Document:

Exhibit 10.5

 

ADMINISTRATIVE
 SERVICES AGREEMENT

 

BETWEEN MIDWEST

 

HOLDING INC. AND

 

INVESTORS HERITAGE LIFE INSURANCE COMPANY

 

 

TABLE OF CONTENTS

 

	
SECTION
   NUMBER
    	
 
    	
DESCRIPTION
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.
    	
 
    	
Parties
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Purpose
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Administrative   Services and Pricing Agreement
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Complaints   and Litigation
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Performance   of Administrative Services
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Records   and Reports
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Compensation
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Confidentiality
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Auditing   Rights
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Term   and Termination
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Notice
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12
    	
 
    	
Indemnification   and Liability
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
13.
    	
 
    	
Assignment
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
14.
    	
 
    	
Governing   Law
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
15.
    	
 
    	
Waiver
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
Entire   Contract and Amendments
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
17.
    	
 
    	
Arbitration
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
18.
    	
 
    	
Authorization
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
19.
    	
 
    	
Construction
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
20.
    	
 
    	
Effective   Date
    	
 
    	
10
    

 

EXHIBITS

A     Service Agreement Pricing for MHI

B     Reports Covered By this Agreement

C     Authorized Officers of the Administrator

D     Financial Reporting Timelines

 

 

ADMINISTRATIVE
 SERVICES AGREEMENT
 between

MIDWEST HOLDING INC.

and

INVESTORS HERITAGE LIFE INSURANCE COMPANY

 

1. Parties

 

1.1           The parties to this Agreement are Midwest Holding Inc.  (hereinafter referred to as “MHI”), a corporation, whose principal place of business is at 8101 0 Street, Suite 101, Lincoln, Nebraska 68510, and Investors Heritage Life Insurance Company (hereinafter referred to as “Administrator”), a Kentucky corporation, whose principal place of business is at 200 Capitol Avenue, Frankfort, Kentucky 40601.

 

1.2           The registered agent and address for service of process for MHI is Rick Meyer, 8101 0 Street, Suite 101, Lincoln, Nebraska 68510 and for Administrator is Robert M. Hardy, Jr., 200 Capitol Avenue, Frankfort, Kentucky 40601.

 

2. Purpose

 

The parties desire to enter into an Agreement to provide for the performance by Administrator of certain administrative services for MHI.

 

3. Administrative Services and Pricing Agreement

 

3.1           Administrator will perform administrative services for MHI as set forth in paragraph 3.2 and as priced in accordance with the MHI Service Agreement Pricing attached as Exhibit A, with respect to the administrative services to be provided to MHI (“MHI Services”).  All Administrative Services will be performed in a manner reasonably acceptable to and approved by both parties.

 

3.2           The MHI Services shall include the following items:

 

a.             Maintenance of a cash-basis general ledger based on cash information provided by management of MHI;

 

b.             Reconciliation of cash accounts on a monthly basis;

 

c.             Preparation of draft monthly GAAP-basis consolidated holding company balance sheet and income statement (assuming non-complex operations and one insurance company consolidated subsidiary; fees relative to such additional complexity may be negotiated);

 

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d.             Preparation of draft annual GAAP-basis consolidated financial statements and footnotes, as required by the Company;

 

e.             Preparation of draft of stand alone IRS Form 1120 for MHI; and

 

f.              Furnish MHI with the information  necessary for their 1099 reporting requirements.

 

MHI shall have the ultimate responsibility for the accuracy of any filings including GAAP-basis financial information and IRS Form 1120.  Administrator shall only be responsible for correctly reporting the information provided by MHI and shall bear no responsibility for the quality or accuracy of information received from MHI to be used to maintain the cash-basis general ledger and accrual information for GAAP reporting purposes.  The timeliness of the reports provided by Administrator, including the ledger, will be predicated on the timely receipt of cash basis information from MHI which information must include adequate documentation necessary to substantiate all cash activity in correlation with Internal Revenue Service requirements and sound business practices.

 

4. Complaints and Litigation

 

4.1           Each party will inform the other on a timely basis of complaints or inquiries from any other state, federal or local governmental agency.  MHI will forward to Administrator, in a timely manner, any Complaint so that Administrator can determine if it should respond to such Complaint.  If appropriate, Administrator may forward a draft of its response to MHI for review.  Each party may respond on its own behalf, and will advise the other of its intent to do so.

 

4.2           Administrator will inform MHI immediately of any litigation of which Administrator becomes aware.  MHI will immediately inform Administrator of any litigation that names Administrator as a party.

 

4

 

5. Performance of Administrative Services

 

5.1           Administrator agrees to perform all functions contemplated by this Agreement in a timely and professional manner. Financial Accounting timeline provided in Exhibit D.

 

5.2           Administrator will employ individuals with the necessary skills to perform the Administrative Services according to Paragraph 3.2. above, and/or contract with the appropriate consultants who have the necessary professional qualifications to perform in a like manner.

 

6. Records and Reports

 

6.1           All original books, records, documents, accounts, and vouchers, or true copies of the same produced by Administrator pursuant to this Agreement, shall be located at the home or branch office of Administrator.

 

6.2           All original copies of the items listed above, shall be available to MHI upon request.  Upon termination of this Agreement, Administrator shall provide any or all of this property to MHI upon their request at the home or branch office of Administrator. Administrator shall not dispose of these records without the prior consent of MHI. Administrator shall comply with all applicable record retention statutes and regulations of the Commonwealth of Kentucky, the state of Nebraska and any other applicable jurisdictions.

 

6.3           To the extent either party requests copies of any information, readable copies of all such information contained in the records maintained hereunder shall be delivered to the other party’s home office, or at any other place mutually agreeable to the parties, within ten (10) days after written request is made for such records by an officer of either party.  Either party will comply with all reasonable requests to produce readable copies in less than ten (10) days if either needs such copies to respond to threatened or actual litigation, complaints, examinations or regulatory inquiries from any state, federal, or local governmental agencies.

 

6.4           In the event of the termination of this Agreement, Administrator’s records in the possession of Administrator and the use and control of those records shall remain the property of MHI and shall be returned to their representative at their request; provided, however, Administrator shall retain a copy of all records for the period of time required by state law.  Administrator shall be reimbursed for the cost of reproducing and maintaining a copy of the records.  In addition, MHI shall reimburse Administrator for the cost of compliance with a request for records from any regulatory authority or pursuant to a subpoena.

 

6.5           Section 6 shall survive the termination of this Agreement.

 

5

 

7. Compensation

 

As full and complete consideration for the services to be provided hereunder, the parties agree to accept the Service Agreement Pricing attached as Exhibit A which provides for an annual base fee to be paid for services to MHI. The Service Agreement Pricing may be modified from time to time, as agreed upon by the parties.

 

8. Confidentiality

 

8.1           Administrator and MHI acknowledge that certain information concerning the other’s business is confidential or trade secret information, and neither party shall permit the duplication, use, or disclosure of any such ‘confidential or trade secret information’ to any person (other than its own employees, agents, representatives, independent contractors or consultants who must have such information for the performance of obligations hereunder), unless such duplication, use, or disclosure is specifically authorized in writing by the other party.  Provided, however, that Administrator and MHI will be responsible for assuring that all such employees, agents, representatives, independent contractors, or consultants comply with section 8 of this Agreement.  ‘Confidential or trade secret information’ includes, but is not limited to all records, marketing materials, forms, rates and any materials used by the parties under this Agreement that are not meant for public dissemination.  ‘Confidential or trade secret information’ is not meant to include any information which, at the time of disclosure, is generally known to the public or the insurance industry.

 

8.2           Both parties agree to comply with federal privacy notice requirements.

 

8.3           Section 8 shall survive the termination of this Agreement.

 

9. Auditing Rights

 

MHI, at the.lr own expense, shall have the r’1ght to conduct such aud.lt acflvif1es as deemed appropriate by both parties including the right to audit the appropriate books and records of Administrator from time to time to verify the accuracy of the information supplied by Administrator to them and to permit them to fulfill their contractual obligations to insureds.  If MHI requests such audits, they will be performed during regular office hours in a manner least likely to disturb the day-to-day operation of Administrator.  Administrator also recognizes the right of their independent auditors to examine the books and records of Administrator that are applicable only to MHI and will make reasonable efforts to allow them to do so.

 

6

 

10. Term and Termination

 

The Effective Date of the Agreement is the         day of                  2009, and this Agreement shall be effective for a period of five (5) years to and including                     , 2014.  This Agreement may be terminated at any time by either party providing prior written notice of termination to the other party at least 180 days before the effective date of termination.

 

11. Notice

 

Any and all notices, designations, consents, offers, acceptances, or any other communication provided for herein shall be given in writing by hand delivery, by overnight carrier, by registered or certified mail or by facsimile transmission and shall be addressed as follows:

 

For MHI: Midwest

Holding Inc.

