EX-99 3 addendum_2.txt REINSURANCE Ex-g(4) 10917-02-00 ADDENDUM to the AUTOMATIC AND FACULTATIVE YRT REINSURANCE AGREEMENT Effective July 30, 2007 between JACKSON NATIONAL LIFE INSURANCE COMPANY, Lansing, Michigan, U.S.A. (hereinafter called the "Ceding Company") and RGA REINSURANCE COMPANY, Chesterfield, Missouri, U.S.A. (hereinafter called the "Reinsurer") This Addendum is Effective October 6, 2008 ADDITION OF PERSPECTIVE INVESTOR VARIABLE UNIVERSAL LIFE PLAN, ULTIMATE INVESTOR VARIABLE UNIVERSAL LIFE PLAN, JACKSON ADVISOR VARIABLE UNIVERSAL LIFE PLAN, OTHER INSURED TERM INSURANCE RIDER, GUARANTEED DEATH BENEFIT RIDER, TERMINAL ILLNESS RIDER AND WAIVER OF SPECIFIED PREMIUM I. As of the effective date of this Addendum, the attached Exhibit B - Business Covered is hereby added to this Agreement which now includes the above Plans, Riders and Benefits. II. As of the effective date of this Addendum, the attached Exhibit A - Retention Schedule of the Ceding Company is hereby added to this Agreement to include the retention schedule for the above Plans, Riders and Benefits. III. As of the effective date of this Addendum, the attached Exhibit C - Binding Limits is hereby added to this Agreement to include the binding limits for the above Plans, Riders and Benefits. IV. As of the effective date of this Addendum, the attached Exhibit D - Reinsurance Premiums is hereby added to this Agreement to include the premium administration for the above Plans, Riders and Benefits. Rate Schedules 5, 6 and 7 are hereby added to this Agreement. V. All provisions of the Automatic and Facultative YRT Reinsurance Agreement not specifically modified herein remain unchanged. (030)10917-02-00 02/26/09 IN WITNESS WHEREOF, all parties have executed this Addendum in duplicate as follows: JACKSON NATIONAL LIFE RGA REINSURANCE COMPANY INSURANCE COMPANY --------------------------------------- -------------------------------------- By: LISA C. DRAKE By: KATHERINE A. COX Lisa C. Drake Katherine A. Cox Title: SVP & Chief Actuary Title: Vice President Date: 10/31/08 Date: 10/28/2008 Location: Lansing, MI Location: Chesterfield, MO (030)10917-02-00 02/26/09 2 EXHIBIT A - RETENTION SCHEDULE OF THE CEDING COMPANY -------------------------------------------------------------------------------- A.1 LIFE INSURANCE Excess Basis Maximum Retention Per Life under this and all other agreements For the purpose of determining the Retention a $2.50 per 1000 temporary or permanent flat extra rating will be considered one table in determining the limits as shown below. ----------------------- ------------------------------- ------------------------ Issue Age Rating Retention Limit ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 0-65 Standard - Table 2 $2,000,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 0-65 Table 3 - Table 8 $1,000,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 0-65 Table 9 - Table 16 $500,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 66-75 Standard - Table 2 $700,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 66-75 Table 3 - Table 8 $350,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 66-75 Table 9 - Table 16 $175,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 76-85 Standard - Table 2 $350,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 76-85 Table 3 - Table 16 $175,000 ----------------------- ------------------------------- ------------------------ ----------------------- ------------------------------- ------------------------ 86-90 Standard - Table 16 $0 ----------------------- ------------------------------- ------------------------ A.2 WAIVER OF PREMIUM DISABILITY BENEFITS Same as Life. The Ceding Company will only reinsure the Waiver of Premium Disability with the Reinsurer when the annual premium to be waived is over $10,000. (030)10917-02-00 02/26/09 3 EXHIBIT B - BUSINESS COVERED -------------------------------------------------------------------------------- The business reinsured under this Agreement is defined as follows: Policies issued on the business identified below may qualify for reinsurance if the application date for the policy is on or after the Effective Date of this Addendum. Effective October 6, 2008 ------------------------------------------------------ ------------------------- Included Plans: Form Numbers ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Perspective Investor Variable Universal Life VUL1804 ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Ultimate Investor Variable Universal Life VUL1805 ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Jackson Advisor Variable Universal Life VUL1805 ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Benefits & Riders: ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Other Insured Term Insurance Rider 9453 ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Guaranteed Death Benefit Rider 9449 ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Terminal Illness Rider 9433 9/00 ------------------------------------------------------ ------------------------- ------------------------------------------------------ ------------------------- Waiver of Specified Premium 9442 ------------------------------------------------------ ------------------------- (030)10917-02-00 02/26/09 4 EXHIBIT C - BINDING LIMITS -------------------------------------------------------------------------------- C.1 REINSURERS SHARE The Reinsurer's share will be 33% of the excess over the Ceding Company's retention specified in Exhibit A. This amount will not exceed the Reinsurer's share of the maximum Automatic Binding Limits specified in Exhibit C.2. C.2 AUTOMATIC BINDING LIMITS a. Life For the purpose of determining the Automatic Binding Limit a $2.50 per 1,000 temporary or permanent flat extra rating will be considered one table in determining the limits as shown below.
