Annual Report — Form 10-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 10-K Annual Report 53± 241K
2: EX-10 Material Contract 24± 70K
3: EX-10 Material Contract 82± 282K
4: EX-10 Material Contract 16± 55K
5: EX-10 Material Contract 40± 129K
6: EX-10 Material Contract 1 5K
7: EX-10 Material Contract 37± 128K
8: EX-10 Material Contract 19± 73K
9: EX-10 Material Contract 16± 39K
10: EX-10 Material Contract 6± 24K
11: EX-10 Material Contract 6± 22K
12: EX-21 Subsidiaries of the Registrant 1 6K
13: EX-24 Power of Attorney 2± 12K
14: EX-27 Financial Data Schedule (Pre-XBRL) 1 7K
EX-10 — Material Contract
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
91
Exhibit 10(i)
THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
a mutual life insurance company
In consideration of the Application of the Policyholder for this
Group Policy and of the payment of premiums as provided in the Group
Policy, The Prudential Insurance Company of America agrees to pay
benefits in accordance with and subject to the terms of the Group
Policy.
The Group Policy takes effect on the Policy Date.
The Group Policy is delivered in and is governed by the laws of
the Governing Jurisdiction.
In Witness Whereof, The Prudential Insurance Company of America
has caused the Group Policy to be executed as of the Policy Date
provided it is duly attested under the Group Policy Schedule.
Secretary President
GROUP INSURANCE POLICY
Providing
Coverage(s) as Indicated in the Coverage Rider(s) Forming Part Hereof
DIVIDENDS APPORTIONED ANNUALLY
GRP 31300
GEN AS5-103 (1-101) ED 3-66
-1-
GROUP POLICY SCHEDULE
Policy Date
August 1, 1970
Policy Anniversaries
August 1 of each year, beginning in 1971.
Premium Due Dates
The Policy Date, and thereafter the first day of each month
beginning with September, 1970
Governing Jurisdiction
State of California
Policyholder
NORTHROP CORPORATION
Group Policy
G-91660
Employment Waiting Period
The following period of continuous service on a full-time basis with
the Employer Full-time Employees in the eligible classes on the Policy
Date: See reverse side. Other Employees: See reverse side.
Associated Companies
Effective January 1, 1981, the list of OAssociated CompaniesO in the
Group Policy Schedule is replaced by the following:
NORTHROP INTERNATIONAL, INC.
WILCOX ELECTRIC, INC.
NORTHROP WORLDWIDE AIRCRAFT SERVICES, INC.
Forms Comprising the Group Policy as of the Policy Date
The following forms bearing a GRP 31300 prefix - GEN AS5-103 (pages (1-
101), (2-101) (1-2A), (2-101) (1-2B), (3-101) (1-2), (4-101) (2E-6),
(5-103) (1-3)), GEN B-102 (1-2), GEN C-111 (1-1), GEN D-101 (1-12),
GEN M-101 (1-1), GEN M-101 (1-7), GEN M-102 (1-1), GEN M-103 (1-1),
GEN M-108 (2N-1), LIFE R-101 -- Cov. LIFE 101 (1-1), LIFE T-101 (1-1),
LIFE U-101 (1-2), GC-10319, GRP 32221 SURV R-101 -- Cov. SURV 101 (1-
6), GRP 32222 SURV U-101 (1-6), DEPL R-101 -- Cov DEPL 101 (1-1), DEPL
U-101 (1-2), AD&D R-101 -- Cov. AD&D 101 (5-1), AD&D U-101 (1-2), LTD
R-102 -- Cov. LTD 102 (6-5), LTD U-101 (1-2), LTD U-102 (6-5), MM R-
609 -- Cov. MM 609 (6-1), MM U-602 (6-1); GC-3350; GC-3535; GC-10311;
ORD 30706-1 (W-3); GC-3110.
_____________________
Attest: ......................................................
GRP 31300
GEN A (2-101) ED 3-66 (1-2A)
-2-
INCLUDED EMPLOYERS PROVISIONS
The Policyholder and any Associated Companies are employers
included under the Group Policy. OAssociated CompaniesO means those
employers subsidiary to or affiliated with the Policyholder as are
listed under OAssociated CompaniesO on the reverse side hereof.
Any individual employed by more than one included employer shall
be considered as being employed only by one employer, and his service
with the other employer or employers shall be considered as service
with that one employer.
If any employer ceases to be an included employer, the Group
Policy will be considered as terminating on the date of such cessation
with respect to all Employees of that employer who on the next day are
not Employees of another included employer within the eligible classes
under the Group Policy. The Policyholder shall notify Prudential, in
writing, when an Associated Company ceases to be subsidiary to or
affiliated with the Policyholder.
GENERAL DEFINITIONS
Employee Insurance: Insurance under a coverage pertaining to the
person of an Employee.
Dependents Insurance: If Dependents Insurance is provided, the Group
Policy includes Dependents Insurance Provisions which define
Dependents Insurance and qualified dependents.
Covered Individual under a coverage: An Employee who is insured for
Employee Insurance; a qualified dependent with respect to whom an
Employee is insured for Dependents Insurance.
The Employer: When the term Othe EmployerO is used, it means
collectively all employers included under the Group Policy (see
Included Employers Provisions above).
Coverage Classes under a Coverage Schedule: The Employees of the
Employer who comprise the classes to which the insurance provided in
that Schedule applies.
Insurance on Contributory or Non-Contributory Basis (each Coverage
Schedule indicates the basis for the insurance under the coverage
which is provided in that Schedule):
Contributory insurance - insurance for which the Policyholder may
establish required contributions to be made by Employees.
Non-contributory insurance - insurance for which Employees are
not permitted to make contributions.
PrudentialOs Home Office: PrudentialOs Home Office in Newark, New
Jersey, or any of its other Home or Head Offices.
Active Work Requirement: A requirement that an Employee be actively
at work on full time at the business establishment of the Employer or
at other locations to which the EmployerOs business requires the
Employee to travel.
EmployeeOs Earnings: If an item is determined by an EmployeeOs
earnings, they shall be based on his earnings from the Employer,
exclusive of bonus and overtime pay, for a normal work week not
exceeding forty hours.
Physician: A licensed practitioner of the healing arts acting within
the scope of his practice.
Officers: When the term OOfficersO is used, it means all Employees
classified as Officers, but excluding in any case those Employees
classified as Assistant Corporate Officers.
Employment Waiting Period: (Continued): 30 days commencing with the
first day of a month; provided that no such period shall apply to
those Employees classified as (1) President, Executive Vice President
or Senior Vice President of Northrop Corporation, or (2) elected vice
presidents each of whom has entered into an employment agreement with
the Policyholder.
GRP 31300
GEN A -3- (2-101) ED 3-66
(1-2A)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
SCHEDULE OF PREMIUM RATES
G-91660
Classes of Employees
to which this Schedule applies:
All classes
Monthly Rate Per Employee
Applicable Insurance
Term Life (Employee) $0.50 per $1,000 of Insurance,
except for that
amount on the President of
Northrop Corporation in
excess of $300,000;
$0.636 per $1,000 of Insurance for
that
amount on the President of
Northrop
Corporation in excess of
$300,000.
Term Life (Dependents) $0.50 per Employee with
Dependents
Survivor Benefits Life 0.49% of Covered Monthly
Payroll
Accidental Death and Dismemberment $0.10 per $1,000 of Insurance
Monthly Income Long Term Disability 0.48% of Covered Monthly
Payroll, except
for the President, Executive
Vice
President or Senior Vice
President of
Northrop Corporation;
$49.00 for the President of
Northrop
Corporation
$34.42 for the Executive Vice
President of
Northrop Corporation
$19.83 for the Senior Vice
President of
Northrop Corporation
Supplementary Major Medical Expense $30.00 per Employee
GRP 31300
GEN A -5- (3-101) ED 3-66 (1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
INSURANCE PLAN PROVISIONS
A. ELIGIBILITY
Eligible Classes: All Employees of the Employer who are within the
coverage classes under one or more Coverage Schedules of the Group
Policy.
EmployeeOs Date of Eligibility: The first day, on or after the Policy
Date, on which he is a full-time Employee in the eligible classes
following his completion of the employment waiting period under the
Group Policy Schedule.
An Employee is considered full-time if he works for the Employer
at least the number of hours in the normal work week established by
the Employer, but not less than twenty hours per week. A proprietor
or partner of the Employer is considered a full-time Employee if he
works at least thirty hours per week in the conduct of the EmployerOs
business.
Determination of Coverage Class and Classification: The Policyholder
shall determine each individualOs coverage class and classification,
but no Employee shall be considered as belonging to more than one
coverage class for any one type of insurance under a coverage or more
than one classification under a Coverage Schedule applicable to his
coverage class. Such determinations shall be made on those dates
which are established by the practices of the Policyholder. Any such
determination shall be made without discrimination among persons in
like circumstance, and shall be final and conclusive.
B. BECOMING INSURED FOR EMPLOYEE INSURANCE
This Section applies separately to the Employee Insurance under
each coverage and on each basis, contributory or non-contributory.
An Employee shall be insured from the first day, on or after his
date of eligibility, on which he is included in a coverage class for
the insurance and the following requirements are simultaneously
satisfied:
(1) If the insurance is contributory, he has requested it of the
Policyholder on a form satisfactory to Prudential and has agreed
to make the required contributions.