Attn: Rick Meyer, Chairman

8101 O Street, Suite 101

Lincoln, Nebraska 68510

 

For Administrator:

 

Investors Heritage Life Insurance Company
 Attention: Harry Lee Waterfield II, President
 Post Office Box 717

Frankfort, Kentucky 40602-0717

 

Notices sent by hand delivery shall be deemed effective on the date of hand delivery.  Notices sent by overnight carrier shall be deemed effective on the next business day after being placed into the hands of the overnight carrier.  Notices sent by registered or certified mail shall be deemed effective on the third business day after being deposited into the post office.  Notices sent by facsimile transmission shall be deemed to be effective on the day when sent if sent prior to 4:30 p.m. (the time being determined by the time zone of the recipient) otherwise they shall be deemed effective on the next business day.

 

12. Indemnification and Liability

 

Each party shall indemnify and shall be liable to the other for any material claims and damages, and any associated costs and reasonable attorney fees, resulting from the negligent acts or omissions, intentional acts or omissions, or regulatory violations in disregard of usual and customary operating procedures of such parties by their employees, officers, common-law agents, independent contractors or consultants. MHI shall indemnify and hold Administrator harmless from any and all claims unless any such claim is the direct result of Administrator’s gross negligence or willful misconduct.

 

7

 

13. Assignment

 

No right or obligation under this Agreement may be assigned by either party without the written consent of the other.

 

14. Governing Law

 

The parties to this Agreement expressly and explicitly agree that this Agreement is entered into and approved in the Commonwealth of Kentucky, that the laws of Kentucky shall govern the rights and duties of the parties and the interpretation of this Agreement, and that the Commonwealth of Kentucky shall be the exclusive and proper forum in which to bring and litigate any action arising under this Agreement.

 

15. Waiver

 

Any waiver by either party of any requirement hereunder shall be deemed to be a specific limited waiver and shall not be deemed to be a continuing waiver nor a waiver of any other requirement hereof.

 

16. Entire Contract and Amendments

 

This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof.  No amendment to or modification of this Agreement shall be valid unless set forth in a written instrument executed by authorized officers of both parties.

 

17. Arbitration

 

17.1         Should any controversy arise between the parties which cannot be resolved in the normal course of business with respect to the interpretation of this Agreement for the performance of the respective obligations of the parties under this Agreement, the controversy shall be submitted to arbitration in accordance herewith.

 

17.2         The Board of Arbitration shall consist of two Arbitrators and an Umpire, all of whom shall be active or retired executive officers of insurance or reinsurance companies having no direct or indirect financial interest in either party or its affiliates. The seat of this Board of Arbitration shall be Frankfort, Kentucky unless disputants agree otherwise in writing.  One Arbitrator shall be chosen by Administrator and the other by MHI.  The umpire shall be chosen by the two Arbitrators.

 

17.3         Arbitration may be initiated by either party (the petitioner) demanding arbitration and naming its Arbitrator.  The other party (the respondent) shall have thirty (30) days within which to designate its Arbitrator after receiving demand, in writing, from the petitioner.  In case the respondent fails to designate its Arbitrator within the time

 

8

 

stated above, the petitioner is expressly authorized and empowered to name the second Arbitrator; and respondent shall not be deemed to be aggrieved thereby.  The Arbitrators shall designate an Umpire within thirty (30) days after both Arbitrators have been named.  In the event the two Arbitrators do not agree within thirty (30) days on the selection of an Umpire, each of them shall immediately name three (3) names, of whom the other two shall decline two (2); and the decision shall be made by drawing lots.  The three (3) arbitrators shall be referred to as the Board of Arbitration.

 

17.4         Each party shall submit its case to the Board of Arbitration within forty-five (45) days from the date of appointment of the Umpire, but this period of time may be extended by unanimous consent, in writing, of the members of the Board of Arbitration (the Board).  The Board shall interpret this Agreement as an honorable engagement rather than as a legal obligation and shall make its award with a view to effecting the general purpose and intent of this Agreement in a reasonable manner, rather than in accordance with the literal interpretation of the Agreement.  The Board shall be relieved from all judicial formalities and may abstain from following the strict rules of the law. The decision of the Board, or a majority of the Board, in writing, rendered at the earliest convenient date, shall be final and binding upon all parties.

 

17.5         Administrator and MHI shall each pay the fee of its own Arbitrator and one-half of the fee of the Umpire, and the remaining costs of the Arbitration shall be borne and paid by the party incurring the costs.

 

17.6         In the event both Arbitrators are chosen by the petitioner, as provided in the third paragraph of this Section, Administrator and MHI shall each pay one-half of the fees of both the Arbitrators and the Umpire; and the remaining cost of the Arbitration shall be borne and paid by the party incurring the cost.

 

17.7         This Article shall survive cancellation of this Agreement.

 

18. Authorization

 

MHI agrees to grant binding authorization for certain officers of Administrator, as set forth on Exhibit C, to sign any and all necessary documents relating to the performance of services set forth in Section 3.

 

19. Construction

 

To the extent that this Agreement may be in conflict with any applicable law or regulation, this Agreement shall be construed in a manner not inconsistent with such law or regulation.  If any term or provision of this Agreement shall be found by a court of competent jurisdiction to be illegal or otherwise unenforceable, the same shall not invalidate the whole of this Agreement, but such term or provision shall be deemed modified to the extent necessary in the court’s opinion to render such term or provision enforceable, and the rights and obligations of the parties shall be construed and enforced accordingly, preserving to the fullest permissible extent the intent and agreements of the parties herein set forth.

 

9

 

20. Effective Date

 

The effective date of this Agreement shall be the 17th day of August, 2009.

 

MIDWEST HOLDING INC. (“MHI”)

 

 

	
By:
    	
/S/   Rick Meyer
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CEO
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
8/11/09
    	
 
    	
Date:
    	
 
    

 

 

INVESTORS HERITAGE LIFE INSURANCE COMPANY (“ADMINISTRATOR”)

 

 

	
By:
    	
/s/ [Illegible]
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    

 

10

 

EXHIBIT A

 

SERVICE AGREEMENT PRICING

 

Midwest Holding Inc.

 

Our Fees are based on annual fee, billed and collected on a monthly basis, plus various expenses as billed, as set forth below.

 

Annual Base Fee: $30,000

 

Other pass-through fees which are billed and collected as needed and/or as incurred, are as follows:

 

·      Postage

·      Copies

·      Printing costs

·      Travel and lodging

·      Non-company audits

·      Software costs for two return presentations and any other filings

·      Additional equipment costs, if necessary

 

The annual base fee will increase 5% per year beginning in the 2nd year of this Agreement.

 

In addition to the annual base fee, the fees for preparation of the annual GAAP consolidated financial statements and footnotes, which are subject to the same scope limitations on accounting services as discussed above, are $15,000 and will be billed and payable at the time such services are performed.

 

These services and fees specifically exclude any additional requirements due to size or filings with the Securities and Exchange Commission, such services necessary to comply with Sarbanes-Oxley, XBRL needs, preparation of Management’s Discussion and Analysis, or any other services not specifically outlined herein or which may arise in the future.  Fees for such services will be negotiated if and when they become necessary.

 

Any other fees for any additional services not listed in Paragraph 3.2, shall be negotiated and determined between the parties.

 

11

 

EXHIBIT 8

 

Report(s) Covered by this Agreement

 

1.     Monthly GAAP-basis consolidated base financial statements (Balance Sheet and Income Statement)

2.     Annual GAAP-basis consolidated financial statements and footnotes, as requested by MHI

3.     Draft of stand alone IRS Form 1120

4.     Annual 1099 Reporting

 

12

 

EXHIBITC

 

Officers of Administrator Authorized to Sign on Behalf of MHI and the Life Sub

 

	
 
    	
Harry   Lee Waterfield, II
    
	
 
    	
Chairman   of the Board;
    
	
 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Robert   M. Hardy, Jr.
    
	
 
    	
Vice   President and General Counsel
    
	
 
    	
 
    
	
 
    	
Raymond   L. Carr
    
	
 
    	
Chief   Financial Officer
    
	
 
    	
Vice   President, Administrative Operations
    
	
 
    	
 
    
	
 
    	
Larry   Johnson
    
	
 
    	
Assistant   Vice President, Administrative Operations
    
	
 
    	
 
    
	
 
    	
Julie   Hunsinger
    
	
 
    	
Vice   President and Chief Actuary
    
	
 
    	
 
    
	
 
    	
Jimmy   McIver
    
	
 
    	
Treasurer
    

 

13

 

Exhibit D

 

Financial Reporting Timelines

 

Monthly Consolidated Base financial statements will be provided by the 20th of the month following with the following timelines in place:

 

Receipt of approved cost-sharing allocation entries by the 1oth of the month following close

 

Receipt of other accrual entries for which administrator does not have information by the 1oth of the month following close

 

Online access to bank accounts including operations, custody, etc. Downloadable file from custodian bank with transactions, i.e. Interest payments, dividends, principal reductions, purchases, sales, etc.

