EX-7.3 10 dex73cvaplusex73.txt Exhibit 7.3 VARIABLE ANNUITY REINSURANCE AGREEMENT Effective Date of August 1, 1997 Between THE LIFE INSURANCE COMPANY OF VIRGINIA (Richmond, Virginia) and CONNECTICUT GENERAL LIFE INSURANCE COMPANY (Hartford, Connecticut) -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company VARIABLE ANNUITY REINSURANCE AGREEMENT between THE LIFE INSURANCE COMPANY OF VIRGINIA (Richmond, Virginia) and CONNECTICUT GENERAL LIFE INSURANCE COMPANY (Hartford, Connecticut) INDEX ARTICLE PAGE ------- ---- Access to Records XII 6 Amounts at Risk II 1 Arbitration XVII 8 Automatic Excess Reinsurance III 2 Claims VII 4 Currency XIV 7 DAC Tax Regulation Election XVIII 9 Delays, Errors, or Omissions XIII 7 Effective Date; Term and Termination XIX 10 Extra Contractual Obligations IX 5 Hold Harmless XV 7 Insolvency XVI 8 Liability of Connecticut General IV 2 Litigation X 6 Notices XX 12 Offset XI 6 Parties to the Agreement I 1 Premium Accounting VI 3 Reinsurance Premiums V 2 Reserves VIII 5 SCHEDULES A Maximum Limits of Reinsurance in Connecticut General B Policy Forms and Funds Subject to this Reinsurance Agreement C Limits and Rules of Life Of Virginia D Reinsurance Premium Rates and Calculation Criteria E Monthly Reporting Format -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company VARIABLE ANNUITY REINSURANCE AGREEMENT (hereinafter called Agreement) between THE LIFE INSURANCE COMPANY OF VIRGINIA (hereinafter called Life of Virginia) and CONNECTICUT GENERAL LIFE INSURANCE COMPANY (hereinafter called Connecticut General or CIGNA Reinsurance) It is agreed by the two companies as follows: ARTICLE I - PARTIES TO THE AGREEMENT This Agreement shall be binding upon and shall inure solely to the benefit of Life of Virginia and Connecticut General. This Agreement shall not and is not intended to create any right or interest in any third party and shall not and is not intended to create any legal relationship between either party and any third party, including, without limitation, annuitants, insureds, certificate holders, employees, dependents, beneficiaries, policy owners, applicants or assignees under any policy or contract issued by Life of Virginia. ARTICLE II - AMOUNTS AT RISK A. This Agreement provides permanent coverage for fifty (50) percent of all new issues of Life of Virginia's Commonwealth VA Plus product on forms and funds as identified in Schedule B written by Life of Virginia from the effective date of this Agreement through July 31, 2000, unless terminated pursuant to article XIX. The reinsurance death benefit payable by Connecticut General upon the death of the Annuitant is the excess of the guaranteed minimum death benefit over the contract value as defined in the variable annuity contracts and funds listed in Schedule B. At issue, the guaranteed minimum death benefit is equal to the initial contract value. Refer to Schedule A for a detailed description of the guaranteed minimum death benefit. B. The contract value represents the Annuitant's invested assets in the funds in Schedule B as it appears in the records of Life of Virginia before application of any surrender charges, on any given date. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -1- ARTICLE III - AUTOMATIC EXCESS REINSURANCE A. On and after the Effective Date of this Agreement, subject to the limit of Connecticut General's liability set forth in Schedule A and all other terms, conditions and limitations set forth in this Agreement and the Schedules attached to and made a part hereof, Life of Virginia shall cede and Connecticut General shall accept fifty (50) percent of Life of Virginia's guaranteed death benefit liability under the Variable Annuity Contracts, as described in Article II A. B. This Agreement covers only fifty (50) percent of Life of Virginia's liability for claims paid under Variable Annuity Contracts written on forms and investment in funds which were reviewed by Connecticut General prior to their issuance. Forms, as supplemented by additional materials, and funds available as of the date of this Agreement are listed on Schedule B. If Life of Virginia intends to cede to Connecticut General liability with respect to a new form or fund, or a revised version of an approved form or fund, it must provide to Connecticut General written notice of such intention together with a copy of the proposed form, fund or revision, and a revised Schedule B. C. Life of Virginia shall provide written notice to Connecticut General of any changes in its published limits and rules identified on Schedule C, and Connecticut General shall have no liability pursuant to revised limits and rules unless and until Connecticut General provides written notice to Life of Virginia that such revised limits and rules are acceptable. ARTICLE IV - LIABILITY OF CONNECTICUT GENERAL Connecticut General's liability for reinsurance under this Agreement shall follow that of Life of Virginia in every case, and be subject in all respects to the general stipulations, terms, clauses, conditions, waivers and modifications of the Variable Annuity Contracts. In no event shall Connecticut General have any reinsurance liability unless the Variable Annuity Contract issued by Life of Virginia is in force and the underwriting and issuance of coverage by Life of Virginia constitutes the doing of business in a state of the United States of America in which Life of Virginia was properly licensed and authorized to do business at the time the contract was issued. ARTICLE V - REINSURANCE PREMIUMS Premiums for reinsurance subject to the terms and conditions of this Agreement shall be paid on a monthly basis. Such premiums shall be determined by the application of the basis points (bps) set forth in Schedule D to the amount of reinsurance coverage provided for each annuity insured by Life of Virginia as calculated based on the criteria defined in Schedule D. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -2- ARTICLE VI - PREMIUM ACCOUNTING A. Reinsurance premiums shall be paid on a monthly basis. On or before the Due Date (as defined in Paragraph B), Life of Virginia shall forward to Connecticut General its statement of account as set forth in Schedule E together with its remittance for the net amount due as shown therein as well as any premium adjustments from the prior month. If the statement shows a balance due Life of Virginia, Reinsurer shall remit that amount to Life of Virginia on or before the Remittance Date (the date occurring thirty days after the Due Date). All outstanding balances due and unpaid beyond the Remittance Date shall be subject to an annual interest charge on the unpaid balance from the Due Date as specified in this Article to the date of payment. B. For the purposes of this Agreement the Due Date for Reinsurer's receipt of the statement of account and premium due is the twentieth (20th) day following the close of any reporting period. The payment of reinsurance premiums in accordance with the provisions herein shall be a condition precedent to the liability of Reinsurer for reinsurance covered by this Agreement. In the event that reinsurance premiums are not received by Reinsurer as of the Due Date following the close of the reporting period in which they fall due, Reinsurer will notify Life of Virginia that such premiums are due and