EX-99.B(G)(1)(XII) 2 tm236732d1_ex99-bxgx1xxii.htm EXHIBIT 99.B(G)(1)(XII)

 

Exhibit 99.B(g)(1)(xii)

 

[CERTAIN PORTIONS OF THIS EXHIBIT CONTAIN CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT ARE IDENTIFIED AS [REDACTED] AND HAVE BEEN OMITTED.]

 

Amendment Number 14 

to the 

Second Amended and Restated Automatic Indemnity Reinsurance Agreement

 

This Amendment between The Lincoln National Life Insurance Company of Fort Wayne, Indiana (the “Ceding Company”) and Lincoln National Reinsurance Company (Barbados) Limited, a Barbados Corporation (“the Reinsurer”) is effective May 16, 2022.

 

 

RECITALS

 

1.The Ceding Company and the Reinsurer entered into an Automatic Indemnity Reinsurance Agreement effective July 1, 2003, as amended and restated effective November 1, 2013, and as subsequently amended (“the Agreement”).

 

2.Article XVII, Section 8 of this Agreement permits amendments as long as they are made in writing and signed by duly authorized officers of both parties.

 

3.The Ceding Company and the Reinsurer wish to make such an amendment to add new products and riders issued by the Ceding Company.

 

 

AGREEMENT

 

NOWTHEREFORE, in consideration of these premises and the mutual covenants contained herein, the Ceding Company and the Reinsurer agree to amend the Agreement as follows:

 

1. Effective May 16, 2022, Variable Annuity Living Benefits Riders attached to the Lincoln PathBuilder Income® IRA, and Lincoln PathBuilder Income® IRA – Advisory shall be added to Schedules A and C.

 

2. Effective May 16, 2022, Lincoln PathBuilder Income® IRA, and Lincoln PathBuilder Income® IRA – Advisory products shall be added to Schedule B.

 

3. The Ceding Company and the Reinsurer agree that Schedules A, B, and C of the Agreement shall be replaced in their entirety with Schedules A, B, and C attached hereto. All terms, provisions and conditions of this Agreement will continue unchanged except as specifically revised in this Amendment.

 

 

 

 

In WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.

 

 

LINCOLN NATIONAL REINSURANCE COMPANY (BARBADOS) LIMITED   THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
     
By: [REDACTED]   By: [REDACTED]
 
Name: Brandy Ness   Name: William A. Panyard
 
Title: Assistant Vice President   Title: Assistant Vice President
 
Date: June 16, 2022   Date: June 16, 2022

 

 

 

 

SCHEDULE A 

Reinsurance of Guaranteed Benefits (“GB”) 

Effective May 16, 2022

 

Each contract listed in Schedule B contains one or more GB. GBs which are covered by this Agreement include the following:

 

Marketing Name of Benefit Policy Form Nos.
Death Benefit Riders  
Guarantee of Principal Death Benefit Rider* 32148
Enhanced Guaranteed Minimum Death Benefit Rider* 32149
5% Step-Up Death Benefit Rider* 32150
7 Year Ratchet Death Benefit on American Legacy I & II* - -  
Estate Enhancement Death Benefit Rider* 32151
   
Highest Anniversary Death Benefit Rider eff. 1/9/17* AR-593
   
Guarantee of Principal Death Benefit Rider eff. 1/9/17* ICC16-32148
   
Guarantee of Principal Death Benefit Rider eff. 1/9/17* 32148 (9-16)
   
Earnings Optimizer Death Benefit Rider eff. 11/16/15 AR-590
   
American Legacy® Target Date Income  
Guarantee of Principal Death Benefit (GOP/ROP) eff. 1/21/20* 32148 (9-16)
   
Lincoln SmartSecurity® Advantage  
 Variable Annuity Rider 32793
   
i4LIFE® Advantage with Guaranteed Income Benefit  
Variable Annuity Income Rider I4LA
Variable Annuity Payment Option Rider I4LA-Q
Variable Annuity Payment Option Rider I4LA-NQ
 Guaranteed Income Benefit GIB
 Increasing GIB IGIB
 Annual GIB AGIB
Select Guaranteed Income Benefit AR-528
   
i4LIFE® Advantage with Guaranteed Income Benefit (Managed Risk) eff. 5/21/12

AR-528

   
4LATER® Advantage  
 Guaranteed Income Later Rider 4Later
   
4LATER® Advantage (Managed Risk) eff. 7/2/12 AR-547 (3-12)
   
4LATER® Select Advantage  
Guaranteed Income Later Rider effective 1/9/17 AR-547 (3-12)
Guaranteed Income Later Rider effective 6/11/18 AR-547 (03/18)
   