 

If CMO’s are in portfolio, Book values on prepayment speeds to calculate amortization provided by 3rd business day following close

 

Market values by 5th business day following close

 

Annual Consolidated Financial Statements and Footnotes would be available by March 15th with the following additional timelines:

 

FAS 115 level designation for GAAP financials, Classify securities by:

Asset Backed

Corporate

Foreign

U.S. Govt. Backed

Commercial Mtg-Backed Sec

Residential Mtg-Baked

Collateralized Debt Obligation

State and Political Subdivision

By 1oth business day following the end of year

 

FAS 157 level (either level 1,2 or 3 along with supporting custodial information) By 1oth Business day following the end of year

 

NAIC Designation & Market Value

By 10th business day following end of year

 

14Exhibit 10.6

 

AUTOMATIC REINSURANCE AGREEMENT

 

 

NUMBER    :      2509-09AY10

 

 

between

 

 

AMERICAN LIFE AND SECURITY CORPORATION

 

8101 0 Street, Suite 101

 

Lincoln, Nebraska 68510

 

(The Ceding Company)

 

 

and

 

 

OPTIMUM RE INSURANCE COMPANY

 

1345 River Bend Drive, Suite 100

 

Dallas, TX 75247

 

(The Reinsurer)

 

 

Respecting policies described in SCHEDULE B, issued by AMERICAN LIFE AND SECURITY CORPORATION and reinsured on an Automatic and Facultative YRT basis from August 1, 2009.

 

 

TABLE OF CONTENTS

 

	
ARTICLE 1
    	
:
    	
REINSURANCE   CEDED AND ACCEPTED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.1.
    	
Automatic    Reinsurance
    
	
 
    	
 
    	
1.2.
    	
Facultative   Reinsurance
    
	
 
    	
 
    	
1.3.
    	
Currency
    
	
 
    	
 
    	
1.4.
    	
Capacity   of Agreement
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
:
    	
PROCEDURES   TO EFFECT REINSURANCE 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.1.
    	
Automatic   Reinsurance
    
	
 
    	
 
    	
2.2.
    	
Facultative   Application For Reinsurance
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
:
    	
LIABILITY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.1.
    	
Automatic Reinsurance
    
	
 
    	
 
    	
3.2.
    	
Facultative  Reinsurance  on Policies Otherwise  Subject to Automatic   Reinsurance
    
	
 
    	
 
    	
3.3.
    	
All   Other Facultative Reinsurance
    
	
 
    	
 
    	
3.4.
    	
Liability   Limitations
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
:
    	
REINSURANCE   AMOUNT AT RISK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.1.
    	
Face Amount Basis
    
	
 
    	
 
    	
4.2.
    	
Net   Amount at Risk Basis
    
	
 
    	
 
    	
4.3.
    	
Supplementary   Benefits
    
	
 
    	
 
    	
4.4.
    	
Minimum   Reinsured Risk Amount
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
:
    	
REINSURANCE   PREMIUMS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.1.
    	
Life   Premiums
    
	
 
    	
 
    	
5.2.
    	
Standard   Risks
    
	
 
    	
 
    	
5.3.
    	
Substandard   Risks
    
	
 
    	
 
    	
5.4.
    	
Term   Riders
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
:
    	
ALLOWANCES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.1.
    	
Allowances
    
	
 
    	
 
    	
6.2.
    	
Premium Taxes
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
:
    	
GENERAL   PROCEDURES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.1.
    	
THE   COMPANY’S Forms, Rates and Procedures
    
	
 
    	
 
    	
7.2.
    	
Inspection   of Records
    
	
 
    	
 
    	
7.3.
    	
Errors   and Omissions
    
	
 
    	
 
    	
7.4.
    	
Reserves
    
	
 
    	
 
    	
7.5.
    	
Reporting
    
	
 
    	
 
    	
7.6.
    	
Confidentiality
    

 

I

 

	
Table of Contents (Continued)
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
:
    	
ACCOUNTING   AND BILLING
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
8.1.
    	
Reinsurance Premiums
    
	
 
    	
 
    	
8.2.
    	
Billing
    
	
 
    	
 
    	
8.3.
    	
Late   Payment
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
:
    	
CHANGES   AND ADJUSTMENTS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
9.1.
    	
Change   Information
    
	
 
    	
 
    	
9.2.
    	
Reductions
    
	
 
    	
 
    	
9.3.
    	
Increases
    
	
 
    	
 
    	
9.4.
    	
Reinstatements
    
	
 
    	
 
    	
9.5.
    	
Conversions
    
	
 
    	
 
    	
9.6.
    	
Underwriting   Reassessment
    
	
 
    	
 
    	
9.7.
    	
Terminations
    
	
 
    	
 
    	
9.8.
    	
Policy   Replacement
    
	
 
    	
 
    	
9.9.
    	
Cash   Values
    
	
 
    	
 
    	
9.10.
    	
Policy   Loans and Dividends
    
	
 
    	
 
    	
9.11.
    	
Reduced   Paid Up and Extended Term
    
	
 
    	
 
    	
9.12.
    	
Recapture
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
:
    	
CLAIMS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
10.1.
    	
Claims   Liability
    
	
 
    	
 
    	
10.2.
    	
Notice
    
	
 
    	
 
    	
10.3.
    	
Authorization   for Payment
    
	
 
    	
 
    	
10.4.
    	
Adjusted   Amounts
    
	
 
    	
 
    	
10.5.
    	
Payment
    
	
 
    	
 
    	
10.6.
    	
Contest
    
	
 
    	
 
    	
10.7.
    	
Punitive Damages
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 11
    	
:
    	
ARBITRATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
11.1.
    	
Principle
    
	
 
    	
 
    	
11.2.
    	
Arbitrators
    
	
 
    	
 
    	
11.3.
    	
Matters   in Dispute
    
	
 
    	
 
    	
11.4.
    	
Procedures
    
	
 
    	
 
    	
11.5.
    	
Decision
    
	
 
    	
 
    	
11.6.
    	
Applicable   Laws
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 12
    	
:
    	
INSOLVENCY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
12.1.
    	
Payment   of Claims
    
	
 
    	
 
    	
12.2.
    	
Notice   to OPTIMUM RE
    
	
 
    	
 
    	
12.3.
    	
Expenses
    
	
 
    	
 
    	
12.4.
    	
Right   to Offset
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 13
    	
:
    	
DEFERRED   ACQUISITION COST TAX
    

 

II

 

	
Table of Contents (Continued)
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 14   
    	
:
    	
EXECUTION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
14.1.
    	
Duration
    
	
 
    	
 
    	
14.2.
    	
Parties   to the Agreement
    
	
 
    	
 
    	
14.3.
    	
Written   Agreement
    
	
 
    	
 
    	
14.4.
    	
Change   of Control/Assignment
    
	
 
    	
 
    	
14.5.
    	
Compliance
    
	
 
    	
 
    	
14.6.
    	
Signatures
    
	
 
    	
 
    	
 
    	
 
    
					

 

	
SCHEDULES
    
	
 
    
	
SCHEDULE   A
    	
:
    	
RETENTION   AND REINSURANCE LIMITS
    
	
 
    	
 
    	
 
    
	
SCHEDULE   B
    	
:
    	
PLANS   REINSURED
    
	
 
    	
 
    	
 
    
	
SCHEDULE   C
    	
:
    	
LIFE   APPLICATION (FORM #ALSCAPP-1 (06-2009))
    
	
 
    	
 
    	
 
    
	
SCHEDULE   D 
    	
:
    	
AGE   AND AMOUNT REQUIREMENTS
    
	
 
    	
 
    	
 
    
	
SCHEDULE   E
    	
:
    	
PART
    	
1
    	
-
    	
REINSURANCE   APPLICATION
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PART
    	
2
    	
-
    	
REINSURANCE ADVICE NOTICE
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PART
    	
3
    	
-
    	
REINSURANCE CESSION FORM
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE   F 
    	
:
    	
YRT   RATES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PART
    	
1
    	
-
    	
MALE   NONSMOKER 
    	
979.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PART
    	
2
    	
-
    	
MALE   SMOKER 
    	
980.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PART
    	
3
    	
-
    	
FEMALE   NONSMOKER 
    	
981.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PART
    	
4
    	
-
    	
FEMALE   SMOKER 
    	
982.00
    

 

III

 

By this Agreement, AMERICAN LIFE AND SECURITY CORPORATION, a corporation organized under the laws of the State of Nebraska, hereinafter referred to as “THE COMPANY”, and OPTIMUM RE INSURANCE COMPANY, a corporation organized under the laws of the State of Texas, hereinafter referred to as “OPTIMUM RE”, mutually agree to reinsure on the following terms and conditions.

