Document:

pri-ex1021_314.htm

Exhibit 10.21

EXECUTION VERSION

MONITORING AND REPORTING AGREEMENT

This MONITORING AND REPORTING AGREEMENT, dated as of March 31, 2016 (this “Agreement”) is entered into by and among Primerica Life Insurance Company, a Massachusetts life insurance company (“PLIC”) and Pecan Re Inc., a special purpose financial insurance company organized under Section 6048f of Title 8 of the Vermont Statutes Annotated (“Pecan Re”).

WHEREAS, PLIC and Prime Reinsurance Company, Inc., a special purpose financial insurance company organized under Section 6048f of Title 8 of the Vermont Statutes Annotated  (“Prime Re”), have entered into that certain 80% Coinsurance Agreement, dated as of March 31, 2010, as amended, supplemented, novated or otherwise modified from time to time (the “Coinsurance Agreement”);

WHEREAS, Prime Re has agreed to assign and transfer, and Pecan Re has agreed to accept, by novation, the Coinsurance Agreement with the effect that Pecan Re shall succeed to all rights, obligations, duties and liabilities of Prime Re under the Coinsurance Agreement, and Pecan Re has agreed to accept such assignment, transfer and novation;

WHEREAS, pursuant to such Coinsurance Agreement, as novated, PLIC, as the ceding company, has agreed to cede to Pecan Re, and Pecan Re, as the reinsurer, has agreed to assume from PLIC, certain liabilities relating to the term life insurance policies being reinsured thereunder;

WHEREAS, the parties hereto recognize that, as an 80% quota share reinsurer, Pecan Re has a substantial economic stake in the management and administration of the Reinsured Policies and Covered Liabilities (as such terms are defined in the Coinsurance Agreement);

WHEREAS, the parties agree that PLIC should have flexibility with respect to the management, administration and financial performance of the Reinsured Policies and Covered Liabilities in accordance with the Coinsurance Agreement; and

WHEREAS, the parties have nevertheless agreed that Pecan Re shall have the right to monitor the management, administration and financial performance of the Reinsured Policies in accordance with this Agreement.

NOW, THEREFORE, in consideration of the respective covenants, agreements, representations and warranties of the parties herein contained in the Coinsurance Agreement and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties), the parties agree as follows:

ARTICLE i

MONITOR

Section 1.01 For so long as Swiss Reinsurance Company Ltd, a reinsurance company organized under the laws of Switzerland or any of its affiliates (“Parent”) remains the ultimate controlling company of Pecan Re, PLIC shall allow Pecan Re and any reasonable number of counsel, financial advisors, accountants, actuaries and other representatives of Pecan Re, reasonable access, upon reasonable advance notice and during normal business hours to the facilities, documents, information, auditors, actuaries, outside advisors and relevant personnel of PLIC related to the management, administration and financial performance of the Reinsured Policies and Covered Liabilities.  Such individual (or individuals) representing Pecan Re shall be referred to herein as a “Monitor”. Pecan Re shall ensure that a Monitor, in performing his or her duties, shall not disrupt the normal operations of PLIC in any material respect.  Notwithstanding the foregoing or any other provision of this Agreement, PLIC shall not be obligated to provide such access to any facilities, documents, information, auditors, actuaries, outside advisors and relevant personnel of PLIC to the extent that doing so would violate applicable law or any contractual obligation of confidentiality or jeopardize the protection of an attorney-client privilege; provided that, in any such circumstance, the parties will cooperate in good faith to determine a manner in which information can be shared so as to not violate applicable law or a contractual obligation of confidentiality or jeopardize the protection of an attorney-client privilege, as applicable.

Section 1.02 All costs and expenses associated with the Monitor or the activities of the Monitor shall be borne by Pecan Re; provided, however, Pecan Re shall only reimburse PLIC for any reasonable out-of-pocket costs that PLIC incurs in providing assistance to the Monitor in connection with this Agreement.

Section 1.03 Subject to the provisions of Section 2.01, PLIC shall use reasonable best efforts to assist and cooperate with the Monitor in providing access to the relevant experience data, books, records, documents, information and relevant personnel of PLIC related to the Reinsured Policies and Covered Liabilities. 

ARTICLE ii

ACCESS

Section 2.01 In no event shall any Monitor have access to any portion of PLIC’s Network; provided, however, this Section 2.01 shall not be construed in any way whatsoever to (i) supersede the rights of the parties pursuant to the access to books and records provisions contained within Article XII of the Coinsurance Agreement or (ii) limit the Monitor’s access in any way whatsoever to the data in the Network.  “Network” shall mean PLIC’s information technology systems (or such systems of a third party operated on behalf of PLIC), including all data they contain and all computer software and hardware related to the Reinsured Policies and Covered Liabilities.  

Section 2.02 When a Monitor is at PLIC’s facilities, he or she shall comply with all generally applicable policies, procedures and regulations of PLIC, to the extent that such policies, procedures and regulations have been disclosed to Pecan Re or such Monitor. 

Section 2.03 When any Monitor enters or is within PLIC’s premises, such Monitor must establish his or her identity to the satisfaction of security personnel and comply with all security directions given by them, including directions to display any identification cards provided by PLIC. 

ARTICLE iii

FINANCIAL AND MONITORING REPORTS

Section 3.01 For so long as Parent remains the ultimate controlling company of Pecan Re, within twenty (20) business days after the end of each calendar month, PLIC shall provide Pecan Re with the reports specified on Schedule A attached hereto, in each case in such format as utilized by PLIC at such time.

2

Section 3.02 For so long as Parent remains the ultimate controlling company of Pecan Re, within twenty (20) business days after the end of each calendar quarter, PLIC shall provide Pecan Re accurate and complete copies of the following: (i) the Quarterly Lapse Report and (ii) the Quarterly Mortality Report in each case in such format as utilized by PLIC at such time and as it relates to the business ceded to Pecan Re.

Section 3.03 For so long as Parent remains the ultimate controlling company of Pecan Re, in addition to the reports described in Section 3.01 and 3.02 hereto, the parties hereto agree that PLIC shall provide Pecan Re copies of any other reports that are produced by PLIC or may reasonably be produced by PLIC relating to the Reinsured Policies and/or Covered Liabilities which Pecan Re, in its reasonable discretion, determines are reasonably necessary for its review.

