “Policies” shall not include any insurance
policy contracts and/or annuity forms (including any net retained liabilities
of the Ceding Company thereunder) in respect of which the Ceding Company has
ceded all or a portion of the liabilities thereunder to Wilton Reassurance
Company pursuant to the Wilton Re Agreements.

 

(kk)                            “Policyholder” has the meaning ascribed
thereto in the Master Agreement.

 

(ll)                                  “Premium Taxes” means the taxes,
assessments, and fees imposed on premiums relating to the Policies by any
state, local, or municipal taxing authority together with any related interest,
penalties and additional amounts imposed by any taxing authority with respect
thereto, including retaliatory taxes.

 

(mm)                    “Producer” has the meaning ascribed
thereto in the Master Agreement.

 

(nn)                          “Producer Agreement”  means any written, oral or other agreement
or contract between the Ceding Company and any Producer, or among or between
Producers, including any assignments of compensation thereunder, and relating
to the solicitation, sale, marketing, production or servicing of any of the
Policies.

 

(oo)                          “Producer Payments” has the meaning
ascribed thereto in the Master Agreement.

 

(pp)                          “Recapture Fee” has the meaning ascribed
thereto in the Amendment.

 

(qq)                          “Reconciliation Amount” has the meaning
set forth in Section 3.1(c).

 

(rr)                                “Regulation” has the meaning set forth
in Section 9.13.

 

(ss)                              “Reinsurance Coverage” means all
contracts, agreements and treaties of reinsurance between the Ceding Company
and any Third Party Reinsurer that are in force and effect as of the
Coinsurance Effective Date and cover risks associated with the Policies or any
portions thereof.

 

(tt)                                “Reinsurer” has the meaning set forth in
the Preamble.

 

(uu)                          “Reinsurer Caused Extra Contractual Liabilities”
has the meaning set forth in Section 6.2(d).

 

7

 

(vv)                        “Reinsurer Covered Extra Contractual Liabilities”
has the meaning set forth in Section 6.2(e) (subject to the
limitations therefor in Section 6.2) .

 

(ww)                  “Reinsurer Indemnified Parties” has the
meaning set forth in Section 6.1.

 

(xx)                          “Required Services” has the meaning
ascribed thereto in the Services Agreement.

 

(yy)                        “SAP” means the statutory accounting
practices and procedures required or permitted by the insurance regulatory
authority in the Ceding Company’s state of domicile, consistently applied
throughout the specified period and in the immediately prior comparable period.

 

(zz)                            “Services Agreement” means the services
agreement entered into among the Ceding Company, several Affiliates of the
Ceding Company and the Reinsurer of even date herewith.

 

(aaa)                    “Settlement Amount” means the amount of
the initial reinsurance premium payment to be made at Closing by the Ceding
Company to the Reinsurer in consideration of the reinsurance of the Policies
under this Agreement, which shall be in an amount calculated pursuant to Schedule 3.1 attached hereto.

 

(bbb)                 “Statutory Reserves and Liabilities”
means the sum of all of the reserve items (including reserve items for claims
incurred but not reported and claims in the course of settlement) maintained by
the Ceding Company for the Policies, net of Reinsurance Coverage, as set forth
in Exhibit A attached
hereto.  Exhibit B attached hereto sets forth the Statutory
Reserves and Liabilities by Policy as of the Coinsurance Effective Date, as
such schedule may be adjusted pursuant to Section 3.1 of this
Agreement.

 

(ccc)                    “Third Party Reinsurer” has the meaning
ascribed thereto in the Master Agreement.

 

(ddd)                 “Transaction Documents” means this
Agreement, the Master Agreement and the Services Agreement.

 

(eee)                    “Transferred Assets” means the cash,
cash equivalents and other assets transferred as part of the Settlement Amount
and as set forth on Exhibit C
attached hereto. Such Transferred Assets shall be valued as of the Closing Date
according to the mechanics set forth on Exhibit C.

 

(fff)                          “Transition Date” has the meaning
ascribed thereto in the Services Agreement.

 

(ggg)                 “Wilton Re Agreements” has the meaning
ascribed thereto in the Amendment.

 

8

 

Section 1.2.
 Construction.  For the purposes of this Agreement, (i) words
(including capitalized terms defined herein) in the singular shall be held to
include the plural and vice versa and words (including capitalized terms
defined herein) of one gender shall be held to include the other gender as the
context requires; (ii) the terms “hereof,” “herein” and “herewith” and
words of similar import shall, unless otherwise stated, be construed to refer
to this Agreement as a whole (including all of the Schedules) and not to any
particular provision of this Agreement, and Article, Section, paragraph and
Schedule references are to the Articles, Sections, paragraphs and Schedules to
this Agreement, unless otherwise specified; (iii) the word “including” and
words of similar import when used in this Agreement shall mean “including,
without limitation”; (iv) all references to any period of days shall be
deemed to be to the relevant number of calendar days unless otherwise
specified; and (v) all references herein to “$” or “Dollars” shall refer
to United States dollars, unless otherwise specified.

 

Section 1.3.
 Headings.  The Article and Section headings
contained in this Agreement are inserted for convenience of reference only and
shall not affect the meaning or interpretation of this Agreement.

 

ARTICLE II

 

BASIS OF COINSURANCE

 

Section 2.1.
 Coinsurance.

 

(a)                                  Subject to the
terms and conditions of this Agreement, effective as of the Coinsurance
Effective Date, the Ceding Company hereby cedes to the Reinsurer, and the
Reinsurer hereby accepts and reinsures on a one hundred percent (100%)
coinsurance basis, the Insurance Liabilities. The Ceding Company and the
Reinsurer mutually agree that, as between the parties, on and after the
Coinsurance Effective Date, the Reinsurer shall be entitled to exercise all
contractual rights and privileges of the Ceding Company under the Policies in
accordance with the terms, provisions and conditions of such Policies.

 

(b)                                  In no
event shall such coinsurance with respect to a particular Policy be in force
and binding unless such underlying Policy as issued or assumed by the Ceding
Company is in full force and binding as of the Coinsurance Effective Date or is
the subject of a Permitted Transaction following the Coinsurance Effective
Date.

 

(c)                                  With respect to
each of the Policies, the amount of coinsurance hereunder shall be maintained
in force without reduction so long as the Policy remains in full force without
reduction. If there is a reduction with respect to a Policy, the Reinsurer’s
liability with respect thereto shall be equally reduced.  All coinsurance for which the Reinsurer is
liable hereunder shall be subject to the same rates, terms, conditions,
limitations and restrictions as are contained in the Policy.

 

Section 2.2.
 Duration of Coinsurance; Recapture.  The coinsurance provided under this Agreement
shall remain continuously in force.  The
Policies are not eligible for recapture by the Ceding Company.

 

9

 

Section 2.3.
 Parties to Coinsurance.  Article II of this Agreement
provides for indemnity reinsurance solely between the Ceding Company and the
Reinsurer. The acceptance of reinsurance under this Article II
shall not create any right or legal relation between the Reinsurer and any
Policyholder, insured, claimant or beneficiary under a Policy, and the Ceding
Company shall be and remain solely liable to such Policyholder under the
Policy.

 

ARTICLE III

 

CLOSING AND CONSIDERATION

 

Section 3.1.
 Settlement Amount.

 

(a)                                  On the Closing
Date, the Ceding Company agrees to pay the Reinsurer an amount, in the form of
Transferred Assets as designated and valued as of the Closing Date pursuant to
the mechanics set forth on Exhibit C,
equal to the difference between an estimate of: (i) Statutory Reserves and
Liabilities, minus (ii) due and deferred premiums on the Policies as of
the Coinsurance Effective Date, minus (iii) policy loans outstanding on
the Policies as of the Coinsurance Effective Date (net of any accrued and
unearned policy loan interest on such policy loans), minus (iv) the
Closing Date Ceding Commission as set forth on Schedule 3.1 attached hereto, plus (v) the portion of the
Closing Fee due and payable by the Ceding Company to the Reinsurer, as
reflected on Schedule H to the Amendment (collectively, the “Settlement Amount”). The Settlement
Amount plus interest accrued thereon, as contemplated in Section 2.1 of
the Master Agreement, shall be remitted by the Ceding Company to the Reinsurer
to an account(s) designated in writing by the Reinsurer. Items (i) through
(iii) of this Section 3.1(a) shall reflect the amounts
reported by the Ceding Company as of the quarter-ended immediately preceding
the Closing Date.

 

(b)                                 The parties
agree to make adjustments to Exhibit A
and Exhibit B attached hereto
and to the Settlement Amount following Closing, based upon (i) Statutory
Reserves and Liabilities for (x) any Policies or Policy claims improperly
or inadvertently omitted or miscalculated in determining the Settlement Amount
or (y) any Policies that were or are the subject of Permitted Transactions
and that were omitted from the calculation of the Settlement Amount as of the
Coinsurance Effective Date, (ii) adjustments to the Closing Date Ceding
Commission pursuant to Section 2.2(d) of the Master Agreement, and (iii) actual
amounts as reported by the Ceding Company as of the Coinsurance Effective Date
for items (i) through (iii) in Section 3.1(a) (such
adjusted amount, the “Final Settlement
Amount”); provided, however, that any such
adjustments made pursuant to clause (i)(x) will require the prompt prior
written consent of the Reinsurer, which consent shall not be unreasonably
withheld, but no such adjustment will be made pursuant to clause (i)(x) unless
the Ceding Company has notified the Reinsurer in writing of such adjustment
prior to the ninetieth (90th) day following the Closing Date.

 

(c)                                  The Final
Settlement Amount will be calculated by the Ceding Company and reported to the
Reinsurer prior to the one hundred twentieth (120th) day following the Closing Date, and if such
difference between the Final Settlement Amount and the Settlement Amount (such
difference, the “Reconciliation Amount”)
is (i) a positive number, then the Ceding Company shall pay such
Reconciliation Amount to the Reinsurer by wire transfer of

 

10

 

immediately available funds
or (ii) a negative number, then the absolute value of such negative
number, as the Reconciliation Amount, shall be paid by the Reinsurer to the
Ceding Company by wire transfer of immediately available funds.