 

1

 

DEFINITION  OF TERMS USED IN THIS AGREEMENT

 

	
Automatic Reinsurance
    	
Shall   mean reinsurance which must be ceded by THE COMPANY in accordance with the   terms of this Reinsurance Agreement, and must be accepted by OPTIMUM RE.
    
	
 
    	
 
    
	
Compensatory Damages
    	
Shall   mean the amounts awarded to compensate for the actual damages sustained, and   not awarded as a penalty, nor fixed in amount by statute.
    
	
 
    	
 
    
	
Facultative Reinsurance
    	
Shall   mean reinsurance which THE COMPANY has the option to cede and OPTIMUM RE has   the option to accept or decline.
    
	
 
    	
 
    
	
Insolvency
    	
Shall   mean the legal incapacity of a company to operate as declared by a court of   competent jurisdiction.
    
	
 
    	
 
    
	
Jumbo Risk
    	
A   jumbo risk is one where:
    
	
 
    	
 
    
	
 
    	
a.)  the amount  of Life insurance   inforce, including any amounts to be replaced, as stated on the application   or signed amendment, if any;
    
	
PLUS
    	
 
    
	
 
    	
b.)  the   new amount  of Life insurance   applied for in all companies;
    
	
 
    	
 
    
	
 
    	
exceeds   the jumbo Limit specified in Schedule A.
    
	
 
    
	
 
    	
 
    
	
 
    	
Amounts   to be replaced cannot be deducted from the amount    of Life insurance inforce.
    
	
 
    	
 
    
	
 
    	
Amount  of Life insurance is defined as the sum of the highest   amounts of death benefit over the duration of each individual and group   policy for this insured.
    
	
 
    	
 
    
	
Policy
    	
Shall   mean the contract(s) of insurance issued by THE COMPANY in respect of   which reinsurance is applied for and/or placed in whole or in part.
    

 

2

 

DEFINITION OF TERMS USED IN THIS AGREEMENT  (Continued)

 

	
Punitive Damages
    	
Shall   mean the damages awarded as a penalty, the amount of which is not governed,   nor fixed by statute.
    
	
 
    	
 
    
	
Reinsurance Cession
    	
Shall   mean the insurance transferred to OPTIMUM RE by THE COMPANY on a policy.
    
	
 
    	
 
    
	
Reinsurance Cession Form
    	
Shall   mean the document outlining the particulars of the Reinsurance Cession such as   name, date of birth, date of policy, plan, amount of policy, risk class, and   reinsurance premium amount.
    
	
 
    	
 
    
	
Statutory Penalties
    	
Shall   mean the amounts which are awarded as a penalty, but fixed in amount by   statute.
    

 

3

 

ARTICLE 1  —  REINSURANCE   CEDED AND   ACCEPTED

 

1. 1.         Automatic Reinsurance

 

On policies or riders covering U.S. or Canadian residents on plan(s) indicated in SCHEDULE B, when THE COMPANY retains its maximum retention as outlined in SCHEDULE A, THE COMPANY will automatically cede to OPTIMUM RE all excess coverages on Life and OPTIMUM RE will automatically accept these cessions up to the automatic reinsurance limits specified in SCHEDULE A for the portion of the alphabet covered by OPTIMUM RE. Acceptance of policies over the automatic reinsurance limit are subject to Article 1.2.

 

The following risks are not eligible for automatic coverage: 

 

	
A.
    	
A risk exceeding the   automatic reinsurance limit, as specified in SCHEDULE A;
    
	
 
    	
 
    
	
B.
    	
A jumbo risk, as defined   in the Definition of Terms;
    
	
 
    	
 
    
	
C.
    	
A risk where the complete   underwriting evidence according to THE COMPANY’s published requirements, as   specified in SCHEDULE D, has not been obtained;
    
	
 
    	
 
    
	
D.
    	
A risk where THE COMPANY’s   normal underwriting standards were not applied;
    
	
 
    	
 
    
	
E.
    	
A policy not containing   both a standard contestable period and a standard suicide exclusion;
    
	
 
    	
 
    
	
F.
    	
A risk where the   substandard rating assessed by THE COMPANY exceeds Table 8 (300%), or its   equivalent on any flat extra premium basis;
    
	
 
    	
 
    
	
G.
    	
A risk exceeding age 70;
    
	
 
    	
 
    
	
H.
    	
Any cession to be ceded to   OPTIMUM RE at an effective date different from the original issue date of the   policy;
    
	
 
    	
 
    
	
I.
    	
Conversion or replacement   of policies where OPTIMUM RE is not the original reinsurer;
    
	
 
    	
 
    
	
J.
    	
A risk which has been   currently or previously submitted to any reinsurer for underwriting   assessment by THE COMPANY;
    
	
 
    	
 
    
	
K.
    	
A risk in which an MIB was   not run on the application.
    

 

4

 

1.2.          Facultative Reinsurance

 

All cases not eligible for automatic coverage may be submitted to OPTIMUM RE facultatively.

 

1.3.          Currency

 

Reinsurance will be in U.S. dollars. Any other currency requires specific agreement between THE COMPANY and OPTIMUM RE.

 

1.4.          Capacity of Agreement

 

The maximum amount of reinsurance OPTIMUM RE will accept on a YRT basis under this Agreement is $4,000,000 per Life using the rates in SCHEDULE F.

 

This amount will be reduced by any amount already ceded to OPTIMUM RE under this or any other Agreement.

 

5

 

ARTICLE 2 - PROCEDURES TO EFFECT REINSURANCE

 

2.1.          Automatic Reinsurance

 

When the initial premium on a policy eligible for automatic reinsurance has been received by THE COMPANY, THE COMPANY shall, without delay, complete and send a Reinsurance Cession Form (SCHEDULE E, PART 3) to OPTIMUM RE.

 

2.2.          Facultative Application For Reinsurance

 

When facultative reinsurance is being applied for, THE COMPANY shall complete a Reinsurance Application Form provided by OPTIMUM RE (SCHEDULE E, PART 1) and send it along with any and all information it has on the risk; including specifically but not limited to, copies of the physicians’ statements, inspection reports, and other papers bearing on the insurability of the risk, even if this information is received after the final assessment of the risk.  THE COMPANY shall clearly indicate the amount of risk it wishes to reinsure, including any benefit.

 

Upon completion of underwriting, OPTIMUM RE shall promptly notify THE COMPANY of its decision and classification of the risk.

 

Any offer made by OPTIMUM RE will be valid for 90 days unless OPTIMUM RE accepts, in writing, a request to extend this period.

 

A.    Upon acceptance of OPTIMUM RE’s offer of facultative Reinsurance, THE COMPANY shall complete and send to OPTIMUM RE a Reinsurance Advice Notice (SCHEDULE E, PART 2).

 

B.    When the initial premium on a policy that involves facultative reinsurance is received by THE COMPANY, THE COMPANY will complete the same procedure as for Automatic Reinsurance in Article 2.1.

 

C.    If THE COMPANY does not accept OPTIMUM RE’s offer for reinsurance, THE COMPANY shall complete and send to OPTIMUM RE a Reinsurance Advice Notice (SCHEDULE E, PART 2).

 

6

 

ARTICLE 3 - LIABILITY

 

3.1.          Automatic Reinsurance

 

For automatic reinsurance under this Agreement, the liability of OPTIMUM RE shall commence and end simultaneously with that of THE COMPANY.

 

Prior to placement of the Policy with the insured, the liability of OPTIMUM RE is limited to:

 

A.    The lesser of:

 

i)       THE COMPANY’s liability under the Policy or Conditional Receipt, whichever applies, minus:

 

The COMPANY’s full normal retention for a standard risk at the Life insured’s age, less the total of all amounts currently retained by THE COMPANY on the Life insured under other policies. 

 

ii)      The automatic reinsurance limit in this Agreement as described in SCHEDULE A.

 

B.    In no case shall OPTIMUM RE’s liability on that Life exceed $100,000.

 

3.2.          Facultative Reinsurance on   Policies Otherwise Subject to Automatic Reinsurance

 

When an underwriting assessment is requested, on policies otherwise subject to automatic reinsurance, OPTIMUM RE’s automatic liability, as specified in Article 3.1., is extended without charge until the first of the following dates:

 

A.    Another reinsurer’s offer is accepted;

 

B.    48 hours (2 working days) after OPTIMUM RE has declined the case;

 

C.    7 working days after OPTIMUM RE’s final assessment of the case; if not a decline;

 

D.    60 days after the application date.

 

Under facultative reinsurance, OPTIMUM RE’s liability will begin when OPTIMUM RE has been advised that its offer is accepted and the case has been placed unless the offer is standard in which event OPTIMUM RE’s liability will be the same as on automatic business. For cases ceded to OPTIMUM RE, OPTIMUM RE’s liability shall end with that of THE COMPANY.