-------------------- ------------------------------- ---------------------------- --------------------------- Issue (Pool) Maximum* Total Auto Age Rating Binding Limit Face Limit -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 0-65 Standard - Table 2 $20,000,000 $22,000,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 0-65 Table 3 - Table 8 $10,000,000 $11,000,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 0-65 Table 9 - Table 16 $5,000,000 $5,500,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 66-75 Standard - Table 2 $7,000,000 $7,700,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 66-75 Table 3 - Table 8 $3,500,000 $3,850,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 66-75 Table 9 - Table 16 $1,750,000 $1,925,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 76-85 Standard - Table 2 $3,500,000 $3,850,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 76-85 Table 3 - Table 16 $1,750,000 $1,925,000 -------------------- ------------------------------- ---------------------------- --------------------------- -------------------- ------------------------------- ---------------------------- --------------------------- 86-90 Standard - Table 16 $0 $0 -------------------- ------------------------------- ---------------------------- ---------------------------
*The (pool) maximum Automatic Binding amounts above exclude the Ceding Company's retention per insured. b. Waiver of Premium Disability Benefits: The Ceding Company will only reinsure the Waiver of Premium Disability with the Reinsurer when the annual premium to be waived is over $10,000. Same as Life except the amount cannot exceed the maximum Waiver of Premium Benefit described below. The maximum Waiver of Premium benefit issued and applied for is no more than the greater of a) and b), where: a) is the Waiver of Premium Disability benefit associated with $5,000,000 of life insurance, and b) is a Waiver of Premium Disability benefit which initially waives $75,000 in annual premiums or charges. Note: The above limits represent the Reinsurer's share. c. Professional Athletes will not be covered on an Automatic basis. (030)10917-02-00 02/26/09 5 C.3 JUMBO LIMITS The Ceding Company will not cede any risk Automatically if the total amount in force and applied for on the life with all insurance companies, including any amount to be replaced, exceeds the applicable amounts shown below. Life: $50,000,000 C.4 CONDITIONAL RECEIPT OR TEMPORARY INSURANCE AGREEMENT The amount of such coverage provided by the Reinsurer will be limited to its share of the following amounts provided by the Ceding Company's Conditional Receipt or Temporary Insurance Agreement. ------------------------------------- Maximum Amount ------------------------------------- ------------------------------------- $250,000 ------------------------------------- C.5 AGE LIMITS
Form Issue Plans/Riders Numbers Underwriting Class Age ------------ ------- ------------------ --- Perspective Investor VUL VUL1804 Preferred Plus Non-Tobacco 18-80 Ultimate Investor VUL VUL1805 Preferred Non-Tobacco 18-90 Jackson Advisor VUL VUL1805 Standard Non-Tobacco 0-90 Other Insured Term Insurance Rider 9453 Preferred Tobacco 18-80 Guaranteed Death Benefit Rider 9449 Standard Tobacco 18-80 Terminal Illness Rider 9433 9/00 Waiver of Specified Premium 9442 All 18-55
C.6 MINIMUM CESSION $1,000 (030)10917-02-00 02/26/09 6 EXHIBIT D - REINSURANCE PREMIUMS -------------------------------------------------------------------------------- D.1 BASE PLAN PARAMETERS Plans covered under this Agreement will be reinsured on a YRT basis with the Reinsurer participating only in mortality risks (not cash values, loans, dividends or other features specific to permanent policies). The mortality risk shall be the net amount at risk on that portion of the policy which is reinsured with the Reinsurer. Reinsurance premiums will be determined according to the amount reinsured with the Reinsurer per insured life as follows. The life reinsurance premium will be calculated in the case of life risks, by multiplying the appropriate life premium rate per thousand (1000) x 12, from the attached Rate Schedule labeled below, for the age of the insured, at the beginning of the policy year, by the Policy Net Amount at Risk reinsured for that policy year, multiplied by the applicable pay percentage as shown below. The same procedure will apply for single premium policies and for paid up policies. Reinsurance premiums will be the annual premium rates as labeled below, multiplied by the following percentages.