 

(d)                                 The Reinsurer
shall have ten (10) Business Days to review the Ceding Company’s
calculations of the Final Settlement Amount and the Reconciliation Amount and
provide written notice to the Ceding Company of any dispute regarding the
Ceding Company’s calculation of such amounts (a “Dispute Notice”). The Ceding Company and the Reinsurer
shall cooperate in good faith to resolve such dispute as promptly as
practicable and, upon such resolution, make any adjustments to the calculation
of any amount(s) contained in the Ceding Company’s calculations of the
Final Settlement Amount and the Reconciliation Amount with the agreement of the
Ceding Company and the Reinsurer. If the Ceding Company and the Reinsurer are
unable to resolve any such dispute within twenty (20) Business Days (or such
longer period as the Ceding Company and the Reinsurer shall mutually agree in
writing) of the Reinsurer’s delivery of such Dispute Notice, such dispute shall
be resolved by the Independent Accounting Firm, and such determination by the
Independent Accounting Firm shall be final and binding on the parties; provided
that the Reinsurer and the Ceding Company shall submit to the Independent
Accounting Firm statements with respect to their respective positions on
disputed issues and will cooperate with the Independent Accounting Firm by
promptly providing any requested information. Any expenses relating to the
engagement of the Independent Accounting Firm in respect of its services
pursuant to this Section 3.1(d) shall be shared fifty percent
(50%) by the Reinsurer and fifty percent (50%) by the Ceding Company. The
Independent Accounting Firm shall be instructed to use reasonable best efforts
to perform its services within thirty (30) Business Days of submission by the
Reinsurer and the Ceding Company of their respective statements with respect to
the disputes and, in any case, as promptly as practicable after such
submission. If no Dispute Notice is timely delivered by the Reinsurer, the
Ceding Company’s calculations of the Final Settlement Amount and the
Reconciliation Amount shall be determinative. If a Dispute Notice is timely
delivered by the Reinsurer, the amounts determined pursuant to the resolution
of such dispute in accordance with this Section 3.1(d), shall be
the Final Settlement Amount and Reconciliation Amount.

 

(e)                                  With respect to
each adjustment which shall enter into the calculation of the Final Settlement
Amount and the Reconciliation Amount, interest shall accrue thereon at an
annual rate equal to the Three-Month London Interbank Offering Rate (LIBOR) as
published in the Money Rate Section (or any successor section) of The Wall
Street Journal (or any successor publication) on the (A) Closing Date,
with respect to adjustments made other than pursuant to clause (b)(i)(y) above,
and (B) effective date of a Permitted Transaction with respect to
adjustments made pursuant to clause (b)(i)(y) above. Such interest shall
accrue from the Closing Date (or the effective date of the Permitted
Transaction, as the case may be) to the date the Reconciliation Amount is paid,
which payment date shall be the fifth (5th) Business Day following the later of (i) the
receipt by the Reinsurer of calculation of the Final Settlement Amount and
Reconciliation Amount, and (ii) the resolution of any dispute in respect
of the calculation of the Final Settlement Amount and/or the Reconciliation
Amount (the “Final Settlement Date”).

 

11

 

ARTICLE IV

 

COOPERATION BETWEEN THE CEDING COMPANY AND

THE REINSURER FOLLOWING THE COINSURANCE EFFECTIVE DATE

 

Section 4.1.
 Ceding Company Service Period.  During the Ceding Company Service Period, the
Ceding Company shall provide, or cause to be provided, Interim Services,
Conversion Services and Ongoing Services in accordance with the Services
Agreement. On and after the Transition Date, the Reinsurer shall provide, or
cause to be provided, Required Services under the terms and conditions of the
Services Agreement.

 

Section 4.2.
 Premium Payments, Negotiation of
Checks.  (i) On and after the
Coinsurance Effective Date, all premium payments, conversion charges and other
consideration under the Policies received by the Ceding Company shall be the
sole property of the Reinsurer, and (ii) any premium payment, conversion
charge and other consideration received by the Ceding Company, to the extent
such premium payment, conversion charge and other consideration covers periods
on or after the Coinsurance Effective Date, shall be remitted in accordance
with the Services Agreement.

 

Section 4.3.
 Reserves.  The Reinsurer agrees that, on and after the
Coinsurance Effective Date, it will establish and maintain all statutory
reserves and liabilities as may be required under the terms of the Policies,
SAP and Applicable Law.

 

Section 4.4.
 Reserve Credits.  If, as of the end of any calendar quarter
following the Coinsurance Effective Date, the Ceding Company becomes unable to
take full reserve credit with respect to all the reinsurance provided under
this Agreement by the Reinsurer of the Policies for whatever reason, the
Reinsurer will implement, prior to the date on which the Ceding Company is
required by Applicable Law to file its quarterly statutory financial statement
as of and for the period ended on such calendar quarter end-date with its
domiciliary insurance regulatory authority, alternative arrangements in
accordance with  Applicable Law in
order to ensure that the Ceding Company is permitted to take such reserve
credit on the Ceding Company’s statutory financial statements.

 

Section 4.5.
 Premium Taxes.  The Ceding Company shall be liable for all
Premium Taxes on premiums received in connection with the Policies prior to the
Coinsurance Effective Date and shall remain liable for payment of Premium Taxes
on premiums received under the Policies. The Reinsurer shall pay to the Ceding
Company a provision for Premium Taxes incurred in connection with premiums
received under the Policies on or after the Coinsurance Effective Date.  The provision for Premium Taxes to be paid by
the Reinsurer pursuant to the immediately preceding sentence shall be two and
one-half percent (2.5%) of premiums collected as ceded under this Agreement (as
such percentage may be changed annually on a prospective basis by the mutual
agreement of the parties to reflect actual experience, which agreement by each
party shall not be unreasonably withheld, delayed or conditioned), as
calculated on a quarterly basis, and shall be paid by the Reinsurer to the
Ceding Company as part of the monthly and annual settlements that occur under
this Agreement.

 

12

 

Section 4.6.
 Payments Relating to Commissions.
 The Reinsurer shall pay to the Ceding
Company those payments set forth on Schedule
4.6, which shall be reflected in the monthly settlement report
prepared and delivered pursuant to Section 4.9.

 

Section 4.7.
 Guaranty Fund Assessments.

 

(a)                                  Ceding
Company-Paid Assessments.  In
the event the Ceding Company is required to pay an assessment in respect of the
Policies to any insurance guaranty, insolvency or other similar fund maintained
by any jurisdiction and such assessment is based on premiums collected or
policies in full force in any period on or after the Coinsurance Effective
Date, the portion, if any, of such assessment that relates to such Policies
shall be reimbursed by the Reinsurer to the extent that no Premium Tax offsets
are available for use by the Ceding Company. 
Such reimbursement shall be included in the monthly and annual
settlements that occur under this Agreement.

 

(b)                                 Reinsurer-Paid
Assessments.  In the
event the Reinsurer is required to pay an assessment in respect of the Policies
to any insurance guaranty, insolvency or other similar fund maintained by any
jurisdiction and such assessment is based on premiums collected or policies in
force in any period prior to the Coinsurance Effective Date, the portion, if
any, of such assessment that relates to such Policies shall be reimbursed by
the Ceding Company to the extent that no Premium Tax offsets are available for
use by the Reinsurer.

 

Section 4.8.
 Reports.  The parties hereto acknowledge and agree that
the regularity and reliability of information concerning the Policies is
critically important to each such party. In connection therewith, each of the
Ceding Company and the Reinsurer agrees to, and agrees to cause their
respective designees to, comply with its respective reporting obligations as
set forth in this Agreement and the Services Agreement within the time periods
contemplated herein and therein.

 

Section 4.9.
 Monthly Settlement.

 

(a)                                  The Ceding
Company shall provide the Reinsurer with a monthly settlement report, no later
than the thirtieth (30th) day following
the end of each calendar month, with delivery thereof commencing in the month
following the month in which the Coinsurance Effective Date occurs (including
in such first report the period since the Coinsurance Effective Date). Such
monthly settlement report shall be in the form specified in Schedule 4.9 attached hereto.

 

(b)                                 In the event
that such monthly settlement report reflects a net amount owed by the Ceding
Company to Reinsurer pursuant to the terms of this Agreement, then the Ceding
Company shall also make a wire payment in immediately available funds of such
net amount to the account(s) designated therefor in writing by the
Reinsurer no later than the tenth (10th) Business Day following Reinsurer’s receipt of such
monthly settlement report, except to the extent that the Reinsurer notifies the
Ceding Company in writing prior to the expiration of such ten (10) Business
Day period of its good faith belief that the report is inaccurate, in which
case the parties shall cooperate with each other to resolve the disagreement.
In the event that a monthly settlement report reflects a net amount owed by
Reinsurer to the Ceding Company

 

13

 

pursuant to the terms of
this Agreement, Reinsurer shall make a wire payment in immediately available
funds of such net amount to the Ceding Company no later than the tenth (10th) Business Day following
Reinsurer’s receipt of such monthly settlement report, except to the extent
that the Reinsurer notifies the Ceding Company prior to the expiration of such
ten (10) Business Day period of its good faith belief that the report is
inaccurate, in which case the parties shall cooperate with each other to
resolve the disagreement.  In the event
of any such dispute, the party owing any amount pursuant to such monthly settlement
report shall pay such amount in full no later than the fifth (5th) Business Day following
settlement of such dispute. Any delinquent amounts payable under this clause (b) shall
accrue interest from the date such payment was originally due until the date
such payment is made, such interest to accrue at an annual rate equal to the
Three-Month London Interbank Offering Rate (LIBOR) as published in the Money
Rate Section (or any successor section) of The Wall Street Journal,
Eastern Edition (or any successor publication) as determined on the date such
payment was originally due.

 

(c)                                  Pursuant to the
terms of the Services Agreement, from and after the Transition Date, the
Reinsurer shall be responsible for, among other things, the direct payment to
Policyholders or their beneficiaries, as applicable, of all death, annuity and
other contractual benefits constituting Insurance Liabilities under the
Policies.  Any such payment by the
Reinsurer shall satisfy, on a dollar-for-dollar basis, the Reinsurer’s obligations
to the Ceding Company in respect thereof under this Agreement.

 

Section 4.10.
 Audit.  Each party shall have the right to audit on an
annual basis, at its sole expense, at the office of the other during regular
business hours and upon reasonable prior written notice, all records and procedures
relating to the Policies.

 

Section 4.11.
 Non-Guaranteed Elements.

 

(a)                                  For the period
beginning on the Closing Date and continuing up to and including the Transition
Date, the Ceding Company shall make such changes to the non-guaranteed elements
under the Policies as are requested in writing by the Reinsurer or its
designees. The Ceding Company shall make no changes to such non-guaranteed
elements except those requested in writing by the Reinsurer or its designees,
or as otherwise may be required by Applicable Law.