 

7

 

3.3.          All Other Facultative Reinsurance

 

When an underwriting assessment is requested on a policy not otherwise reinsured automatically by OPTIMUM RE, OPTIMUM RE’s liability will begin when the following conditions have been met:

 

A.    OPTIMUM RE’s unconditional underwriting offer has been accepted;

 

B.    Such acceptance has been communicated to OPTIMUM RE in accordance with Article 2.2.A., in the time frame designated by OPTIMUM RE, during which such offer is valid; and

 

C.    The policy has been placed.

 

For cases ceded to OPTIMUM RE, OPTIMUM RE’s liability shall end with that of THE COMPANY.

 

3.4.          Liability Limitations

 

OPTIMUM RE’s liability may be more limited than described in this Article 3, as provided in specific Articles of this Agreement.

 

8

 

ARTICLE 4 - REINSURANCE AMOUNT AT RISK

 

4.1.          Face Amount Basis

 

When the reinsurer is participating in the accumulation of surrender values on a policy, or when there are no surrender values on a policy, the reinsurance amount shall be based on the face amount of the policy.

 

The overriding principle involved is that OPTIMUM RE and THE COMPANY will each continue to insure their original proportionate share of the initial face amount.

 

4.2.          Net Amount at Risk Basis

 

When the reinsurer does not participate in the surrender values on a policy, as in reinsurance based on YRT or cost of insurance rates, the reinsurance amount at risk shall be based on the death benefit less a fund which represents the savings element in the policies.

 

The overriding principle involved is that OPTIMUM RE and THE COMPANY will each continue to insure their original proportionate share of the net amount at risk.

 

Net Amounts at Risk will be defined as follows:

 

A.    Insurance With Cash Values

 

1.     Scheduled Face Amount and Cash Value

 

Amounts at risk will be projected for 10 year intervals (or until there is a scheduled change in face amount if less than 10 years). Cash values will be used to represent the fund at the end of an interval, and amounts at risk for each intervening year will be interpolated on a straight line basis.

 

2.     Variable Face Amount or Variable Cash Value

 

The amount at risk applicable to each policy year will be the projected amount at risk at the beginning of that policy year. Amounts at risk will be projected for five year intervals. Where an actual amount at risk diverges from an originally projected amount at risk by more than 10%, THE COMPANY may re-establish the projected schedule at the next policy anniversary for future amounts at risk. If the schedule is not amended, the existing established schedule will be used for determining premium and claims liabilities.

 

9

 

B.    Insurance Without Cash Values

 

This category should include policies where the cash values never exceed 10% of the face amount.

 

1.     Scheduled Face Amount

 

The amount at risk applicable to each policy year will be the face amount applicable at the beginning of the policy year.

 

2.     Variable Face Amount

 

The amount at risk applicable to each policy year will be the face amount projected to be applicable at the beginning of that policy year. Face amounts will be projected for five year intervals. Where actual face amounts diverge from the originally projected face amounts by more than 10%, THE COMPANY may re-establish the projected schedule at the next policy anniversary for future face amounts. If the schedule is not amended, the existing established schedule will be used for determining premium and claims liabilities.

 

4.3.          Supplementary Benefits

 

Supplementary Benefits, such as but not limited to the Waiver of Premium Benefit and the Accidental Death Benefit, shall not be reinsured under this Agreement.

 

4.4.          Minimum Reinsured Risk Amount

 

The minimum reinsured risk amount shall be $1,000. In the event that the reinsured risk amount reduces below the minimum, THE COMPANY will automatically recapture the risk on that policy anniversary.

 

10

 

ARTICLE 5 - REINSURANCE PREMIUMS

 

5.1.          Life Premiums

 

Until further notice, the reinsurance premiums based on the applicable reinsurance amount at risk as described in Article 4 and SCHEDULE B, shall be at the rates described in Articles 5.2. and 5.3.

 

OPTIMUM RE reserves the right to review and modify these reinsurance premiums.

 

5.2.          Standard Risks

 

Reinsurance premiums for standard risks are calculated using the rates shown in SCHEDULE F.

 

5.3.          Substandard Risks

 

The substandard extra reinsurance premium rate per $1,000 for one table (25% mortality) is 25% of the standard rate. The extra reinsurance premium for additional tables is the corresponding multiple of the extra reinsurance premium for one table.

 

When a flat extra premium is charged by THE COMPANY, a flat extra reinsurance premium is paid at the same rate and for the same period.

 

5.4.          Term Riders

 

If applicable, Term Riders may be reinsured by OPTIMUM RE on the same terms and conditions as the base plan, subject to Article 7.1. For riders where OPTIMUM RE reinsures the base policy, the cession fee, if any, will be waived; otherwise the appropriate fee will apply.

 

Substandard Spouse or Child Term Riders may not be reinsured under this Agreement.

 

11

 

ARTICLE 6 - ALLOWANCES

 

6.1.          Allowances

 

There are no allowances payable on the standard and substandard Life reinsurance premiums based on the YRT rates in SCHEDULE F.

 

Allowances on Flat Extra Premiums

 

	
On permanent (6 years or more) flat extra   premiums:
    
	
 
    
	
1st year
    	
:
    	
75%
    
	
 
    	
 
    	
 
    
	
Renewals
    	
:
    	
10%
    
	
 
    	
 
    
	
On   other flat extra premiums     :
    	
10%   each year
    

 

6.2.          Premium Taxes

 

OPTIMUM RE shall not reimburse THE COMPANY for state premium tax or any other tax levied on THE COMPANY.

 

12

 

ARTICLE  7 - GENERAL PROCEDURES

 

7.1.          THE COMPANY’s Forms, Rates, and Procedures

 

THE COMPANY will furnish OPTIMUM RE with at least two copies of its application forms, policy and rider forms, contingent insurance receipt, premium scales and any other document that can affect OPTIMUM RE’s liability and will keep OPTIMUM RE informed of any changes therein.

 

In addition, THE COMPANY will advise OPTIMUM RE of any changes to its procedures and rules that may affect OPTIMUM RE’s liability such as, but not limited to, age and amount underwriting requirements, policy settlement and reinstatement rules.

 

Compliance with this Article shall be a condition precedent to the liability of OPTIMUM RE.

 

7.2.          Inspection of Records

 

OPTIMUM RE shall have the right to inspect, make copies of, or reproduce, at any reasonable time, at the office of THE COMPANY, all books and documents relating to reinsurance under this Agreement.

 

7.3.          Errors and Omissions

 

It is expressly understood and agreed that if failure to comply with any terms of this Agreement is shown to be unintentional and the result of administrative errors or omissions on the part of either THE COMPANY or OPTIMUM RE, both THE COMPANY and OPTIMUM RE shall be restored to the position they would have occupied had no such error or omission occurred. It is understood, however, that  THE COMPANY shall be liable for amounts not reported for reinsurance due to the practice of consciously performing a limited alpha index search on their applications. This article shall not be construed to initiate OPTIMUM RE’s liability if any conditions of Article 3.2., 3.3., and 7.5. are not met.

 

This provision shall apply only to oversights, misunderstandings or clerical errors relating to the administration of reinsurance covered by this Agreement and not to the administration of the insurance provided by THE COMPANY to its insured. Any negligent or deliberate acts or omissions by THE COMPANY regarding the insurance provided are the responsibility of THE COMPANY and its liability insurer, if any, but not that of OPTIMUM RE.

 

13

 

Furthermore, the deviating party will undertake to identify, through a prudent review of its records all other errors and omissions of the same or similar category and correct them within a mutually negotiated time frame.

 

If seven (7) years have elapsed since the error or oversight occurred, there will not be rectification as above, unless both OPTIMUM RE and THE COMPANY agree to such rectification.

 

7.4.          Reserves

 

OPTIMUM RE will establish appropriate reserves in accordance with the Standard Valuation Law in effect in Texas, on the portion of policies reinsured, and in force, as reported to OPTIMUM RE under this Agreement.

 

7.5.          Reporting

 

THE COMPANY shall promptly report all transactions to OPTIMUM RE. In particular, but not limited to, new business and terminations.

