EX-99.8(A)(III) 8 dex998aiii.txt AMENDMENT NO. 3 TO THE AUTOMATIC REINSURANCE AGREEMENT AMENDMENT NO. 3 TO AUTOMATIC REINSURANCE AGREEMENT EFFECTIVE AS OF DECEMBER 1, 2004 (Agreement) between METROPOLITAN LIFE INSURANCE COMPANY (Cedent) and EXETER REASSURANCE COMPANY, LTD. (Reinsurer) The Agreement is hereby amended, as of June 12, 2006, as follows: 1. The attached Article IV, Net Amount at Risk, amends and, as amended, restates Article IV, Net Amount at Risk. 2. The attached Schedule A, Plans of Reinsurance, amends and, as amended, restates Schedule A, Plans of Reinsurance. 3. The attached Exhibit II, Reinsurance Premiums, amends and, as amended, restates Exhibit II, Reinsurance Premiums. This Amendment No. 3 does not alter, amend or modify the Agreement other than as set forth herein, and the terms and conditions of the Agreement, as amended herein, continue in effect without other change. In Witness whereof, the parties have caused this Amendment No. 3 to be signed in duplicate counterparts as of the date first above written. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ [signature illegible] --------------------------------- Title: [title illegible] ------------------------------ EXETER REASSURANCE COMPANY, LTD. By: /s/ [signature illegible] --------------------------------- Title: President ------------------------------ ARTICLE IV NET AMOUNT AT RISK GMDB AND EPB ------------ A. The MNAR (Mortality Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: MNAR = VNAR + SCNAR + EEMNAR in which: VNAR (Variable Net Amount at Risk) = Maximum (a,b) multiplied by the Reinsurer's Percentage (defined in Schedule A) in which: a = (Contractual Death Benefit - Account Value) and b = 0 SCNAR (Surrender Charge Net Amount at Risk) = Surrender Charges multiplied by the Reinsurer's Percentage EEMNAR (Earnings Enhancement Mortality Net Amount at Risk) = x% * Maximum (a,b) multiplied by the Reinsurer's Percentage where: x% varies by issue age and is as described in the Reinsurance Contracts specified in Schedule A a = (Contractual Death Benefit - Total Purchase Payments Not Withdrawn) b = 0 B. The death benefit and the surrender charges will be as described in the variable annuity contract forms specified in Schedule A. GMIB ---- C. The IBNAR (Income Benefit Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: (i) The Guaranteed Principal Adjustment as defined in the rider * Reinsurer's Percentage if the Income Benefit contains a Guaranteed Principal Option and the option is exercised; or (ii) IBNAR = Maximum [(IBB * (MAPR/SAPR) - Account Value), 0] * Reinsurer's Percentage where: . IBB equals the INCOME BASE as defined in the rider; . MAPR is the MINIMUM ANNUITY PURCHASE RATE from the GMIB Annuity Table defined in the rider; and . SAPR is the SETTLEMENT ANNUITY PURCHASE RATE per $1000 which is used at time of annuitization for reinsurance claims settlement and shall be equal to the fixed annuity purchase rate that the Cedent would provide to an annuitant in the same class. D. Premium taxes will be applied on a consistent basis between the MAPR and SAPR to calculate the IBNAR. E. The IBNAR for each contract ceded hereunder shall be calculated as of the last day of each calendar month prior to the termination of liability contingencies set forth in Article II. GWB --- F. The WBNAR (Withdrawal Benefit Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: Guaranteed Withdrawal Benefit: WBNAR = Maximum [(GWB Benefit Base - Account Value), 0] * Reinsurer's Percentage (defined in Schedule A). Lifetime Guaranteed Withdrawal Benefit: WBNAR = Maximum [(GWB Benefit Base - Account Value), 0] * Reinsurer's Percentage (defined in Schedule A) + Present Value of any additional Lifetime Payments * Reinsurer's Percentage A claim is incurred when the Account Value equals zero and is paid out in installments consistent with the reinsured contract. GMAB ---- G. The ABNAR (Accumulation Benefit Net Amount at Risk) for each variable annuity contract ceded hereunder shall be equal to the following: ABNAR = Maximum [(GMAB Guaranteed Accumulation Amount - Account Value),0] * Reinsurer's Percentage. A claim is incurred at the maturity date of the GMAB rider if the GMAB Guaranteed Accumulation Amount exceeds the Account Value. SCHEDULE A PLANS OF REINSURANCE A. Reinsurer's Percentage: 100% of the business described herein. B. Effective Date: December 1, 2004 C. Reinsured Contracts: METROPOLITAN LIFE INSURANCE COMPANY DEFERRED ANNUITY CONTRACTS -------------------------- Preference Plus Select Variable Annuity - All Share Classes FORM NUMBERS ------------ Guaranteed Minimum Death Benefits Ceded: ---------------------------------------- Standard Death Benefit - Fifth Year Step-up: Form ML-535 (07/01) Optional Death Benefit - Annual Step-Up: Form ML-550 (07/01) Optional Death Benefit - Greater of Annual Step-Up and 5% Rollup: Form ML-540(07/01) Additional Death Benefit - Earnings Preservation Benefit (EPB): ML-570 (07/01) Guaranteed Minimum Income Benefits Ceded: ----------------------------------------- Guaranteed Minimum Income Benefit Form ML-560 (07/01) Guaranteed Minimum Income Benefit II Form ML-560-1 (03/03) Guaranteed Minimum Income Benefit Plus: Form ML-560-2 (05/05) Guaranteed Withdrawal Benefits Ceded: ------------------------------------- Guaranteed Withdrawal Benefit: Form ML-690-1 (7/04) Guaranteed Withdrawal Benefit: Form ML-690-2 (11/05) Lifetime Guaranteed Withdrawal Benefit: Form ML-690-3 (6/06) Guaranteed Minimum Accumulation Benefits Ceded: ----------------------------------------------- Guaranteed Minimum Accumulation Benefit: Form ML-670-1 (11/05) EXHIBIT II REINSURANCE PREMIUMS A. GMDB PROGRAM
REINSURANCE PREMIUM (BASIS GMDB PROGRAM PRODUCTS COVERED POINTS) ------------------------- ------------------------------------------- -------------- Fifth Year Step-up All Products 10.00 Annual Step-up Plan Codes: 225010, 225011, 225020, 225021, 10.00 225030, 225031, 225050, 225110, and 225150 Annual Step-up Other Plan Codes 20.00 Greater of Annual Step-Up Plan Codes: 225010, 225011, 225020, 225021, 25.00 and 5% Rollup 225030, 225031, 225050, 225110, and 225150 Greater of Annual Step-Up Other Plan Codes and 5% Rollup 35.00 Earnings Preservation All Products 25.00 Benefit
B. INCOME PROGRAM
REINSURANCE PREMIUM (BASIS INCOME PROGRAM PRODUCTS COVERED POINTS) ------------------------- ------------------------------------------- -------------- GMIB All Products sold prior to 35.00 May 1, 2003 GMIB & GMIB II Plan codes 225080, 225090, 2250A0, 2250A1, 45.00 2250B0, 2250B1, 2250C0, 2250C1, 2250D0, 2250D1, 2250E0, 2250E1, 2250L0, 2250L1, 225180, and 2251B0 sold after April 30, 2003 and before May 1, 2005 if GMDB program is Annual Step or Max of Annual Step and Rollup GMIB & GMIB II All other Products sold after April 30, 50.00 2003 and before May 1, 2005 and for All Products sold after April 30, 2005 GMIB Plus All Products sold after April 30, 2005 75.00
C. WITHDRAWAL PROGRAM REINSURANCE PREMIUM WITHDRAWAL PROGRAM PRODUCTS COVERED (BASIS POINTS) ------------------------- ---------------- ------------------- Guaranteed Withdrawal All Products 50.00 Benefit Lifetime GWB - Single All Products 50.00 Life Version Lifetime GWB - Joint Life All Products 70.00 Version D. ACCUMULATION PROGRAM REINSURANCE PREMIUM ACCUMULATION PROGRAM PRODUCTS COVERED (BASIS POINTS) ------------------------- ---------------- ------------------- Guaranteed Accumulation All Products 75.00 Benefit