 

(b)                                 For all periods
following the Transition Date, the Ceding Company acknowledges and agrees that (i) the
Reinsurer and its designees have sole discretion to make changes to the
non-guaranteed elements of the Policies to the extent that such changes are in
accordance with the terms of the Policies and Applicable Law, and (ii) it
shall not make any such changes to such non-guaranteed elements except those
requested in writing by the Reinsurer or as otherwise may be required by
Applicable Law.

 

14

 

ARTICLE V

 

UNDERTAKINGS OF CEDING COMPANY FOLLOWING

THE COINSURANCE EFFECTIVE DATE

 

Section 5.1.
 Cooperation.  The Ceding Company agrees to provide all
reasonable assistance to the Reinsurer and its designees in the transfer to the
Reinsurer of the obligation to provide Required Services pursuant to the
Services Agreement in connection with the Policies, including responding to
questions from the Reinsurer and its designees in the conversion of computer
records and files to the systems of the Reinsurer. The Ceding Company will do
all things reasonable and necessary to permit the Reinsurer and its designees
to exercise and assert all rights of the Ceding Company as contemplated herein
and will fully cooperate with the Reinsurer and its designees in such exercise
and assertion.

 

ARTICLE VI

 

INDEMNIFICATION

 

Section 6.1.
 Indemnification by the Ceding Company.  From and after the Closing Date, the Ceding
Company shall indemnify and defend the Reinsurer, its Approved Designees and
its Affiliates, and their respective officers, employees, directors,
controlling persons, Affiliates, agents, representatives and assigns (the “Reinsurer Indemnified Parties”)
against, and hold each of them harmless from all Losses sustained or incurred
by, or asserted against, the Reinsurer Indemnified Parties which arise out of:

 

(a)                                  any Excluded
Liabilities;

 

(b)                                 any breach or
nonfulfillment by the Ceding Company of, or any failure by the Ceding Company
to perform, any of the covenants, terms or conditions of, or any of its duties
or obligations under, this Agreement;

 

(c)                                  any action or
inaction of the Ceding Company or its designees under or with respect to any of
the Policies that is not indemnifiable by the Reinsurer pursuant to Section 6.2;

 

(d)                                 or relate to or
are in connection with the Wilton Re Agreements;

 

(e)                                  the amount of
the Cost of Capital for any Interest Maintenance Reserve that the Reinsurer
becomes obligated to establish under SAP as a liability as of the Coinsurance
Effective Date or as of the Closing Date on its statutory financial statements
solely as a result of the reinsurance by the Reinsurer of the Insurance
Liabilities contemplated by this Agreement, the amount of such Interest
Maintenance Reserve (if any) being determined by reference to the schedule to
be provided by the Ceding Company to the Reinsurer as promptly as practicable
following the determination thereof; and

 

(f)                                    any enforcement
of this indemnity.

 

15

 

Section 6.2.
 Indemnification by the Reinsurer.
 From and after the Closing Date, the
Reinsurer shall indemnify and defend the Ceding Company and its Affiliates, its
Approved Designees, and their respective officers, employees, designees,
directors, controlling persons, Affiliates, agents, representatives and assigns
(the “Ceding Company Indemnified Parties”)
against, and hold each of them harmless from, all Losses sustained or incurred
by, or asserted against, the Ceding Company Indemnified Parties which arise out
of:

 

(a)                                  any Insurance
Liabilities;

 

(b)                                 any breach or
nonfulfillment by the Reinsurer of, or any failure by the Reinsurer to perform,
any of the covenants, terms or conditions of or any of its duties or
obligations under this Agreement;

 

(c)                                  any action or
inaction of the Reinsurer or its designees under or with respect to any of the
Policies;

 

(d)                                 any Extra
Contractual Liabilities and any related attorneys’ fees and expenses that are
based upon, relate to or arise solely out of any act, error or omission of (i) the
Reinsurer or any of its officers, directors, designees, agents or employees,
whether intentional or otherwise, which occurred after the Closing Date
(including in connection with the Reinsurer’s or its designees’ (x) exercise
of contractual rights and privileges of the Ceding Company under the Policies
pursuant to the Transaction Agreements, including pursuant to Sections
2.1(a) and 4.11 of this Agreement, and (y) performance of
Required Services under the Services Agreement after the Transition Date),
except to the extent such act, error or omission was made at the written or
express direction or request of the Ceding Company or its designees, and (ii) the
Ceding Company or any of its officers, directors, designees, agents or employees
that occurred (or, in the case of an omission, failed to occur) on or after the
Closing Date and was made at the written or express direction or request of the
Reinsurer or its designees (“Reinsurer
Caused Extra Contractual Liabilities”);

 

(e)                                  Extra Contractual
Liabilities and any related attorneys’ fees and expenses that are based upon,
relate to or arise solely out of any act, error or omission of the Ceding
Company or any of its officers, directors, designees, agents or employees,
whether intentional or otherwise, with respect to the Policies (other than
those acts, errors or omissions covered by Section 6.2(d)(ii)), in
respect of which relief is first sought by the aggrieved Person from the Ceding
Company, the Reinsurer or any of their respective Affiliates or designees after
April 24, 2014 (“Reinsurer Covered
Extra Contractual Liabilities”); and

 

(f)                                    any enforcement
of this indemnity.

 

Notwithstanding anything to
the contrary herein, in no event shall the Reinsurer be obligated to indemnify
the Ceding Company Indemnified Parties for Losses arising in respect of any
Reinsurer Covered Extra Contractual Liabilities pursuant to Section 6.2(e) that
exceed, individually or in the aggregate, the ECL Cap.

 

In addition, the Ceding
Company agrees, and agrees to cause each other Ceding Company Indemnified
Party, to use commercially reasonable efforts to seek recoveries under all
applicable insurance or reinsurance policies or other indemnity, contribution
or similar agreements in

 

16

 

respect of any Losses
arising in respect of Reinsurer Covered Extra Contractual Liabilities. In the
event that any Ceding Company Indemnified Party is able to make any actual
recovery under any such insurance or other agreement, the Reinsurer shall not
have any liability to the Ceding Company hereunder for such amount and, in the
event that the Reinsurer has already made an indemnification payment to the
Ceding Company Indemnified Parties for such amount, the Ceding Company shall
reimburse Reinsurer for such payments to the extent any Ceding Company
Indemnified Parties received reimbursement under such insurance or other
agreement. Payments made by the Reinsurer but later reimbursed by any Ceding
Company Indemnified Party pursuant to the immediately preceding sentence shall
not be applied against the ECL Cap.

 

Section 6.3.
 Indemnification and Arbitration
Procedures.  The arbitration
procedures under Article VIII of this Agreement shall apply to
indemnity claims and disputes arising under this Agreement, and are
incorporated herein by reference.  The
rights and obligations of the parties respecting indemnification under this
Agreement shall be subject to the limitations described in Article VIII
of this Agreement.

 

Section 6.4.
 Cooperation.  Each party agrees that it will cooperate fully
with the other party in the satisfactory settlement of any and all claims,
insofar as possible.

 

Section 6.5.
 Payment in Full for Losses.  To the extent a Reinsurer Indemnified Party or
a Ceding Company Indemnified Party receives indemnification in full for a Loss
under any Transaction Agreement, such party shall not be entitled to further
indemnification under the same or any other Transaction Agreement.

 

ARTICLE VII

 

INSOLVENCY

 

Section 7.1.
 Payment of Benefits under an
Insolvency.  The obligations of the
Reinsurer under this Agreement shall be without diminution or in any way
affected or diminished because of the insolvency of the Ceding Company. In the
event of the insolvency of the Ceding Company and the appointment of a
conservator, liquidator, receiver or statutory successor of the Ceding Company
while coinsurance is in effect as to any Policy, all coinsurance made, ceded,
renewed or otherwise becoming effective under this Agreement shall be payable directly
to such conservator, liquidator, receiver or statutory successor immediately
upon demand, with reasonable provision for verification, on the basis of claims
allowed against the Ceding Company by any court of competent jurisdiction or by
any conservator, liquidator, receiver or statutory successor of the Ceding
Company having authority to allow such claims, without diminution because of
such insolvency or because such conservator, liquidator, receiver or statutory
successor has failed to pay all or a portion of any claims, except where (x) this
Agreement specifies another payee of such reinsurance in the event of the
insolvency of the Ceding Company or (y) the Reinsurer, with the consent of
the direct insured or insureds, has assumed such policy obligations of the
Ceding Company as direct obligations of the Reinsurer to the payees under such
Policies and in substitution for the obligations of the Ceding Company to such
payees.

 

17

 

Section 7.2.
 Required Notice of and Defense
against Claims.  In the event of the
insolvency of the Ceding Company while coinsurance as to any Policy is in
effect under this Agreement, the conservator, liquidator, receiver or statutory
successor of the Ceding Company shall give the Reinsurer written notice of the
pendency of a claim against the Ceding Company on a Policy within a reasonable
time after such claim is filed in the insolvency proceeding. During the
pendency of any such claim, the Reinsurer may, at its own expense, investigate
such claim and interpose, at its own expense, in the proceeding where such
claim is to be adjudicated, any defense or defenses which the Reinsurer may
deem available to the Ceding Company or its conservator, liquidator, receiver
or statutory successor.  The expense thus
incurred by the Reinsurer shall be payable, subject to court approval, out of
the estate of the Ceding Company as a part of the expense of conservation or
liquidation to the extent of a proportionate share of the benefit which may
accrue to the Ceding Company in conservation or liquidation 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 elects to interpose the
defense to such claim, the expense shall be apportioned in accordance with the
terms of this Agreement as though such expense had been incurred by the
insolvent Ceding Company.

 

ARTICLE VIII

 

ARBITRATION

 

Section 8.1.
 Agreement to Arbitrate.  It is the intention of the parties that
customs and usages of the business of life insurance or reinsurance and
annuities shall be given full effect in the interpretation of this
Agreement.  All disputes between the
Reinsurer and the Ceding Company arising out of this Agreement (other than
disputes arising with respect to the formation and validity of this Agreement)
on which an amicable understanding cannot be reached shall be decided
exclusively by arbitration between the parties at a location to be mutually
agreed upon between the parties or as designated by the arbitrators if
agreement as to a location cannot be reached by the parties. Notwithstanding
any other provision of this Article VIII, if either the Reinsurer
or the Ceding Company seeks, consents to, or acquiesces in the appointment of
or otherwise becomes subject to any trustee, receiver, liquidator, statutory
successor or conservator (including any state insurance regulatory agency or
authority acting in such a capacity), the other party shall not be obligated to
resolve any claim, dispute or cause of action under this Agreement by
arbitration except as may be required by Applicable Law.  Notwithstanding any other provision of this Article VIII,
nothing contained in this Agreement shall require arbitration of any issue for
which equitable or injunctive relief, including specific performance, is the
sole remedy sought.