(2) If any evidence of insurability requirement applies, he has
complied with that requirement. He will be considered as having
complied as of the date Prudential determines the evidence to be
satisfactory.
(3) He is complying with the active work requirement of the General
Definitions.
(4) If the Coverage Schedule for the insurance defines as Associated
Protection, he is covered for that Associated Protection.
An Employee becoming included in the coverage classes for
contributory Employee Insurance under a coverage will be considered as
having satisfied requirement (1) above on the date of such inclusion
if, on the day before, he was insured for any other contributory
Employee Insurance under the Group Policy. The preceding sentence
will not apply if (a) such inclusion is effected by an amendment to
the Group Policy or if (b) on or before the thirty-first day after
such inclusion date, he gives the Policyholder written notice of his
election not to become insured for the Employee Insurance under the
coverage.
C. EVIDENCE OF INSURABILITY REQUIREMENTS FOR EMPLOYEE INSURANCE
An employee must furnish evidence of his insurability
satisfactory to Prudential in order to become insured for Employee
Insurance under a coverage, in any of the following situations:
(1) Late Participation under Contributory Insurance - He does not
satisfy both requirements (1) and (4) of Section B of the
Insurance Plan Provisions before the end of the thirty-one day period
immediately following the first day, on or after his date of
eligibility, on which he is complying with the active work requirement
of the General Definitions.
(2) Failure to Make Contribution - He requests the insurance after
previous termination of any insurance under the Group Policy because
of failure to make a required contribution.
(3) Conversion Privilege Previously Exercised - The insurance is life
insurance and an individual policy of life insurance obtained by his
exercise of a conversion privilege of the Group Policy is inforce.
(4) Previous Evidence Requirement - He has not satisfied a previous
requirement that evidence of his insurability he furnished in order
for him to become insured under a coverage of the Group Policy or any
other Prudential group policy which provides or provided insurance for
Employees of the Employer.
GRP 31300
GEN A -6- (4-101) ED 3-
66 (2E-6)
D. CHANGES OF EMPLOYEE BENEFITS
The Employee Insurance benefits for which an Employee is insured
will be those for his classification under the applicable Coverage
Schedule unless otherwise determined in accordance with this Section.
This Section applies separately to Employee Insurance under each
coverage and on each basis, contributory or non-contributory. It
applies unless the applicable Coverage Schedule indicates to the
contrary.
Provisions (1) and (2) below apply when an EmployeeOs
classification changes or the benefits applicable to his
classification are changed by an amendment to the Group Policy.
(1) Adjustment of Benefits, other than Amounts under Employee Term
Life Insurance and Accidental Death and Dismemberment Insurance
The EmployerOs benefits will not be adjusted until the first day,
on or after the date of the change, on which he is complying with the
active work requirement of the General Definitions. His benefits will
be adjusted on that day to those then applicable to his
classification.
(2) Adjustment of Amounts under Employee Term Life Insurance and
Accidental Death and Dismemberment Insurance
(a) Increase in Amount of Insurance: The EmployeeOs amount of
insurance will not be increased until the first day, on or
after the date of the change, on which he is complying with the active
work requirement of the General Definitions and has
satisfied the requirements listed below. His amount of
insurance will be increased on that day to the amount then applicable
to his classification.
Requirements -
(i) If the insurance is contributory, he is making, or has agreed
to make, the contribution applicable to such classification.
(ii) He has, if either of the following situations applies,
furnished Prudential with evidence of his insurability for the
increase, and Prudential has determined such evidence to be
satisfactory:
The insurance is contributory and he does not satisfy requirement
(i) above before the end of the thirty-one day period immediately
following the first day, on or after the date of the change, on which
he is complying with said active work requirement.
His amount of insurance on the date immediately prior to the date
of the change was smaller than that applicable to his
classification on such prior date.
(b) Decrease in Amount of Insurance: The EmployeeOs amount of
insurance will not be decreased until the date shown below.
His amount of insurance will be decreased on that date to the amount
then applicable to his classification.
(i) Contributory insurance - the later of the date he makes
written request to the Policyholder for the decrease and
the date of the change.
(ii) Non-contributory insurance - the first day, on or after the
date of the change, on which he is complying with the active
work requirement of the General Definitions.
(3) Coverage under a OPrevious Group CoverageO
If the Coverage Schedule indicates a previous group coverage for
which the Employee was insured immediately prior to his becoming
included under that Schedule, provision (2) above shall apply as if
his amount of insurance under the previous group coverage had been
provided under the insurance to which that Schedule applies and as
if his classification were changing on the date of such inclusion.
E. TERMINATION OF EMPLOYEE INSURANCE
The Employee Insurance of an Employee under a coverage will
automatically terminate when:
(1) he ceases to be a member of the coverage classes for the
insurance because of termination of employment (described below) or
for any other reason, or
(2) his class is no longer included in the coverage classes for the
insurance, or
(3) the provisions of the Group Policy for the insurance terminate,
or
(4) if the insurance is contributory, any contribution required of
him for any insurance under the Group Policy is not made when due.
Termination of Employment - For insurance purposes, an EmployeeOs
employment will be considered to terminate when he is no longer
actively engaged in work on a full-time basis for the Employer.
However, if absence from such full-time work is then of a type set
forth in the Coverage Schedule for the insurance, the Policyholder
may, without discrimination among persons in like circumstances,
consider the Employee as not having terminated his employment for
insurance purposes and, while such absence is of any such type, as
continuing to be a member of the coverage classes for the insurance up
to any applicable time limit in the schedule.
GRP 31300
GEN A -7- (4-101) ED 3-
66 (2E-6)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
GENERAL PROVISIONS
A. PAYMENT OF PREMIUMS - GRACE PERIOD
Premiums under the Group Policy are payable by the Policyholder
to Prudential, at an office of Prudential or to its authorized
representative. There is a premium due and payable on each premium
due date specified in the Group Policy Schedule. A grace period of
thirty-one days, without interest charge, is allowed for the payment
of each premium other than the first. The Policyholder is liable to
Prudential for the payment of premiums for the time the Group Policy
is inforce.
B. PREMIUM COMPUTATION - CHANGE OF PREMIUM RATES
The premium due on each premium due date is the sum of the
premium charges for the insurance then provided under the coverages of
the Group Policy, determined from the applicable premium rates then in
effect and the Employees insured at the periodic intervals established
by Prudential. Premiums may be computed by any other method mutually
agreeable to the Policyholder and Prudential which produces
approximately the same total amount.
Prudential shall have the right to change premium rates as of (1)
any premium due date, provided 31 daysO written notice delivered or
mailed to the Policyholder at his last address as it appears on
PrudentialOs records has been given, (2) any date an employer becomes
or ceases to be included under the Group Policy, and (3) for a
coverage, any date the extent or nature of the risk under that
coverage, or under any other coverage considered in determining the
premium rate for that coverage, is changed by amendment or termination
or by reason of any provision of law or any governmental program or
regulation. However, the premium rates for insurance under a
coverage, or portion separately rates, will not be changed under (1)
above before the first policy anniversary nor more than once in any
twelve consecutive months, unless otherwise provided in the schedule
of premium rates applicable on the Policy Date or in an amendment to
the Group Policy. The Policyholder will be notified whenever a change
in the premium rates is made.
C. DIVIDENDS
The portion, if any, of the divisible surplus of Prudential
allocable to the Group Policy at each policy anniversary will be
determined annually by PrudentialOs Board of Directors and will be
credited to the Group Policy as a dividend on such anniversary,
provided the Group Policy is continued in force by the payments of all
premiums to such anniversary.
Any such dividend will be (1) paid to the Policyholder in cash,
or, at the PolicyholderOs option, (2) applied to the reduction of the
premium then due.
If the aggregate dividends under the Group Policy and any other
group policy or policies issued to the Policyholder should be in
excess of the aggregate contributions toward their cost made by the
Employer from his own funds, an amount equal to such excess will be
applied for the sole benefit of insured persons. Payment of any
dividend to the Policyholder will completely discharge the liability
of Prudential with respect to that dividend.
D. TERMINATION OF GROUP POLICY OR OF INSURANCE PROVISIONS
By Failure to Pay Premium: If any premium is not paid within its
grace period (as provided in Section A of these General Provisions),
the Group Policy will terminate at the end of the grace period.
However, if the Policyholder makes written request in advance for
termination to take effect at the end of the period for which premiums
have been paid or at any time during the grace period, the Group
Policy will terminate on the date requested.
By Failure to Maintain Insuring Conditions: Prudential may terminate
the provisions of the Group Policy for any insurance under a coverage
on any premium due date, if the applicable condition set forth below
then exists and notice of intention to terminate has been given to the
Policyholder at least thirty-one days in advance.
Contributory insurance - The Employees insured
(1) total less than the Minimum Participation Number (see Group
Policy Schedule), or
(2) are less than seventy-five percent of the eligible
Employees, or
(3) are contributing at a rate greater than any maximum
contribution rate for such insurance provided under the Group
Policy.
Non-contributory insurance - The Employees insured
(1) total less than the Minimum Participation Number or
(2) are contributing for such insurance
By Termination of Associated Protection: If the Coverage Schedule for
any insurance defines as Associated Protection, the provisions for
such insurance will terminated upon termination of the Associated
Protection.