ARTICLE iv

CONFIDENTIALITY

Section 4.01 In performing its monitoring rights under this Agreement, Pecan Re will comply (and will cause all Monitors to comply) with the terms and conditions of Section 21.11 of the Coinsurance Agreement regarding Confidential Information (as defined therein).

ARTICLE v

TERMINATION

Section 5.01 This Agreement shall remain in effect until the earlier to occur of (i) the termination of the Coinsurance Agreement or (ii) Parent no longer being the ultimate controlling company of Pecan Re.

ARTICLE vi

MISCELLANEOUS

Section 6.01 Pecan Re shall indemnify and hold PLIC, its affiliates and their directors, officers, employees and successors (the “PLIC Indemnified Party”) harmless against any damages, costs and out-of-pocket expenses (including reasonable attorneys’ fees) arising from or in connection with (a) Pecan Re’s or any Monitor’s breach of its confidentiality obligations hereunder, (b) Pecan Re’s or any Monitor’s violation of applicable law in connection with this Agreement, or the information or access provided pursuant to this Agreement, (c) any negligent or intentional misconduct of Pecan Re or any Monitor in connection with any monitoring permitted or access provided under this Agreement or (d) injury to or death of any person, or loss of or damage to tangible property, to the extent caused by the Pecan Re or any Monitor. 

Section 6.02 This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns.  This Agreement may not be assigned by the parties hereto without the requirement of the consent of the other party, which consent shall not be unreasonably withheld, delayed or conditioned.

Section 6.03 This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to the choice of law principles thereof.

Section 6.04 This Agreement may not be amended without the prior written consent of all parties hereto.  This Agreement may be executed in one or more counterparts, each of which together shall be deemed an original, but all of which together shall constitute one and the same instrument.

[Signature pages follow]

 

 

3

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	
 
	
 
	
PECAN RE INC.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
/s/ Brian Lo

	
 
	
 
	
Name:
	
 
	
Brian Lo

	
 
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
/s/ John Gribbon

	
 
	
 
	
Name:
	
 
	
John Gribbon

	
 
	
 
	
Title:
	
 
	
Sr. Vice President and CFO

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
PRIMERICA LIFE INSURANCE COMPANY

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
/s/ Dan Settle

	
 
	
 
	
Name:
	
 
	
Dan Settle

	
 
	
 
	
Title:
	
 
	
Executive Vice President

 

 

[Signature Page to Monitoring and Reporting Agreement]

 

SCHEDULE A

MONTHLY OPERATIONAL REPORTS

	
1.
	
Communication Research Statistics

	
2.
	
Cancellation Service Complaints Summary

	
3.
	
Complaint Written

	
4.
	
Client Communications Statistics

	
5.
	
Replacements

	
6.
	
End of Term (“EOT”) Bonus Funding

	
7.
	
EOT Bonus

	
8.
	
EOT Expectations

	
9.
	
EOT Continued

	
10.
	
Policy Owner Service (“POS”) Statistics

	
11.
	
EOT POS

	
12.
	
EOT Converted

	
13.
	
EOT Terminated

	
14.
	
POS/EOT Turndowns

	
15.
	
Policy Owner Administration Statistics

	
16.
	
POS Volumes

	
17.
	
End of Term

	
18.
	
Claims Statistics

	
19.
	
Aging Analysis from Notice of Claim

	
20.
	
Compromised/Denied Claims

	
21.
	
Time in Process

	
22.
	
TIAB Claim Count

	
23.
	
TIAB Outstanding

	
24.
	
Waiver Claim Statistic

MONTHLY FINANCIAL REPORTS

	
1.
	
Policy and Claim Reserve Recon to GL

	
2.
	
N’Vision Report

	
3.
	
Settlement Statement

	
4.
	
Monthly Manual Deal Entries

	
5.
	
GL Interface file

	
6.
	
Reinsurance Recoverables Aging Report

	
7.
	
Pending Litigation Claims Report

	
8.
	
Seriatim Transaction File

QUARTERLY FINANCIAL REPORTS

	
1.
	
Frozen Reserves Manual Entries

	
2.
	
Seriatim Valuation File

	
3.
	
Waiver of Premium Claim Inventory Including Future Premiums to be Waived

	
4.
	
Recoverable Action Plan

OTHER REPORTS

	
1.
	
All reports and notices listed in Article VIII of the Coinsurance Agreement (without duplication of any obligations under such Article VIII)

 

 

 

 

 

Swiss Re Reinsurance

Manual Expense Allowance

[•]

 

	
Section 4.2 Allowances
	
 
	
DL01

	
 
	
 
	
[•]

	
MSCWPE2--1 Policy Exhibit
	
 
	
 

	
Beginning Direct inforce [first day of applicable month]
	
 
	
[•]

	
Ending Direct inforce [last day of applicable month]
	
 
	
[•]

	
Avg Direct Inforce
	
 
	
[•]

	
 
	
 
	
 

	
* Expense Allowance @ 100%
	
 
	
[•]

	
Expense Allowance @ Deal %
	
 
	
[•]

	
 
	
 
	
 

	
Annual Expense Allowance
	
 
	
[•]

	
Monthly Expense Allowance (1/12)
	
 
	
[•]

	
 
	
 
	
 

	
Section 4.3 Other Obligations
	
 
	
DL01

	
 
	
 
	
[•]

	
(i) Other obligations
	
 
	
 

	
MSCWRA1-1 Settlement Rpt (CO9999 for DL02)
	
 
	
 

	
Direct Premiums [applicable month]
	
 
	
[•]

	
** Premium Tax Rate
	
 
	
[•]

	
Premium taxes Incurred
	
 
	
[•]

	
 
	
 
	
DL01

	
 
	
 
	
[•]

	
(ii) Other obligations
	
 
	
 

	
# EOT Policy Conversions
	
 
	
[•]

	
** Allowance
	
 
	
[•]

	
Total EOT Conversion Allowance
	
 
	
[•]