unpaid, and Life of Virginia will remit the premium on or before the Remittance Date. In the event that the premiums are not paid by the Remittance Date, Reinsurer shall have the right to give Life of Virginia notice of termination of such reinsurance immediately. C. Whether or not Reinsurer exercises its right to terminate the reinsurance as specified in the preceding paragraph, all such outstanding premiums shall be subject to an annual interest charge on the unpaid balance from the Due Date to the date of payment. Such interest charge shall be at the three (3) month LIBOR Rate (as published in the Wall Street Journal), plus .01, determined on the first business day following the end of the 60 day notice period. The settlement is considered overdue at the end of the 60 day notice period and interest shall commence from the overdue date. D. If reinsurance is terminated as provided in paragraph B, and if all reinsurance premiums in default and any additional charge due in accordance with paragraph B, including such premiums and charges which may become in default are not paid by the Remittance Date, Reinsurer shall thereupon be relieved automatically of future liability under all reinsurance for which premiums and other charges remain unpaid. New and existing Reinsurance for which premiums subsequently fall due will terminate automatically if reinsurance premiums are not paid when due as provided in paragraph B of this Article. The reinsurance so terminated may be reinstated at any time within sixty days of the date of termination upon payment of all reinsurance premiums and other charges in arrears; but in the event of such reinstatement, Reinsurer shall have no liability in connection with any claims incurred between the date of termination and the date of reinstatement of the reinsurance. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -3- E. Not withstanding termination of reinsurance as provided herein, Life of Virginia shall continue to be liable to Reinsurer for all unpaid reinsurance premiums earned by Reinsurer under this Agreement. Such premiums are subject to an annual interest charge as specified in paragraph C above. ARTICLE VII - CLAIMS Life of Virginia is solely responsible for payment of its claims under the Policies and underlying variable annuity contracts identified on Schedule B. Life of Virginia shall provide written notice to Connecticut General of any Claim which may impact the reinsurance coverage under this Agreement, including but not limited to Life of Virginia's intent to contest or deny a claim, within thirty (30) calendar days of receipt of notification of Claim. Life of Virginia shall also provide prompt notice to Connecticut General of all subsequent significant developments relating to such Claim. Inadvertent oversight or omission in the provision of such notice shall not relieve Connecticut General of liability provided Life of Virginia informs Connecticut General of such oversight or omission promptly upon its discovery. Life of Virginia shall provide Connecticut General with proof of claim, proof of claim payment and any other claim documentation requested by Connecticut General in accordance with Schedule E. Payment of reinsurance shall be made by Connecticut General in one sum regardless of the method of payment by Life of Virginia and within thirty (30) calendar days following receipt of required claim documentation. Life of Virginia shall notify Connecticut General of its intention to contest or deny a claim which may involve the reinsurance coverage under this Agreement before any notice of contest or denial is provided to the claimant. Connecticut General shall then have thirty (30) calendar days within which to advise Life of Virginia whether it agrees that the claim should be contested or denied. If Connecticut General does not agree that the claim should be contested or denied, then it shall pay to Life of Virginia the full amount of the reinsurance on the risk reinsured, as set forth in this Agreement, and Connecticut General shall have no further obligation in respect to such claim. If Connecticut General agrees that the claim should be contested or denied, then Connecticut General shall pay its share of the following in accordance with its share of liability as set forth in this Agreement: . Expenses incurred by Life of Virginia in investigating, contesting litigating or otherwise resisting the Claim, excluding salaries and expenses of employees, officers and agents of Life of Virginia and ordinary expenses of Life of Virginia, and costs of third party administrators acting on behalf of Life of Virginia; and . Interest which is paid by Life of Virginia in respect of the Claim. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -4- If the denial of a Claim results in an award verdict or judgment against Life of Virginia, where Connecticut General has agreed with the claim denial and Life of Virginia intends to appeal the verdict or judgment, written notice of the intention to appeal shall be provided to Connecticut General. Connecticut General shall be entitled at that time to pay its share of the judgment, together with any expenses and interest as set forth above, and to have no further obligation in connection with such Claim. If Connecticut General does not pay its share of the judgment and any expenses and interest due at that time, Connecticut General shall pay its share of the expenses associated with the appeal of the judgment or verdict, together with its share of any additional interest charges that may accrue during the appeal. ARTICLE VIII - RESERVES The reserve held by Connecticut General for reinsurance of the variable annuity death benefit will be determined in accordance with the NAIC Actuarial Guideline XXXIV, but in no event less than the recognized statutory required reserve. If at any time, the statutory requirements as mandated by Connecticut Insurance Department include a one-third drop, Connecticut General will hold these reserves in exchange for an extra charge as defined in Schedule D. ARTICLE IX - EXTRA CONTRACTUAL OBLIGATIONS A. In no event shall Connecticut General be liable for extra contractual damages (whether they constitute Compensatory damages, Statutory penalties, Exemplary or Punitive damages) which are awarded against Life of Virginia as a result of an act, omission or course of conduct by Life of Virginia in connection with policies subject to this Agreement, unless Connecticut General shall have received notice in writing of and concurred with the actions taken or not taken by Life of Virginia which led to its liability, in which case Connecticut General shall pay its share of such liability. For this purpose, Connecticut General's share shall be proportionate with its risk under the business reinsured hereunder. B. The following definitions shall apply: (1) Punitive damages and Exemplary damages are those damages awarded as a penalty, the amount of which is not governed nor fixed by statute. (2) Statutory penalties are those amounts which are awarded as a penalty but fixed in amount by statute. (3) Compensatory damages are those amounts awarded to compensate for the actual damages sustained and are not awarded as a penalty nor fixed in amount by statute. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -5- ARTICLE X - LITIGATION In the event of any action brought against Life of Virginia under any Underlying Annuity Contract that is subject to the terms and conditions of this Agreement, Life of Virginia shall provide a copy of such action and written notice of such action within ten (10) business days to Connecticut General. If Connecticut General is a party to action brought against Life of Virginia, Life of Virginia shall seek agreement by Connecticut General on the selection and appointment of local counsel to represent Life of Virginia in such action. ARTICLE XI - OFFSET Either party shall have, and may exercise at any time and from time to time, the right to offset any balance or amounts whether on account of premiums or on account of losses or otherwise, due from one party to the other under the terms of this Agreement. However, in the event of insolvency of Life of Virginia subject to the provisions of Article XVI, offset shall only be allowed in accordance with the statutes and/or regulations of the state having jurisdiction over the insolvency. ARTICLE XII - ACCESS TO RECORDS Connecticut General, or its duly authorized representative, shall have access at any reasonable time during regular business hours, to all records of Life of Virginia, including the right to photocopy and retain copies of such documents, which pertain in any way to this reinsurance. The right of access shall survive the termination of this Agreement. Life of Virginia and Connecticut General may come into the possession or knowledge of Confidential Information of the other in fulfilling obligations under this Agreement. Each party agrees to hold such confidential information in the strictest confidence and to take all reasonable steps to ensure that such Confidential Information is not disclosed in any form by any means by each of them or by any of its employees to third parties of any kind, other than attorneys, accountants, other consultants or retrocessionaires having an interest in such information, except by advance written authorization by an officer of the authorizing party; provided, however, that either party will be deemed to have satisfied its obligations as to the Confidential Information by protecting its confidentiality in the same manner that such party protects its own proprietary or confidential information of like kind which shall be at least a reasonable manner. "Confidential information" means any information which (1) is not generally available to or known by the public, or (2) has not been lawfully obtained or developed by either party independently and not in violation of this Agreement or from any source other than the other party, provided that such source is not bound by a duty of confidentiality to such other party, and which consists of: -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -6- A. Information or knowledge about each party's products, processes, services, finances, customers, research, computer programs, marketing and business plans, claims management practices; and B. Any medical or other personal, individually identifiable information about people or business entities with whom the parties do business, including customers, prospective customers, vendors, suppliers, individuals covered by insurance plan, and each party's producers and employees. ARTICLE XIII - DELAYS, ERRORS OR OMISSIONS No accidental delay, errors or omissions on the part of Life of Virginia shall relieve Connecticut General of liability provided immediate notice of such delay, errors or omissions is provided to Connecticut General and are rectified as soon as possible after discovery. However, Connecticut General shall not be liable with respect to any reinsurance which may have been inadvertently included in the premium computation but which ought not to have been included by reason of the terms and conditions of this Agreement. It is expressly understood and agreed that if failure to comply with any terms of this Agreement is shown to be unintentional or the result of misunderstanding or oversight on the part of either party, both parties shall be restored to the position they would have occupied had no such error or oversight occurred, subject always to the correction of the error or oversight. ARTICLE XIV - CURRENCY All retentions and limits hereunder are expressed in United States dollars and all premium and loss payments shall be made in United States currency. For the purposes of this Agreement, amounts paid or received by Connecticut General in any other currency shall be converted into United States dollars at the rates of exchange on the date such transactions are entered on the books of Connecticut General. ARTICLE XV - HOLD HARMLESS A. Connecticut General shall indemnify and hold Life of Virginia harmless from any and all liability, loss, damage, fines, punitive damages, penalties and costs, including expenses and attorney's fees, which results from any negligence or willful misconduct of Connecticut General in fulfilling its duties and obligations under this Agreement or which results from any action which exceeds its authority under this Agreement. B. Life of Virginia shall indemnify and hold Connecticut General harmless from any and all liability, loss, damage, fines, punitive damages, penalties and costs, including expenses and -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -7- attorney's fees, which results from any negligence or willful misconduct of Life of Virginia in fulfilling its duties and obligations under this Agreement or which results from any action which exceeds its authority under this Agreement. ARTICLE XVI - INSOLVENCY In the event of insolvency of Life of Virginia, the reinsurance under this Agreement shall be payable directly by Connecticut General to Life of Virginia or to its liquidator, receiver, conservator or statutory successor on the basis of Connecticut General's liability to Life of Virginia without diminution because of the insolvency of Life of Virginia or because the liquidator, receiver, conservator or statutory successor of Life of Virginia has failed to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of Life of Virginia shall give prompt written notice to Connecticut General of the pendency of a claim against Life of Virginia within a reasonable time after such claim is filed in the receivership, conservation, insolvency or liquidation proceeding and that during the pendency of such claim, Connecticut General may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to Life of Virginia or its liquidator, receiver, conservator or statutory successor. The expense thus incurred by Connecticut General shall be chargeable, subject to the approval of the Court, against Life of Virginia as part of the expense of conservation or liquidation to the extent of a pro-rata share of the benefit which may accrue to Life of Virginia solely as a result of the defense undertaken by Connecticut General. Where two or more reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of this Agreement as though such expense had been incurred by Life of Virginia. ARTICLE XVII - ARBITRATION A. As a condition precedent to any right of action hereunder, any dispute between the parties with respect to the interpretation of this Agreement or any right, obligation or liability of either party, whether such dispute arises before or after termination of this Agreement, shall be submitted to arbitration upon the written request of either party. Each party shall select an arbitrator within thirty (30) days of the written request for arbitration. If either party refuses or neglects to appoint an arbitrator within thirty (30) days of the written request for arbitration, the other party may appoint the second arbitrator. The two arbitrators shall select an umpire within thirty (30) days of the appointment of the second arbitrator. If the two arbitrators fail to agree on the selection of the umpire within thirty (30) days of the appointment of the second arbitrator, each arbitrator shall submit to the other a list of three umpire candidates, each arbitrator shall select one name from the list submitted by the other and the umpire shall be selected from the two names chosen by a lot drawing procedure to be agreed upon by the arbitrators. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -8- B. The arbitrators and the umpire all shall be active or retired, executive officers of insurance or reinsurance companies and the umpire shall be disinterested. C. The arbitration panel shall interpret this Agreement as an honorable engagement rather than merely as a legal obligation and shall make its decision considering the custom and practice of the applicable insurance and reinsurance business. The arbitration panel is released from judicial formalities and shall not be bound by strict rules of procedure and evidence. D. The decision of the arbitration panel shall be final and binding on both parties. The arbitration panel may, at its discretion, award costs and expenses as it deems appropriate, including, but not limited to, attorneys' fees, interest and punitive damages. Judgment may be entered upon the final decision of the arbitration panel in any court of competent jurisdiction. E. All meetings and hearings before the arbitration panel shall take place in Hartford, Connecticut unless some other place is mutually agreed upon by both parties or ordered by the panel. F. In the absence of a decision to the contrary by the arbitration panel, each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the expense of the umpire and of the arbitration. ARTICLE XVIII - DAC TAX REGULATION ELECTION Connecticut General and Life of Virginia hereby agree to make an election pursuant to Internal Revenue Code Regulation Section 1.848-2(g)(8). This election shall be effective for all taxable years for which the Reinsurance Agreement remains in effect. The terms used in this article are defined by reference to Regulation Section 1.848-2 promulgated on December 28, 1992. Connecticut General and Life of Virginia agree that the entity with net positive consideration for the reinsurance agreement for each taxable year will capitalize specified policy acquisition expenses with respect to the reinsurance agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code of 1986, as amended. Connecticut General and Life of Virginia agree to exchange information pertaining to the amount of net consideration under the reinsurance agreement each year to ensure consistency. To achieve this, Life of Virginia shall provide Connecticut General with a schedule of its calculation of the net consideration for all reinsurance agreements in force between them for a taxable year by no later than April 30 of the succeeding year. Connecticut General shall advise Life of Virginia if it disagrees with the amounts provided by no later than May 31, otherwise the amounts will be -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -9- presumed correct and shall be reported by both parties in their respective tax returns for such tax year. If Connecticut General contests Life of Virginia's calculation of the net consideration, the Parties agree to act in good faith to resolve any differences within thirty (30) days of the date Connecticut General submits its alternative calculation and report the amounts agreed upon in their respective tax returns for such tax year. Connecticut General represents and warrants that it is subject to U.S. taxation under either Subchapter L or Subpart F of Part III of Subchapter N of the Internal Revenue Code of 1986, as amended. ARTICLE XIX - EFFECTIVE DATE, TERM AND TERMINATION A. The effective date of this Agreement is August 1, 1997. This Agreement remains effective for all annuity contracts subject to this Agreement written by Life of Virginia through July 31, 2000, unless terminated pursuant to the paragraphs listed below. B. Once each calendar year, Life of Virginia shall have the option to recapture existing contracts beginning with the twentieth (20th) anniversary of their reinsurance hereunder. Recapture must be made on an issue year basis, and no contracts can be recaptured unless all contracts with earlier issue years are recaptured. C. Connecticut General shall have the option of terminating this Agreement for new business upon delivery of thirty (30) calendar days written notice to Life of Virginia, within thirty (30) days of the happening of any of the following events: (1) Life of Virginia's A. M. Best rating is reduced to a "C" or lower. (2) Life of Virginia's domiciliary state's insurance regulators take any regulatory action potentially adversely affecting its license to conduct business, including without limitation placement on a "watch list;" (3) An order appointing a receiver, conservator or trustee for management of Life of Virginia is entered or a proceeding is commenced for rehabilitation, liquidation, supervision or conservation of Life of Virginia; (4) Life of Virginia withdraws from or substantially reduces the active marketing of policy forms identified in Schedule B. (5) The Securities and Exchange Commission takes any regulatory action with respect to Life of Virginia that potentially adversely affects its conduct of business. D. Connecticut General shall have the option of terminating this Agreement for new and existing business should Life of Virginia fail to pay premium in accordance with Article V and VI. If, -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -10- during the thirty (30) days notice period, Connecticut General receives all premiums in arrears and all premiums which may become due within the thirty (30) days notice period, the notice of termination shall be deemed withdrawn. In the event of termination under this paragraph, this Agreement may be reinstated upon the written consent of Connecticut General if, at any time within sixty (60) days of termination, Life of Virginia pays and Connecticut General receives all premiums due and payable up to the date of reinstatement. E. Life of Virginia shall have the option of terminating this Agreement for new business upon delivery of thirty (30) calendar days written notice to Connecticut General, within thirty (30) days of the happening of any of the following events: (1) Connecticut General's A. M. Best rating is reduced to a "C" or lower; (2) Connecticut General is placed upon a "watch list" by its domiciliary state's insurance regulators; (3) An order appointing a receiver, conservator or trustee for management of Connecticut General is entered or a proceeding is commenced for rehabilitation, liquidation, supervision or conservation of Connecticut General; F. If this Agreement is terminated for new and existing business, Connecticut General shall be relieved of all liability to Life of Virginia for claims incurred following the termination date of this Agreement under such underlying annuity contracts issued by Life of Virginia; and, G. If this Agreement is terminated for new business only, Connecticut General will remain liable, after termination, in accordance with the terms and conditions of this Agreement, with respect to all reinsurance effective prior to termination of the Agreement for new business. H. Both parties shall continue to be entitled to all offset credits provided by Article XI up to the effective date of termination. I. Life of Virginia shall not have the right to assign or transfer any portion of the rights, duties and obligations of Life of Virginia under the terms and conditions of this Agreement without the written approval of Connecticut General, which shall not be unreasonably withheld. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -11- ARTICLE XX - NOTICES All notices required to be given hereunder shall be in writing and shall be deemed delivered if personally delivered, sent via facsimile, or dispatched by certified or registered mail, return receipt requested, postage prepaid, addressed to the parties as follows: John G. Metz Phone No. (804) 281-6327 Vice President Fax No. (804) 281-6916 The Life Insurance Company of Virginia 6610 West Broad Street, P.O. Box 27601 Richmond, VA 23261 Inger S. Harrington, FSA Phone No. 860.726.4516 Assistant Vice President and Actuary Fax No. 860.726.3153 CIGNA Reinsurance 800 Cottage Grove Road Hartford, CT 06152-4026 Notice shall be deemed given on the date it is received in the mail or sent via facsimile in accordance with the foregoing. Any party may change the address to which to send notices by notifying the other party of such change of address in writing in accordance with the foregoing. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -12- The text of this Agreement and all Exhibits, Schedules and Amendments are considered to be the entire contract between the parties. There are no other understandings or agreements between the parties regarding the policies reinsured other than as expressed in this Agreement. Either party may make changes or additions to this Agreement, but they will not be considered to be in effect unless they are made by means of a written amendment which has been signed by both parties. In witness whereof, the parties hereto have caused this Agreement to be signed in duplicate on the dates indicated to be effective as of the date specified above. THE LIFE INSURANCE COMPANY OF VIRGINIA By: /s/ Illegible -------------------------------------- Date: April 21, 1998 CONNECTICUT GENERAL LIFE INSURANCE COMPANY By: /s/ Illegible -------------------------------------- Date: April 15, 1998 -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company -13- SCHEDULE A Maximum Limits of Reinsurance in Connecticut General Connecticut General requires prior notification of any annuity purchase in excess of $5,000,000.00 per annuitant/owner. Upon receipt of such notification, Connecticut General then has the obligation to notify Life of Virginia within 15 days of its decision to accept or not accept the reinsurance risk for such an annuity purchase. Should Connecticut General not respond within 15 days, it shall be deemed that Connecticut General does not agree to accept such risk. The purchase amount is the sum of all premium contributions less withdrawals in the contract. For purchase amounts in excess of the maximum, Connecticut General's death benefit liability will be reduced by the ratio of purchase amounts in excess of the maximum to the total purchase amounts. Guaranteed Minimum Death Benefit The Guaranteed Minimum Death Benefit (GMDB) reinsured hereunder is as follows: Standard Annuity GMDB, sometimes referred to as Six Year Ratchet, will be the greater of (1) the minimum death benefit described below; or (2) the Account Value on the date Life of Virginia received due proof of death of the Annuitant. During the first six policy years, or if the Annuitant was age 81 or older on the policy date, the minimum death benefit is the total of premiums paid, less adjustments for any partial surrenders. During any subsequent six year period if the Annuitant was age 80 or younger on the policy date, the minimum death benefit on the last day of the previous six year period, plus any premiums paid since that day, less adjustments for any partial surrenders since that day. The following options will be available at issue if the Annuitant is age 75 or younger and either Rider may be purchased with the Contract, but not both Riders. A Rider may be cancelled at any time, effective at next policy anniversary; however, if cancelled, the Rider may not be subsequently added. If any of the following elective death benefit options are purchased, the GMDB may include the following: Elective GMDB Rider, sometimes referred to as Six Percent Roll-Up, will be the greater of; (1) the Six Year Ratchet, and (2) the greater of (A) the GMDB, and (B) the Account Value of the Policy on the date Life of Virginia receives proof of the Annuitant's death, or, if later the date of the request. The GMDB is, on the policy date, equal to the premium paid. At the end of each -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE A valuation period after such date, the GMDB is the lesser of: (1) the total of all premiums received, multiplied by two, less the amount of any partial surrenders made prior to or during that valuation period; or (2) the GMDB at the end of the preceding valuation period, increased as specified below, plus any additional premium payments during the current valuation period and less any partial surrenders plus their applicable surrender charges during the current valuation period. The amount of the increase for the valuation period will be calculated by applying a factor to the GMDB at the end of the preceding valuation period. Until the anniversary on which the Annuitant attains age 80, the factor is determined for each valuation period at an effective annual rate of six (6) percent. Elective Optional Death Benefit Rider, sometimes referred to as the Annual Step-Up benefit, is the greater of: (1) the Six Year Ratchet and (2) the minimum death benefit, which, during the first policy year, the minimum death benefit is the total of premiums paid, adjusted for any partial surrenders. After the first policy year and until the policy anniversary immediately preceding the Annuitant's 81st birthday, the minimum death benefit is the policy's greatest death benefit on any previous p9olicy anniversary, plus the total premium payments made since that date, less adjustments for any partial surrenders taken since that date. Beginning on the policy anniversary immediately preceding the Annuitant's 81st birthday, the minimum death benefit is the policy's minimum death benefit on that date, plus the total premium payments made since that date, less adjustments for any partial surrenders taken since that date. Additional Enhancement Benefit, sometimes referred to as Enhanced Benefit, will be the greatest of the Standard Annuity GMDB (the Six Year Ratchet) described above, the Elective GMDB Rider (Six Year Ratchet and Six Percent Roll-Up) described above, and the Elective Optional Death Benefit Rider (the Annual Step-Up benefit) described above. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE A SCHEDULE B Contracts and Funds Subject to this Reinsurance Agreement Form Number* Policy Description Date ----------- ------------------ ---- P1143 4/94 Separate Account 4 5/1/97 (F.13739) Flexible Premium Variable Deferred Annuity Policy "Commonwealth VA Plus" P1143 4/94 Supplement dated July 16, 1997 8/1/97 P5115 Supplement Dated July 25, 1997 8/1/97 * Includes all state variations Fund Description Variable Insurance Products Fund Janus Aspen Series VIP Equity-Income Portfolio Growth Portfolio VIP Overseas Portfolio Aggressive Growth Portfolio Worldwide Growth Portfolio Variable Insurance Products Fund II International Growth Portfolio VIP Asset Manager Portfolio Balanced Portfolio VIP Contrafund Portfolio Flexible Income Portfolio Capital Appreciation Portfolio GE Investments Funds, Inc. Money Market Fund Federated Insurance Series Government Securities Fund Federated Utility Fund II S&P 500 Index Fund Federated High Income Bond Fund II Total Return Fund Federated American Leaders Fund II International Equity Fund Real Estate Securities Fund The Alger American Fund Global Income Fund Alger American Small Capitalization Portfolio Value Equity Fund Alger American Growth Portfolio Oppenheimer Variable Account Funds PBHG Insurance Series Fund, Inc. Oppenheimer High Income Fund Growth II Portfolio Oppenheimer Bond Fund Large Cap Growth Portfolio Oppenheimer Capital Appreciation Fund Oppenheimer Growth Fund Variable Insurance Products Fund III Oppenheimer Multiple Strategies Fund VIP Growth & Income Portfolio VIP Growth Opportunities Portfolio -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE B SCHEDULE C Limits and Rules of Life of Virginia 1) Life of Virginia will determine the Guaranteed Minimum Death Benefit for each deceased within seven (7) working days of receiving due proof of death. 2) The minimum initial purchase payment is $5,000. Additional premium payments of at least $500 for Non-Qualified Policies of $100 for Qualified Policies or $50 for IRA Policies may be made any time before Income Payments begin. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE C SCHEDULE D Reinsurance Premiums 1. The reinsurance premiums shall be based on the Annuitant's age at the end of each month. Life of Virginia shall determine the Annuitant's age at the time it prepares the monthly exposure data submission for the variable annuity guaranteed death benefit, as set forth in Schedule E, attached hereto. 2. The Adjusted Aggregate Contract Value is the sum of the contract values in all of Life of Virginia's variable annuities subject to this Agreement, minus contract values attributable to amounts in excess of the maximum purchase amounts listed in Schedule A. 3. The amount at risk each month will be calculated as the reinsurance death benefit for each variable annuity contract covered under this agreement. For determining the amount at risk, the guaranteed minimum death benefit and the contract value are calculated as the average of the values at the end of the current month and the end of the prior month. The amount at risk cannot fall below zero 4. Subject to the funds set forth in Schedule B, the premium over each calendar month will be equivalent to fifty (50) percent of the Age Adjusted Aggregate Contract Values times: A. Monthly, 0.467 basis points for the Standard Annuity GMDB (5.6 bps annually) for all attained ages for the Six Year Ratchet product and 1.2 basis points (14.4 bps annually) for issues with an attained age greater than 80 for the Six Year Ratchet benefit; however, 1. Where the Elective GMDB Rider is selected, the premium over each calendar month for all ages will be at least equivalent to the Age Adjusted Aggregate Contract Values times 1.667 basis points (20.0 bps annually) for the greater of the Six Year Ratchet and 6% Roll-Up benefit; 2. Where the Elective Optional Death Benefit Rider is selected, the premium over each calendar month for all ages will be at least equivalent to the Age Adjusted Aggregate Contract Value times 1.083 basis points (13 bps annually) for the Annual Step-Up benefit; 3. Where the Additional Enhancement Benefit is elected, the premium over each calendar month for all ages will be at least equivalent to the Age Adjusted Aggregate Contract Values times 2.167 basis points (26.0 bps annually) for the greatest of the Six Year Ratchet; Six Year Ratchet and 6% Roll-Up Option; or the Six Year Ratchet with Annual Ratchet Rider, sometimes referred to as the Enhanced Benefit. 5. All reinsurance premium rates, regardless of GMDB selection, assume a dollar-for-dollar reduction in death benefits for partial withdrawals from Account Value. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE D SCHEDULE E Monthly Reporting Format 1. Following the end of each calendar month, the Monthly Input Page, Fund/Exposure-Based exhibit (Schedule E-1) and the Monthly Transaction Summaries (Schedule E-2, E-3, E-4 and E-5) or an exhibit of similar form must be prepared for each Qualified plan and Non-Qualified plan separately. 2. The tabulation should be on an Adjusted Basis, which requires omission of excess contract values due to an issue amount in excess of $5 million. 3. The tabulation is on a seriatim basis, with each contract contributing toward the totals for both exposure and aggregate contract value. 4. The tabulation is necessary to assess the correct amount at risk for accurate calculation of reinsurance premium. Life of Virginia can choose to report values a) as weighted averages during the month, or b) as of the end of the month. This election must be denoted on the submission. 5. At year end reporting, a tabulation of exposures by age and sex based on a percentage decrease in account value by fund type as specified by the NAIC must be submitted for reserve purposes. -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Effective 8/1/97 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE E VARIABLE ANNUITY DEATH BENEFIT Monthly Input Page ----------- Calendar Year ----------- Reporting Month -----------
Male Female Male Female Male Female Male Female Age Band Exposure* Exposure* Annuity Value Annuity Value Claims Claims GMDB GMDB ---------- --------- --------- ------------- ------------- ------ ------ ---- ------ --------------------------------------------------------------------------------------- 0 - 34 --------------------------------------------------------------------------------------- 35 - 39 --------------------------------------------------------------------------------------- 40 - 44 --------------------------------------------------------------------------------------- 45 - 49 --------------------------------------------------------------------------------------- 50 - 54 --------------------------------------------------------------------------------------- 55 - 59 --------------------------------------------------------------------------------------- 60 - 64 --------------------------------------------------------------------------------------- 65 - 69 --------------------------------------------------------------------------------------- 70 - 74 --------------------------------------------------------------------------------------- 75 - 79 --------------------------------------------------------------------------------------- 80 - 84 --------------------------------------------------------------------------------------- 85 - 89 --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- Total 0-79 --------------------------------------------------------------------------------------- 80+ --------------------------------------------------------------------------------------- Total Male/Female --------- ------------- ------ ------ Total 0-79 --------- ------------- ------ ------ Total 80+ --------- ------------- ------ ------ Grand Total --------- ------------- ------ ------