Lincoln Lifetime Income SMAdvantage  
 Variable Annuity Living Benefits Rider AR-512
 Variable Annuity Living Benefits Rider (LINC Plus)* AR-512P
   
Lincoln Lifetime Income SMAdvantage 2.0 &  
Lincoln Lifetime Income SMAdvantage 2.0 (Managed Risk) eff. 4/2/12  
 Variable Annuity Living Benefits Rider eff. 4/2/12* AR-529
 Variable Annuity Guarantee Income Benefit (NY version) AR-529
Variable Annuity Living Benefits Rider eff. 1/20/15 AR-566

 

 

 

 

Variable Annuity Living Benefits Rider eff. 2/20/18 AR-607
   
   
Lincoln Market Select ® Advantage  
 Variable Annuity Living Benefits Rider eff. 10/5/15 AR-587
 Variable Annuity Living Benefits Rider eff. 5/16/16 AR-591
 Variable Annuity Guarantee Income Benefit (NY version) eff. 8/29/16 AR-529
 Variable Annuity Living Benefits Rider eff. 2/20/18 AR-607
   
Lincoln Long-TermCareSMAdvantage Rider  
Long-Term Care Coverage Endorsement AE-517
Long-Term Care Benefits Rider AR-518, AR-519
   
Core Income Benefit – eff. 2/21/17 AR-592
   
Lincoln Max 6 SelectSM Advantage – eff. 5/22/17 AR-600
   
Lincoln IRA Income PlusSM  – eff. 1/14/19* AR-600
   
Lincoln Wealth PassSM  – eff. 9/16/19* AR-623
   
Target Date Income Benefit – eff. 1/21/20* AR-634
   
Lincoln PathBuilder Income® IRA/ Lincoln PathBuilder Income® IRA - Advisory  
Variable Annuity Living Benefits Rider 22AR-693
Variable Annuity Living Benefits Rider 22AR-694

 

* issued by Ceding Company only

 

 

 

 

SCHEDULE B

CONTRACTS WITH ACCEPTED COVERAGES

 

Contracts covered by this Agreement include all Contracts either issued by the Ceding Company directly or issued by Lincoln Life & Annuity Company of New York and reinsured with the Ceding Company and included in the following list:

 

ChoicePlus Variable Annuity
ChoicePlus Access Variable Annuity
ChoicePlus Bonus Variable Annuity (issued by the Ceding Company only)
ChoicePlus II Variable Annuity
ChoicePlus II Access Variable Annuity
ChoicePlus II Bonus Variable Annuity
ChoicePlus II Advance Variable Annuity
ChoicePlus Assurance (A Share) (includes wrap fee version)
ChoicePlus Assurance (B Share)
ChoicePlus Assurance (C Share)
ChoicePlus Assurance (Bonus)
ChoicePlus Assurance (L Share)
ChoicePlus Momentum Income Option
ChoicePlus Design (includes all share classes)
American Legacy I (issued by the Ceding Company only)
American Legacy II (issued by the Ceding Company only)
American Legacy III
American Legacy III Plus
American Legacy III View
American Legacy III C-Share
Shareholders Advantage (includes wrap fee version)
American Legacy Design (includes all share classes)
Multi-Fund 1 (issued by the Ceding Company only)
Multi-Fund 2 (issued by the Ceding Company only)
Multi-Fund 3 (issued by the Ceding Company only)
Multi-Fund 4 (issued by the Ceding Company only)
Multi-Fund 5 (issued by the Ceding Company only)
Multi-Fund Select (issued by the Ceding Company only)
Accru Variable Annuity (issued by the Ceding Company only)
Accru ChoicePlus (issued by the Ceding Company only)

Lincoln Investor Advantage® B-Share 

Lincoln Investor Advantage® C-Share 

Lincoln Investor Advantage® Fee Based 

Lincoln Investor Advantage® RIA 

American Legacy Series B-Share 

American Legacy Series L-Share 

American Legacy Series C-Share 

American Legacy Signature 1 

American Legacy Signature 2 

American Legacy Fusion 

Shareholder’s Advantage A-Class 

American Legacy III® B-Class 

Lincoln Choice PlusSM Fusion 

Lincoln Choice PlusSM Signature 1 

Lincoln Choice PlusSM Signature 2 

Lincoln Choice Plus AssuranceSM Series B-Share 

Lincoln Choice Plus AssuranceSM Series L-Share 

Lincoln Choice Plus AssuranceSM Series C-Share 

Lincoln Choice Plus AssuranceSM Series B-Class 

Lincoln Choice Plus AssuranceSM (Prime) 