 

Should THE COMPANY encounter, or expect to encounter, delays in reporting its business; it shall promptly:

 

1.     Notify OPTIMUM RE of the situation; and

 

2.     Present OPTIMUM RE with a plan of action to correct the situation, including a time frame to solve the problem.

 

OPTIMUM RE, upon receipt of the above, may request that THE COMPANY:

 

1.     Make modifications to the plan;

 

2.     Pay estimated premiums for the duration of the reporting problem; and/or

 

3.     Report larger individual exposures manually, until the situation is resolved.

 

In any case where the above is not met, or if the plan is not accepted by both OPTIMUM RE and THE COMPANY, or when the plan is not adhered to; OPTIMUM RE reserves the right to deny liability on claims or limit refunds of reinsurance premiums.

 

14

 

7.6.                              Confidentiality

 

THE COMPANY and OPTIMUM RE agree that Customer and Proprietary Information will be treated as confidential. Customer Information includes, but is not limited to, medical, financial, and other personal information about proposed, current, and former policyowners, insureds, applicants, and beneficiaries of policies issued by THE COMPANY. Proprietary Information includes, but is not limited to, business plans, mortality and lapse studies, underwriting manuals and guidelines, applications and contract forms. Furthermore, the specific terms and conditions of this Agreement, cannot be disclosed to any other party for competitive use, unless prior written approval is obtained.

 

Customer and Proprietary Information will not include information that:

 

a.   is or becomes available to the general public through no fault of the party receiving the Customer or Proprietary Information  (the “Recipient”) ;

b.   is independently developed by the Recipient;

c.   is acquired by the Recipient from a third party not covered by a confidentiality agreement; or

d.   is disclosed under a court order, law or regulation.

 

The parties will not disclose such information to any other parties unless agreed to in writing, except as necessary for retrocession purposes, as requested by external auditors, as required by court order, or as required or allowed by law or regulation.

 

THE COMPANY acknowledges that OPTIMUM RE can aggregate data with other companies reinsured with OPTIMUM RE as long as the data cannot be identified as belonging to THE COMPANY.

 

15

 

ARTICLE 8 - ACCOUNTING AND  BILLING

 

8.1.                              Reinsurance Premiums

 

The reinsurance premiums are due on the policy issue date and every subsequent anniversary date of the policy and payable to OPTIMUM RE on an annual basis regardless of how premiums are paid to THE COMPANY.

 

8.2.                              Individual Cession Billing

 

OPTIMUM RE will submit every month, to THE COMPANY, a listing of new business, changes and terminations, and a statement of  amounts payable.

 

The net balance is due to OPTIMUM RE within 30 days of receiving the statement. If a balance is due to THE COMPANY, OPTIMUM RE will remit its payment with the statement.

 

8.3.                              Late Payment

 

Any overdue balance bears interest from the end of a 30-day period following receipt of the monthly billing.

 

The interest for the period from 30 to 60 days will be the then current annual prime interest rate of the JP Morgan Chase Bank, Dallas, Texas calculated on a monthly basis.

 

For each additional month, after 60 days that a balance remains unpaid, interest will be calculated using the above annual rate plus 2%.

 

The payment of reinsurance premiums shall be a condition precedent to the liability of OPTIMUM RE under this Agreement. If any premium remains unpaid for more than 60 days after the due date, OPTIMUM RE may send to THE COMPANY a formal demand for immediate payment. If THE COMPANY does not comply with this demand within 30 days, then OPTIMUM RE may cancel any unpaid reinsurance cessions for nonpayment of premium; however, any unpaid premiums to the time of cancellation would be due with interest.

 

THE COMPANY will not force cancellation under the provisions of this Article solely to circumvent the provisions regarding recapture in Article 9.12., or to transfer the reinsured policies to another reinsurer.

 

16

 

ARTICLE 9 - CHANGES AND ADJUSTMENTS

 

9.1.                              Change Information

 

THE COMPANY will keep OPTIMUM RE informed of any changes or adjustments affecting a reinsured case. If a change affects either premiums or allowances, or amount at risk, THE COMPANY will provide OPTIMUM RE with the necessary information to complete a modified Reinsurance Cession Form.

 

9.2.                              Reductions

 

If a policy is changed in any way that results in a reduction in the amount of insurance on any policy, the amount of reinsurance on that policy will be reduced proportionately.

 

If a Life has multiple policies and one or more are terminated or reduced, the reinsurance on remaining policies for that same Life that are reinsured under this Agreement will not be reduced to allow THE COMPANY to fill its retention.

 

If more than one reinsurer has a cession on that policy, each reinsurer’s cession will be reduced proportionately.

 

9.3.                              Increases

 

If an increase in insurance is requested on an existing policy that is reinsured with OPTIMUM RE, underwriting evidence, satisfactory to OPTIMUM RE, will be obtained for OPTIMUM RE’s approval. This does not apply to increases on automatic cessions where all automatic conditions specified in Article 1.1. are met.

 

Any such increase shall be subject to the same contestable period and suicide clause that a newly issued policy contains.

 

9.4.                              Reinstatements

 

If a policy automatically reinsured with OPTIMUM RE lapses and is subsequently reinstated under THE COMPANY’s regular rules, the reinsurance will be automatically reinstated for the same amount, subject to all automatic conditions specified in Article 1.1., upon receipt by OPTIMUM RE of written notice of the reinstatement. All other reinstatement requests shall be submitted to OPTIMUM RE for its approval before THE COMPANY can reinstate such policy.

 

THE COMPANY shall pay all reinsurance premiums in arrears for the same period THE COMPANY received premiums in arrears under its policy, including interest, if any.

 

17

 

9.5.                              Conversions

 

Conversions are not applicable or reinsured under this Agreement.

 

9.6.                              Underwriting Reassessment

 

If, on facultative cases, following the consideration of new underwriting evidence, THE COMPANY agrees to reassess the risk, then THE COMPANY shall request a new underwriting assessment from OPTIMUM RE.

 

9.7.                              Terminations

 

At termination of a policy, other than death, all premiums and allowances, excluding cession fees, are adjusted pro rata for the period of coverage.

 

In the event of termination by death, there will be no adjustment of premiums.

 

9.8.                              Policy Replacement

 

If a policy replacement results in new reinsurance with OPTIMUM RE, then OPTIMUM RE will benefit from a full contestable period and suicide exclusion starting from the new policy commencement date as provided by the law of the state in which the policy is issued.

 

If a policy reinsured with OPTIMUM RE is replaced by a policy on a plan reinsured with another reinsurer, THE COMPANY shall maintain the coverage with OPTIMUM RE up to the existing amount.

 

Policy replacement to an Annual Renewable Term product will not be reinsured under this Agreement unless specifically agreed to by OPTIMUM RE.

 

9.9.                              Cash Values

 

OPTIMUM RE will not participate in the payment of cash values.

 

18

 

9.10.                        Policy Loans and Dividends

 

OPTIMUM RE will not participate in policy loans or dividends.

 

9.11.                        Reduced Paid Up and Extended Term

 

If a Reduced Paid Up or Extended Term option is selected by the policyholder, OPTIMUM RE will continue to reinsure its proportionate share of the policy.

 

For policies where OPTIMUM RE does not participate in surrender value accumulation, reinsurance premiums will be calculated on a point and scale basis using the YRT rates in SCHEDULE F and the Net Amount at Risk will be calculated according to Article 4 and SCHEDULE B.

 

9.12.                        Recapture

 

Recapture will not be permitted under this Agreement unless explicitly approved by OPTIMUM RE, except as stated in Article 4.4.

 

19

 

ARTICLE 10 - CLAIMS

 

10.1.                        Claims Liability

 

OPTIMUM RE will be liable to THE COMPANY for the benefits reinsured hereunder to the same extent as THE COMPANY is liable to the insured for such benefits, and all reinsurance will be subject to the terms and conditions of the policy under which THE COMPANY is liable. OPTIMUM RE will also be liable for its proportionate share of interest on payment of the claim at the usual interest rate allowed by THE COMPANY.

 

10.2.                        Notice

 

THE COMPANY will give OPTIMUM RE prompt notice of any claim. Copies of notification, claim papers and proofs will be furnished to OPTIMUM RE within ten (10) working days of having been received by THE COMPANY.

 

For risks where OPTIMUM RE reinsures the Life portion, but not the Waiver of Premium Benefit, THE COMPANY will notify OPTIMUM RE of any Waiver of Premium disability claim that occurs within the two (2) year contestability period. The intent of the notification is to allow OPTIMUM RE the opportunity to review the Life risk to ensure that the contestability feature of the policy is not jeopardized.

 

10.3.                        Authorization for Payment

 

On automatic Life cases, except when the claim occurs in the contestable period, OPTIMUM RE will accept THE COMPANY’s decision on claim payment of amounts up to THE COMPANY’s automatic reinsurance limit as specified in SCHEDULE A.

 

On all claims which occur in the contestable period, or on facultative cases, or when the amount exceeds that described above, THE COMPANY must obtain OPTIMUM RE’s non-binding opinion regarding the reinsurance liability prior to acknowledgment of its liability to the claimant.