GRP 31300
GEN A -8- (5-103) ED 3-
66 (1-3)
E. ASSIGNMENT LIMITATIONS
Insurance under a coverage is not assignable unless the Coverage
Schedule indicates that it is assignable. An assignment may apply to
any right, benefit or privilege of the Employee including, without
limiting the generality of the foregoing, any right of the Employee to
designate a Beneficiary or to convert to another policy. No
responsibility for the validity or sufficiency of any assignment is
assumed by Prudential. Prudential shall not be considered to have
knowledge of any assignment unless the original or a duplicate is
filed with Prudential through the Policyholder.
If, under an insurance for which the Group Policy allows
Beneficiary designations, any amount of insurance becomes payable on
account of the death of an Employee and there is, as to such amount of
insurance, at the EmployeeOs death an assignment in effect but no
Beneficiary designated by the assignee, such amount of insurance will
be payable as follows and not as otherwise provided in the Beneficiary
Provisions of the Group Policy:
(1) In the case of a non-collateral assignment, payment will be made
to the assignee, if living, otherwise to the estate of the
assignee.
(2) In the case of a collateral assignment, payment will be made to
the assignee, if living, otherwise to the estate of the assignee, as
interest may appear, and payment of the balance, if any, will be made
as provided in those Beneficiary Provisions without regard to the
paragraph.
F. EMPLOYEEOS CERTIFICATE
Prudential will issue to the Policyholder, for delivery to each
insured Employee, an individual certificate stating to whom benefits
are payable and the essential features of his insurance protection,
including any protection and rights upon termination of his insurance
and the rights and requirements for establishment and payment of
claim.
G. RECORDS - INFORMATION TO BE FURNISHED - CLERICAL ERROR
Either the Policyholder or Prudential, as mutually agreed, shall
keep a record of the insured Employees containing the essential
particulars of the insurance. The Policyholder shall forward the
information periodically required by Prudential in connection with the
administration of the Group Policy and the determination of the
premium rates. All records of the Policyholder and the Employer which
have a bearing on the insurance shall be open for inspection by
Prudential at any reasonable time.
Prudential shall not be liable for the fulfillment of any
obligation dependent upon such information prior to its receipt in a
form satisfactory to Prudential. Incorrect information furnished may
be corrected, if Prudential shall not have acted to its prejudice by
relying on it. An EmployeeOs insurance under a coverage shall in no
event be invalidated by failure of the Policyholder or the Employer,
due to clerical error, to record or report the Employee for such
insurance.
H. ENTIRE CONTRACT - INCONTESTABILITY OF POLICY - CHANGES
The Group Policy, the Application of the Policyholder, and the
individual applications, if any, of the persons insured hereunder
constitute the entire contract between the parties, and any statement
made by the Policyholder shall, in the absence of fraud, be deemed a
representation and not a warranty. No such statement shall be used in
defense to a claim hereunder unless it is contained in a written
application.
The validity of the Group Policy shall not be contested, except
for non-payment of premiums, after it has been in force for one year
from its date of issue.
No change in the Group Policy shall be valid unless approved by
an executive officer of Prudential and evidenced by an endorsement on
it, or by amendment to it signed by the Policyholder and by an
executive officer of Prudential. No agent has authority to change the
Group Policy or to waive any of its provisions.
The Group Policy may be amended at any time, without the consent
of the Employees insured under it or any other person having a
beneficial interest in it, upon written request made by the
Policyholder and agreed to by Prudential., but any such amendment
shall be without prejudice to any claim arising prior to the date of
change.
GRP 31300
GEN A -9- (5-103) ED 3-
66 (1-3)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
RIDER TO GROUP POLICY NO. G-91660
EFFECTIVE DATE OF RIDER: AUGUST 1, 1970
A. BENEFICIARY PROVISIONS
Any insurance under the Group Policy becoming payable on account
of the death of an Employee will be payable to the person designated
by him as his Beneficiary on a form satisfactory to Prudential,
subject to the facility of payment provision if included under the
Coverage Schedule and subject to the Assignment Limitations section of
the General Provisions.
At any time the Employee may, without the consent of his
Beneficiary, change the Beneficiary by filing written notice of the
change through the Policyholder on a form satisfactory to Prudential.
The new designation will take effect on the date the notice was
signed, except that it will not apply as to any amount paid by
Prudential before receipt of the notice.
If more than one Beneficiary is designated and in such
designation the Employee has failed to specify their respective
interests, the Beneficiaries will share equally. Unless otherwise
provided in the EmployeeOs Beneficiary designation, the interest of
any designated Beneficiary predeceasing the Employee will terminate
and will be shared equally by any Beneficiaries who survive the
Employee. Any amount of the insurance for which there is no
disposition of a terminated interest as provided above, and any other
amount of the insurance for which there is no Beneficiary at the death
of the Employee, will be payable to the estate of the Employee unless
otherwise provided in the Assignment Limitations.
B. MODE OF SETTLEMENT PROVISIONS
Subject to the Assignment Limitations, a mode of settlement other
than lump sum payment may be arranged for all or a part of the
Employee Life Insurance payable under the Group Policy at an
EmployeeOs death, in accordance with the following provisions.
Equal Monthly Installments Over a Fixed Period Not to Exceed Ten
Years: The Employee may elect such a settlement during his lifetime
by his proper written request to Prudential. The first installment is
payable upon receipt of the required proof of death. Each installment
will include interest on the unpaid balance at the effective rate of 2
3/4% per annum. PrudentialOs Board of Directors may authorize
additional interest. If the Beneficiary dies, the discounted value of
any unpaid installments will be paid in one sum to the BeneficiaryOs
estate.
Other Arrangements: Any other settlement on which the Employee and
Prudential mutually agree may be arranged during the EmployeeOs
lifetime. If, at the EmployeeOs death, no settlement has been
arranged for an amount of his Employee Life Insurance, the Beneficiary
and Prudential may then mutually agree upon any settlement as to such
amount.
Availability Conditions: The Beneficiary must be a natural person
taking in his own right as an individual and not in a fiduciary
capacity. No settlement is available for secondary Beneficiaries
unless Prudential specifically consents in writing. The amount of
each settlement to a person must not be less than $20,000. A change
of Beneficiary will void any previous arrangement of a settlement.
Designation by Beneficiary: A Beneficiary receiving settlement under
an arrangement in accordance with any of the above provisions may, if
Prudential approves, designate (or change such designation of) a payee
or payees to receive in one sum any amount which would otherwise be
payable to the BeneficiaryOs estate.
C. INCONTESTABILITY OF AN INDIVIDUALOS LIFE INSURANCE
All statements with respect to Life Insurance under the Group
Policy made by a person insured therefore shall be deemed
representations and not warranties. With respect to each amount of
such insurance for which a person is insured., no such statement shall
be used in any contest of such insurance unless such statement is
contained in an individual application signed by such person and a
copy of such application is or has been furnished to him or to his
Beneficiary. No statement made by a person insured under the Group
Policy relating to his insurability for such insurance shall be used
in contesting the validity of the insurance with respect to which such
statement was made after such insurance has been in force prior to the
contest for a period of two years during his lifetime.
GRP 31300
GEN B-102 ED 3-66 -10- (1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
RIDER TO GROUP POLICY NO. G-91660
EFFECTIVE DATE OF RIDER: JANUARY 1, 1980
DEPENDENTS INSURANCE PROVISIONS
These provisions apply separately to each coverage under which
Dependents Insurance is provided.
A. DEFINITIONS
Dependents Insurance: Insurance pertaining to the person of a
dependent. Under such insurance, a charge will be considered actually
made to an Employee if actually made to his qualified dependent.
Qualified Dependent: An EmployeeOs wife, unmarried child, or the
husband of an Employee if the Coverage Schedule indicates the
inclusion of husbands, excluding in any case --
(1) a legally separated spouse;
(2) a child nineteen or more years of age unless (a) wholly dependent
upon the Employee for support and maintenance and (b) enrolled as a
full-time student in an educational institution;
(3) a spouse or child on active duty in any military, naval or air
force of any country; and
(4) a spouse or child who is insured for Employee Insurance under the
Group Policy.
An EmployeeOs children include step-children, legally adopted
children and foster children, provided they are dependent upon the
Employee for support and maintenance.
A wife is not considered to have qualified dependents while both
she and her husband are insured for Employee Insurance under the Group
Policy.
B. BECOMING INSURED FOR DEPENDENTS INSURANCE
This Section (other than requirement (1) below) applies
separately to each qualified dependent an Employee has or acquires.
The Employee shall be insured with respect to a qualified
dependent from the first day, on or after the EmployeeOs date of
eligibility, on which the Employee is included in a coverage class for
the insurance and the following requirements are simultaneously
satisfied:
(1) If the insurance is contributory, the Employee has requested it
of the Policyholder on a form satisfactory to Prudential and has
agreed to make the required contributions.
(2) If any evidence of insurability requirement applies with respect
to the qualified dependent, the Employee has complied with that
requirement. An Employee will be considered as having complied as of
the date Prudential determines the evidence to be satisfactory.
(3) The insurance with respect to the qualified dependent is not
being deferred in accordance with Section D of these Dependents
Insurance Provisions.
(4) The Employee is covered for the Associated Protection defined in
the Coverage Schedule for the insurance.
