ESTABLISHMENT OF SPECIAL RESERVE ACCOUNT1
AGREEMENT FOR ESTABLISHMENT
OF A SPECIAL RESERVE ACCOUNT
Etna Life Insurance Company of Hartford, Connecticut, herein referred to as /Etna, will esta-
blish a Special Reserve Account in connection with all the group insurance policies, herein
referred to as the Policies, underwritten by Etna and issued to
City of Clearwater
herein referred to as the Policyholder.
(1) The balance in the Special Reserve Account will ( be held by Etna to be used oiily as
provided in the following paragraphs.
(2) As of the last day of each experience period IEtna will determine the amount of" the ex-
perience credit or experience deficit for each of the Policies in force during the' experience
period, and provided this agreement is then in effect, the net amount of the credits and
deficits so determined shall be credited or charged to the Special Reserve Account, ex-
cept that, by electing to do so within 120 days after the last day of the experience period,
the Policyholder may make a cash withdrawal of an amount which is not more than the
smaller of
(i) the net experience credit for the period and
(ii) the amount by which the balance in the Special Reserve Account as of the' last day
in the period after taking into account the net experience credit for the period ex-
ceeds,three-times tle full amount of the monthly premiums becoming due on the
last' premiuirii`-due,,date jtl e 3eriod.
The 'net amount of the credits and deficits and the amount of any withdrawal in cash shall
be credited or charged to the Special Reserve Account as of the last,day in the period.
(3) While this agreement is in effect, the Policyholder may, with the consent of 'Etna, make
cash deposits into the Special Reserve Account. Each cash deposit -will- be credited to
the Special Reserve Account as of the premium due date of the Policies next following the
date on which s.uch deposit is received in .Etna's Horne Office.
(4) A withdrawal may be made from the Special Reserve Account for the purpose of paying
the full amount of the monthly premiums becoming due on any premium due date for all
of the Policies then in force, provided that the balance remaining after the withdrawal
is at least three times the full amount of the monthly premiums becoming due on that
date. Such a withdrawal will be charged against the balance as of the day before the
premium due.date. If no such withdrawal is made, each premium will be payable cur-
rently by the Policyholder in accordance with the terms of the applicable Policy.
At the beginning of each experience period to which this agreement applies, I -Etna will
notify the Policyholder of the interest rate and the method of computation of the extra
credit to be used for the period. The amount of interest and any extra credit so computed
will be credited to the Special Reserve Account as of the last day of the period.
(5)
(6) No withdrawals may be made from the Special Reserve Account while this agreement is
in effect, except as provided in the preceding paragraphs.
(7)
This agreement may be terminated by either the Policyholder or IEtna by giving at least
twelve months' advance written notice. Termination of all of the Policies to which this
agreement applies shall be considered to be notice by the Policyholder that this agree-
ment is to be terminated twelve months after the date of termination of the last of such
Policies to terminate, if prior notice of the termination of this agreement has not already
(OR -60346)
60-03 3CD
been given. After the giving of such notice, all of the terms of this agreement shall re-
main in effect until the date of termination. /Etna will determine the balance in the Spe-
cial Reserve Account as of the date of termination as though it were the last day of an
experience period.
This agreement shall become effective on July 1, 1964
In witness whereof, the lEtna and the Policyholder have caused this agreement to be executed
in duplicate by their duly authorized representatives.
Executed at C1ea.rwa.te.r.,this 2 V---az
day of November, 1964.
CITY OF CLEARWATER, FLORIDA
By..
(Po icyhol
tpir
ty Manager) (Title)
pproved as -to for' & correctness: and '` f -e•:-ii «= '= -f �
f
Asst; :Ci y Atforney//f'
Ex‘ uted 'at Hartfor ��necticut, this
L. F. Beers, Jr.
Mayor -Commissioner
3ccand
(Title)
day of Doecuzbera 1964
JETNA LIFE INSURANCE C0112PANY
By
Secretary, Group Division (Title)
O
November 24 1964
Mr 0 J Williams Jr
Manager Group and tension Department
AEtna Life Insurance Company
P 0 Box 3274
Tampa 2 Florida
Dear Jack
There are transmitted herewith six copies of the Agreement for
Establishment of .a Special Reserve Account executed by the City
of Clearwater Will you please have this agreement executed by
AEtna with the City's copies to be .returned to the City Clerk
I have also attached hereto AEtna's check #1R-8846 dated
September 11 1964 payable to the City of Clearwater in the
amount of $6 645 This check is to be deposited to the Special
dieserrve Account established by the above agreement
Yours very truly
G it Weimer
Asst Purchasing Agent
Encl
cc Finance D1rect
City Clerk
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