 

Section 8.2.
 Method.  The parties intend this Article VIII
to be enforceable in accordance with the Federal Arbitration Act (9 U.S.C. Section 1,
et seq.), including any amendments to that Act which are subsequently adopted,
notwithstanding any other choice of law provision set forth in this
Agreement.  In the event that either
party refuses to submit to arbitration as required herein, the other party may
request a United States Federal District Court to compel arbitration in
accordance with the Federal Arbitration Act. Both parties consent to the
jurisdiction of such court to enforce this article and to confirm and enforce
the performance of any award of the arbitrators.  Arbitration shall be conducted before a
three-person arbitration panel appointed as follows: to initiate arbitration,
either party shall notify the other in writing in

 

18

 

the manner set forth in this
Agreement for sending notices to the parties of its desire to arbitrate,
stating the nature of the dispute and the remedy sought, and designating an
arbitrator. The party to which the notice is sent shall respond in writing no later
than the thirtieth (30th) day following
its receipt of such notice. If the second party fails to respond within the
time period set forth in this Section 8.2, or fails to designate
its arbitrator in its response, the party initiating arbitration shall appoint
a second arbitrator. The two arbitrators shall select an umpire no later than
the thirtieth (30th) day following
the designation of the second arbitrator. If they are unable to agree upon the
selection of the umpire on or prior to the thirtieth (30th) day following the
appointment of the second arbitrator, the parties shall appoint the umpire
pursuant to the ARIAS-US Umpire Selection Procedure.  The arbitrators and umpire shall be either
present or former executive officers of life insurance or reinsurance
companies, be certified to act as arbitrators or umpires by ARIAS-US, shall not
be under the control of either party and shall have no financial interest in
the outcome of the arbitration and shall have no conflict of interest with any
party hereto (or its Affiliates) or the subject matter of the arbitration.

 

Section 8.3.
 Power of Arbitrators.  The arbitrators shall have the power to
determine all procedural rules for the conduct of the arbitration,
including the production and inspection of documents, the examination of
witnesses and any other matter relating to the conduct of the arbitration. The
arbitrators and the umpire shall interpret this Agreement as an honorable
engagement and not merely as a legal obligation between the parties. They shall
reach their decision from the standpoint of equity and the customs and
practices of the life insurance or reinsurance industry with a view to
effecting the general purposes of this Agreement and may abstain from following
the strict rules of law; provided, however, that (i) the
arbitrators shall have no authority to award equitable relief or punitive
damages against or in favor of either party (except to reimburse a party for
extra-contractual or punitive damages that either the Ceding Company or the
Reinsurer has paid or is legally obligated to pay to third parties), and (ii) nothing
contained in this Article VIII is intended to limit the dispute
resolution mechanics for (x) calculations made pursuant to Section 3.1
or Exhibit C (which disputes
shall be resolved pursuant to the procedures set forth in Section 3.1
or Exhibit C, as applicable),
or (y) Section 9.13.

 

Section 8.4.
 Arbitration Fees and Expenses; Decision.  Unless the arbitration panel orders
otherwise, each party shall pay: (1) the fees and expenses of its own
arbitrator; and (2) an equal share of the fees and expenses of the umpire
and the other expenses of the arbitration. Each party shall pay its own legal
fees in connection with the arbitration, unless the arbitrators award legal
fees and expenses of the prevailing party as part of any award. Except as
otherwise specifically provided herein, the arbitration shall be conducted in
accordance with the procedures of the American Arbitration Association.  The decision of the arbitrators shall be made
in writing and final and binding upon both of the parties. Judgment may be
entered upon the final decision of the arbitrators in any court having
jurisdiction.  The arbitration will be
conducted on a confidential basis, except to the extent otherwise required by
Applicable Law, and no matters discussed or disclosed by any party at the
arbitration, or any decision or award of the arbitrators, will be admitted into
evidence or otherwise disclosed or used before any court or other legal,
regulatory or administrative body, authority or forum for any purpose except as
and to the extent necessary for entry of final judgment on the award of the
arbitrators in any court having jurisdiction.

 

19

 

ARTICLE IX

 

GENERAL PROVISIONS

 

Section 9.1.
 Notices.  Any and all notices and other communications
required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given when (i) received by the receiving party if
mailed by United States registered or certified mail, return receipt requested,
(ii) received by the receiving party if mailed by United States overnight
express mail, (iii) sent by facsimile or telecopy machine, followed by
confirmation mailed by United States first-class mail or overnight express mail
or (iv) delivered in person to the parties at the addresses set forth in
the Master Agreement.

 

Section 9.2.
 Confidentiality.  Each of the parties shall maintain the
confidentiality of all information related to the Policies and all other
information denominated as confidential by the other party provided to it in
connection with this Agreement to the extent required by and subject to all of
the terms and provisions of Section 11.7 of the Master Agreement.

 

Section 9.3.
 Misunderstandings and Oversights.  If any failure to pay amounts due or to
perform any other act required of either party under this Agreement is shown to
be unintentional and caused by misunderstanding, oversight or clerical error,
then this Agreement shall not be deemed in breach thereby, provided,
that such failure is promptly corrected by the party that caused such failure,
which correction restores the other party to the position it would have
occupied (including provision for the time value of money) had the misunderstanding,
oversight or clerical error not occurred.

 

Section 9.4.
 Reinstatements.  If a Policy that was reduced, terminated, or
lapsed is reinstated in a Permitted Transaction, the reinsurance for such
Policy under this Agreement will be reinstated automatically to the amount that
would have been in force if the Policy had not been reduced, terminated or
lapsed.

 

Section 9.5.
 Entire Agreement.  This Agreement supersedes all prior
discussions and agreements between the parties with respect to the subject
matter of this Agreement, and this Agreement, the Master Agreement, the Joinder
Agreement and the Services Agreement, including the Schedules and Exhibits
attached hereto and thereto, constitute the sole and entire agreement between
the parties hereto with respect to the subject matter hereof, and supersedes
all prior discussions and agreements between the parties with respect to the
subject matter hereof, which are merged with and into this Agreement.

 

Section 9.6.
 Waivers and Amendments.  Any term or condition of this Agreement may be
waived at any time by the party that is entitled to the benefit thereof. Such
waiver must be in writing and must be executed by an executive officer of such
party.  A waiver on one occasion will not
be deemed to be a waiver of the same or any other term or condition on a future
occasion. This Agreement may be modified or amended only by a writing duly
executed by an executive officer of the Ceding Company and the Reinsurer,
respectively.

 

Section 9.7.
 No Third Party Beneficiaries.  The terms and provisions of this Agreement
constitute an indemnity reinsurance agreement solely between the Ceding Company

 

20

 

and the Reinsurer, and other
than Ceding Company Indemnified Parties and Reinsurer Indemnified Parties, the
terms and provisions of this Agreement are intended solely for the benefit of
the parties hereto, the Ceding Company and the Reinsurer and their permitted
successors and assigns, and it is not the intention of the parties to confer
any rights as a third-party beneficiary to this Agreement upon any other
person.

 

Section 9.8.
 Binding Effect; No Assignment.  This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors, permitted
assigns and legal representatives, whether by merger, consolidation or
otherwise. This Agreement shall not be assigned by any of the parties hereto
without the prior written approval of the other party; provided, that
nothing in this Section 9.8 shall be interpreted to prevent the
retrocession by the Reinsurer of all or any portion of the Insurance
Liabilities, but only after the delivery by the Reinsurer of prior written
notice thereof to the Ceding Company.

 

Section 9.9.
 Governing Law. This Agreement
will be governed by and construed in accordance with the laws of the state of
domicile of the Ceding Company, without regard to its conflicts of law
doctrine.

 

Section 9.10.
 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

 

Section 9.11.
 Severability.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law or if
determined by a court of competent jurisdiction to be unenforceable, and if the
rights or obligations of the Ceding Company or the Reinsurer under this
Agreement will not be materially and adversely affected thereby, such provision
shall be fully severable, and this Agreement will be construed and enforced as
if such illegal, invalid or unenforceable provision had never comprised a part
of this Agreement, and the remaining provisions of this Agreement shall remain
in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom.

 

Section 9.12.
 Exhibits and Schedules. Exhibits
and Schedules attached hereto are hereby made a part of this Agreement.

 

Section 9.13.
 Election Statement. The parties
hereby jointly make the election to determine specified policy acquisition
expenses without regard to the general deductions limitation described in
Internal Revenue Regulation 1.848-2(g)(8) (the “Regulation”) under Section 848 of
the Code. This Section 9.13 shall constitute the Election Statement
specified in the Regulation and this Election Statement shall be construed in
accordance with all of the requirements of such Regulation regarding such
election, including, without limitation, the election statement and Tax return
reporting requirements of Regulation Sections 1.848-2(g)(8)(ii) and
1.848-2(g)(8)(iii).  Pursuant to this
Election Statement, the parties agree as follows:

 

21

 

(a)                                  to exchange
information each and every year for which this Agreement is in effect
pertaining to the amount of “net consideration” under this Agreement as that
term is used in the Regulation. In order to effect this information exchange,
the parties agree that:

 

(i)                                     the Ceding
Company shall submit its calculation of the “net consideration” for purposes of
that Regulation to the Reinsurer not later than May 1st for each and every
taxable year for which this Agreement is in effect;

 

(ii)                                  the Reinsurer
may challenge such calculation within ten (10) Business Days of its
receipt of the Ceding Company’s calculation;

 

(iii)                               should the
Reinsurer challenge the Ceding Company’s calculation of the “net consideration”
and the parties be unable to agree as to the appropriate methodology to
determine the “net consideration” for purposes of the Regulation, the parties
shall refer such dispute to an outside tax consultant unrelated to either of
the parties, in lieu of the arbitration provisions of this Agreement, and if
the parties cannot agree on a tax consultant, the tax consultant shall be
Deloitte & Touche LLP, and the parties agree to be bound by the
decision of such tax consultant;

 

(b)                                 that the party
with net positive consideration with respect to 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 Code; and

 

(c)                                  that the first
taxable year for which this Election Statement shall be effective is taxable year
2009.

