EX-10.13 2 d669885dex1013.txt AMENDMENT NO.8 TO REINSURANCE AGREEMENT Exhibit 10.13 Amendment Number 8 To the Reinsurance Agreement Effective January 1, 1984 between Allstate Life Insurance Company of New York (hereinafter called the "Ceding Company") and Allstate Life Insurance Company (hereinafter called the "Accepting Company") IT IS HEREBY AGREED, that the Reinsurance Agreement effective January 1, 1984, between the Ceding Company and the Accepting Company, as previously amended by Amendment Numbers 1 through 7 (hereinafter "Agreement") is hereby amended as provided below. A. Effective July 1, 2013, "Schedule A" of the Agreement is replaced with the attached "Schedule A (Revised, Effective 7/1/2013)" B. Effective July 1, 2013, "Schedule B" of the Agreement is replaced with the attached "Schedule B (Revised, Effective 7/1/2013)" This Amendment does not alter, amend or modify the Agreement other than as set forth in this Amendment, and it is subject otherwise to all the terms and conditions of the Agreement. IN WITNESS WHEREOF, the parties to the Agreement have caused this Amendment Number 8 to be duly executed by their respective officers on the dates shown below. ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK By: /s/ Samuel H. Pilch ------------------------------ Name: Samuel H. Pilch Title: Senior Group Vice President and Controller Date: ALLSTATE LIFE INSURANCE COMPANY By: /s/ Mario Rizzo ------------------------------ Name: Mario Rizzo Title: Senior Vice President and Treasurer Date: SCHEDULE A (Revised, Effective 6/30/2013) RETENTION LIMITS LIFE REINSURANCE Plan Types Issue Ages Standard - Table 16 ---------- ---------- ------------------- Single Life Plans 0-69 $2,000,000 Single Life Plans 70+ $2,000,000 Joint Life Plans All Ages $2,000,000 WAIVER OF PREMIUM REINSURANCE Maximum Amount Retained by Ceding Company: All Amounts Issued ACCIDENTAL DEATH BENEFIT Maximum Amount Retained by Ceding Company: Same as Life AMOUNT CESSION (One signature from among your Senior Underwriting Staff) --------------------------------------------------------- Issue Age Standard - Table 4 Table 5 - Table 6 Table 7 - Table 16 --------- ------------------ ----------------- ------------------ 18 - 75 $10,000,000 $10,000,000 $5,000,000 76 - 80 $ 2,000,000 $ 2,000,000 $ 0 81 - 85 $ 2,000,000 $ 0 $ 0 86+ $ 0 $ 0 $ 0 (Two signatures from among your Senior Underwriting Staff) ---------------------------------------------------------- Issue Age Standard - Table 4 Table 5 - Table 6 Table 7 - Table 16 --------- ------------------ ----------------- ------------------ 18 - 69 $45,000,000 $35,000,000 $20,000,000 70 - 75 $30,000,000 $30,000,000 $15,000,000 76 - 80 $20,000,000 $15,000,000 $10,000,000 81 - 85 $ 5,000,000 $ 0 $ 0 86+ $ 0 $ 0 $ 0 Jumbo Issue Ages Standard - Table 4 Table 5 - Table 16 ---------- ------------------ ------------------ 0 - 75 $65,000,000 $65,000,000 76 - 80 $40,000,000 $40,000,000 81 - 85 $30,000,000 $ 0 86+ $ 0 $ 0 SCHEDULE B (Revised, Effective 7/1/2013) LIFE INSURANCE; STANDARD RISKS FOR ALL PRODUCTS OTHER THAN LEGACY SECURE SL: --------------------------------------------- The YRT Rates are 70% of the 2001 Valuation Basic Table, ANB, Select and Ultimate, Gender and Smoker Distinct for standard risks and are per $1,000 of life benefit reinsured. Note: 1. Rates will be attached at end of this Exhibit FOR LEGACY SECURE SL ONLY: -------------------------- The renewal premiums per $1,000 reinsured are 70% of the attached 2001 VBT ANB Table for each issue age, prior to blending ("Frasierizing"). The YRT rates are guaranteed for one year. There is a minimum reinsurance premium of 15 cents per $1,000 reinsured in renewal years applied after the blending of the rates. Calculation of Blended COI rates (Frasierizing) ----------------------------------------------- The actuarial formula for last survivor mortality is: t-1px* t-1py*qx+t-1*qy+t-1 + t-1py* (1 - t-1px) *qy+t-1 + t-1px* (1 - t-1py)*qx+t-1 tqxy = ------------------------------------------------------------------------------------ (t-1px)(t-1py) + (t-1py)(1- t-1px) + (t-1px)(1 - t-1py)
The monthly COI rates for standard individuals are entered into tables in CK4, and blended to produce the COI rate for the last survivor mortality. The above formula is translated into COI calculations as follows: x = Primary insured (younger insured), defined by age, sex, and smoking class y = Joint insured (older insured), with same defining factors as the primary insured Rein Rate(x,t) - Reinsurance rate per 1000 for a single insured x, policy year t (taken from the attached 2001 VBT table) Rein Rate(y,t) - Reinsurance rate per 1000 for a single insured y, policy year t (taken from the attached 2001 VBT table) q(x,t) = [Rein Rate(x,t) * {(1 + % subst. per table)* # of tables subst. for x} + annual flat extra rating for x ] / 1000 (This amount not to exceed 1) q(y,t) = [Rein Rate(y,t) * {(1 + % subst. Per table)* # of tables subst. for y} + annual flat extra rating for y] / 1000 (This amount not to exceed 1) p(x,t) = 1-q(x,t) p(y,t) = 1-q(y,t) P(x,t) = 1 * p(x,1) * p(x,2) * p(x,3) * p(x,4) * ... p(x,t -1) P(y,t) = 1 * p(y,1) * p(y,2) * p(y,3) * p(y,4) * ... p(y,t -1) P(x,t)*P(y,t)*q(x,t)*q(y,t) + P(y,t)*(1-P(x,t))*q(y,t) + P(x,t)*(1-P(y,t))*q(x,t) p(xy,t) = ---------------------------------------------------------------------------------- P(x,t)*P(y,t) + P(x,t)*(1-P(y,t)) + P(y,t)*(1-P(x,t))
Rein Rate(xy,t) = p(xy,t)*1000 SCHEDULE B (Revised, Effective 7/1/2013) LIFE INSURANCE; SUBSTANDARD RISKS RATES FOR SUBSTANDARD TABLE RATINGS For substandard risks issued with a table rating, the standard rate will be multiplied by the Percent of Standard per assessed Table Rating as specified in the Table below. Table Rating % of Standard ------------ ------------- 1/A 122% 2/B 145% 3/C 167% 4/D 190% 5/E 212% 6/F 235% 7/G 257% 8/H 280% 9/I 302% 10/J 325% 12/L 370% 16/P 460% FOR LEGACY SECURE SL ONLY: -------------------------- Table Rating % of Standard ------------ ------------- 1/A 125% 2/B 150% 3/C 175% 4/D 200% 5/E 225% 6/F 250% 7/G 275% 8/H 300% 9/I 325% 10/J 350% 12/L 400% 16/P 500%