	
EOT Conversion Allowance per Deal%
	
 
	
[•]

	
 
	
 
	
DL01

	
 
	
 
	
[•]

	
(iv) Other obligations
	
 
	
 

	
U/W expenses on Reinstatements
	
 
	
[•]

	
Reinstatement U/W Expenses per Deal %
	
 
	
[•]

	
 
	
 
	
DL01

	
 
	
 
	
[•]

	
(iii) Other obligations
	
 
	
 

	
Conversion Bonus
	
 
	
[•]

	
Continuation Bonus
	
 
	
[•]

	
Total EOT Bonus
	
 
	
[•]

	
Bonus Funding Valn
	
 
	
[•]

	
 
	
 
	
 

	
Legacy Total
	
 
	
[•]

	
 
	
 
	
 

	
Commission Adj Per Deal %
	
 
	
[•]

 

[•]

	
*
	
Expense Allowance Rate for DLO1/DLO4/DL03 is adjusted annually in January.

	
*
	
Expense Allowance Rate for DLO2 is adjusted annually in March. See 'Expense

	
**
	
Per the coinsurance agreements, these rates do not change.

 

	
Prepared By: 
	
 
	
 
	
 
	
Reviewed By:
	
 
	
 

	
Date:
	
 
	
 
	
 
	
Date:
	
 
	
 

 

 

 

 

Swiss Re Reinsurance Top Up Notice

 

	
 
	
 
	
As of

[•]

	
 
	
 
	
Pecan Re 80%

DL01

	
Reserve Report
	
 
	
 

	
Direct Reserves
	
 
	
[•]

	
Ceded Reserves
	
 
	
[•]

	
 
	
 
	
-

	
Direct Pending
	
 
	
[•]

	
Ceded Pending
	
 
	
[•]

	
Recoverables
	
 
	
[•]

	
 
	
 
	
—

	
 
	
 
	
 

	
Economic Reserve
	
 
	
—

	
Excess Reserve
	
 
	
—

	
Reserve Report
	
 
	
—

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Required Reserve Balance
	
 
	
—

	
 
	
 
	
 

	
Security Balance as of [•]
	
 
	
 

	
Fair Value of Trust
	
 
	
[•]

	
Fair Value of Economic Trust
	
 
	
—

	
Fair Value of Excess Trust
	
 
	
—

	
 
	
 
	
 

	
 
	
 
	
 

	
Over/(Under) funded: Security Balance minus Required Reserve Balance
	
 
	
 

	
-10% Economic Reserve
	
 
	
—

	
-10% Excess Reserve
	
 
	
—

	
Over/(Under) funded
	
 
	
—

	
 
	
 
	
 

	
 
	
 
	
 

	
102% of Required Reserves Balance
	
 
	
 

	
Economic Reserve
	
 
	
—

	
Excess Reserve
	
 
	
—

	
 
	
 
	
—

	
 
	
 
	
 

	
Excess Security Balance in Trust:
	
 
	
 

	
Economic Trust > Economic Reserve
	
 
	
—

	
Excess Trust > Excess Reserve
	
 
	
—

	
Security Balance minus 102% of Required Reserve Balance (105% for FRAC)
	
 
	
—

	
 
	
 
	
 

	
 
	
 
	
—

 

 

 

 

 

PLIC - Pecan Re

Settlement Statement

[●], YTD

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
if<= current month, 1
	
if<= current

month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
if<= current month, 1
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
1
	
1
	
1
	
1
	
1
	
1
	
1
	
1
	
1
	
1
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
(4 wks)
	
(5 wks)
	
(4 wks)
	
(4 wks)
	
(5 wks)
	
(4 wks)
	
(4 wks)
	
(5 wks)
	
(4 wks)
	
(4 wks)
	
(5 wks)
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
January
	
February
	
March
	
April
	
May
	
June
	
July
	
August
	
September
	
October
	
November
	
YTD

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%
	
DL01 - 80%

	
 
	
Due
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Business
	
to/from
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Unit
	
Account
	
 
	
 
	
 
	
 
	
 
	
 
	
Description
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due
	
Amount Due

	
 
	
 
	
9.2 BU
	
Book

Code
	
Deal Id
	
Prod
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Due to/from PR20 Cash ledger
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Direct Premiums
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Direct Claims
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
ETPR Claims
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
ETPR Premiums Monthly True Up & Manual Premiums
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Prior Month Accrual Deal
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
 
	
Current Month Cash Deal
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
 
	
Manual Premium Pmts(FAC, Term)
	
 
	
 
	
-
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Expense Allowance
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Premium Tax Allowance
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Premium Tax Recovered
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Conversion Allowance
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Reinstatement U/W Expense
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Commissions
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Bonus Funding, EOT Bonus
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
ICA Comm Exp
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Lf 1 yr Com
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Lf Ren Com
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Commission Allowance
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
Lf 1Yr Comm-Re-Ced
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Scottish Re's & Canada Life's reprocessed IBR's
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
[•]
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
(PSR/PCR)
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
—

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
 
	
 
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
—
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Total Due to/from PR20 Cash ledger
	
 
	
 
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Due to/from PR2G Accrual ledger
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
ETPR Premiums (excluding Frozens)
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Frozen Release ETPR Premiums
	
-
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 

	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
 
	
ETPR Premiums – Monthly accrual
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Net Amount Due to Pecan Re
	
 
	
 
	
 
	
 
	
 
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
[•]
	
—

 

 

 

 

 

 

	
Coinsurance Agreement

Article VIII Section 8.1 & 8.2
	
 
	
Primerica Report ID / Name
	
 
	
File 1

	
 
	
Report ID
	
 
	
Report Name
	
 
	
[•]

	
Monthly Settlement Report
	
 
	
SCWRA1 --1
	
 
	
Monthly Settlement Report
	
 
	
✓

	
Policy Exhibit
	
 
	
SCWPE2 --1
	
 
	
Exhibit of Life Insurance
	
 
	
✓

	
 
	
SCWPE3 --1
	
 
	
Policy Exhibit Errors
	
 
	
✓

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Non-Bordereau Claims Report
	
 
	
SCWRA4 --1
	
 
	