 

Section 9.14.
 Additional Tax Provisions.  The parties each agree to attach a schedule
to their federal income Tax returns that identifies this Agreement as a
reinsurance agreement for which the Election Statement in Section 9.13
has been made. This schedule shall be attached to each of the parties’ federal
income Tax returns filed for the first taxable year of each party ending after
the Election Statement becomes effective.

 

Section 9.15.
 Set Off.  Any debts or credits between the Ceding Company
and the Reinsurer under this Agreement only are deemed mutual debts and
credits, as the case may be, and the Ceding Company and the Reinsurer shall
have, and may exercise at any time and from time to time, the right to net or
offset any such debts or credits under this Agreement only and only the balance
shall be allowed or paid hereunder. This right of netting and offset shall not
be affected or diminished because of insolvency of either party to this
Agreement.

 

22

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed effective this 24th
day of April, 2009.

 

 

	
   

  	
  CONSTITUTION LIFE
  INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary W. Bryant

  
	
   

  	
  Name:

  	
  Gary W. Bryant

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMMONWEALTH ANNUITY AND
  LIFE INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Reardon

  
	
   

  	
  Name:

  	
  Michael Reardon

  
	
   

  	
  Title:

  	
  President

  

 

 

Indemnity Reinsurance Agreement Signature Page

 

 

Schedule
3.1

 

SETTLEMENT
AMOUNT

 

	
  Statutory Reserves and Liabilities(1)

  	
   

  	
  $

  	
  49,160,373

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  - Due and deferred premiums(2)

  	
   

  	
  $

  	
  760,951

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  - Policy loans outstanding(2) (net of accrued and unearned
  interest)

  	
   

  	
  $

  	
  4,252,319

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  - Closing Date Ceding Commission(3)

  	
   

  	
  $

  	
  2,673,346

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  + Portion of Closing Fee(4)

  	
   

  	
  $

  	
  77,412

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  = Settlement Amount(5)

  	
   

  	
  $

  	
  41,551,169

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  + Accrued Interest(6)

  	
   

  	
  $

  	
  133,515

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  = Total Payment

  	
   

  	
  $

  	
  41,684,684

  	
   

  

 

(1) Will equal amount on Exhibit A.

 

(2) On the Policies as of
the Coinsurance Effective Date.

 

(3) Will equal amount
determined pursuant to Section 2.2 in the Master Agreement.

 

(4) Will equal amount set
forth in respect thereof on Schedule H to the Amendment.

 

(5) Interest Maintenance
Reserve impact relating to the Transferred Assets transferred on the Closing
Date and the Final Settlement Date shall be the amount of zero dollars ($0.00).

 

(6) Determined pursuant to Section 2.1
in the Master Agreement.

 

3.1-1

 

Schedule 4.6

 

PAYMENTS RELATING TO COMMISSIONS

 

4.6-1

 

CONSTITUTION
LIFE

 

COMMISSIONS

 

Expressed
as percentage of premium.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Policy Year

  	
   

  
	
  LOB

  	
   

  	
  Plan

  	
   

  	
  IA

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  	
  9

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12+

  	
   

  
	
  Annuity

  	
   

  	
  FPDA

  	
   

  	
  All

  	
   

  	
  4.5

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  FPDA7

  	
   

  	
  All

  	
   

  	
  6.0

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  FPDA8

  	
   

  	
  All

  	
   

  	
  6.0

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  4.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  SPDA

  	
   

  	
  All

  	
   

  	
  4.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  SPDA7

  	
   

  	
  60+

  	
   

  	
  7.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  SPDA8

  	
   

  	
  60+

  	
   

  	
  7.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Life

  	
   

  	
  1gd05

  	
   

  	
  0-84

  	
   

  	
  125.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  93.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
  1LD05

  	
   

  	
  0-84

  	
   

  	
  130.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  98.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
  GGRD

  	
   

  	
  0-84

  	
   

  	
  125.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  93.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
  GPOM

  	
   

  	
  0-84

  	
   

  	
  125.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  93.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  15.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
  RPU80

  	
   

  	
  All

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Traditional

  	
   

  	
  B3AR0

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  D7000

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  E8503

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  GU

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  K6PPL

  	
   

  	
  All

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  L0000

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L0002

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L0007

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L0015

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L00P3

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L00P6

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L2002

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L20P0

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  L6501

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  M2100

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  M3000

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  M65PC

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  N2PUL

  	
   

  	
  All

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  N6501

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  O3PUL

  	
   

  	
  All

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  Q3ETI

  	
   

  	
  All

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  Q4ETI

  	
   

  	
  All

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  R0100

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  R01CN

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
  R01CS

  	
   

  	
  All

  	
   

  	
  90.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  2.5

  	
  %

  	
  2.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UL*

  	
   

  	
  AE10

  	
   

  	
  0-79

  	
   

  	
  60.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  80-84

  	
   

  	
  55.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  40.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  AESP

  	
   

  	
  0-79

  	
   

  	
  60.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  80-84

  	
   

  	
  55.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  40.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  AEWL

  	
   

  	
  0-79

  	
   

  	
  60.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  80-84

  	
   

  	
  55.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
  85+

  	
   

  	
  40.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  5.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
  lu00n

  	
   

  	
  All

  	
   

  	
  70.0

  	
  %

  	
  25.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
  LU00S

  	
   

  	
  All

  	
   

  	
  70.0

  	
  %

  	
  25.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  
	
   

  	
   

  	
  LUB0N

  	
   

  	
  All

  	
   

  	
  70.0

  	
  %

  	
  25.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  

 

*
For UL, Plan AE10, AESP, AEWL the same commission schedule applies for both
target and excess premium. All other plans have zero commission for excess
premium.

 

 

Schedule 4.9

 

MONTHLY SETTLEMENT REPORTS

 

1

 

Commonwealth
Annuity and Life Insurance Company (Reinsurer)

Sch 4.9 -
Monthly Reinsurance Settlement Statemen

For the
Month Ending

Jan-09

 

Pre - Transition Date

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (TRAD)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  COMB LOB

  	
   

  	
  (TRAD) Whole

  	
   

  	
  (TRAD) Term

  	
   

  	
  Universal

  	
   

  	
  (SR) Senior

  	
   

  	
   

  	
   

  	
  (AE & AEII)

  	
   

  	
  (Grp) Group

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TOTALS

  	
   

  	
  Life

  	
   

  	
  Life

  	
   

  	
  Life/ISWL

  	
   

  	
  Life

  	
   

  	
  (GR) GRL Life

  	
   

  	
  Asset Enhancer

  	
   

  	
  Life

  	
   

  	
  (ANN) Annuity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
  Collected
  Premiums

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A 

  	
   

  	
  FY Premium Collected:

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  B 

  	
   

  	
  RNL Premium
  Collected

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  C 

  	
   

  	
  Total
  Collected Premium (with waiver) (A+B

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Assumed Reinsurance Premium

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D 

  	
   

  	
  FY Premium
  Collected:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  E 

  	
   

  	
  RNL Premium
  Collected

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  F 

  	
   

  	
  Total
  Collected Assumed Reinsurance Premium (D+E

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Inuring Reinsurance Premium

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G 

  	
   

  	
  FY Premium
  Collected:

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H 

  	
   

  	
  RNL Premium
  Collected

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I 

  	
   

  	
  Total
  Inuring Reinsurance Premium (G+H

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J 

  	
   

  	
  Net
  Total Premium (C+F-I)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Policy
  Benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  K 

  	
   

  	
  Death Claims
  (including any interest)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  L 

  	
   

  	
  Surrenders Paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  M 

  	
   

  	
  Waiver of Premium
  Benefits

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  N 

  	
   

  	
  Claim Exp:
  Investigation Fees / Medical Record Fees

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  O
  

  	
   

  	
  Total
  Policy Benefits Paid (K + L+M+N)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Assumed Reinsurance Policy Benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P 

  	
   

  	
  Death Claims
  (including any interest)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Q 

  	
   

  	
  Surrenders Paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  R 

  	
   

  	
  Waiver of Premium
  Benefits

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  S 

  	
   

  	
  Claim Exp:
  Investigation Fees / Medical Record Fees

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  T 

  	
   

  	
  Total
  Assumed Reinsurance Policy Benefits Paid (P+Q+R+S

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Inuring Reinsurance Policy Benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U 

  	
   

  	
  Death Claims
  (including any interest)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  V 

  	
   

  	
  Surrenders Paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  W 

  	
   

  	
  Waiver of Premium
  Benefits

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  X 

  	
   

  	
  Claim Exp:
  Investigation Fees / Medical Record Fees

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Y 

  	
   

  	
  Total
  Inuring Reinsurance Policy Benefits Paid, Payable or Provided (U+V+W+X)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Z 

  	
   

  	
  Net
  Total Policy Benfits (O+T-Y)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Payments Relating to Commission (per schedule 4.6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AA 

  	
   

  	
  FY Commissions

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AB 

  	
   

  	
  RNL Commissions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AC 

  	
   

  	
  Total Payments Relating to
  Commission (AA+AB

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Inuring Reinsurance Allowance Payments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AD 

  	
   

  	
  FY Reins
  Allowance—Comm & Exp Allowances

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AE 

  	
   

  	
  Single Reins
  Allowance—Comm & Exp Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AF 

  	
   

  	
  RNL Reins
  Allowance—Comm & Exp Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AG 

  	
   

  	
  Renewal
  Reins Allowance—Comm & Exp Allowances Paid, Payable or Provided (AD+AE+AF)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Policy Servicing Fee

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of days in
  month

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  # Policies
  Inforce Begining of Month

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AH 

  	
   

  	
  Policy Servicing
  Fee per Sched 2.3 of ASA (41*Days in Month/365)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Premium Tax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AI 

  	
   

  	
  Premium Taxes
  (2.5% Direct Collected Prem)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Uncollectible Reinsurance Recoverables (Assumed or Inuring

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AJ 

  	
   

  	
  Plus Change in
  Reinsurance Recoverables Not Admitted**

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AK 

  	
   

  	
  Net
  Due to (from) Commonwealth (J - Z - AC +AG-AH-AI+AJ

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  

  
	
  *

  	
   

