Document 3730q21DKqb312E28XZqE7deJ

Sawi ai i t I I s SI I < M *,' >' <IF M*S'*s %*l si i t|| ||V N V , ?December 18 195 Nr. Frederick Byrnes 71ce-Freeident and Secretary Tha ftuberoid Company JOC Fifth Avenue Raw York, N.T. Dear Mr. lymea: I regret wary much that I waa unable to Keep our appoint ment Friday nornlng but I understand free ay associates that you and they had a full dleeuaaion of tha two arrangement* under consider ation. It la ay understanding that you Jesire tr entar into tha Retrospective Pramiva Arrangement to be affactive -.'anuary 1st. tha beginning of tha next policy year. Tour endorsement of this latter will aka tha arrangement affective on a binder baaia subject to eubsequeat mutual agreement on the text of an appropriate are ends, ant to your Croup contract. As previously explained, this procedure calls for a reduc tion in your premits rates with tha Metropolitan retaining tha right to collect a Limited additional prerits if it is required because of adverse claim experience. Upon the adoption of the Retrospective Premlts Arrangement, the Metropolitan agrees to reduce your premium rates by approximately 10 percent over all. This over-all reduction will be the combined result of decreasing your Life insurance premium rata to V-25% and of ar average 4 percent reduction In the premium rates for your Disability coverages. These premium reductions will apply during your next, policy year. Ve art making these premlts reductions on tha basis of the following understandings. 1. At the and of the policy year, the Metropolitan reserves the right to allocate the total premium received far tha polley year to respective coverages at its own discretion and to deteivine the premise, rataa for the subsequent policy year. 2. If 108 percent of the claims Incurred under the policy in any policy, year aveed the premium payable on the reduced premium baaia you will pay. to the Metropolitan an addi tional prmmiim* equal to the excess of 108 percent of tha claims ovsr the reduced premium. The additional premium shall bo oubjeet to a maxisua equal to 12 percent' cf tha reduced premium. r r r the memorandum which accorpanied ry letter to you ol December .1, 1~>7, referens* was made to the adoption of a simplified tilling arrangement In scr.Junetion with the adoption of the Retroepective Fremitm Irrt'cement. Since you have decided to ccntinue tne payment of your pramlivs an an annual basis, the premium per life billing arrangement trill nrt be practical ir. your eaae. It previdea a means of simplifying tha policyholder* a administra:; work when tre peer'.urn : s rail on a moncc.ly basis. -f you are ir. a/.reenent with the foregoing and wish 'o adept thl a ar.-anger.ert., will yoj plegyf Si^n i>.e enclosed copy t!' this lett e ar.d return It ws? Agatn, f triad to axpreaa my regrets i l:at T was" unatie rr keep r.y appointnerr but If I ca- ever be any service to you, please feel free ti rail on me. S ;neerely* sits Approve . ty Date f Apr; . r Trc Fv.u;. ."bird Vice-President t * if f *t , . t< te * A *