Bulk Claim
	
 
	
✓

	
Bordereau Report
	
 
	
SCWRA4 --2
	
 
	
NonBulk Claim
	
 
	
✓

	
Reserve Report
	
 
	
SCWRA3 -- 1
	
 
	
Monthly Reserve Report
	
 
	
✓

	
Claim Reserve Report
	
 
	
SCWRA2 -- 1
	
 
	
Claim Reserve Report
	
 
	
 

	
 
	
SCWRA4 --3
	
 
	
Detail Pending Claims and Recoverables
	
 
	
 

	
Monthly Account Balance Reports
	
 
	
PSP419-MP
	
 
	
Pecan Re General Ledger Summary
	
 
	
✓

	
Top-Up Notice
	
 
	
PDF
	
 
	
Top Up Notice
	
 
	
✓

	
 
	
 
	
SCWR07 --1
	
 
	
Monthly Settlement Report - Peoplesoft Ledger Balance
	
 
	
✓

	
 
	
 
	
SCWR07 -- 2
	
 
	
Claim Reserve Report - Peoplesoft Ledger Balance
	
 
	
✓

	
 
	
 
	
SCWR07 -- 3
	
 
	
Monthly Reserve Report - Peoplesoft Ledger Balance
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Policy and Claim Reserve Recon to GL
	
 
	
✓

	
 
	
 
	
Excel
	
 
	
N'Vision Report: Pecan Re
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Settlement Statements - Pecan Re
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Monthly Manual Deal Entries
	
 
	
✓

	
 
	
 
	
Excel
	
 
	
GL Interface file
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Reinsurance Recoverables Aging Report
	
 
	
✓

	
 
	
 
	
PDF
	
 
	
Pending Litigation Claims Report
	
 
	
✓

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
System Generated Report - not available in Excel/Word format
	
 
	
 

	
 
	
 
	
Attached Excel Version of this report
	
 
	
 

	
 
	
 
	
Report provided in an Excel version already. Re-attached this report
	
 
	
 

 

 

 

	
 
	
 
	
Report ID
	
 
	
Report Name

	
 
	
 
	
 
	
 
	
 

	
Coinsurance AgreementArticle VIII Section 8.1 & 8.2

	
Monthly Settlement Report
	
 
	
SCWRA1 --1
	
 
	
Monthly Settlement Report

	
Policy Exhibit
	
 
	
SCWPE2 -- 1
	
 
	
Exhibit of Life Insurance

	
 
	
SCWPE3--1
	
 
	
Policy Exhibit Errors

	
Non-Bordereau Claims Report
	
 
	
SCWRA4 --1
	
 
	
Bulk Claim

	
Bordereau Report
	
 
	
SCWRA4 -- 2
	
 
	
NonBulk Claim

	
Reserve Report
	
 
	
SCWRA3 --1
	
 
	
Monthly Reserve Report

	
Claim Reserve Report
	
 
	
SCWRA2 -- 1
	
 
	
Claim Reserve Report

	
 
	
 
	
SCWRA4 -- 3
	
 
	
Detail Pending Claims and Recoverables

	
Monthly Account Balance Reports
	
 
	
PSP419
	
 
	
General Ledger Summary-USD

	
 
	
 
	
PSP419
	
 
	
General Ledger Summary-CAD

	
Top-Up Notice
	
 
	
PDF
	
 
	
Top Up Notice (required quarterly)

	
 
	
 
	
 
	
 
	
 

	
Additional Reports provided
	
 
	
 
	
 
	
 

	
 
	
 
	
PDF
	
 
	
Settlement Statements - Pecan Re & Experience Refund - Pecan Re

	
 
	
 
	
SCWR07 --1
	
 
	
Monthly Settlement Report - Peoplesoft Ledger Balance

	
 
	
 
	
SCWR07 -- 2
	
 
	
Claim Reserve Report - Peoplesoft Ledger Balance

	
 
	
 
	
SCWR07 --3
	
 
	
Monthly Reserve Report - Peoplesoft Ledger Balance

	
 
	
 
	
PDF
	
 
	
Monthly Manual Deal Entries & Support (Expense Allowance, End of Term & Reinst U/W Expense detail)

	
 
	
 
	
Excel
	
 
	
N’Vision Report: Pecan Re

	
 
	
 
	
PDF
	
 
	
Policy and Claim Reserve Recon to GL

	
 
	
 
	
Excel
	
 
	
GL Interface file

 

Total 26 files

 

	
Manic Lefebvre
	
 
	
manic lefebvre@swissre.com

	
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PRIMG&SB

SWISS RE REINSURANCE PECAN RE GAAP & STAT

Run: [•]

 

	
 
	
 
	
Pecan Re GAAP
	
 
	
 
	
Pecan Re STAT

	
 
	
 
	
DL01: 80%
	
 
	
 
	
DL01: 80%
	
 
	
 

	
 
	
 
	
PR20
	
 
	
PR2G
	
 
	
PR2GG
	
 
	
Pecan Re_GP
	
 
	
 
	
PR20
	
 
	
PR2G
	
 
	
PR2S
	
 
	
Pecan Re_St

	
8.4 Business Unit
	
 
	
Pecan
	
 
	
Pecan
	
 
	
Pecan
	
 
	
 
	
 
	
 
	
Pecan
	
 
	
Pecan
	
 
	
Pecan
	
 
	
 

	
9.2 Deal ID
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
 
	
 
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
Pecan80
	
 
	
 

	
9.2 Book Code
	
 
	
Base
	
 
	
Comb
	
 
	
GAAP
	
 
	
Total
	
 
	
 
	
Base
	
 
	
Comb
	
 
	
STAT
	
 
	
Total

	
9.2 Product
	
 
	
Uncons
	
 
	
Uncons
	
 
	
Uncons
	
 
	
GAAP
	
 
	
 
	
Uncons
	
 
	
Uncons
	
 
	
Uncons
	
 
	
STAT

	
Assets
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Intercompany Legacy
	
 
	
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Premium Due and Unpaid
	
 
	
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Due From Rein-UW and Other
	
 
	
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Reinsurance Recoverable
	
 
	