Please use end of the period values. * Exposure is defined as GMDB less Anuity Account Value, calculated on a seriatum basis and aggregated. -------------------------------------------------------------------------------- Life Insurance Company of Virginia [LOGO] CVA Plus Variable Annuity CIGNA Reinsurance Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE E-1 VARIABLE ANNUITY DEATH BENEFIT Monthly Transcation Summary STANDARD DEATH BENEFIT GMDB ----------- Calendar Year ----------- Reporting Month ----------- Monthly Reinsurance Premium Calculation For All Attained Ages ----------- 1 Adjusted Aggregate Contract Value (BOM) ----------- 2 Adjusted Aggregate Contract Value (EOM) ----------- 3 Average Annuity Value ----------- 4 Monthly Fund Based Premium Rate 0.00004667 ----------- 5 Monthly Earned Premium ----------- 6 Net Premium Due ----------- For Attained Ages 80 and Above ----------- 7 Adjusted Aggregate Contract Value (BOM) ----------- 8 Adjusted Aggregate Contract Value (EOM) ----------- 9 Average Annuity Value ----------- 10 Monthly Fund Based Premium Rate 0.00012000 ----------- 11 Monthly Earned Premium ----------- 12 Net Premium Due ----------- 13 Total Net Premium Due All Ages Actual Claims ----------- 14 Monthly Reinsurance Amount* ----------- Net Transaction ----------- 15 Premium Due Reinsurer ----------- 16 Monthly Reinsurance Claims ----------- 17 Prior Adjustment (attach explanation) ----------- 18 Amount Due to (from) Reinsurer ----------- * Monthly Reinsurance Amount is defined as the aggregate sum of all claims settled during a Month. -------------------------------------------------------------------------------- Life Insurance Company of Virginia [LOGO] CVA Plus Variable Annuity CIGNA Reinsurance Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE E-2 VARIABLE ANNUITY DEATH BENEFIT Monthly Transcation Summary ELECTIVE GMDB RIDER ----------- Calendar Year ----------- Reporting Month ----------- Monthly Reinsurance Premium Calculation ----------- 1 Adjusted Aggregate Contract Value (BOQ) ----------- 2 Adjusted Aggregate Contract Value (EOQ) ----------- 3 Average Annuity Value [(1 +2)/2] ----------- 4 Monthly Fund Based Premium Rate 0.00016667 ----------- 5 Monthly Earned Premium [3*4] ----------- 6 Advanced Premium Current Month [2*4] ----------- 7 Net Premium Due [5+6] ----------- Actual Claims ----------- 8 Monthly Reinsurance Amount* ----------- Net Transaction ----------- 9 Premium Due Reinsurer [Sum 7] ----------- 10 Monthly Reinsurance Claims [Sum 8] ----------- 11 Prior Adjustment (attach explanation) ----------- 12 Amount Due to (from) Reinsurer [9-10+11] ----------- * Monthly Reinsurance Amount is defined as the aggregate sum of all claims settled during a Month. -------------------------------------------------------------------------------- Life Insurance Company of Virginia [LOGO] CVA Plus Variable Annuity CIGNA Reinsurance Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE E-3 VARIABLE ANNUITY DEATH BENEFIT Monthly Transcation Summary ELECTIVE OPTIONAL GMDB RIDER ----------- Calendar Year ----------- Reporting Month ----------- Monthly Reinsurance Premium Calculation ----------- 1 Adjusted Aggregate Contract Value (BOM) ----------- 2 Adjusted Aggregate Contract Value (EOM) ----------- 3 Average Annuity Value [(1+2)/2] ----------- 4 Monthly Fund Based Premium Rate 0.00010833 ----------- 5 Monthly Earned Premium [3*4] ----------- 6 Advanced Premium Current Month [2*4] ----------- 7 Net Premium Due [5+6] ----------- Actual Claims ----------- 8 Monthly Reinsurance Amount* ----------- Net Transaction ----------- 9 Premium Due Reinsurer [Sum 7] ----------- 10 Monthly Reinsurance Claims [Sum 8] ----------- 11 Prior Adjustment (attach explanation) ----------- 12 Amount Due to (from) Reinsurer [9-10+11] ----------- * Monthly Reinsurance Amount is defined as the aggregate sum of all claims settled during a Month. -------------------------------------------------------------------------------- Life Insurance Company of Virginia [LOGO] CVA Plus Variable Annuity CIGNA Reinsurance Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE E-4 VARIABLE ANNUITY DEATH BENEFIT Monthly Transcation Summary ADDITIONAL ENHANCEMENT GMDB RIDER ----------- Calendar Year ----------- Reporting Month ----------- Monthly Reinsurance Premium Calculation ----------- 1 Adjusted Aggregate Contract Value (BOM) ----------- 2 Adjusted Aggregate Contract Value (EOM) ----------- 3 Average Annuity Value [(1+2)/2] ----------- 4 Monthly Fund Based Premium Rate 0.00021667 ----------- 5 Monthly Earned Premium [3*4] ----------- 6 Advanced Premium Current Month [2*4] ----------- 7 Net Premium Due [5+6] ----------- Actual Claims ----------- 8 Monthly Reinsurance Amount* ----------- Net Transaction ----------- 9 Premium Due Reinsurer [Sum 7] ----------- 10 Monthly Reinsurance Claims [Sum 8] ----------- 11 Prior Adjustment (attach explanation) ----------- 12 Amount Due to (from) Reinsurer [9-10+11] ----------- * Monthly Reinsurance Amount is defined as the aggregate sum of all claims settled during a Month. -------------------------------------------------------------------------------- Life Insurance Company of Virginia [LOGO] CVA Plus Variable Annuity CIGNA Reinsurance Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE E-5 AMENDMENT NO. 1 To the Variable Annuity Reinsurance Agreement between THE LIFE INSURANCE COMPANY OF VIRGINIA and CONNECTICUT GENERAL LIFE INSURANCE COMPANY It is agreed by the two companies as follows: 1. To amend Schedule B of the Agreement. Therefore, the attached Schedule B shall be substituted for the corresponding Schedule B of the Agreement. 2. All other terms and conditions of the Agreement shall remain in full force and effect and shall be applicable to the products identified in Article II as amended. 