  	
  For purposes of this
  calculation, the Inuring Reinsurance shall mean “Reinsurance Coverage” (as
  defined in the coinsurance agreement)

  
	
  **

  	
   

  	
  Reinsurance recoverables
  (including reinsurance allowances) due greater than 90 days are not admitted;
  for purposes of calculation, months change due to new not admitted or receipt
  of payment previously not admitted

  

 

 

Commonwealth Annuity and Life Insurance Company (Reinsurer)

Sch 4.9 - Monthly Reinsurance Settlement Statement

For the Month Ending:

Jan-09

 

Post - Transition Date

 

	
   

  	
   

  	
   

  	
   

  	
  COMB LOB

  TOTALS

  	
   

  	
  (TRAD) Whole

  Life

  	
   

  	
  (TRAD) Term

  Life

  	
   

  	
  (TRAD)

  Universal

  Life/ISWL

  	
   

  	
  (SR)
  Senior Life

  	
   

  	
  (GR) GRL
  Life

  	
   

  	
  (AE
  & AEII)

  Asset Enhancer

  	
   

  	
  (Grp)
  Group

  Life

  	
   

  	
  (ANN)
  Annuity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
  Collected
  Premiums

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  FY Premium
  Collected:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  B

  	
   

  	
  RNL Premium
  Collected

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  C

  	
   

  	
  Total
  Collected Premium (with waiver) (A+B)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Assumed Reinsurance Premium

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  FY Premium Collected:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  E

  	
   

  	
  RNL Premium
  Collected

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  F

  	
   

  	
  Total
  Collected Assumed Reinsurance Premium (D+E)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Inuring Reinsurance Premium

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G

  	
   

  	
  FY Premium
  Collected:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H

  	
   

  	
  RNL Premium
  Collected

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Total
  Inuring Reinsurance Premium (G+H)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J

  	
   

  	
  Net
  Total Premium (C+F-I)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Policy Benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  K

  	
   

  	
  Death Claims
  (including any interest)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  L

  	
   

  	
  Surrenders Paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  M

  	
   

  	
  Waiver of Premium
  Benefits

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  N

  	
   

  	
  Claim Exp:
  Investigation Fees / Medical Record Fees

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  O

  	
   

  	
  Total Policy Benefits Paid (K +
  L+M+N)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus Assumed Reinsurance Policy
  Benefits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P

  	
   

  	
  Death Claims
  (including any interest)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Q

  	
   

  	
  Surrenders Paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  R

  	
   

  	
  Waiver of Premium
  Benefits

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  S

  	
   

  	
  Claim Exp:
  Investigation Fees / Medical Record Fees

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  T

  	
   

  	
  Total
  Assumed Reinsurance Policy Benefits Paid (P+Q+R+S)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less Inuring Reinsurance Policy
  Benefits *

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U

  	
   

  	
  Death Claims
  (including any interest)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  V

  	
   

  	
  Surrenders Paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  W

  	
   

  	
  Waiver of Premium
  Benefits

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  X

  	
   

  	
  Claim Exp:
  Investigation Fees / Medical Record Fees

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Y 

  	
   

  	
  Total
  Inuring Reinsurance Policy Benefits Paid, Payable or Provided (U+V+W+X)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Z

  	
   

  	
  Net
  Total Policy Benfits (O+T-Y)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less
  Payments Relating to Commission (per schedule 4.6)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AA

  	
   

  	
  FY Commissions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AB

  	
   

  	
  RNL Commissions

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AC

  	
   

  	
  Total
  Payments Relating to Commission (AA+AB)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Inuring Reinsurance Allowance Payments*

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AD

  	
   

  	
  FY Reins
  Allowance—Comm & Exp Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AE

  	
   

  	
  Single Reins
  Allowance—Comm & Exp Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AF

  	
   

  	
  RNL Reins
  Allowance—Comm & Exp Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AG 

  	
   

  	
  Renewal
  Reins Allowance—Comm & Exp Allowances Paid, Payable or Provided (AD+AE+AF)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Less Premium Tax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AH

  	
   

  	
  Premium Taxes (2.5% Direct Collected Prem)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plus
  Uncollectible Reinsurance Recoverables (Assumed or Inuring)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AI

  	
   

  	
  Plus Change in
  Reinsurance Recoverables Not Admitted** (pos is incr NotAdmit)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AJ

  	
   

  	
  Net
  Due to (from) Universal American (AC+AH-AI) (positive to UA)

  	
   

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  	
  —

  	
  calc

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  

  
	
  * 

  	
   

  	
  For purposes of this calculation, the Inuring
  Reinsurance shall mean “Reinsurance Coverage” (as defined in the coinsurance
  agreement)

  
	
  ** 

  	
   

  	
  Reinsurance recoverables (including reinsurance
  allowances) due greater than 90 days are not admitted; for purposes of
  calculation, months change due to new not admitted or receipt of payment
  previously not admitted

  

 

 

 

 

Post -
Transition Date

 

	
   

  	
   

  	
   

  	
   

  	
  COMB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (TRAD)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  LOB

  	
   

  	
  (TRAD)

  	
   

  	
   

  	
   

  	
  (TRAD)

  	
   

  	
  Universal

  	
   

  	
   

  	
   

  	
  (SR)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TOTALS

  	
   

  	
  Whole
  Life

  	
   

  	
   

  	
   

  	
  Term
  Life

  	
   

  	
  Life/ISWL

  	
   

  	
   

  	
   

  	
  Senior
  Life

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  REALIC

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  REALIC

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
  Less Inuring Reinsurance Allowance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X

  	
   

  	
  FY Rein Allow - Comm/Exp

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Y

  	
   

  	
  FY Ren Allow - App/Pol Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Z

  	
   

  	
  FY Rein Allow - Per Pol Isd NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AA

  	
   

  	
  FY Rein Allow - Per Rid Isd NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AB

  	
   

  	
  FY Rein Allow - Per Tel Interv

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AC

  	
   

  	
  FY Rein Allow - Per 1K issued

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AD

  	
   

  	
  FY Rein Allow - %Prm NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AE

  	
   

  	
  FY Rein Allow - %Prm MKTG

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AF

  	
   

  	
  FY Rein Allow - % Prm Prem Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AG

  	
   

  	
  FY Rein Allow - %Prm Netwk Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AH

  	
   

  	
  FY Rein Allow - %Prm Maint

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AI

  	
   

  	
  FY Rein Allow - %Prm Care Advi

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AJ

  	
   

  	
  FY Rein Allow - %Clm Pd Admin

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AK

  	
   

  	
  FY Rein Allow - Per Pol Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AL

  	
   

  	
  SGL Rein Allow - Comm/Exp

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AM

  	
   

  	
  SGL Rein Allow - App’Pol Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AN

  	
   

  	
  SGL Rein Allow - Per Pol Issd

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AO

  	
   

  	
  SGL Rein Allow - Per Rid Issd

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AP

  	
   

  	
  SGL Rein Allow - %Prm NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AQ

  	
   

  	
  SGL Rein Allow - %Prm MKTG

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AR

  	
   

  	
  SGL Rein Allow - Prm Prm Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AS

  	
   

  	
  SGL Rein Allow - %Prm Maint

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AT

  	
   

  	
  SGL Rein Allow - %Clm Pd Adm

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AU

  	
   

  	
  SGL Rein Allow - Per Pol Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AV

  	
   

  	
  RNL Rein Allow - Comm/Exp

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AW

  	
   

  	
  RNL Rein Allow - Per 1K Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AX

  	
   

  	
  RNL Rein Allow - %Prm Prm Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AY

  	
   

  	
  RNL Rein Allow - %Prm Ntwk Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  AZ

  	
   

  	
  RNL Rein Allow - %Prm Maint

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BA

  	
   

  	
  RNL Rein Allow - %Prm Care Adv

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BB

  	
   

  	
  RNL Rein Allow - %Clm Pd Admin

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BC

  	
   

  	
  RNL Rein Allow - Per Pol Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BD

  	
   

  	
  RNL Rein Allow - DAC Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BE

  	
   

  	
  Disabilitiy Income

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BF

  	
   

  	
  Comm/Exp Allow Reins Assmd-FY

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BG

  	
   

  	
  Comm/Exp Allow Reins Assmd-Sgl

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BH

  	
   

  	
  Comm/Exp Allow Reins Assmd-Ren

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BI

  	
   

  	
  Exp Allow - Acquisition

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BJ

  	
   

  	
  Exp Allow - Marketing

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BK

  	
   

  	
  Exp Allow - Maintenance

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BL

  	
   

  	
  Prem Tax Allow Assmd - 1Yr

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BM

  	
   

  	
  Prem Tax Allow Assmd - Rnl

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  BN

  	
   

  	
  Total Ceding Commission (Sum (X :
  BM))

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (AE &

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AEII)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (GR)
  GRL

  	
   

  	
  Asset

  	
   

  	
   

  	
   

  	
  (Grp)

  	
   

  	
  (ANN)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Life

  	
   

  	
  Enhancer

  	
   

  	
   

  	
   

  	
  Group
  Life

  	
   

  	
  Annuity

  	
   

  	
  50%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  REALIC

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  REALIC

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  REALIC

  	
   

  
	
   

  	
   

  	
  Less Inuring Reinsurance Allowance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  X

  	
   

  	
  FY Rein Allow - Comm/Exp

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Y

  	
   

  	
  FY Ren Allow - App/Pol Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Z

  	
   

  	
  FY Rein Allow - Per Pol Isd NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AA

  	
   

  	
  FY Rein Allow - Per Rid Isd NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AB

  	
   

  	
  FY Rein Allow - Per Tel Interv

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AC

  	
   

  	
  FY Rein Allow - Per 1K issued

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AD

  	
   

  	
  FY Rein Allow - %Prm NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AE

  	
   

  	
  FY Rein Allow - %Prm MKTG

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AF

  	
   

  	
  FY Rein Allow - % Prm Prem Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AG

  	
   

  	
  FY Rein Allow - %Prm Netwk Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AH

  	
   

  	
  FY Rein Allow - %Prm Maint

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AI

  	
   

  	
  FY Rein Allow - %Prm Care Advi

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AJ

  	
   

  	
  FY Rein Allow - %Clm Pd Admin

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AK

  	
   

  	
  FY Rein Allow - Per Pol Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AL

  	
   

  	
  SGL Rein Allow - Comm/Exp

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AM

  	
   

  	
  SGL Rein Allow - App’Pol Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AN

  	
   

  	
  SGL Rein Allow - Per Pol Issd

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AO

  	
   