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Ceded Pending
	
 
	
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Ceded Reserves
	
 
	
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Direct Pending
	
 
	
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Direct Reserves
	
 
	
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Due to Affiliates
	
 
	
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Deferred ACQ Cost (DAC)
	
 
	
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Total Assets
	
 
	
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Liabilities
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Future Policy Benefits - Life
	
 
	
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Direct Pending Claims
	
 
	
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Accrued Taxes Licenses Fees
	
 
	
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Cost of Collection
	
 
	
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Advance Premium
	
 
	
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Due to Reinsurers
	
 
	
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Commissions Payable
	
 
	
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Total Liabilities
	
 
	
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Net Income
	
 
	
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Paid in Capital
	
 
	
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Retained Earnings
	
 
	
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Total Equity
	
 
	
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Total Liabilities & Equity
	
 
	
 
	
 
	
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Revenue
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Premium
	
 
	
 
	
 
	
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Total Revenue
	
 
	
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Benefit
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Claims - Life
	
 
	
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Change In Reserve - Life
	
 
	
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Total Benefits
	
 
	
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Commission & Expenses
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Commissions - Net
	
 
	
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Amortization of DAC
	
 
	
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Allowances
	
 
	
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Legal Settlements
	
 
	
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Total Commisions & Expenses
	
 
	
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Total Benefit, Commissions & Expenses
	
 
	
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Net Income
	
 
	
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Prepared  By:
	
 
	
 

	
 
	
 
	
 

	
Approved  By:
	
 
	
 

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Policy Reserves:
	
 
	
Direct

Reserves
	
 
	
ETPR

Reserves
	
 
	
Net
	
 
	
 
	
Total Reserves

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DL01: PLIC 80% SCWRA3-1 balance
	
 
	
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DL01 Σ (A) -

	
Manual Adjustments:
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DIS Monthly Inc./Stat Errors
	
 
	
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Adj. to [year] waiver clms-Lx
	
 
	
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Frozen Stat Reserves - Coin @ 80%
	
 
	
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Frozen Stat Reserves Qsyrt @ 80%
	
 
	
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CTR & Spouse Conversions incorrectly ceded to Citi
	
 
	
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Adjusted Rsrv Balance:
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
 
	
(A)

 

	
General Ledger: PSP030
	
 
	
B.U.
	
 
	
Deal ID
	
 
	
Book Code
	
 
	
 
	
Product

	
8.4 BU: PR2S
	
 
	
PrmRe
	
 
	
PrmRe80
	
 
	
stat
	
 
	
 
	
uncons

	
200109-FPB Reserves SW Asmd
	
 
	
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200119-Waiver Reserve SW Asmd
	
 
	
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141213-ETPR COI Reserves Frzn SW Asmd
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
141218-ETPR  YRT  Reserves  Frzn SW  Asmd
	
 
	
 
	
 
	
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141207-ETPR COI Reserves SW Asmd
	
 
	
 
	
 
	
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141203-ETPR YRT Reserves SW Asmd
	
 
	
 
	
 
	
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—
	
 
	
—
	
 
	
 
	
 

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Claim Reserves
	
 
	
Direct Pending
	
 
	
ETPR Pending
	
 
	
ETPR Recoverables
	
 
	
Net

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
DL01: PLIC 80% SCWRA2-1 balance
	
 
	
[•]
	
 
	
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Manual Adjustments:
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
IBNR - Direct
	
 
	
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SSAP 55 (stat only adj)
	
 
	
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IBNR - Coin
	
 
	
 
	
 
	
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IBNR - Qsyrt
	
 
	
 
	
 
	
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Clm Accrl
	
 
	
—
	
 
	
 
	
 
	
 
	
 
	
 

	
CTR & Spouse Conversions incorrectly ceded to Citi
	
 
	
[•]
	
 
	
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Adjusted Claim Rsrv:
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
— (A)

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
General Ledger: PSP030
	
 
	
B.U.
	
 
	
Deal ID
	
 
	
Book Code
	
 
	
Product

	
8.4 BU: PR2G 201202-Direct Pending Claims SW Asmd
	
 
	
PrmRe
	
 
	
PrmRe80
	
 
	
stat
	
 
	
uncons

	
PR2G 201213-Direct IBNR SW Asmd
	
 
	
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PR2S 201213-Direct IBNR SW Asmd
	
 
	
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PR2G 140803-ETPR Pending Clms YRT SW Asmd 
	
 
	
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PR2G 140813-ETPR YRT IBNR SW Asmd
	
 
	
 
	
 
	
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PR2G 140807-ETPR Pending Clms COI SW Asmd
	
 
	
 
	
 
	
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PR2G 140818-ETPR COI IBNR SW Asmd
	
 
	
 
	
 
	
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PR2G 140823-ETPR Reins Recov Adj SW Asmd
	
 
	
 
	
 
	
 
	
 
	
—
	
 
	
 

	
PR2G 140603-ETPR Reins Recov YRT SW Asmd
	
 
	
 
	
 
	
 
	
 
	
[•]
	
 
	
 

	
PR2G 140607-ETPR Reins Recov COI SW Asmd
	
 
	
 
	
 
	
 
	
 
	
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—
	
 
	
—
	
 
	
—
	
 
	
—

	
 
	
 
	
—
	
 
	
—
	
 
	
—
	
 
	
—

 

 

 

 

	
PFS_REINS_C
	
 
	
107
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year
	
 
	
Period Unit
	
 
	
Deal
	
 
	
Product
	
 
	
Book Code
	
 
	
Account
	
 
	
Sum Amount
	
 
	
Base Curr

	
[•]
	
 
	
11
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
USD

	
[•]
	
 
	
11
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
USD

 

	
PFS_REINS
	
 
	
117
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Year
	
 
	
Period Unit
	
 
	
Deal
	
 
	
Product
	
 
	
Book Code
	
 
	
Account
	
 
	
Sum Amount
	
 
	
Base Curr

	
[•]
	
 
	
11
	
 
	
[•]
	
 
	
[•]
	
 
	
[•]
	
 
	
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USD

	
[•]
	
 
	
11
	
 
	
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USDpri-ex1026_315.htm

Exhibit 10.26

PRIMERICA, INC.