Pay Percentages Form Rate Underwriting Policy Policy Plans Numbers Schedule Class Gender Year 1 Years 2+ ----- ------- -------- ----- ------ ------ -------- Perspective Investor VUL VUL1804 5 Preferred Plus NT Male XX% XX% Preferred NT Male XX% XX% Standard NT Male XX% XX% Preferred Tobacco Male XX% XX% Standard Tobacco Male XX% XX% Preferred Plus NT Female XX% XX% Preferred NT Female XX% XX% Standard NT Female XX% XX% Preferred Tobacco Female XX% XX% Standard Tobacco Female XX% XX% Ultimate Investor VUL VUL1805 6 Preferred Plus NT Male XX% XX% Jackson Advisor VUL VUL1805 7 Preferred NT Male XX% XX% Standard NT Male XX% XX% Preferred Tobacco Male XX% XX% Standard Tobacco Male XX% XX% Preferred Plus NT Female XX% XX% Preferred NT Female XX% XX% Standard NT Female XX% XX% Preferred Tobacco Female XX% XX% Standard Tobacco Female XX% XX%
D.2 AGE BASIS Age Nearest Birthday D.3 POLICY FEES The Reinsurer will not participate in any policy fees. D.4 SUBSTANDARD RATINGS Premiums will be based on the standard rate increased by an extra 25% per table of assessed rating. Pay percentages are the same as those for standard life coverage. (030)10917-02-00 02/26/09 7 D.5 FLAT EXTRAS The total premium remitted to the Reinsurer will include the flat extra premium. The Reinsurer shall pay an expense allowance as a percentage of the flat extra premium as shown below. ---------------------------------- --------------------- --------------------- Type of Flat Extra Premium First Year Renewal ---------------------------------- --------------------- --------------------- ---------------------------------- --------------------- --------------------- Temporary (1-5 Years) XX% XX% ---------------------------------- --------------------- --------------------- ---------------------------------- --------------------- --------------------- Permanent (6 Years & Greater) XX% XX% ---------------------------------- --------------------- --------------------- D.6 RIDERS AND BENEFITS Guaranteed Death Benefit Rider - Form #9449 This rider will be automatically attached to the base policy. There is no cost for this rider until the death benefit option is exercised. Death Benefit Options A and B are available only on the base insured. The premium requirement will be in the form of an annual rate per $1,000 of Specified Death Benefit. Terminal Illness Benefit Rider - Form #9433 9/00 This rider will be automatically attached to the base policy. There is no cost for this rider until the benefit is exercised. This rider is available on the base insured and any rider insured. The benefit is up to 100% of the specified death benefit, or $250,000 if less. The $250,000 limit is not aggregated with any other Jackson National policies the policyowner may have. This rider will terminate the earlier of: 1. payment of a terminal illness benefit; or 2. the date the policy lapses; or 3. the date the Ceding Company receives written request to terminate the rider. Waiver of Specified Premium - Form #9442 The annual reinsurance premium to be paid to the Reinsurer for reinsurance of the Waiver of Premium benefits will be based on the appropriate rate shown in Rate Schedule 2. Reinsurance allowances will be 100% of the Ceding Company's premiums in the first policy year and 20% in renewal years. Other Insured Term Insurance Rider - Form #9453 The details of this rider are outlined in Exhibit J of Addendum 10917-01-00 (effective 10/06/2008). Reinsurance premiums for this rider will be the annual premium rates as labeled below, multiplied by the following percentages.
Pay Percentages Form Rate Underwriting Policy Policy Rider Numbers Schedule Class Gender Year 1 Years 2+ ----- ------- -------- ----- ------ ------ -------- Other Insured Term 9453 4 Preferred Plus NT Male XX% XX% Insurance Rider Preferred NT Male XX% XX% Standard NT Male XX% XX% Preferred Tobacco Male XX% XX% Standard Tobacco Male XX% XX% XX% XX% Preferred Plus NT Female XX% XX% Preferred NT Female XX% XX% Standard NT Female XX% XX% Preferred Tobacco Female XX% XX% Standard Tobacco Female XX% XX%
(030)10917-02-00 02/26/09 8 EXHIBIT D - RATE SCHEDULE 5 -------------------------------------------------------------------------------- (030)10917-02-00 02/26/09 9 EXHIBIT D - RATE SCHEDULE 6 -------------------------------------------------------------------------------- (030)10917-02-00 02/26/09 10 EXHIBIT D - RATE SCHEDULE 7 -------------------------------------------------------------------------------- (030)10917-02-00 02/26/09 11