  	
  SGL Rein Allow - Per Rid Issd

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AP

  	
   

  	
  SGL Rein Allow - %Prm NB

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AQ

  	
   

  	
  SGL Rein Allow - %Prm MKTG

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AR

  	
   

  	
  SGL Rein Allow - Prm Prm Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AS

  	
   

  	
  SGL Rein Allow - %Prm Maint

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AT

  	
   

  	
  SGL Rein Allow - %Clm Pd Adm

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AU

  	
   

  	
  SGL Rein Allow - Per Pol Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AV

  	
   

  	
  RNL Rein Allow - Comm/Exp

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AW

  	
   

  	
  RNL Rein Allow - Per 1K Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AX

  	
   

  	
  RNL Rein Allow - %Prm Prm Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AY

  	
   

  	
  RNL Rein Allow - %Prm Ntwk Fee

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  AZ

  	
   

  	
  RNL Rein Allow - %Prm Maint

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BA

  	
   

  	
  RNL Rein Allow - %Prm Care Adv

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BB

  	
   

  	
  RNL Rein Allow - %Clm Pd Admin

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BC

  	
   

  	
  RNL Rein Allow - Per Pol Inf

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BD

  	
   

  	
  RNL Rein Allow - DAC Tax

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BE

  	
   

  	
  Disabilitiy Income

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BF

  	
   

  	
  Comm/Exp Allow Reins Assmd-FY

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BG

  	
   

  	
  Comm/Exp Allow Reins Assmd-Sgl

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BH

  	
   

  	
  Comm/Exp Allow Reins Assmd-Ren

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BI

  	
   

  	
  Exp Allow - Acquisition

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BJ

  	
   

  	
  Exp Allow - Marketing

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BK

  	
   

  	
  Exp Allow - Maintenance

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BL

  	
   

  	
  Prem Tax Allow Assmd - 1Yr

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BM

  	
   

  	
  Prem Tax Allow Assmd - Rnl

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  BN

  	
   

  	
  Total Ceding Commission (Sum (X :
  BM))

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  

 

 

Exhibit A

 

POLICY FORMS AND PLAN CODES, SUM OF ALL RESERVE ITEMS

 

A-1

 

Constitution Life (as of 12/31/2008)

 

5A

 

	
  Company

  	
   

  	
  Plan Code

  	
   

  	
  Amount Inforce

  	
   

  	
  Stat Reserve

  	
   

  	
  Deficiency Reserve

  	
   

  	
  Stat + Deficiency Reserve

  	
   

  	
  Count

  	
   

  	
  Type

  	
   

  	
  Wilton Coverage

  	
   

  
	
  012

  	
   

  	
  012ML1221

  	
   

  	
  XN

  	
   

  	
  601,500

  	
   

  	
  110,551

  	
   

  	
  —

  	
   

  	
  110,551

  	
   

  	
  75

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012ML1231

  	
   

  	
  XN

  	
   

  	
  558,074

  	
   

  	
  111,423

  	
   

  	
  —

  	
   

  	
  111,423

  	
   

  	
  100

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012ML1232

  	
   

  	
  XN

  	
   

  	
  16,478

  	
   

  	
  5,677

  	
   

  	
  —

  	
   

  	
  5,677

  	
   

  	
  5

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012ML1241

  	
   

  	
  XN

  	
   

  	
  153,473

  	
   

  	
  32,212

  	
   

  	
  —

  	
   

  	
  32,212

  	
   

  	
  119

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012PCT2L1

  	
   

  	
  XN

  	
   

  	
  7,225

  	
   

  	
  323

  	
   

  	
  215

  	
   

  	
  538

  	
   

  	
  1

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012PML4L1

  	
   

  	
  XN

  	
   

  	
  70,950

  	
   

  	
  45,952

  	
   

  	
  6,125

  	
   

  	
  52,076

  	
   

  	
  70

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012PML5L1

  	
   

  	
  XN

  	
   

  	
  19,332

  	
   

  	
  11,725

  	
   

  	
  1,818

  	
   

  	
  13,543

  	
   

  	
  42

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012PML5L2

  	
   

  	
  XN

  	
   

  	
  150

  	
   

  	
  91

  	
   

  	
  17

  	
   

  	
  109

  	
   

  	
  1

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012PML6L1

  	
   

  	
  XN

  	
   

  	
  1,220

  	
   

  	
  826

  	
   

  	
  88

  	
   

  	
  914

  	
   

  	
  15

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012R0C012

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012R5C011

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  88

  	
   

  	
  —

  	
   

  	
  88

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012R5CL21

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012R5T111

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RACL11

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  101

  	
   

  	
  —

  	
   

  	
  101

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAML21

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  753

  	
   

  	
  —

  	
   

  	
  753

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAML31

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  4

  	
   

  	
  —

  	
   

  	
  4

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAML32

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  0

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAML41

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  26

  	
   

  	
  —

  	
   

  	
  26

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAW211

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  16,969

  	
   

  	
  —

  	
   

  	
  16,969

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAWA31

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  10,796

  	
   

  	
  —

  	
   

  	
  10,796

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAWA32

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  321

  	
   

  	
  —

  	
   

  	
  321

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RAWA41

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  3,843

  	
   

  	
  —

  	
   

  	
  3,843

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012RWCL11

  	
   

  	
  XN

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5221

  	
   

  	
  XN

  	
   

  	
  16,671,705

  	
   

  	
  2,917,620

  	
   

  	
  —

  	
   

  	
  2,917,620

  	
   

  	
  1,968

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5231

  	
   

  	
  XN

  	
   

  	
  13,940,201

  	
   

  	
  1,492,565

  	
   

  	
  —

  	
   

  	
  1,492,565

  	
   

  	
  1,587

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5232

  	
   

  	
  XN

  	
   

  	
  598,880

  	
   

  	
  61,587

  	
   

  	
  —

  	
   

  	
  61,587

  	
   

  	
  68

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5241

  	
   

  	
  XN

  	
   

  	
  11,277,741

  	
   

  	
  406,983

  	
   

  	
  —

  	
   

  	
  406,983

  	
   

  	
  1,305

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5321

  	
   

  	
  XN

  	
   

  	
  3,591,300

  	
   

  	
  681,305

  	
   

  	
  —

  	
   

  	
  681,305

  	
   

  	
  649

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5331

  	
   

  	
  XN

  	
   

  	
  1,604,000

  	
   

  	
  205,242

  	
   

  	
  —

  	
   

  	
  205,242

  	
   

  	
  300

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5332

  	
   

  	
  XN

  	
   

  	
  10,000

  	
   

  	
  1,167

  	
   

  	
  —

  	
   

  	
  1,167

  	
   

  	
  1

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
  012

  	
   

  	
  012WA5341

  	
   

  	
  XN

  	
   

  	
  61,000

  	
   

  	
  3,584

  	
   

  	
  —

  	
   

  	
  3,584

  	
   

  	
  11

  	
   

  	
  Traditional  -  Senior Life

  	
   

  	
  Wilton

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  49,183,229

  	
   

  	
  6,121,735

  	
   

  	
  8,263

  	
   

  	
  6,129,998

  	
   

  	
  6,317

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  35

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  49,183,229

  	
   

  	
  6,121,770

  	
   

  	
  8,263

  	
   

  	
  6,129,998

  	
   

  	
  6,317

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Company Code

  	
   

  	
  Plan

  	
   

  	
  Amount Inforce

  	
   

  	
  Stat Reserve

  	
   

  	
  Deficiency Reserve

  	
   

  	
  Stat + Deficiency Reserve

  	
   

  	
  Count

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  UL

  	
   

  	
   

  	
   

  	
  217,583

  	
   

  	
  144,791

  	
   

  	
  —

  	
   

  	
  144,791

  	
   

  	
  3

  	
   

  	
  ISWL

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  UL

  	
   

  	
   

  	
   

  	
  129,748

  	
   

  	
  7,782

  	
   

  	
  1,336

  	
   

  	
  9,118

  	
   

  	
  4

  	
   

  	
  ISWL

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  UL

  	
   

  	
   

  	
   

  	
  1,804,280

  	
   

  	
  32,204

  	
   

  	
  1,677

  	
   

  	
  33,882

  	
   

  	
  47

  	
   

  	
  ISWL

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,151,611

  	
   

  	
  184,777

  	
   

  	
  3,013

  	
   

  	
  187,791

  	
   

  	
  54

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,151,611

  	
   

  	
  184,777

  	
   

  	
  3,013

  	
   

  	
  187,791

  	
   

  	
  54

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Company

  	
   

  	
  Plan

  	
   

  	
   

  	
   

  	
  Stat Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  TRADITIONAL: EXCLUDES DE

  	
   

  	
  205,249,534

  	
   

  	
  21,578,487

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY TRAD

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  TRADITIONAL: DENVER

  	
   

  	
   

  	
   

  	
  111,892

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY TRAD

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  UNIVERSAL

  	
   

  	
   

  	
   

  	
  18,823,366

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY UL

  	
   

  	
   

  	
   

  
	
  —

  	
   

  	
  UL

  	
   

  	
  244,769

  	
   

  	
  16,388

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UAFC UL

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  205,494,303

  	
   

  	
  40,530,134

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  205,494,303

  	
   

  	
  40,530,134

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5B

 

	
  Company

  	
   

  	
  Plan
  Code

  	
   

  	
   

  	
   

  	
  Stat Reserve

  	
   

  	
  Cash
  Value

  	
   

  	
   

  	
   

  	
  Count

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANA21

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  487,779

  	
   

  	
  487,779

  	
   

  	
   

  	
   

  	
  19

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANA2A

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  55,996

  	
   

  	
  55,996

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANA2Q

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  10,043

  	
   

  	
  10,043

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANF01

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  123,462

  	
   

  	
  123,462

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANG11

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  159,305

  	
   

  	
  159,305

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANH21

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  25,162

  	
   

  	
  25,162

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANNAM

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  28,054

  	
   

  	
  28,054

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANO01

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  47,286

  	
   

  	
  47,286

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANQ21

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  31,361

  	
   

  	
  31,361

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FANU61

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  20,782

  	
   

  	
  20,782

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQB21

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  354,605

  	
   

  	
  354,605

  	
   

  	
   

  	
   

  	
  27

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQE01

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  6,456

  	
   

  	
  6,456

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQH31

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  11,351

  	
   

  	
  11,351

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQI41

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  8,299

  	
   