PERFORMANCE STOCK UNIT

AWARD AGREEMENT

Primerica, Inc. (“Primerica”) hereby grants to [NAME] (the “Participant”) performance-based Stock Units pursuant to the Primerica, Inc. Amended and Restated 2010 Omnibus Incentive Plan (the “Plan”), subject to the conditions and restrictions detailed below (the “Performance Stock Units”).  Terms applicable to the Performance Stock Units are contained in the Plan and in this Performance Stock Unit Award Agreement (the “Agreement”).  Capitalized terms not defined herein shall have the meaning assigned to such terms in the Plan.

1.Grant of Performance Stock Units.

	
Grant Date:
	
February 24, 2016

	
Target Number of Performance Stock Units:
	
[# UNITS]

	
Performance Goals:
	
Set forth in Exhibit A

	
Performance Period:
	
Three-year period beginning January 1, 2016 and ending on December 31, 2018

	
Vesting Date:
	
March 1, 2019

	
Payment Date:
	
March 1, 2019

 

2.Performance Stock Units.  The target number of Performance Stock Units subject to this Agreement is set forth in Section 1 (the “Target Award”).  Primerica will maintain an account (the “Performance Stock Unit Account”) on its books in the name of the Participant which shall reflect such number of Performance Stock Units awarded to the Participant.  Depending on Primerica’s level of achievement of the performance goals set forth in Exhibit A to this Agreement (the “Performance Goals”) for the performance period specified in Section 1 (the “Performance Period”), the Participant may earn a number of Performance Stock Units between 0% to 200% of the Target Award.  Each Performance Stock Unit, to the extent earned and/or vested under the terms of this Agreement, represents an unfunded, unsecured promise by Primerica to deliver to the Participant one share of Primerica’s common stock, par value $.01 per share (“Common Stock”), and to pay to the Participant in cash an amount equal to the amount of the dividends paid by Primerica on one share of Common Stock from the Grant Date through the payment date set forth in Section 1 (the “Payment Date”), or through the Participant’s earlier employment termination date in certain circumstances as set forth in Section 5 below, subject to the terms and conditions contained in this Agreement and the Plan.  

3.Earning, Vesting and Delivery of Performance Stock Units.  After the end of the Performance Period, the degree of Primerica’s achievement of the Performance Goals for the 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

Performance Period shall be calculated and certified by the Compensation Committee of the Board of Directors and used to determine the number of Performance Stock Units earned.  The earned Performance Stock Units shall become vested on the vesting date set forth in Section 1 (the “Vesting Date”), subject to earlier vesting in certain circumstances as set forth in Section 5 below.  The Performance Stock Units so earned and vested shall be settled by delivery within 60 days following the Payment Date of one share of Common Stock for each such earned Performance Stock Unit and payment of the related dividend equivalent amount described in Section 4.  Delivery of shares of Common Stock, and cash payment of related dividend equivalent amounts, by Primerica as described in this Section 3 shall discharge it of all of its duties and obligations under this Agreement and the Plan with respect to the Performance Stock Units.

4.Dividend Equivalents.  Upon the payment of a cash dividend on the Common Stock by Primerica during the period from the Grant Date of the Participant’s Performance Stock Units through the Payment Date, or through the Participant’s earlier employment termination date in certain circumstances as set forth in Section 5 below, Primerica shall credit the Performance Stock Unit Account of the Participant with an amount equal in value to the dividends that the Participant would have received had the Participant been the actual owner of the number of shares of Common Stock represented by the Performance Stock Units in the Participant’s Performance Stock Unit Account on that date.  After the end of the Performance Period, the amount in such Performance Stock Unit Account attributable to such dividend equivalents shall be adjusted, based on the degree of Primerica’s achievement of the Performance Goals for the Performance Period, in the same percentage used to determine the number of earned Performance Stock Units.  Such amount shall become vested on the Vesting Date and shall be paid to the Participant in cash on the Payment Date, subject to earlier vesting and/or payment in certain circumstances as set forth in Section 5 below.

5.Termination of Employment.  In connection with a termination of the Participant’s employment before the Vesting Date, the Participant’s Performance Stock Units shall be treated as follows:

(a)Voluntary Resignation; Termination by Primerica for Cause.  If the Participant voluntarily terminates employment with Primerica (other than upon a Retirement as described in Section 5(c)) or if Primerica terminates the Participant’s employment for Cause, vesting of the Performance Stock Units, and any related dividend equivalent amounts described in Section 4, will cease on the date the Participant’s employment is so terminated, the Performance Stock Units, and related dividend equivalent amounts, will be cancelled and the Participant shall have no further rights of any kind with respect to any Performance Stock Units under this Agreement. 

(b)Certain Other Terminations.  If either (i) the Participant’s employment is terminated by Primerica for any reason other than (A) for Cause (as described in Section 5(a)), (B) in connection with a Change of Control (as described in Section 5(d)), or (C) in connection with the Participant’s disability (as described in Section 5(e)), or (ii) the Participant terminates employment with Primerica with Good Reason (as defined below) other than in connection with a Change of Control (as described in Section 5(d)), the Participant’s Performance Stock Units, and related dividend equivalent amounts described in Section 4, will be deemed to have vested 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

2

on such employment termination date, contingent on satisfaction by Primerica of the Performance Goals.  After the end of the Performance Period, the number of the Participant’s Performance Stock Units earned will be determined based on satisfaction of the Performance Goals over the Performance Period.  Such amount of earned Performance Stock Units, and related dividend equivalent amounts, will be settled by delivery of one share of Common Stock for each such earned Performance Stock Unit, and payment in cash of any earned dividend equivalent amounts, within 60 days following the Payment Date.  For purposes of this Agreement, the Participant may terminate employment with Good Reason if (1) an event or circumstance set forth in clauses (w), (x), (y) or (z) of this subsection (b) shall have occurred and the Participant provides Primerica with written notice thereof within 90 days after the occurrence or existence of such event or circumstance, which notice shall specifically identify the event or circumstance that the Participant believes constitutes Good Reason, (2) Primerica fails to correct the circumstance or event so identified within 30 days after the receipt of such notice (the “Cure Period”), and (3) the Participant resigns within 30 days after the Cure Period.  For purposes of this Agreement, “Good Reason” means, in the absence of the Participant’s written consent, the occurrence of any of the following: 

