The Life Reinsurance Treaty Sourcebook is a unique reference tool developed by experts from life insurers and life reinsurers, to assist the industry with the building blocks of life reinsurance contracts. 

It offers sample contract terms and exhibits together with options and discussion points, a glossary of reinsurance terminology, and a statutory reference table of pertinent state laws and regulations.

Table of Contents
ARTICLE 1 – PREAMBLE 9
1.1 Parties to the Agreement
1.2 Compliance
1.3 Construction
1.4 Entire Agreement
1.5 Severability
ARTICLE 2 – AUTOMATIC REINSURANCE 11
2.1 General Conditions
2.2 Retained Amounts
ARTICLE 3 – FACULTATIVE REINSURANCE 13
ARTICLE 4 – COMMENCEMENT OF LIABILITY 15
4.1 Automatic Reinsurance
4.2 Facultative Reinsurance
4.3 Conditional Receipt or Temporary Insurance
ARTICLE 5 – REINSURED RISK AMOUNT 17
5.1 Life
5.2 Waiver of Premium (if applicable)
5.3 Accidental Death Benefit (if applicable)

ARTICLE 6 – PREMIUM ACCOUNTING 19
6.1 Premiums
6.2 Payment of Premiums
6.3 Delayed Payment
6.4 Failure to Pay Premiums
6.5 Premium Rate Guarantee
ARTICLE 7 – REDUCTIONS, TERMINATIONS AND CHANGES 23
7.1 Reductions and Terminations
7.2 Increases
7.3 Risk Classification Changes
7.4 Reinstatement
7.5 Nonforfeiture Benefits
7.6 Cash Surrenders (Coinsurance Only)
7.7 Policy Loans (Coinsurance Only)
ARTICLE 8 – CONVERSIONS, EXCHANGES AND REPLACEMENTS 27
8.1 Conversions
8.2 Exchanges and Replacements
ARTICLE 9 – CLAIMS 29
9.1 Notice
9.2 Proofs
9.3 Amount and Payment of Reinsurance Benefits
9.4 Contestable Claims
9.5 Claim Expenses
9.6 Misrepresentation or Suicide
9.7 Misstatement of Age or Sex
9.8 Extra-Contractual Damages
ARTICLE 10 – CREDIT FOR RESERVES 33
10.1 Reserve Methodology and Reporting
10.2 Credit for Reserves From An Unauthorized Reinsurer
ARTICLE 11 – RETENTION LIMIT CHANGES 39
ARTICLE 12 – RECAPTURE 41
ARTICLE 13 – GENERAL PROVISIONS 43
13.1 Currency
13.2 Premium Tax and (if applicable) Excise Tax
13.3 Dividends (Coinsurance Agreements)
13.4 Minimum Cession
13.5 Inspection of Records
13.6 Forms, Manuals & Issue Rules
13.7 Interest Rate
ARTICLE 14 – DAC TAX 45
ARTICLE 15 – OFFSET 47
ARTICLE 16 – INSOLVENCY 49
14.1 Insolvency of a Party to this Agreement
14.2 Insolvency of the Ceding Company
14.3 Insolvency of the Reinsurer
ARTICLE 17 – ERRORS AND OMISSIONS 51
ARTICLE 18 – DISPUTE RESOLUTION 53
ARTICLE 19 – ARBITRATION 55
ARTICLE 20 – CONFIDENTIALITY 57
ARTICLE 21 – DURATION OF AGREEMENT 59
ARTICLE 22 – EXECUTION 61

Visit Life Reinsurance Treaty Sourcebook Download Page

You can download full publication in PDF format.

The American Council of Life Insurers proudly acknowledges the efforts of the many volunteers who have devoted countless hours to the Life Reinsurance Treaty Sourcebook initiative.

For their extraordinary efforts, we thank:
Connie Walker, Swiss Re Life & Health, North America
Jack Bailey, Northwestern Mutual
Denis Loring, RGA Financial Group
Joan Paulter, Scottish Re (U.S.)
Jim Sweeney, Munich American Re
Tom Huber, New York Life (retired)
Johanna Becker, New England Financial

Valuable contributions also were made by:
Graham Bancroft, Clarica
Tim McGrath, ING Re
Mike Stein, RGA Re
Larry Warren, National Benefit Life

For their vision and steadfast leadership of the ACLI Reinsurance Committee, we thank:
David Atkinson, President & CEO, RGA Re 1997-1998
Jeremy Starr, Vice President, Reinsurance, Guardian 1999-2000
Monica Hainer, President & CEO, London Life Re 2001-2002

Visit The American Council of Life Insurers (ACLI) Website

The American Council of Life Insurers (ACLI) is a Washington D.C.-based trade association backed by an industry with more than 200 years of experience protecting American families, workers, and businesses. ACLI represents 353 life insurance companies operating in the United States before federal and state legislators, regulators, and courts.

ACLI member companies are the leading providers of financial and retirement security products covering individual and group markets. They provide life insurance, long-term care insurance, disability income insurance, annuities, pensions such as 401(k), 403(b), and 457 plans, IRAs, and reinsurance.

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