3. This Amendment shall be effective May 1, 1998. In witness whereof, this amendment is signed in duplicate on the dates indicated at the home office of each company. THE LIFE INSURANCE COMPANY OF VIRGINIA By: /s/ Illegible ------------------------------------------ Date: June 24, 1998 CONNECTICUT GENERAL LIFE INSURANCE COMPANY By: /s/ Illegible ------------------------------------------ Date: June 14, 1998 -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Amendment No. 1 Effective 5/1/98 Treaty No. 103072 Connecticut General Life Insurance Company SCHEDULE B Contracts and Funds Subject to this Reinsurance Agreement Form Number* Policy Description Date ------------ ------------------------------------- ------ P1143 4/94 Separate Account 4 5/1/97 (F.13739) Flexible Premium Variable Deferred Annuity Policy "Commonwealth VA Plus" P1143 4/94 Supplement dated July 16, 1997 8/1/97 P5115 Supplement Dated July 25, 1997 8/1/97 * Includes all state variations Fund Description Variable Insurance Products Fund Janus Aspen Series VIP Equity-Income Portfolio Growth Portfolio VIP Overseas Portfolio Aggressive Growth Portfolio Worldwide Growth Portfolio Variable Insurance Products Fund II International Growth Portfolio VIP Asset Manager Portfolio Balanced Portfolio VIP Contrafund Portfolio Flexible Income Portfolio Capital Appreciation Portfolio GE Investments Funds, Inc. Money Market Fund Federated Insurance Series Government Securities Fund Federated Utility Fund II S&P 500 Index Fund Federated High Income Bond Fund II Total Return Fund Federated American Leaders Fund II International Equity Fund Real Estate Securities Fund The Alger American Fund Global Income Fund Alger American Small Capitalization Portfolio Value Equity Fund Alger American Growth Portfolio GEI US Equity PBHG Insurance Series Fund, Inc. Oppenheimer Aggressive Growth, Formerly Growth II Portfolio Oppenheimer Variable Account Funds Large Cap Growth Portfolio Oppenheimer High Income Fund Oppenheimer Bond Fund Variable Insurance Products Fund III Oppenheimer Capital Appreciation Fund VIP Growth & Income Portfolio Oppenheimer Growth Fund VIP Growth Opportunities Portfolio Oppenheimer Multiple Strategies Fund Goldman Sachs Fund GSF Growth and Income GSF Mid Cap Equity -------------------------------------------------------------------------------- The Life Insurance Company of Virginia [LOGO] Variable Annuity Death Benefit Reinsurance CIGNA Reinsurance Commonwealth VA Plus Treaty Amendment No.1 Effective 5/1/98 Treaty No. 103072 Connecticut General Life Insurance Company AMENDMENT NO. 2 To the Variable Annuity Reinsurance Agreement Effective Date of August 1, 1997 between GE LIFE AND ANNUITY ASSURANCE COMPANY (GE Life) (formerly THE LIFE INSURANCE COMPANY OF VIRGINIA) and CONNECTICUT GENERAL LIFE INSURANCE COMPANY It is agreed by the two companies as follows: 1. To amend Schedule B of the Agreement. Therefore, the attached Schedule B shall be substituted for the corresponding Schedule B of the Agreement. 2. To amend Article III, entitled Automatic Excess Reinsurance, of the Agreement. Therefore, the following language shall be substituted for the corresponding Article III of the Agreement: ARTICLE III - AUTOMATIC EXCESS REINSURANCE A. On and after the Effective Date of this Agreement, subject to the limit of Connecticut General's liability set forth in Schedule A and all other terms, conditions and limitations set forth in this Agreement and the Schedules attached to and made a part hereof, GE Life shall cede and Connecticut General shall accept fifty (50) percent of GE Life's guaranteed death benefit liability under the Variable Annuity Contracts, as described in Article II A. B. This Agreement covers only fifty (50) percent of GE Life's liability for claims paid under Variable Annuity Contracts written on forms and investment in funds which were reviewed by Connecticut General prior to their issuance. Forms, as supplemented by additional materials, and funds available as of the date of this Agreement are listed on Schedule B. If GE Life intends to cede to Connecticut General liability with respect to a new form or fund, or a revised version of an approved form or fund, it must provide to Connecticut General written notice of such intention together with a copy of the proposed form, fund or revision. Connecticut General shall have no liability pursuant to new or revised forms or funds unless and until Connecticut General provides written notice to GE Life that such new or revised forms or funds are acceptable. -------------------------------------------------------------------------------- GE Life and Annuity Assurance Company Variable Annuity Death Benefit Reinsurance Commonwealth VA Plus Treaty Amendment No. 2 Effective 5/1/98 Treaty No. 103072 C. GE Life shall provide written notice to Connecticut General of any changes in its published limits and rules identified on Schedule C, and Connecticut General shall have no liability pursuant to revised limits and rules unless and until Connecticut General provides written notice to GE Life that such revised limits and rules are acceptable. 3. All other terms and conditions of the Agreement shall remain in full force and effect and shall be applicable to the products identified in Article II as amended. 4. This Amendment shall be effective May 1, 1998. In witness whereof, this amendment is signed in duplicate on the dates indicated at the home office of each company. GE LIFE AND ANNUITY ASSURANCE COMPANY By: /s/ Brian W. Haynes --------------------------------- Name: Brian W. Haynes Title: Sr VP Date: June 21, 2002 CONNECTICUT GENERAL LIFE INSURANCE COMPANY By: /s/ Illegible --------------------------------- Name: David L. Swanson Title: Illegible Date: June 5, 2002 -------------------------------------------------------------------------------- GE Life and Annuity Assurance Company Variable Annuity Death Benefit Reinsurance Commonwealth VA Plus Treaty Amendment No. 2 Effective 5/1/98 Treaty No. 103072 SCHEDULE B Contracts and Funds Subject to this Reinsurance Agreement Form Number* Policy Description Date ------------ ------------------------------------- ------ P1143 4/94 Separate Account 4 5/1/97 (F.13739) Flexible Premium Variable Deferred Annuity Policy "Commonwealth VA Plus" P1143 4/94 Supplement dated July 16, 1997 8/1/97 P5115 Supplement Dated July 25, 1997 8/1/97 * Includes all state variations Fund Description Fidelity Variable Insurance Products Fund Janus Aspen Series VIP Equity-Income Portfolio Growth Portfolio VIP Overseas Portfolio Aggressive Growth Portfolio VIP growth Portfolio Worldwide Growth Portfolio International Growth Portfolio Fidelity Variable Insurance Products Fund II Balanced Portfolio VIP Asset Manager Portfolio Flexible Income Portfolio VIP Contrafund Portfolio Capital Appreciation Portfolio Global Life Sciences Portfoilo GE Investments Funds, Inc. Global Technology Portfolio Money Market Fund S&P 500 Index Fund Federated Insurance Series Total Return Fund Federated Utility Fund II International Equity Fund Federated High Income Bond Fund II Real Estate Securities Fund Federated American Leaders Fund II Global Income Fund Mid-Cap Value Equity Fund The Alger American Fund GEI US Equity Alger American Small Capitalization Portfolio Income Fund Alger American Growth Portfolio Premier Growth Equity Fund PBHG Insurance Series Fund, Inc. Oppenheimer Variable Account Funds Growth II Portfolio Oppenheimer High Income Fund Large Cap Growth Portfolio Oppenheimer Bond Fund Oppenheimer Capital Appreciation Fund Fidelity Variable Insurance Products Fund III Oppenheimer Aggressive Growth Fund VIP Growth & Income Portfolio Oppenheimer Multiple Strategies Fund VIP Growth Opportunities Portfolio Salomon Brothers Variable Series Funds Inc. Goldman Sachs Fund Salomon Investors Fund GSF Growth and Income Salomon Strategic Bond Fund GSF Mid Cap Equity Salomon Total Return Fund
-------------------------------------------------------------------------------- GE Life and Annuity Assurance Company Variable Annuity Death Benefit Reinsurance Commonwealth VA Plus Treaty Amendment No. 2 Effective 5/1/98 Treaty No. 103072