  	
  8,299

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQJ51

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  16,544

  	
   

  	
  16,544

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQK71

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  13,458

  	
   

  	
  13,458

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FAQO01

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  7,945

  	
   

  	
  7,945

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FI10N1

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  943,119

  	
   

  	
  917,779

  	
   

  	
   

  	
   

  	
  32

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FI10NM

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  34,367

  	
   

  	
  33,411

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FI10NQ

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  48,203

  	
   

  	
  46,953

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012FI10Q1

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  52,623

  	
   

  	
  51,208

  	
   

  	
   

  	
   

  	
  12

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012RFSUP1

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  9,889

  	
   

  	
  9,889

  	
   

  	
   

  	
   

  	
  9

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012SA03N1

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  18,674

  	
   

  	
  18,674

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012SI10N1

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  890,337

  	
   

  	
  864,374

  	
   

  	
   

  	
   

  	
  21

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012SI10NQ

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  62,794

  	
   

  	
  61,018

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  012SI10Q1

  	
   

  	
  XN

  	
   

  	
   

  	
   

  	
  162,940

  	
   

  	
  158,206

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  Deferred Annuities (UAFC)

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  PLAN O2A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  171,777

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Flexible

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  PLAN O2C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  129,304

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Flexible

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  PLAN O2D

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  317,214

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Flexible

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  PLAN O4C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8,455

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Flexible

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  PENSION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  32,144

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Flexible

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  U01R0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  59,470

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  UAP2N

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  13,709

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  UAPPN

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  142

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  SC PROG

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  869

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  SC PROG

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  SC PROG

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,106

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  SC PROG

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22,278

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  SC PROG

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  68,543

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY  -  Fixed

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,457,846

  	
   

  	
  3,569,401

  	
   

  	
   

  	
  —

  	
  160

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
  —

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,457,846

  	
   

  	
  3,569,401

  	
   

  	
   

  	
  —

  	
  160

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  5C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Plan

  	
   

  	
   

  	
   

  	
  Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Supplemental

  	
   

  	
   

  	
   

  	
  41,636

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Supplemental

  	
   

  	
   

  	
   

  	
  112,524

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UAFC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  154,160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  154,160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5D

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Plan

  	
   

  	
   

  	
   

  	
  Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  ADB

  	
   

  	
   

  	
   

  	
  2,144

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  ADB

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UAFC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,144

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,144

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  5E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Plan

  	
   

  	
   

  	
   

  	
  Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Dis-Active Lives

  	
   

  	
   

  	
   

  	
  5,821

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Dis-Active Lives

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UAFC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,821

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,821

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5F

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Plan

  	
   

  	
   

  	
   

  	
  Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Dis-Disabled

  	
   

  	
   

  	
   

  	
  231,087

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Dis-Disabled

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UAFC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  231,087

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  231,087

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Plan

  	
   

  	
   

  	
   

  	
  Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Type

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Deficiency reserves

  	
   

  	
   

  	
   

  	
  92,923

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  BLNY

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Deficiency reserves

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UAFC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  92,923

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  92,923

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Reinsurance

 

	
  Company

  	
   

  	
  Name

  	
   

  	
  Amount
  Inforce

  	
   

  	
  Reserve Credit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  American General Life Ins.uranc

  	
   

  	
  11,425

  	
   

  	
  10,058

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Bankers Life & Casualty Co.

  	
   

  	
  5,335,265

  	
   

  	
  278,705

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Bankers Life & Casualty Co.

  	
   

  	
  306,160

  	
   

  	
  1,722

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Optimum Re Insurance Co.

  	
   

  	
  357,779

  	
   

  	
  249

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Optimum Re Insurance Co.

  	
   

  	
  1,500

  	
   

  	
  49

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Canada Life Insurance Co. of A

  	
   

  	
  7,543,081

  	
   

  	
  4,391

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  General Re Life Corp.

  	
   

  	
  —

  	
   

  	
  82

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  National Security Life & Annuity

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  National Security Life & Annuity

  	
   

  	
  3,022,327

  	
   

  	
  3,042

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Scottish Re Life Corp.

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Swiss Re Life & Health America

  	
   

  	
  5,217,346

  	
   

  	
  2,344

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Swiss Re Life & Health America

  	
   

  	
  452

  	
   

  	
  90

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Swiss Re Life & Health America

  	
   

  	
  16,743

  	
   

  	
  669

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Swiss Re Life & Health America

  	
   

  	
  563,593

  	
   

  	
  1,474

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Munich American Reassurance

  	
   

  	
  155,929

  	
   

  	
  302

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Munich American Reassurance

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Munich American Reassurance

  	
   

  	
  15,520,200

  	
   

  	
  151,372

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Optimum Re Insurance Co.

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Optimum Re Insurance Co.

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Optimum Re Insurance Co.

  	
   

  	
  3,440,886

  	
   

  	
  5,742

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Swiss Re Life & Health America

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Swiss Re Life & Health America

  	
   

  	
  358,818

  	
   

  	
  369

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Transamerica Occidental Life In

  	
   

  	
  2,835,403

  	
   

  	
  67,187

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Wilton Reassurance Co.

  	
   

  	
  10,696,929

  	
   

  	
  386,550

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  012

  	
   

  	
  Hannover Life Reassurance Co.

  	
   

  	
  21,180,714

  	
   

  	
  2,806,775

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  76,564,549

  	
   

  	
  3,721,171

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

CONSTITUTION
LIFE

 

	
  Exhibit

  	
   

  	
   

  	
   

  	
  Amount Inforce

  	
   

  	
  Statutory Reserve

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5A

  	
   

  	
   

  	
   

  	
  256,829,143

  	
   

  	
  46,836,681

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5B

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,457,846

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  154,160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5D

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2,144

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5E

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,821

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5F

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  231,087

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5G

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  92,923

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adjustments

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  256,829,143

  	
   

  	
  51,780,662

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Actual

  	
   

  	
  256,829,000

  	
   

  	
  51,780,662

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  CEDED

  	
   

  	
  76,564,549

  	
   

  	
  3,721,171

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adjustments

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  76,564,549

  	
   

  	
  3,721,171

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Actual

  	
   

  	
  76,565,000

  	
   

  	
  3,721,171

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  NET

  	
   

  	
  180,264,594

  	
   

  	
  48,059,491

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Actual

  	
   

  	
  180,264,000

  	
   

  	
  48,059,491

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wilton Coverage

  	
   

  	
   

  	
   

  	
  3,565,643

  	
   

  	
  128,850

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total After
  Wilton removed

  	
   

  	
   

  	
   

  	
  176,698,357

  	
   

  	
  47,930,641

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Exhibit B

 

STATUTORY RESERVES AND LIABILITIES BY POLICY

 

The Ceding Company sent the
information on Exhibit B to
the Reinsurer via a CD data file on Friday, April 10, 2009. The Reinsurer
received the information on Monday, April 13, 2009.

 

B-1

 

Exhibit C

 

TRANSFERRED ASSETS

 

The
Transferred Assets shall be within one of the following two (2) categories:

 

1.
Cash

 

2.
United States Dollar-Denominated Securities issued or guaranteed by the United
States Treasury.

 

Valuation of Assets

 

(a) By 5:00 p.m.
on the fifth (5th) Business Day
prior to the Closing Date, the parties by mutual agreement shall designate
certain Transferred Assets as “IDC
Assets”, provided that IDC quotes prices for such Transferred
Assets. All Transferred Assets not designated as IDC Assets shall be designated
“Brokers Assets.” If the parties
cannot agree on the designation of any particular Transferred Asset as an “IDC
Asset”, such Transferred Asset shall be conclusively deemed to be a Brokers
Asset. The fair market value of each Transferred Asset that is an IDC Asset and
each Transferred Asset that is a Brokers Asset shall be determined as follows:

 

(i) No
later than 9:00 a.m. on the Business Day immediately prior to the Closing
Date, Reinsurer shall submit to IDC the CUSIP number (or other unique
identifier if CUSIP is not available) and face amount of each IDC Asset and
request that IDC provide in writing as promptly as practicable to the Ceding
Company and the Reinsurer each such Transferred Asset’s price (for the given
face amount) as of approximately 3:00 p.m. on such Business Day. The price
quoted by IDC shall be referred to as the “IDC
Price”.

 

(ii) No
later than 5:00 p.m. on the fourth (4th) Business Day prior to the Closing Date, the
Reinsurer shall submit simultaneously to each of the three (3) Brokers the
CUSIP number (or other unique identifier if CUSIP is not available) and face
amount of each Brokers Asset and request that each Broker provide in writing as
promptly as practicable to the Ceding Company and the Reinsurer each such
Transferred Asset’s price (for the given face amount), with such price setting
forth the bid value and ask value of each such Transferred Asset as of
approximately 3:00 p.m. on the Business Day immediately prior to the
Closing Date. The price quoted by each Broker for each Brokers Asset shall be
the average of such bid and ask price and shall be designated as the “Broker’s Quote” for each such Brokers
Asset.

 

(iii) The
Reinsurer and the Ceding Company together shall review the IDC Prices and
Brokers’ Quotes for any errors and omissions or other disagreements (together,
“Disagreements”). If the Reinsurer
or the Ceding Company reasonably determines that there exists any Disagreement,
the Reinsurer and the Ceding Company shall immediately notify IDC or the
applicable Broker, as the case may be, and use their commercially reasonable
efforts to determine and resolve with the applicable party any such
Disagreement prior to the Closing, or as promptly as practicable after the
Closing, in accordance with the principles set forth in this Exhibit C.

 

C-1

 

(b) The fair market
value of each IDC Asset shall be the IDC Price. The fair market value of each
Brokers Asset is the Broker’s Quote remaining for such asset after discarding
the highest and lowest Broker’s Quote for such asset.  Such fair market values for the IDC and
Brokers Assets shall be referred to as the “Fair
Market Value” of such asset.

 

(c) For purposes of
this Exhibit C:

 

(i) “Brokers” means the following brokers:
Citigroup, Merrill Lynch & Co. and JPMorgan Chase & Co.; provided, that, if any such broker does
not provide a Brokers Quote or hereafter becomes an Affiliate of the Reinsurer
or the Ceding Company, the parties shall mutually decide in good faith whether
to proceed without such Brokers Quote or to identify a mutually acceptable
replacement broker.

 

(ii) “IDC” means the pricing and quotation
service offered by Financial Time Interactive Data Corp.

 

C-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}]]