An Employee becoming included in the coverage classes for
contributory Dependents Insurance under a coverage will be considered
as having satisfied requirement (1) above on the date of such
inclusion if, on the day before, he was insured for any other
contributory Dependents Insurance under the Group Policy. The
preceding sentence will not apply if (a) such inclusion is effected by
an amendment to the Group Policy or if (b) on or before the thirty-
first day after such inclusion date, he gives the Policyholder written
notice of his election not to become insured for the Dependents
Insurance under the coverage.
GRP 31300
GEN D-101 ED 3-66 (1-
12)
C. EVIDENCE OF INSURABILITY REQUIREMENTS FOR DEPENDENTS INSURANCE
An Employee must furnish evidence of the insurability of a
qualified dependent satisfactory to Prudential in order to become
insured with respect to that dependent, in any of the situations
listed below. These requirements shall not apply to any qualified
dependent acquired after the Employee becomes insured for Dependents
Insurance.
(1) Late Participation under Contributory Insurance - The Employee
does not satisfy both requirements (1) and (4) of Section B before
the end of the thirty-one day period immediately following the first
day, on or after his date of eligibility, on which he has a
qualified dependent.
(2) Failure to Make Contribution - The Employee requests the
insurance after previous termination of any insurance under the Group
Policy because of failure to make a required contribution.
(3) Previous Evidence Requirement - Neither the Employee nor the
dependent has satisfied a previous requirement that evidence of
the dependentOs insurability be furnished in order for the dependent
to become covered, as a dependent or Employee, under a coverage
of the Group Policy or any other Prudential group policy which
provides or provided insurance for Employees of the Employer.
D. DEFERMENTS AS TO QUALIFIED DEPENDENTS
If any qualified dependent is confined for medical care or
treatment either in an institution or at home on the date any
Dependents Insurance under a coverage, or adjustment thereof, would
otherwise become effective with respect to that dependent, such
insurance or adjustment will be deferred until his final medical
release from all such confinement.
E. CHANGES OF DEPENDENTS BENEFITS
The Dependents Insurance benefits for which an Employee is
insured will be those for his classification under the applicable
Coverage Schedule unless otherwise determined in accordance with this
Section.
This Section applies unless the Coverage Schedule indicates to
the contrary.
When an EmployeeOs classification changes or the benefits
applicable to his classification are changed by an amendment to the
Group Policy, the change will not result in an adjustment of the
EmployeeOs benefits with respect to a qualified dependent (including
the amount) until the first day, on or after the date of the change,
on which the adjustment for that dependent is not being deferred in
accordance with Section D of these Dependents Insurance Provisions.
Such benefits will be adjusted on that day to those then applicable to
the EmployeeOs classification.
F. TERMINATION OF DEPENDENTS INSURANCE
An EmployeeOs Dependents Insurance will automatically terminate
when:
(1) he ceases to be a member of the coverage classes for the
insurance because of termination of employment (described in the
Termination of Employee Insurance section of the Insurance Plan
Provisions) or for any other reason, or
(2) his class is no longer included in the coverage classes for the
insurance, or
(3) the provisions of the Group Policy for the insurance terminate,
or
(4) if the insurance is contributory, any contribution required of
him for any insurance under the Group Policy is not made when due.
All of the Dependents Insurance with respect to a particular
qualified dependent will automatically terminate if that dependent
ceases to be a qualified dependent.
GRP 31300
GEN D-101 ED 3-66 (1-
12)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Rider to Group Policy No.: G-91660
Effective Date of Rider: December 31, 1986
MODIFICATIONS
OF GROUP POLICY SCHEDULE
1. Effective December 1, 1984, the employment waiting period shall
be the following period of continuous service on a full-time
basis for the Employer:
One month commencing with the first day of June or December;
provided that no such period shall apply to those Employees
classified as (1) President, Executive Vice President or Senior
Vice President of Northrop Corporation, or (2) elected vice
presidents each of whom entered into an employment agreement with
the Policyholder.
2. Effective December 31, 1986, the OPolicy AnniversariesO provision
set forth in the Group Policy Schedule is replaced by the
following:
Policy Anniversaries
December 31 of each year, beginning in 1986.
_________________________
GRP 31300
GEN M-101 ED 3-66 (G-91660)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Rider to Group Policy No.: G-91660
Effective Date of Rider: August 1, 1970
MODIFICATIONS
OF THE OCHANGES OF EMPLOYEE BENEFITSO SECTION FOR
SUPPLEMENTARY INSURANCE
UNDER EMPLOYEE TERM LIFE INSURANCE
The Changes of Employee Benefits section of the Insurance Plan
Provisions of the Group Policy is modified for Supplementary Insurance
under Employee Term Life Insurance by the following provisions.
Supplementary Insurance is included under Employee Term Life Insurance
when so indicated in the Coverage Schedule.
An EmployeeOs amount of insurance under the insurance to which
the Coverage Schedule applies shall not exceed the Nonmedical Maximum
under the Coverage Schedule unless otherwise provided below or, by
reason of his prior insurance under a previous group coverage, under
the Changes of Employee Benefits section.
If the amount of insurance applicable to the EmployerOs
classification exceeds the Nonmedical Maximum, he must furnish
evidence of his insurability satisfactory to Prudential in order to
have his insurance increased to the amount applicable to his
classification. The increase will be effective when Prudential has
determined the evidence to be satisfactory and he has satisfied to
other applicable requirements of the Changes of Employee Benefits
section.
___________________________
GRP 31300
GEN M-101 ED 3-66 (1-1) LIFE
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Rider to Group Policy No. G-91660 Maximum Contribution Rate
for Employee
Effective Date of Rider: December 1, 1984 Term Life Insurance:
Employee contributions are not
permitted.
A. PREMIUM RATE DETERMINATIONS FOR EMPLOYEE TERM LIFE INSURANCE
Section B (Premium Computation - Change of Premium Rates) of the
General Provisions of the Group Policy is modified by the addition of
the following paragraphs:
For the purpose of Employee Term Life Insurance, PrudentialOs
right to change premium rates means the right to change the individual
rate factors under the following table. At the issuance of this
Rider, Prudential has determined a monthly rate per Employee per
$1,000 of insurance. This is an average rate obtained by applying
such individual rate factors to the amounts of insurance in force at
the respective ages, nearest birthday, of all Employees then insured
for Employee Term Life Insurance under the Group Policy, and dividing
the aggregate amount so obtained by the total amount of insurance. On
any date on which Prudential has the right to change such individual
rate factors (whether or not exercised) Prudential or the Policyholder
may require that the monthly rate per Employee per $1,000 of insurance
be correspondingly redetermined according to the age distribution of
insurance and the individual rate factors then in effect.
Initial Table of Individual Rate Factors Per $1,000 of Employee Term
Life Insurance
Age Monthly Age Monthly Age Monthly Age Monthly
Nearest Rate Nearest Rate Nearest Rate Nearest Rate
Birthday Factor BirthdayFactor Birthday FactorBirthday Factor
Male Female Male Female MaleFemale MaleFemale
15 .13 .05 32 .21 .12 49 1.01 .46 65 3.80 1.51
16 .16 .06 33 .22 .13 50 1.12 .50 66 4.11 1.70
17 .18 .07 34 .23 .14 51 1.24 .55 67 4.48 1.95
18 .20 .07 35 .24 .14 52 1.38 .60 68 4.89 2.24
19 .21 .07 36 .25 .15 53 1.53 .66 69 5.34 2.56
20 .22 .07 37 .27 .16 54 1.71 .73 70 5.81 2.92
21 .24 .07 38 .30 .17 55 1.91 .82 71 6.32 3.32
22 .24 .07 39 .33 .20 56 2.15 .93 72 6.84 3.74
23 .24 .07 40 .37 .23 57 2.44 1.06 73 7.38 4.21
24 .22 .08 41 .42 .26 58 2.77 1.22 74 7.95 4.71
25 .21 .08 42 .47 .29 59 3.15 1.41 75 8.56 5.22
26 .20 .08 43 .53 .32 60 2.191.06 76 9.24 5.78
27 .19 .09 44 .59 .34 61 2.53 1.11 77 10.00 6.42
28 .19 .09 45 .66 .36 62 2.88 1.18 78 10.86 7.15
29 .19 .10 46 .74 .38 63 3.20 1.26 79 11.81 7.96
30 .20 .11 47 .83 .40 64 3.51 1.36 80 12.83 8.85
31 .20 .12 48 .92 .43
Rate factors for ages not shown will be furnished by Prudential
upon request.
B. ADJUSTMENTS IN EMPLOYEE TERM LIFE INSURANCE BECAUSE OF AGE
MISSTATEMENTS
If the age of an Employee insured for Employee Term Life
Insurance under the Group Policy is found to have been misstated, the
premium charge applicable to such insurance of the Employee shall then
be adjusted to the amount required on the basis of the EmployeeOs
correct age. If such adjustment results in an increased premium, the
difference between the premium actually paid and the premium required
on the basis of the correct age shall be paid by the Policyholder upon
notice from Prudential of the amount due. If such adjustment results
in a decreased premium, Prudential shall refund to the Policyholder
the difference between the premium actually paid and the premium
required on the basis of the correct age. Such insurance of the
Employee shall remain unchanged if its amount does not depend upon
age. If the change in age affects such insurance of the Employee, the
amount shall be corrected accordingly and the premium adjustment shall
take such correction into account.