	

	
(w)a material diminution by Primerica in the Participant’s annual base salary or a material diminution in the Participant’s target annual bonus opportunity as a percentage of the Participant’s annual base salary, unless replaced by one or more other bonus or incentive opportunities with a comparable aggregate bonus and incentive opportunity;

	

	
(x)a material diminution in the Participant’s authority, duties or responsibilities, provided that a change in the Participant’s reporting relationship (in the absence of any other change which may constitute a material diminution in the Participant’s authority, duties or responsibilities) shall not constitute “Good Reason”;

	

	
(y)Primerica requiring the Participant’s principal business location to be at any office or location more than 50 miles from the Participant’s principal business location as of immediately prior to such relocation (other than to an office or location closer to the Participant’s home residence); or

(z)any material breach of this Agreement by Primerica.

(c)Retirement.  If the Participant voluntarily terminates employment with Primerica after having attained at least the age of 55 and with the sum of the Participant’s age (in whole years) plus the Participant’s Years of Service (as defined below) equaling 75 or more on the date of such termination (a “Retirement”), the Participant’s Performance Stock Units, and related dividend equivalent amounts described in Section 4, will be deemed to have vested on such Retirement date, contingent on satisfaction by Primerica of the Performance Goals.  After the end of the Performance Period, the number of the Participant’s Performance Stock Units earned will be determined based on satisfaction of the Performance Goals over the Performance Period.  Such amount of earned Performance Stock Units, and related dividend equivalent amounts, will be settled by delivery of one share of Common Stock for each such earned Performance Stock Unit, and payment in cash of any earned dividend equivalent amounts, within 60 days following the Payment Date.  For purposes of this Agreement, the term “Years of 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

3

Service” shall mean the total number of years the Participant’s period of service to Primerica and any Subsidiary as of the date the Participant terminates employment.

(d)Change of Control.  If, in the event of a Change of Control, either (i) the Participant’s employment is terminated by Primerica (or a successor entity) other than for Cause, or (ii) the Participant terminates employment with Primerica (or a successor entity) with Good Reason, at any time during the period that begins on the date 6 months before the date of such Change of Control and ends on the date 24 months after the date of such Change of Control, the number of the Performance Stock Units in the Participant’s Target Award (as the same may be adjusted in connection with the Change of Control transaction per the terms of the Plan), and the related dividend equivalent amounts described in Section 4, will be deemed to have vested on such employment termination date.  Such vested Performance Stock Units, and related dividend equivalent amounts, will be settled within 60 days following the date the Participant’s employment is so terminated or, for a Participant whose employment terminates during the 6-month period preceding the Change of Control, within 60 days following the date of the Change of Control, by delivery of one share of Common Stock for each such vested Performance Stock Unit (as the same may be adjusted in connection with the Change of Control transaction per the terms of the Plan) and payment of the related dividend equivalent amount described in Section 4.  

(e)Disability.  If the Participant’s employment is terminated by Primerica following completion of the Participant’s approved disability leave pursuant to the applicable Primerica disability policy, the number of the Performance Stock Units in the Participant’s Target Award, and the related dividend equivalent amounts described in Section 4, will be deemed to have vested on such employment termination date.  Such vested Performance Stock Units, and related dividend equivalent amounts, will be settled within 60 days following the date the Participant’s employment is so terminated by delivery of one share of Common Stock for each such vested Performance Stock Unit and payment of the related dividend equivalent amount described in Section 4.

(f)Death.  If the Participant’s employment is terminated upon the Participant’s death, the number of the Performance Stock Units in the Participant’s Target Award, and related dividend equivalent amounts described in Section 4, will be deemed to have vested on the date of the Participant’s death.  Such vested Performance Stock Units, and related dividend equivalent amounts, will be settled within 60 days following the date of the Participant’s death by delivery of one share of Common Stock for each such vested Performance Stock Unit and payment of the dividend equivalent amount described in Section 4, to the personal representative of the Participant’s estate or recipient thereunder pursuant to the terms of the Participant’s will or the applicable laws of descent and distribution.  Notwithstanding the provisions of Sections 5(b) and 5(c), if following a termination described in Section 5(b) or a Retirement described in Section 5(c), a Participant dies prior to the end of the Performance Period, settlement of such Participant’s Performance Stock Units will be made under the terms described in this Section 5(f).  

(g)Settlement.  Delivery of shares of Common Stock, and cash payment of related dividend equivalent amounts, by Primerica as described in this Section 5 shall discharge it of all of its duties and obligations under this Agreement and the Plan with respect to the Performance Stock Units.  

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

4

(h)Release Agreement.  Notwithstanding the foregoing, payment with respect to the Participant’s Performance Stock Units following termination of employment as described in subsections (b), (c), (d) or (e) above shall be subject to and conditioned upon the Participant having executed a waiver of claims and general release of Primerica, in a form reasonably acceptable to Primerica, and for which any revocation rights have expired.  If a Participant fails or refuses to execute such a waiver of claims and general release, or timely revokes a previously executed waiver of claims and general release, before the Payment Date, such amounts will not vest as described in subsections (b), (c), (d) or (e) above, as the case may be, and the Performance Stock Units will be cancelled, and the Participant shall have no further rights with respect to such Performance Stock Units.  

6.Stockholder Rights.  The grant of Performance Stock Units does not entitle the Participant to any rights of a stockholder of Common Stock, including dividends or voting rights, until such time as the Performance Stock Units are settled in Common Stock.  

7.Nontransferable.  As provided by the terms of the Plan, no rights granted under this Agreement, nor any shares of Common Stock issuable pursuant to this Agreement, shall be transferable or assignable by the Participant (or by any other person), other than by will or by the laws of descent and distribution, and they may not be pledged or hypothecated in any way, prior to the issuance and delivery of the shares of Common Stock pursuant to this Agreement.  Any attempted transfer, assignment, pledge or other disposition contrary to the provisions of the Plan and this Agreement shall be null and void and without legal effect.