Lincoln Choice Plus AssuranceSM Rollover 

Lincoln Choice Plus AssuranceSM A-Class 

Lincoln InvestmentSolutionsSM 

Lincoln Choice PlusSM Advisory

 

 

 

 

American Legacy® Advisory 

Lincoln Investor Advantage® Advisory 

Lincoln Investor Advantage® RIA Class 

Lincoln Investment Solutions® RIA 

Lincoln Core IncomeSM 

American Legacy® Target Date Income B-Share 

American Legacy® Target Date Income Advisory 

Lincoln Choice PlusSM Select B-Share 

Lincoln Investor Advantage® Advisory Choice 

Lincoln Investor Advantage® Pro B-Share 

Lincoln Investor Advantage® Pro C-Share 

Lincoln Investor Advantage® Pro Advisory Choice 

Lincoln Investor Advantage® Pro Advisory 

Lincoln PathBuilder Income® IRA 

Lincoln PathBuilder Income® IRA - Advisory

 

 

 

 

SCHEDULE C 

PREMIUM RATE SCHEDULE 

Effective May16, 2022

 

 

 

Initial Reinsurance Premium: 

The Initial Reinsurance Premium shall equal the Treaty Reserve applicable to each Individual Policy on the date it is first covered by this Agreement. For all business the Ceding Company assumes from Lincoln Life & Annuity of New York, the Initial Reinsurance Premium shall equal the Treaty Reserves less an adjustment reflecting the anticipated future profitability on the business assumed by the Ceding Company effective January 1, 2010. For all business issued by the Ceding Company after the Agreement’s Effective Date, the Initial Premium shall be zero.

 

Base Reinsurance Premium Rates: 

Effective from the Agreement’s Effective Date and the corresponding effective date of any amendment, as appropriate:

 

 

Effective Date of Coverage 7/1/2003

7/26/2004

(B-Share)

 After
7/1/2003		    
Type of Benefit

Contracts Issued

Prior to 7/1/2003

Contracts Issued

Prior to 7/1/2003

Contracts Issued

After 6/30/2003

 All Contracts  

 

 

GMDB Type

 Base
Reinsurance
Premium
Annual Rate

 

Base Reinsurance
Premium Annual
Rate

 Base
Reinsurance
Premium
Annual Rate		 Expense,
Profit, and
Risk Charge
Annual Rate

 

 

Applied to

Guarantee of Principal Death Benefit – Employer VA [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value
Guarantee of Principal Death Benefit – Individual VA [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value
Enhanced Guaranteed Minimum Death Benefit [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value
Enhanced Guaranteed Minimum Death Benefit with 5% Rollup [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value

5% Step-Up Death Benefit

(Accru Contracts)

 [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value
Legacy I and II with 7 Yr Ratchet Benefit [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value
Estate Enhancement Benefit [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value
Estate Enhancement Benefit with 5% Rollup [REDACTED] [REDACTED] [REDACTED] [REDACTED] Account Value

 

 

 

 

 

GMDB Type

 

Rates Applied to
Riders Effective

 Base
Reinsurance
Premium
Annual Rate		 Expense,
Profit, and
Risk Charge

 

Applied to

Earnings Optimizer Death Benefit Rider Riders effective after 11/16/15 [REDACTED] [REDACTED]

Greater of:

·      Account Value

·      Sum of all purchase payments adjusted pro-rata for withdrawals*

[REDACTED]
Highest Anniversary Death Benefit Rider Highest Anniversary Component Riders effective on or after 1/9/17 [REDACTED] [REDACTED] Highest Anniversary Value
Guarantee of Principal Component Riders effective on or after 1/9/17 [REDACTED] [REDACTED] Account Value
Guarantee of Principal Death Benefit

Riders effective after 1/9/17

 

 [REDACTED] [REDACTED] Account Value
[REDACTED]
Guarantee of Principal Death Benefit – Target Date Income VA Riders effective on or after 1/21/2020 [REDACTED] [REDACTED] Account Value

 

Type of Benefit        

 

LTC Type

 

Rates Applied to
Riders Effective

 Base
Reinsurance
Premium
Annual Rate		 Expense,
Profit, and
Risk Charge

 

Applied to

 

 

Long-Term Care Benefit Rider

AE-517, AR-518 and AR-519

Accelerated Benefit

 

 

Riders effective after 4/1/2011

 

[REDACTED]

 

 

[REDACTED]

 

 

Guaranteed Amount (#)

[REDACTED]

 

Type of Benefit        
GLB Type Rates Applied to
Riders Effective		 Base
Reinsurance
Premium
Annual Rate		 Expense,
Profit, and
Risk Charge		 Applied to
Lincoln SmartSecurity Advantage – 5 Yr Optional Reset All In Force Riders effective prior to 5/15/2004 [REDACTED] [REDACTED] Guaranteed Benefit (#)
All In Force Riders effective or reset on or after 5/15/2004 [REDACTED] [REDACTED]
Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset

Riders effective before 1/20/2009

 

 0.550% [REDACTED] Guaranteed Benefit (#)

Riders effective or reset on or after 1/20/2009

 

 [REDACTED] [REDACTED]
Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset - Single Life Option with Lifetime Withdrawals Riders effective before 1/20/2009 [REDACTED] [REDACTED] Guaranteed Benefit (#)
Riders effective or reset on or after 1/20/2009 [REDACTED] [REDACTED]

 

 

 

 

Lincoln SmartSecurity Advantage – 1 Yr Automatic Reset – Joint Life Option with Lifetime Withdrawals Riders effective before 1/20/2009 [REDACTED] [REDACTED] Guaranteed Benefit (#)
Riders effective or reset on or after 1/20/2009 [REDACTED] [REDACTED]

4LATER Advantage

 

 All Riders [REDACTED] [REDACTED] Current Income Base (#)
4LATER Advantage (Managed Risk) (and transitioning to i4LIFE) All Riders [REDACTED] [REDACTED] Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)

4LATER® Select Advantage

(and transitioning to i4LIFE)

 All Riders [REDACTED] [REDACTED] Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
Guaranteed Income Benefit on i4Life Riders effective before 10/1/2009 [REDACTED] [REDACTED] Variable Account Value
Riders effective or reset on or after 10/1/2009 [REDACTED] [REDACTED]
Increasing Guaranteed Income Benefit Riders effective before 10/1/2009 [REDACTED] [REDACTED] Variable Account Value
Riders effective or reset on or after 10/1/2009 [REDACTED] [REDACTED]
Annual Step-Up Guaranteed Income Benefit Riders effective before 10/1/2009 [REDACTED] [REDACTED] Variable Account Value
Riders effective or reset on or after 10/1/2009 [REDACTED] [REDACTED]
Lincoln Lifetime Income Advantage All Riders [REDACTED] [REDACTED] Guaranteed Benefit (#)
Lincoln Lifetime Income Advantage Plus All Riders [REDACTED] [REDACTED] Guaranteed Benefit (#)
Lincoln Lifetime Income Advantage 2.0 (and transitioning to i4LIFE) All Riders [REDACTED] [REDACTED] Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
Lincoln Lifetime Income Advantage 2.0 (Managed Risk) (and transitioning to i4LIFE) All Riders [REDACTED] [REDACTED] Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)
Guaranteed Income Benefit on i4Life (AR-528 only) All Riders [REDACTED] [REDACTED] Variable Account Value
i4LIFE®Advantage with Guaranteed Income Benefit (Managed Risk) All Riders [REDACTED] [REDACTED] Variable Account Value

Lincoln Market Select ® Advantage (and transitioning to i4LIFE)

 

 All Riders [REDACTED] [REDACTED]

Current Income Base (#) or for transitioning to i4LIFE greater of Income Base or Account value prior to transition (increased for GIB step-ups)

 

 

 

 

 

Core Income Benefit All Riders [REDACTED] [REDACTED]

Greater of:

·      Deposits (adjusted for excess withdrawals)

·      Contract Value

Lincoln Max 6 SelectSM Advantage All Riders [REDACTED] [REDACTED] Current Income Base (#)
Lincoln IRA Income PlusSM Advantage All Riders [REDACTED] [REDACTED] Current Income Base (#)
Lincoln Wealth PassSM All Riders [REDACTED] [REDACTED] Rider Charge Base (#)
Target Date Income Benefit All Riders [REDACTED] [REDACTED] Protected Income Base (#)

Lincoln PathBuilder Income® IRA/ Lincoln PathBuilder Income® IRA – Advisory

 

Variable Annuity Living Benefits Rider

 All Riders [REDACTED] [REDACTED] Income Base (#)

 

 

(#) Guaranteed Benefit, Guaranteed Amount, Current Income Base, Rider Charge Base, and Protected Income Base are as calculated by the terms of the applicable riders 

(*) Excludes i4LIFE® Advantage payments 

[REDACTED]

 

Reinsurance premium shall step up to the current charge for any Policy that resets for all benefits except for Lincoln Market Select® Advantage contracts issued with policy form AR-587.

 

Use of all riders listed above is subject to state approval.

 

Reinsurer’s Expense, Profit, and Risk Charge (EPRC): 

EPRC shall equal the annual rates shown above, payable monthly in arrears computed in the manner as more fully described below.

 

Monthly Payment of Reinsurance Premium: 

[REDACTED]