GRP 31300
GEN M-102 (1-4) LIFE
C. MAXIMUM EMPLOYEE CONTRIBUTIONS FOR EMPLOYEE TERM LIFE INSURANCE
The contributions, if any, required of an Employee for Employee
Term Life Insurance under the Group Policy shall not exceed the
Maximum Contribution Rate shown in this Rider for the insurance.
GRP 31300
GEN M-102 (1-4) LIFE
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Rider to Group Policy No. G-91660
Effective Date of Rider: January 1, 1972
PREMIUM RATE REDETERMINATIONS ON ACCOUNT OF SUPPLEMENTARY
INSURANCE UNDER EMPLOYEE TERM LIFE INSURANCE
Section B (Premium Computation - Change of Premium Rates) of the
General Provisions of the Group Policy is modified for Employee Term
Life Insurance by the addition of the following paragraphs:
On any premium due date occurring at or subsequent to the time
any Employee first becomes insured for Primary Supplementary Insurance
or the time Supplementary Insurance is terminated on any Employee but
prior to the date a redetermination of the premium rate for Employee
Term Life Insurance is next made pursuant to any other provisions of
the Group Policy, Prudential or the Policyholder may require that the
applicable premium rate be determined for premiums applying to the
Employee Term Life Insurance on and after the date of such
redetermination. In making any such redetermination, the ages of the
Employees insured for Supplementary Insurance Primary only of both
Primary and Secondary and the distribution of such insurance at the
time of such redetermination will be used with respect to
Supplementary Insurance. However, as to any other Employee Term Life
Insurance, it will be assumed that the age and distribution of
insurance data is the same as that used in the last Employee Term Life
Insurance premium rate determination.
The right to have redeterminations of the premium rate made in
accordance with the above paragraph will not affect the right to have
redeterminations made pursuant to other provisions of the Group
Policy.
For the purpose of the above paragraphs, an EmployeeOs amount of
Supplementary Insurance will, up to and including an amount thereof
equal to the applicable Primary Supplementary Insurance Maximum shown
below, be considered to be Primary Supplementary Insurance. The
portion, if any, of his amount of such Supplementary Insurance which
is in excess of such Maximum will be considered to be Secondary
Supplementary Insurance.
Primary Supplementary Insurance Maximum: $600,000.
_______________________
GRP 31300
GEN M-103 ED 3-66 (1-1)
LIFE
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Rider to Group Policy No. G-91660
Effective Date of Rider: August 1, 1970
MODIFICATIONS
OF GENERAL PROVISIONS FOR
EMPLOYEE LONG TERM DISABILITY INSURANCE
The General Provisions of the Group Policy are modified for
Employee Long Term Disability Insurance by the following provisions.
A. MODIFICATION OF SECTION B (PREMIUM COMPUTATION - CHANGE OF
PREMIUM RATES) OF THE GENERAL PROVISIONS.
No premium charge for Employee Long Term Disability Insurance
shall be made for any insured Employee while he is totally disabled
and entitled to benefits under such insurance after the applicable
Elimination Period.
B. TERMINATION OF EMPLOYEE LONG TERM DISABILITY INSURANCE
PROVISIONS.
Prudential may also terminate the provisions of the Group Policy
for any Employee Long Term Disability Insurance under a coverage on
any premium due date occurring one year or more after the effective
date of this Rider, by giving written notice to the Policyholder at
least sixty days in advance.
GRP 31300
GEN M-108 ED 3-67 (2N-1)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Coverage Rider to Group Policy No. G-91660
Effective Date of Rider: January 1, 1982
EMPLOYEE TERM LIFE
A. DEATH BENEFIT WHILE A COVERED INDIVIDUAL.
If the Employee dies while a covered individual, the amount of
insurance under this Coverage is payable when Prudential receives due
written proof of death.
B. DEATH BENEFIT DURING CONVERSION PERIOD.
This benefit is payable if the Employee dies within thirty-one
days after ceasing to be a covered individual and while entitled
(under Section C) to a conversion of insurance under this Coverage to
an individual policy.
C. CONVERSION PRIVILEGE.
An Employee ceasing to be a covered individual may convert the
insurance under this Coverage to an individual policy of life
insurance, without evidence of insurability, if the Employee then
ceases to be insured for term life insurance under the Group Policy by
reason of --
(1) termination of the EmployeeOs membership in the classes eligible
for such insurance or
(2) termination, by amendment of otherwise, of the provisions for
such insurance as to the eligible class of which the Employee is a
member, provided that either
(a) the Employee is totally disabled (as described below) at the
date of such termination and remains so disabled until the
effective date of the individual policy, or
(b) the Employee does not satisfy the requirements of provision
(a) but at the date of such termination has been insured
under such provisions (or under such provisions and any Prudential
rider or group policy replaced by such provisions) for at
least five years prior to such termination date.
Any such conversion shall be subject to the remainder of this Section.
Availability: The individual policy will be issued only if written
application and the first premium payment for it are made to
Prudential within thirty-one days after such cessation.
Individual Policy Requirements: The individual policy must conform to
the following --
Amount -- not in excess of the amount of the EmployeeOs insurance
under this coverage at such cessation. Furthermore, if such
cessation occurs by reason of termination, by amendment or otherwise,
of the term life insurance provisions of the Group Policy as the
EmployeeOs class, the total amount of individual insurance obtainable
with respect to all of the EmployeeOs life insurance then terminating
under the Group Policy shall in no event exceed the lesser of (1) the
total amount of such insurance then terminating, reduced by the
coverage issued by any insurance carrier within thirty-one days
thereafter, and (2) $2,000. However, in the case of an Employee
who is totally disabled (as described below) at the date of such
termination and remains so continuously so disabled until the
effective date of the individual policy, (a) the reduction in item
O(1)O of the preceding sentence applies only to the extent the
Employee becomes insured under the succeeding coverage within the
thirty-one days, and (b) item O(2)O of that sentence does not apply.
Form -- any form of life insurance policy, other than term
insurance or any policy containing disability or other supplementary
benefits, then customarily issued by Prudential at the age and
amount applied for.
Premium -- based on PrudentialOs rate applicable to its form and
amount, to the class of risk to which the Employee belongs, and to
the EmployeeOs attained age on its effective date.
Effective Date -- at the end of the thirty-one day period during
which application for it may be made.
Total Disability of an Employee: Exists only while both of the
following are satisfied --
(1) The Employee is not engaged in any gainful occupation.
(2) The Employee is completely unable, due to sickness or injury or
both, to engage in any and every gainful occupation for which that
person is reasonable fitted by education, training or experience.
______________________________
Any death benefit provided under a section of this Coverage is
payable in accordance with that section and the Group PolicyOs
Beneficiary and Mode of Settlement provisions.
______________________________
31300 Group Employee Term
Life Insurance
LIFE R-621 Coverage LIFE 621 (6-
1)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE #1
FOR EMPLOYEE TERM LIFE INSURANCE
Effective November 1, 1990
Made a Part of Employee Term Life Insurance Coverage LIFE 621 (6-1)
Under Group Policy No. G-91660
Coverage Classes:
All Officers except (1) Assistant Corporate Officers, (2) the Chairman
of the Board and Chief Executive Officer and (3) the President and
Chief Operating Officer of Northrop Corporation.
Insurance Provided:
Employee Insurance on the following assets -- [ ] Contributory
[ X ] Non-contributory
Amount of Insurance applicable to each EmployeeOs Benefit Class:*
Benefit Classes Amount of Insurance**
All Employees, according to
Annual Earnings, as follows:
Less than
$35,000.......................................................
$100,000
$ 35,000 or more but less than $45,000.....................
$120,000
$ 45,000 or more but less than $55,000.....................
$150,000
$ 55,000 or more but less than $65,000.....................
$180,000
$ 65,000 or more but less than $75,000.....................
$210,000
$ 75,000 or more but less than $85,000.....................
$240,000
$ 85,000 or more but less than $95,000.....................
$270,000
$ 95,000 or more but less than $105,000...................
$300,000
$105,000 or more but less than $125,000...................
$345,000
$125,000 or more but less than $145,000...................
$405,000
$145,000 or more but less than $165,000...................
$465,000
$165,000 or more but less than $185,000...................
$525,000
$185,000 or more but less than $205,000...................
$555,000
$205,000 or
more........................................................
$600,000
Supplementary Insurance -- The amount of insurance applicable to an
EmployeeOs classification includes Supplementary Insurance if that
amount exceeds the Basic Insurance maximum of $400,000. An EmployeeOs
amount of Supplementary Insurance is the excess, if any, of the amount
of insurance for which he is insured over the Basic Insurance Maximum.
*See reverse side
**See reverse side
(Coverage Schedule
continued)
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
COVERAGE SCHEDULE (Continued)
Amount of Insurance applicable to each EmployeeOs Benefit Class:
(Continued)
* Notwithstanding any provisions other than the OAge LimitationO
paragraph of the Group Policy to the contrary, the following
shall apply to each Employee who on July 31, 1976, was covered under
the coverage of which this Coverage Schedule is made a part for an
amount of insurance other than the Amount of Insurance provided
for the Employee under this Coverage Schedule:
While the employee remains insured under the Coverage of
which this Coverage Schedule is made a part, the EmployeeOs
Amount of Insurance shall be an amount equal to the Amount of
Insurance for which the Employee was insured on July 31, 1976. This
provision will cease to apply to an Employee on and after any
change in the EmployeeOs classification to a classification for
which an Amount of Insurance is provided under this Coverage Schedule
which is equal to or larger than the Amount of Insurance for which
the Employee was insured on July 31, 1976.