8.Consent to Electronic Delivery.  In lieu of receiving documents in paper format, by receipt of the Performance Stock Units, the Participant consents, to the fullest extent permitted by law, to electronic delivery of any documents that Primerica may be required to deliver (including, but not limited to, stock certificates, prospectuses, prospectus supplements, grant or award notifications and agreements and all other forms or communications) in connection with the Performance Stock Units.  Electronic delivery of a document to the Participant may be via a Primerica e-mail system or by reference to a location on an Internet site to which the Participant has access.

9.Tax Withholding.  The Participant shall be responsible for any applicable taxes and penalties, and any interest that accrues thereon, incurred in connection with the Performance Stock Units, including the payment of any dividends with respect thereto.  Primerica or a Subsidiary employing the Participant has the authority and the right to deduct or withhold, or require the Participant to remit to the employer, an amount sufficient to satisfy withholding requirements with respect to applicable federal, state, local, foreign or other governmental taxes or charges (including, without limitation, income, payroll and excise taxes) and to take such other action as may be necessary to satisfy any such withholding obligations.  

10.Compliance with EESA.  To the extent that the Participant and the Performance Stock Units are subject to Section 111 of the Emergency Economic Stabilization Act of 2008, as amended, and any regulations, guidance or interpretations that may from time to time be promulgated thereunder (“EESA”), then any payment of any kind provided for by, or accrued with respect to, the Performance Stock Units must comply with EESA, and the Agreement and the Plan will be interpreted or reformed to so comply.  If requested by Primerica, the Participant 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

5

will grant to the U.S. Treasury Department (or other body of the U.S. government) and to Primerica a waiver in a form acceptable to the U.S. Treasury Department (or other body) and Primerica releasing the U.S. Treasury Department (or other body) and Primerica from any claims that the Participant may otherwise have as a result of the issuance of any regulations, guidance or interpretations that adversely modify the terms of the Performance Stock Units that would not otherwise comply with the executive compensation and corporate governance requirements of EESA or any securities purchase agreement or other agreement entered into between Primerica or its affiliates and the U.S. Treasury Department (or other body) pursuant to EESA.

11.Entire Agreement.  The Agreement and the Plan constitute the entire understanding between Primerica and the Participant regarding the Performance Stock Units and supersede all previous written, oral, or implied understandings between the parties hereto about the subject matter hereof. 

12.No Right to Employment.  Nothing contained herein, in the Plan, or in any prospectus shall confer upon the Participant any rights to continued employment or employment in any particular position, at any specific rate of compensation, or for any particular period of time. 

13.Arbitration.  Any disputes related to the Performance Stock Units shall be resolved by arbitration in accordance with Primerica’s arbitration policies.  In the absence of an effective arbitration policy, the Participant acknowledges and agrees that any dispute related to the Performance Stock Units shall be submitted to arbitration in accordance with the Commercial Rules of the American Arbitration Association, if so elected by Primerica in its sole discretion. 

14.Conflict.  In the event of a conflict between the Agreement and the Plan, the Plan shall control. 

15.Governing Law.  The Agreement shall be construed in accordance with and governed by the laws of the State of Delaware. 

16.Internal Revenue Code Section 409A.  The intent of the parties is that the payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended, and regulations and other official guidance issued thereunder (“Code Section 409A”), to the extent subject thereto and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and be administered to be in compliance with Code Section 409A.  Consistent with such intent, references to the Participant’s termination of employment or words of similar import as used in this Agreement shall mean the Participant’s “separation from service” as such term is used in Code Section 409A.  In the case of a Participant who is a “specified employee” (as such term is used in Code Section 409A), amounts payable upon the Participant’s separation from service shall be, to the extent required under Code Section 409A, made on the date that is six (6) months following the date of the Participant’s employment termination (or, if earlier, the date of the Participant’s death).  Each installment or other payment under this Agreement shall be treated as a separate payment for purposes of Code Section 409A.  To the extent that payments and benefits under this Agreement are nonqualified deferred compensation subject to Code Section 409A and are contingent upon the Participant’s taking any employment-related action, including without limitation execution (and nonrevocation) of 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

6

another agreement, such as a release agreement, and the period within which such action(s) may be taken by the Participant would begin in one calendar year and expire in the following calendar year, then such amounts or benefits shall be paid in such following calendar year.

17.Successors and Assigns.  This Agreement shall be binding on all successors and assigns of the Participant, including, without limitation, the estate of the Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.  This Agreement shall be binding on Primerica and its successors and assigns.

18.Reimbursement or Cancellation of Certain Awards.  The Performance Stock Units will be subject to repayment by the Participant to Primerica (i) to the extent set forth in the Plan and (ii) to the extent the Participant is, or in the future becomes, subject to (a) any other Primerica or affiliate “clawback” or recoupment policy that is adopted to comply with the requirements of any applicable laws, rules or regulations, or otherwise or (b) any applicable laws which impose mandatory recoupment, under circumstances set forth in such applicable laws.  Further, in the event that the Committee determines that the Performance Stock Units would not have been granted, vested or paid absent fraud or misconduct of the Participant, the Committee, in its discretion, shall take such action as it deems necessary or appropriate to address the fraud or misconduct.  Such actions may include, without limitation and to the extent permitted by applicable law, in appropriate cases, causing the partial or full cancellation of any Performance Stock Units granted to the Participant or requiring partial or full repayment of the value of the Common Stock acquired on settlement of the Performance Stock Units, in each case as the Committee determines to be in the best interests of Primerica.

 

 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

7

EXHIBIT A

 

Performance Goals and Payout Matrix

 

 

				
	
 
	
Threshold
	
Target
	
Maximum

	
Payout Factor
	
(50%)
	
(100%)
	
(150%)

	
 
	
 
	
 
	
 

	
Performance Range
	
80% of Target
	
100% of Target
	
120% of Target

	
Average Operating ROAE from 2016-2018
	
14.8%
	
18.5%
	
22.2%

 

 

 

 

 

 

 

Performance Stock Unit Award Agreement

Approved as of February 24, 2016

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