 

10.4.                        Adjusted Amounts

 

In the event the amount of insurance provided by a policy reinsured hereunder is increased or reduced because of a misstatement of age or sex established after the death of the insured, OPTIMUM RE will share in the increase or reduction in the proportion that the liability of OPTIMUM RE bore to the total liability under the policy immediately prior to such increase or reduction.

 

20

 

10.5.                        Payment

 

On death claims, OPTIMUM RE will pay its share in a lump sum to THE COMPANY without regard to the form of claim settlement. OPTIMUM RE is not responsible for usual claim expenses that THE COMPANY incurs in claim settlement such as compensation of employees and routine investigative expenses.

 

10.6.                        Contest

 

THE COMPANY will advise OPTIMUM RE of its intention to contest, compromise or litigate a claim or rescind a contract involving reinsurance. If, after reviewing the complete file, OPTIMUM RE agrees in writing with THE COMPANY’s intention, then OPTIMUM RE agrees to pay a share of the expenses incurred by THE COMPANY in contesting or investigating a claim on a reinsured policy or in rescinding a reinsured policy, in proportion to the respective liabilities of OPTIMUM RE and THE COMPANY. Compensation of officers and employees of THE COMPANY is not deemed a claim expense.

 

If OPTIMUM RE declines to be a party to a claim contest, OPTIMUM RE will discharge any and all liability by payment of its full share of the claim to THE COMPANY according to the terms and conditions of this Agreement.

 

10.7.                        Punitive Damages

 

OPTIMUM RE will not participate in punitive, compensatory or statutory damages or penalties which are awarded against THE COMPANY as a result of an act, omission or course of conduct committed solely by THE COMPANY in connection with the insurance reinsured under this Agreement.

 

21

 

ARTICLE 11 - ARBITRATION

 

11.1.                        Principle

 

The parties express their formal intention to resolve any differences arising from the interpretation or execution of this Agreement in accordance with equity and usage rather than according to strict legal rules. Any difference that cannot be resolved by the parties shall be submitted to arbitration by written notice sent by one party to the other. The location for arbitration shall be Dallas, Texas.

 

11.2.                        Arbitrators

 

There shall be three disinterested arbitrators who shall be officers or retired officers of Life insurance or reinsurance companies other than the parties to the Agreement or their subsidiaries. The arbitrators shall be disinterested parties and cannot be jurists, present or former employees of one of the parties or their affiliate or therefore related to the management of one of the parties or their affiliates. Each of the parties shall appoint one of the arbitrators and these two arbitrators shall select the third. In the event that either party should fail to choose an arbitrator within thirty days after the other party has given notice of its arbitrator appointment, that party may choose two arbitrators who shall in turn choose a third arbitrator before entering arbitration.

 

Any arbitrator who does not perform his duties, or resigns, will be replaced by the party who originally selected that arbitrator.

 

11.3.                        Matters In Dispute

 

The parties will state together or separately the subjects in dispute and submit them in writing to the arbitrators along with the necessary documents.

 

11.4.                        Procedures

 

The arbitrators must themselves establish the procedure to be followed: they are exempt from any judicial formality or rule. They can adjudicate and are empowered to act as mediators. They shall decide how the arbitration costs are apportioned.

 

22

 

11.5.                        Decision

 

The award rendered by the majority, must be in writing, give the reasons for the decision and be signed by each arbitrator. The parties agree to abide by the decision rendered and to consider the award as final and binding on both parties.

 

11.6.                        Applicable Laws

 

Should there be improprieties in the arbitration process or if one of the parties objects to the implementation of the arbitration process, the laws of the State of Texas shall then apply.

 

23

 

ARTICLE 12 - INSOLVENCY

 

12.1.                        Payment of Claims

 

In the event of insolvency of THE COMPANY, all claims under this Agreement will be paid by OPTIMUM RE directly to THE COMPANY, its liquidator, receiver or statutory successor. OPTIMUM RE’s share of claims will be paid without diminution because of the insolvency of THE COMPANY, provided that all reinsurance premiums have been duly paid and subject to Article 12.4.

 

OPTIMUM RE shall be liable only for the claims actually paid by THE COMPANY to the insured or its beneficiary on amounts reinsured and shall not be or become liable for any amounts or reserves to be held by THE COMPANY on policies reinsured under this Agreement.

 

12.2.                        Notice to OPTIMUM RE

 

In the event of the insolvency of THE COMPANY, the liquidator, receiver, or statutory successor of THE COMPANY will give written notice of a pending claim against THE COMPANY on any policy reinsured, within a reasonable time after the claim is filed in the insolvency proceedings. While the claim is pending, OPTIMUM RE may investigate and interpose, at its own expense, in the proceedings where the claim is to be adjudicated, any defenses which it may deem available to THE COMPANY or its liquidator, receiver, or statutory successor.

 

12.3.                        Expenses

 

The expenses incurred by OPTIMUM RE will be charged, subject to court approval, against THE COMPANY as expenses of liquidation to the extent of a proportionate share of the benefit which accrues to THE COMPANY as a result of the defenses undertaken by OPTIMUM RE. Where two or more reinsurers are involved and a majority in interest elects to defend a claim, the expenses will be apportioned in accordance with the terms of the reinsurance agreements as if the expenses had been incurred by THE COMPANY.

 

12.4.                        Right to Offset

 

In the event of the insolvency of either OPTIMUM RE or THE COMPANY, any amounts owed by OPTIMUM RE to THE COMPANY and by THE COMPANY to OPTIMUM RE with respect to this and all other Reinsurance Agreements between OPTIMUM RE and THE COMPANY, shall be offset against each other with the balance to be paid by the appropriate party.

 

24

 

ARTICLE 13 - DEFERRED ACQUISITION COST TAX

 

THE COMPANY and OPTIMUM RE mutually agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992 of the Internal Revenue Code of 1986.

 

1.       The Party with net positive consideration for the Agreement(s) for each taxable year shall compute specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1).

 

2.       THE COMPANY and OPTIMUM RE agree to exchange information pertaining to the amount of net consideration as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the Internal Revenue Service.

 

3.       THE COMPANY will submit a schedule to OPTIMUM RE by May 1st of its calculation of the net consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year.

 

4.       OPTIMUM RE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE and THE COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not receive a response from OPTIMUM RE at the latest 30 days after receipt by OPTIMUM RE of these amounts or by May 30th of the current year.

 

25

 

ARTICLE 14 - EXECUTION

 

14.1.        Duration

 

This Agreement will be effective on and after August 1, 2009. It is unlimited in duration but may be amended by mutual consent of THE COMPANY and OPTIMUM RE. It may be terminated as to new reinsurance by either party giving a 90-day written notice to the other. Termination as to new reinsurance does not affect existing reinsurance that will remain in force until termination of THE COMPANY’s policy.

 

14.2.        Parties to the Agreement

 

This is an agreement solely between THE COMPANY and OPTIMUM RE. There will be no legal relationship between OPTIMUM RE and any person having an interest of any kind in any of THE COMPANY’s insurance, or between OPTIMUM RE and any other reinsurer, or between OPTIMUM RE and any other third party.

 

14.3.        Written Agreement

 

A.    Entirety

 

This Agreement shall constitute the entire agreement between THE COMPANY and OPTIMUM RE with respect to the business reinsured hereunder. There are no understandings between THE COMPANY and OPTIMUM RE other than as expressed in this Agreement.

 

B.    Amendments

 

Any change or modification to the Agreement shall be null and void unless made by amendment to the Agreement and signed by both parties.

 

C.    Waiver

 

A waiver of any provision(s) of this Agreement shall constitute a waiver only with respect to the particular circumstance for which it is given and not a waiver for any future circumstances.

 

D.    Severability

 

If any section or provision of this Agreement is determined to be invalid or unenforceable, such determination will not impact or affect the validity or the enforceability of the remaining sections or provisions of this Agreement.

 

26

 

14.4.        Change of  Control/Assignment

 

Neither THE COMPANY nor its liquidator, receiver, or statutory successor will, without the prior written consent of OPTIMUM RE, sell, assign, transfer, or otherwise dispose of this Agreement, or any interest in this Agreement, by voluntary or involuntary act.

 

14.5.        Compliance

 

THE COMPANY represents that to the best of its knowledge and belief it is, and shall use its best efforts to continue to be, in substantial compliance in all material respects with all laws, regulations, and judicial and administrative orders applicable to the business reinsured under this Agreement, including but not limited to, privacy laws and the maintenance of an effective anti-money laundering policy, (collectively, the “Law”).  Neither THE COMPANY nor OPTIMUM RE shall be required to take any action under this Agreement that would result in it being in violation of the Law, which shall include requirements enforced by the U.S. Treasury Department Office of Foreign Assets Control and Terrorist Financing Act. THE COMPANY and OPTIMUM RE acknowledge and agree that a claim under this Agreement is not payable if payment would cause OPTIMUM RE to be in violation of the Law. Should either party discover a reinsurance payment has been made in violation of the Law, it shall notify the other party and the parties shall cooperate in order to take all necessary corrective actions.