** If an Employee becomes a covered individual under the Coverage of
which this Coverage Schedule is made a part within thirty-one
days after he ceases to be insured for employee term life insurance
under another Group Policy issued to Northrop Corporation (or a
subsidiary or affiliate of Northrop Corporation), hereinafter
referred to as a Oprior coverage,O then during said thirty-one day
period his amount of insurance shall be the amount for which he would
otherwise be insured for under this Coverage Schedule reduced by
the amount of death benefit, if any, provided with respect to the
employee under the prior coverage during said thirty-one day period.
Age Limitation -- Applicable to All Employees except (1) Executive
Vice President or Senior Vice President of Northrop Corporation and
(2) Vice President or Group Vice President elected by the Board of
Directors -- On and after the EmployeeOs attainment of the Limiting
Age shown below, his amount of insurance shall be 20% of the amount
for which he would then be insured without regard to any retirement
reduction of limitation. The Changes of Employee Benefits section of
the Insurance Plan Provisions will not apply to any reduction provided
by this limitation.
Limiting Age -- The EmployeeOs age on the day he is retired by
the Employer. For the purpose of this definition, an Employee shall
not be considered as becoming retired, prior to age 65, while absent
from work on account of his disability for less than one year.
Age Limitation -- Applicable to (1) Executive Vice President or Senior
Vice President of Northrop Corporation and (2) Vice President or Group
Vice President elected by the Board of Directors -- On or after the
EmployeeOs attainment of the Limiting Age shown below, his amount of
insurance shall be the Limited Percentage for that Age of the amount
for which he would then be insured without regard to any retirement
reduction or limitation. The Changes of Employee Benefits section of
the Insurance Plan Provisions will not apply to any reduction provided
by this limitation.
Limiting Age -- The EmployeeOs age on the day he is retired by
the Employer. For the purpose of this definition, an Employee shall
not be considered as becoming retired, prior to age 65, while absent
from work on account of his disability for less than one year.
Limited Percentage -- The Limited Percentage shall be selected by
the Employee on his date of retirement. He may select 10% or 20% as
his Limited Percentage. But once the Employee has selected his
Limited Percentage, he may not change it. If the Employee does not
select a Limited Percentage, the Limited Percentage will be 20%.
(Coverage Schedule
continued)
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE #1
FOR EMPLOYEE TERM LIFE INSURANCE
Effective November 1, 1990
Made a Part of Employee Term Life Insurance Coverage LIFE 621 (6-1)
Under Group Policy No. G-91660
CONTINUED
The Changes of Employee Benefits section of the Insurance Plan
Provisions is:
Applicable except to the extent, if any, indicated under Amount of
Insurance.
Previous Group Coverage (under provision (3) of the Changes of
Employee Benefits section):
[ ] None [ ]
Assignment:
The insurance is assignable.
Continuance in Coverage Classes During Absence from Full-time Work:
The types of absences and time limits referred to in the Termination
of Employee Insurance section of the Insurance Plan Provisions for
considering an Employee as continuing to be a member of the coverage
classes are --
Type of Absence from
Full-time Work Time Limit
Leave of absence Two years
Family leave of absence End of the fourth policy
month following
the policy month in which the
Employee
ceased to be actively engaged
in work on a
full-time basis
Temporary lay-off, for reasons End of the third
policy month following
other than disability the policy month
during which lay-off
commences, except that if
prior thereto the
Employee becomes a member of
any military, naval or air force
of any country at
war, declared or undeclared,
then the later of
(a) the date he becomes a
member of such
military, naval or air force
and (b) the end
of the policy month following
the policy
month during which leave or
lay-off
commences.
Disability, part-time employment None.
or retirement
Facility of Payment: At its option, Prudential may pay up to $500.00
of an EmployeeOs insurance to any person appearing to it to be
equitably entitled to payment because of expense incurred in
connection with the EmployeeOs burial. The liability of Prudential
shall be discharged to the extent of any amount so paid.
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE #1
FOR EMPLOYEE TERM LIFE INSURANCE
Effective November 1, 1990
Made a Part of Employee Term Life Insurance Coverage LIFE 621 (6-1)
Under Group Policy No. G-91660
Coverage Classes:
All Employees of Northrop Corporation classified as OChairman of the
Board and Chief Executive OfficerO and OPresident and Chief Operating
Officer.O
Insurance Provided:
Employee Insurance on the following basis -- [ ] Contributory [X]
Non-contributory
Amount of Insurance applicable to each EmployeeOs Benefit Class:
Benefit Classes Amount of Insurance*
Chairman of the Board and Chief Executive
Officer.......................$1,000,000
President and Chief Operating
Officer................................... .....$ 780,000
* If an Employee becomes a covered individual under the Coverage of
which this Coverage Schedule is made a part within thirty-one days
after he ceases to be insured for employee term life insurance under
another Group Policy issued to Northrop Corporation (or a subsidiary
or affiliate of Northrop Corporation), hereinafter referred to as
a Oprior coverage,O then during said thirty-one day period his amount
of insurance shall be the amount for which he would otherwise be
insured for under this Coverage Schedule reduced by the amount of
death benefit, if any, provided with respect to the employee under the
prior coverage during said thirty-one day period.
Supplementary Insurance -- The amount of insurance applicable to an
EmployeeOs classification includes Supplementary Insurance if that
amount exceeds the Basic Insurance maximum of $400,000. An EmployeeOs
amount of Supplementary Insurance is the excess, if any, of the amount
of insurance for which he is insured over the Basic Insurance Maximum.
The Supplementary Insurance is subject to the OModifications of the
OChanges of Employee BenefitsO Section for Supplementary Insurance
under Employee Term Life InsuranceO of the Group Policy.
The Non-medical Maximum referred to in the Modifications is $600,000.
Age Limitation (Applicable to the Chairman of the Board and Chief
Executive Officer of Northrop Corporation classified as ORetiredO by
the Policyholder) -- In the limitation period for each Limiting Age
shown below, the EmployeeOs amount of insurance shall be the Limited
Amount (for that Age). The limitation period for a Limiting Age
begins with the date he becomes insured under the coverage if he is
then that Age or more, and otherwise begins with the date he attains
that Age. That limitation period will terminate immediately prior to
the limitation period for any subsequent Limiting Age. The Changes of
Employee Benefits section of the Insurance Plan Provisions will not
apply to any reduction provided by this limitation.
(Coverage Schedule
continued)
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
COVERAGE SCHEDULE (Continued)
Amount of Insurance applicable to each EmployeeOs Benefit Class:
(Continued)
Age Limitation (Applicable to the Chairman of the Board and Chief
Executive Officer of Northrop Corporation classified as ORetiredO by
the Policyholder) -- (Continued)
Limiting Age Limited Amount
65, or if later, the EmployeeOs age on the date
$450,000
of his retirement by the Policyholder
66, or if later, the EmployeeOs age on the date
$400,000
of his retirement by the Policyholder
67, or if later, the EmployeeOs age on the 2nd
$350,000
anniversary of his retirement by the Policyholder
68, or if later, the EmployeeOs age on the 3rd
$300,000
anniversary of his retirement by the Policyholder
69, or if later, the EmployeeOs age on the 4th
$250,000
anniversary of his retirement by the Policyholder
Age Limitation (Applicable to the President and Chief Operating
Officer of Northrop Corporation classified as ORetiredO by the
Policyholder) -- On and after the EmployeeOs attainment of the
Limiting Age shown below and during each Limitation Period shown
below, his amount of insurance shall be the Limited Amount shown
below. The Changes of Employee Benefits section of the Insurance Plan
Provisions will not apply to any reduction provided by this
limitation.
Limiting Age -- the EmployeeOs age on the day of his retirement
by the Employer.
Limitation Period Limited Amount
a. One year beginning with the day of the
EmployeeOs retirement by the Policyholder $450,000
b. One year beginning with the termination
of item Oa.O above. $400,000
c. One year beginning with the termination
of item Ob.O above. $350,000
d. One year beginning with the termination
of item Oc.O above. $300,000
e. One year beginning with the termination
of item Od.O above. $250,000
(Coverage Schedule
continued)
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE #2
FOR EMPLOYEE TERM LIFE INSURANCE
Effective November 1, 1990
Made a Part of Employee Term Life Insurance Coverage LIFE 621 (6-1)
Under Group Policy No. G-91660
CONTINUED
The Changes of Employee Benefits section of the Insurance Plan
Provisions is:
Applicable except to the extent, if any, indicated under Amount of
Insurance.
Previous Group Coverage (under provision (3) of the Changes of
Employee Benefits section):
[ X ] None [ ]
Assignment:
The insurance is assignable.
Continuance in Coverage Classes During Absence from Full-time Work:
The types of absences and time limits referred to in the Termination
of Employee Insurance section of the Insurance Plan Provisions for
considering an Employee as continuing to be a member of the coverage
classes are --
Type of Absence from
Full-time Work Time Limit
Leave of absence Two years
Family leave of absence End of the fourth policy
month following
the policy month in which the
Employee
ceased to be actively engaged
in work on a
full-time basis
Temporary lay-off, for reasons End of the third
policy month following
other than disability the policy month
during which lay-off
commences, except that if
prior thereto the
Employee becomes a member of
any military, naval or air force
of any country at
war, declared or undeclared,
then the later of
(a) the date he becomes a
member of such
military, naval or air force
and (b) the end
of the policy month following
the policy
month during which leave or
lay-off
commences.
Disability, part-time employment None.
or retirement
Facility of Payment: At its option, Prudential may pay up to $500.00
of an EmployeeOs insurance to any person appearing to it to be
equitably entitled to payment because of expense incurred in
connection with the EmployeeOs burial. The liability of Prudential
shall be discharged to the extent of any amount so paid.
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE #3
FOR EMPLOYEE TERM LIFE INSURANCE
Effective January 1, 1992
Made a Part of Employee Term Life Insurance Coverage LIFE 621 (6-1)
Under Group Policy No. G-91660
Coverage Classes:
All Employees who are classified as Non-Officer Executives whose
annual earnings are (1) $111,000 or more.
Insurance Provided:
Employee Insurance on the following basis -- [ ] Contributory [X]
Non-contributory
Amount of Insurance applicable to each EmployeeOs Benefit Class:*
Benefit Classes Amount of
Insurance**
All Employees, according to
Annual Earnings, as follows:
$ 60,000 or more but less than $ 70,000
$130,000
$ 70,000 or more but less than $ 80,000
$150,000
$ 80,000 or more but less than $ 90,000
$170,000
$ 90,000 or more but less than $100,000
$190,000
$100,000 or more but less than $110,000 $210,000
$110,000 or more but less than $120,000 $230,000
$120,000 or more but less than $130,000 $250,000
$130,000 or more but less than $140,000 $270,000
* Notwithstanding any provisions of the Group Policy to the
contrary, the following shall apply to each Employee who on July 31,
1976, was covered under the coverage of which this Coverage
Schedule is made a part for an amount of insurance other than the
Amount of Insurance provided for the Employee under this Coverage
Schedule:
While the Employee remains insured under the Coverage of
which this Coverage Schedule is made a part, the
EmployeeOs Amount of Insurance shall be an amount equal to
the Amount of Insurance for which the Employee was insured on July 31,
1976. This provision will cease to apply to an Employee on
and after any change in the EmployeeOs classification to a
classification for which an Amount of Insurance is provided under this
Coverage Schedule which is equal to or larger than the Amount of
Insurance for which the Employee was insured on July 31,
1976.
** See next page.
(Coverage Schedule
continued)
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
COVERAGE SCHEDULE (Continued)
Amount of Insurance applicable to each EmployeeOs Benefit Class:
(Continued)
** If an Employee becomes a covered individual under the Coverage of
which this Coverage Schedule is made a part within thirty-one days
after he ceases to be insured to employee term life insurance under
another Group Policy issued to Northrop Corporation (or a subsidiary
or affiliate of Northrop Corporation), hereinafter referred to as
a Oprior coverage,O then during said thirty-one day period his amount
of insurance shall be the amount for which he would otherwise be
insured for under this Coverage Schedule reduced by the amount of
death benefit, if any, provided with respect to the Employee under the
prior coverage during said thirty-one day period.
The Changes of Employee Benefits section of the Insurance Plan
Provisions is:
Applicable except to the extent, if any, indicated under Amount of
Insurance.
Previous Group Coverage (under provision (3) of the Changes of
Employee Benefits section):
[ X ] None [ ]
Assignment: The insurance is assignable.
Continuance in Coverage Classes During Absence from Full-time Work:
The types of absences and time limits referred to in the Termination
of Employee Insurance section of the Insurance Plan Provisions for
considering an Employee as continuing to be a member of the coverage
classes are --
Type of Absence from
Full-time Work Time Limit
Leave of absence Two years
Family leave of absence End of the fourth
policy month following
the policy month in which the
Employee
ceased to be actively engaged
in work on a
full-time basis
Temporary lay-off, for reasons End of the
third policy month following
other than disability the policy month
during which lay-off
commences, except that if
prior thereto the
Employee becomes a member of
any military, naval or air
force of any country at
war, declared or undeclared,
then the later of
(a) the date he becomes a
member of such
military, naval or air force
and (b) the end
of the policy month following
the policy
month during which leave or
lay-off
commences.
Disability, part-time employment None.
or retirement
Facility of Payment: At its option, Prudential may pay up to $500.00
of an EmployeeOs insurance to any person appearing to it to be
equitably entitled to payment because of expense incurred in
connection with the EmployeeOs burial. The liability of Prudential
shall be discharged to the extent of any amount so paid.
GRP 31300
LIFE U-101 ED 3-66 (G-91660)
(1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Rider to Group Policy No. G-91660
Effective Date of Rider: January 1, 1982
Made a Part of Coverage LIFE 621 (6-1)
CONVERSION PRIVILEGE IN THE EVENT OF CERTAIN EMPLOYEE
TERM LIFE INSURANCE REDUCTIONS
An Employee whose Employee Term Life Insurance under the Coverage
is subject to a reduction as specified below may convert the amount of
such reduction to an individual policy of life insurance, without
evidence of insurability, subject to the remainder of this Privilege.
Conditions for Conversion: Both of the following --
(1) The reduction occurs, in accordance with the provisions of the
Group Policy, because the Employee attains a specific age or
because he is retired by the Employer, provided, in either event, the
reduction occurs on or after the date he is so retired.
(2) Written application and the first premium payment for the
individual policy are made to Prudential within thirty-one days
after such reduction.
Individual Policy Requirements: Same as would apply under the section
OConversion PrivilegeO of the Coverage were his membership in the
classes eligible for the insurance terminating on the date of such
reduction, except that the amount of the individual policy shall not
exceed the amount of the reduction.
Death Benefit during Conversion Period: This benefit is payable if
the Employee dies within thirty-one days after a reduction specified
above and while entitled under this privilege to a conversion of such
reduction.
An amount equal to that which might have been issued under the
individual policy is payable when Prudential receives due written
proof of death, whether or not he applied for conversion.
______________________
GRP 31300
LIFE T-101 ED 3-66
(1-1)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Coverage Rider to Group Policy No. G-91660
Effective Date of Rider: August 1, 1970
DEPENDENTS TERM LIFE
A. DEATH BENEFIT WHILE A COVERED INDIVIDUAL.
If a dependent dies while a covered individual, the amount of
insurance on the dependent under this Coverage is payable when
Prudential receives due written proof of death.
B. DEATH BENEFIT DURING CONVERSION PERIOD.
Death of Spouse: A benefit is payable under this Subsection if the
EmployeeOs spouse dies within thirty-one days after ceasing to be a
covered individual and while entitled (under Section C) to a
conversion of insurance to an individual policy.
An amount equal to that which might have been issued under the
individual policy is payable under the Group Policy when Prudential
receives due written proof of death, whether or not application for
conversion has been made.
Death of Child: A benefit is payable under this Subsection if a child
of the Employee dies within thirty-one days after ceasing to be a
covered individual, provided that the child ceased to be a covered
individual by reason of termination of the EmployeeOs membership in
the classes eligible for Dependents Term Life Insurance under the
Group Policy.
The amount of insurance on the child under this Coverage
immediately prior to such cessation is payable when Prudential
receives due written proof of death.
C. CONVERSION PRIVILEGE FOR SPOUSE.
A dependent spouse ceasing to be a covered individual may have
the insurance on him under this Coverage converted to an individual
policy of life insurance, without evidence of insurability, if the
Employee then ceases to be insured for Dependents Term Life Insurance
under the Group Policy with respect to the spouse for any reason other
than:
(1) termination, by amendment or otherwise, of the provisions for
such insurance as to the eligible class of which the Employee is a
member, unless at the date of such termination the Employee has been
so insured with respect to the spouse under such provisions (or
under such provisions and any Prudential rider or group policy
replaced by such provisions) for at least five years prior to such
termination date, or
(2) the EmployeeOs failure to make any required contribution for
insurance under the Group Policy.
Any such conversion shall be subject to the remainder of this Section.
Availability: The individual policy will be issued only if written
application and the first premium payment for it are made to
Prudential within thirty-one days after such cessation.
Individual Policy Requirements: The individual policy must conform to
the following --
Amount -- not in excess of the amount insurance on the spouse
under this Coverage at such cessation. Furthermore, if such
cessation occurs by reason of termination, by amendment or otherwise,
of the Dependents Term Life Insurance provisions of the Group
Policy as to the EmployeeOs class, the total amount of individual
insurance obtainable with respect to all the Dependents Term Life
Insurance on the spouse then terminating under the Group Policy shall
in no event exceed the lesser of (1) the total amount of such
insurance then terminating, reduced by the amount of any life
insurance for which the Employee is or becomes eligible with respect
to the spouse under any group life insurance coverage issued by any
insurance carrier within thirty-one days thereafter, and (2)
$2,000.
Form -- any form of life insurance policy, other than term
insurance or any policy containing disability or other supplementary
benefits, then customarily issued by Prudential at the age and amount
applied for.
Premium -- based on PrudentialOs rate applicable to its form and
amount, to the class of risk to which the spouse belongs, and to
the spouseOs attained age on its effective date.