 

27

 

14.6.        Signatures

 

In witness of the above, this Agreement is signed in duplicate, at the dates and places indicated.

 

 

	
FOR
    	
:
    	
AMERICAN   LIFE AND SECURITY CORPORATION
    

 

 

	
DATE:
    	
9/8/09
    	
 
    	
SIGNATURE:
    	
/s/   Mark A. Oliver
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PLACE:
    	
LINCOLN,   NE
    	
 
    	
NAME:
    	
MARK   A. OLIVER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
[ILLEGIBLE]
    	
 
    	
TITLE:
    	
CEO
    

 

 

	
FOR
    	
:
    	
OPTIMUM   RE INSURANCE COMPANY
    

 

 

	
DATE:
    	
Sept.   4th, 2009
    	
 
    	
SIGNATURE:
    	
/s/   Mario Georgiev
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PLACE:
    	
DALLAS,   TEXAS
    	
 
    	
NAME:
    	
MARIO   GEORGIEV
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
/s/   [ILLEGIBLE]
    	
 
    	
TITLE:
    	
PRESIDENT
    

 

28

 

SCHEDULE A

 

RETENTION AND REINSURANCE LIMITS

 

AMERICAN LIFE AND SECURITY CORPORATION

 

	
 
    	
 
    	
LIFE
    
	
 
    	
 
    	
 
    
	
THE COMPANY’S  Retention
    	
 
    	
 
    
	
Limit per Life
    	
:
    	
$65,000
    
	
 
    	
 
    	
 
    
	
Automatic Reinsurance
    	
 
    	
 
    
	
Limit per Life
    	
:
    	
*    6.15 X’s THE   COMPANY’s retention to a maximum of $400,000 in excess of THE COMPANY’s   retention
    
	
 
    	
 
    	
 
    
	
Facultative Reinsurance
    	
 
    	
 
    
	
Limit per Life
    	
:
    	
$4,000,000
    
	
 
    	
 
    	
 
    
	
Jumbo Limit
    	
:
    	
$4,000,000
    
	
 
    	
 
    	
 
    
	
Minimum Cession
    	
:
    	
$5,000
    
	
 
    	
 
    	
 
    
	
Portion of Alphabet
    	
 
    	
 
    
	
Reinsured by OPTIMUM RE
    	
:
    	
A   - Z
    

 

*Policies will be underwritten by Investors Heritage Life Insurance Company

 

29

 

SCHEDULE  B

 

PLANS REINSURED

 

·MODIFIED WHOLE LIFE PLAN (FORM #ALSC-001 (05-09))

 

DEATH BENEFIT PATTERN

·ISSUE AGES 0-20:

DEATH BENEFIT WILL BE LEVEL

·ISSUE AGES 21-65:

DEATH BENEFIT WILL DECREASE BY $3,000 PER YEAR PER UNIT FOR 20 YEARS AND WILL THEN REMAIN LEVEL

·ISSUE AGES 66-80:

DEATH BENEFIT WILL DECREASE BY $5,000 PER YEAR PER UNIT FOR 4 YEARS AND WILL THEN REMAIN LEVEL

 

30

 

SCHEDULE C

 

LIFE APPLICATION (FORM #ALSCAPP-1 (06-2009))

 

31

 

 

 

 

2

 

 

3

 

 

4

 

 

5

 

 

6

 

 

7

 

 

8

 

SCHEDULE D

 

AGE AND AMOUNT REQUIREMENTS

 

[POLICIES WILL BE UNDERWRITTEN BY INVESTORS HERITAGE LIFE INSURANCE COMPANY]

 

32

 

American Life & Security Corporation

Age-Amount Medical and Non-Medical Requirements

 

	
INITIAL
    	
 
    	
AGE
    
	
AMOUNT
    	
 
    	
0-35
    	
 
    	
36-50
    	
 
    	
51-55
    	
 
    	
56-60
    	
 
    	
61-80
    
	
-0- to $50,000
    	
 
    	
Non-medical
    	
 
    	
Non-medical
    	
 
    	
Non-medical
    	
 
    	
Non-medical
    	
 
    	
Paramedical HOS
    
	
$50,001 to $55,000
    	
 
    	
Non-medical
    	
 
    	
Non-medical
    	
 
    	
Non-medical
    	
 
    	
HOS
    	
 
    	
Paramedical HOS
    
	
$55,001 to $99,999
    	
 
    	
Non-medical
    	
 
    	
HOS
    	
 
    	
HOS
    	
 
    	
Paramedical HOS
    	
 
    	
Paramedical HOS
    
	
$100,000 to $250,000
    	
 
    	
HOS Saliva Test
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    
	
$250,001 to $300,000
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile
    
	
$300,001 to $500,000
    	
 
    	
Paramedical HOS Blood Profile
    	
 
    	
Paramedical HOS Blood Profile EKG
    	
 
    	
Paramedical HOS Blood Profile EKG
    	
 
    	
MD Exam HOS Blood Profile EKG
    	
 
    	
MD Exam HOS Blood Profile EKG
    
	
$500,001 to $1,000,000
    	
 
    	
MD Exam HOS Blood Profile EKG
    	
 
    	
MD Exam HOS Blood Profile EKG
    	
 
    	
MD Exam HOS Blood Profile EKG
    	
 
    	
MD Exam HOS Blood Profile EKG
    	
 
    	
MD Exam HOS Blood Profile EKG
    
	
$1,000,001 plus
    	
 
    	
Consult Underwriting
    	
 
    	
Consult Underwriting
    	
 
    	
Consult Underwriting
    	
 
    	
Consult Underwriting
    	
 
    	
Consult Underwriting
    

 

 

SCHEDULE E - PART 1

 

REINSURANCE APPLICATION

 

33

 

 

 

SCHEDULE E - PART 2

 

REINSURANCE ADVICE NOTICE

 

34

 

 

 

SCHEDULE E - PART 3

 

REINSURANCE CESSION FORM

 

35

 

 

 

SCHEDULE F

 

YRT RATES

 

AUTOMATIC YRT RATES AGE LAST BIRTHDAY

 

(Non refundable in the year of Death)

 

OPTIMUM RE will not pay any allowances on these YRT rates.

 

	
 
    	
PART 1 - MALE NONSMOKER
    	
 
    	
979.00
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 2 - MALE SMOKER
    	
 
    	
980.00
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 3 - FEMALE NONSMOKER
    	
 
    	
981.00
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
PART 4 - FEMALE SMOKER
    	
 
    	
982.00
    	
 
    	
 
    

 

36

 

SCHEDULE  F

 

	
 
    	
PART 1 - MALE NONSMOKER
    	
 
    	
979.00
    	
 
    	
 
    

 

37

 

 

No Cession Fee

Table 979.00

 

1

 

 

No Cession Fee

Table 979.00

 

2

 

 

No Cession Fee

Table 979.00

 

3

 

SCHEDULE F

 

	
 
    	
PART 2 - MALE SMOKER
    	
 
    	
980.00
    	
 
    	
 
    

 

38

 

 

No Cession Fee.

 

Table 980.00

 

1

 

 

No Cession Fee

 

Table 980.00

 

2

 

 

No Cession Fee

 

Table 980.00

 

3

 

SCHEDULE F

 

	
 
    	
PART 3 - FEMALE NONSMOKER
    	
 
    	
981.00
    	
 
    	
 
    

 

39

 

 

No Cession Fee.

 

Table 157.00

 

1

 

 

No Cession Fee.

 

Table 157.00

 

2

 

 

No Cession Fee.

 

Table 157.00

 

3

 

 

No Cession Fee.

 

Table 156.00

 

1

 

 

 

No Cession Fee.

 

Table 156.00

 

2

 

 

 

No Cession Fee.

 

Table 156.00

 

3

 

 

 

No Cession Fee.

 

Table 981.00

 

1

 

 

 

No Cession Fee.

 

Table 981.00

 

2

 

 

 

No Cession Fee.

 

Table 981.00

 

3

 

 

SCHEDULE F

 

	
 
    	
PART 4 - FEMALE SMOKER 
    	
 
    	
982.00
    	
 
    	
 
    

 

40

 

 

 

No Cession Fee.

 

Table 982.00

 

1

 

 

 

No Cession Fee.

 

Table 982.00

 

2

 

 

 

No Cession Fee.

 

Table 982.00

 

3

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