Effective Date -- at the end of the thirty-one day period during
which application for it may be made.
______________________________
Any death benefit provided under a section of this Coverage is
payable to the Employee, if living at the death of the dependent. If
the Employee predeceased the dependent, the death benefit is payable
to the estate of the dependent or, at PrudentialOs option, to any one
of the following surviving relatives of the dependent: wife, husband,
mother, father, children, brothers or sisters.
______________________________
31300 Group Dependents
Term Life Insurance
DEPL R-101 -32- Coverage DEPL 101 (1-
1)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE A
FOR DEPENDENTS TERM LIFE INSURANCE
Effective January 1, 1981
Made a Part of Dependents Term Life Insurance Coverage DEPL 101 (1-1)
Under Group Policy No. G-91660
Coverage Classes:
All Corporate Officers of Northrop Worldwide Aircraft Services, Inc.
Insurance Provided:
Dependents Insurance on the following basis -- [ ] Contributory
[X] Non-contributory
Husbands are included as qualified dependents.
Associated Protection: Employee Term Life Insurance under the
Group Policy.
Amounts of Insurance applicable to each EmployeeOs Benefit Class:
An EmployeeOs benefit class is determined by the classification of his
dependents below.
Dependents Classification Amount of Insurance*
**
EmployeeOs Spouse $2,500
EmployeeOs children 14 days or over
but less than 19 years of age $1,000
* If the qualified dependent of an Employee becomes a covered
individual under the Coverage within thirty-one days after
ceasing to be a covered individual for dependents term life insurance
under another Group Policy issued to Northrop Corporation (or a
subsidiary or affiliate of Northrop Corporation), hereinafter
referred to as a Oprior coverageO, then, during said thirty-one day
period, the amount of insurance for which the Employee is insured
under this Coverage Schedule with respect to said qualified
dependent during said thirty-one day period shall be the amount for
which he would otherwise be insured under this Coverage Schedule with
respect to said qualified dependent reduced by the amount of death
benefit, if any, provided with respect to said qualified dependent
under the prior coverage during said thirty-one day period.
** Insurance terminates at age 65.
The Changes of Dependents Benefits section of the Dependents Insurance
Provisions is: Applicable.
Assignment: The insurance is assignable only as a gift assignment.
Continuance in Coverage Classes During Absence from Full-time Work:
Continuance during such absence shall be for the same time, if any,
that the Employee is considered as continuing to be a member of the
coverage classes for the Associated Protection.
Group 31300
DEPL U-101 ED 3-66
(1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE
FOR DEPENDENTS TERM LIFE INSURANCE
Effective March 1, 1983
Made a Part of Dependents Term Life Insurance Coverage DEPL 101 (1-1)
Under Group Policy No. G-91660
Coverage Classes:
All Northrop Corporation Officers and Non-Officer Executives whose
enrolled earnings are (1) $65,000 or more or (2) less than $65,000 who
were insured under this coverage February 28, 1983, but excluding, in
any case, Wilcox Electric, Inc., Defense Systems Division, Northrop
Services, Inc., Precision Products Division of Tactical Electronics
Systems Group, and Northrop Worldwide Aircraft Services, Inc.
Insurance Provided:
Dependents Insurance on the following basis -- [X]
Contributory
[ ] Non-contributory
Husbands are included as qualifying dependents.
Associated Protection: Employee Term Life Insurance under the
Group Policy.
Amounts of Insurance applicable to each EmployeeOs Benefit Class:
An EmployeeOs benefit class is determined by the classification of his
dependents below.
Dependents Classification Amount of
Insurance*
EmployeeOs
spouse................................................................
........................................ $3,750.00
EmployeeOs children according to
attained age, as follows:
14 days or over but less than 6
months.............................................. 500.00
6 days or
over..................................................................
.............................. 3,750.00
* If the qualified dependent of an Employee becomes a covered
individual under the Coverage within thirty- one days after ceasing to
be a covered individual for dependents term life insurance under
another Group Policy issued to Northrop Corporation (or a subsidiary
or affiliate of Northrop Corporation), hereinafter referred
to as a Oprior coverageO, then, during said thirty-one day period, the
amount of insurance for which the Employee is insured under this
Coverage Schedule with respect to said qualified dependent during said
thirty-one day period shall be the amount for which he would
otherwise be insured under this Coverage Schedule with respect to
said qualified dependent reduced by the amount of death benefit, if
any, provided with respect to said qualified dependent under the
prior coverage during said thirty-one day period.
The Changes of Dependents Benefits section of the Dependents Insurance
Provisions is: Applicable.
Assignment: The insurance is assignable.
Continuance in Coverage Classes During Absence from Full-time Work:
Continuance during such absence shall be for the same time, if any,
that the Employee is considered as continuing to be a member of the
coverage classes for the Associated Protection, except that he shall
not be considered as continuing in the coverage classes for the
Dependents Term Life Insurance if his absence is due to retirement by
the Employer.
Group 31300
DEPL U-101 ED 3-66
(1-2) A
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Coverage Rider to Group Policy No. G-91660
Effective Date of Rider: August 1, 1970
EMPLOYEE LONG TERM DISABILITY INSURANCE
The benefits of Section A are subject to the provisions of
Section B (Not Covered).
An Employee is totally disabled for the purposes of this Coverage
only while satisfying both of the following requirements:
(1) Due to sickness or accidental bodily injury, he (a) is completely
unable to perform any and every duty pertaining to his occupation
with the Employer and (b), after the Initial Duration (see Coverage
Schedule) of a period of disability, is completely unable to engage
in any and every gainful occupation for which he is reasonably
fitted by education, training or experience.
(2) He is not engaged in any gainful occupation and is not confined
in a penal institution or other house of correction as a result of
conviction for a criminal or other public offense.
A. BENEFITS FOR DISABILITY
Payable for: An EmployeeOs period of total disability. Benefits
begin with the first day of such disability after the Elimination
Period (see Coverage Schedule) for that period of disability.
Conditions for Benefit: Both of the following --
(1) The period of total disability commenced while the Employee was a
covered individual.
(2) The Employee is under the regular care of a Physician.
Amount Payable:
The applicable Adjusted Benefit (see Coverage Schedule) for each
calendar month throughout which the total disability continues beyond
the Elimination Period; one-thirtieth of the applicable Adjusted
Benefit for each day of any portion of the total disability not
constituting a full calendar month. Benefits are payable up to the
applicable Maximum Benefit Duration (see Coverage Schedule).
Recurrent Disabilities: If a period of an EmployeeOs total disability
commences while he is a covered individual and after a prior period of
his total disability for which any benefits were payable under this
Coverage, the subsequent period shall be considered a continuation of
the prior period unless --
(1) the periods are separated by an interval during which the
Employee has performed all the important duties of a gainful
occupation with the Employer on a full-time basis for at least six
consecutive months, or
(2) the periods are due to entirely unrelated causes and are
separated by an interval during which the Employee has performed
all the important duties of a gainful occupation with the Employer.
B. NOT COVERED.
(1) Any disability caused, or contributed to, by intentionally self-
inflicted bodily injury or attempted suicide, whether the Employee
is sane or insane.
(2) Any disability caused, or contributed to, by war or any act of
war (OwarO means declared or undeclared war and includes resistance
to armed aggression).
(3) Any disability caused by, contributed to by, or resulting from
the EmployeeOs pregnancy.
_________________________
The benefits of this Coverage are payable to the Employee.
Payment will be made monthly and is subject to the Group PolicyOs
Claim Provisions.
_________________________
31300 Group Employee Long
Term Disability
LTD R-102 ED 3-67 -37 Insurance Coverage
LTD 102 (6-5)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE
FOR EMPLOYEE LONG TERM DISABILITY INSURANCE
Effective August 1, 1970
Made a Part of Employee Long Term Disability Insurance Coverage LTD
102 (6-5)
Under Group Policy No. G-91660
Coverage Classes:
All Employees who are (1) less than the Limiting Age stated below and
(2) classified as Officers or salaried Employees each of whose annual
earnings are $25,000 or more, but excluding in any case all Employees
of The Hallicrafters Co.
Insurance Provided:
Employee Insurance on the following basis -- [ ] Contributory
[X] Non-contributory
Limiting Age: 64 years and 6 months
Initial Duration: The Elimination Period plus 12 months.
Elimination Period:
A duration of continuous total disability extending for 26 consecutive
weeks from the beginning of each period of total disability due to
sickness or accidental bodily injury, but not extending beyond that
date, during that continuous total disability, of exhaustion of the
maximum benefits provided for the Employee by the Basic Loss of Time
Coverage with respect to a period of disability compensable
thereunder. OBasic Loss of Time CoverageO means a plan of periodic
benefits for loss of time on account of disability under or by reason
of, (1) any insurance (other than under the coverage) where the
Employer, directly or indirectly, has paid all or any portion of the
cost or made payroll deductions or (2) any disability benefits law or
similar law.
The Changes of Employee Benefits section of the Insurance Plan
Provisions is: Applicable, solely to the determination of an
EmployeeOs Scheduled Benefit under this Coverage Schedule.
Assignment: The insurance is not assignable.
Continuance in Coverage Classes During Absence from Full-time Work:
The types of absences and time limits referred to in the Termination
of Employee Insurance section of the Insurance Plan Provisions for
considering an Employee as continuing to be a member of the coverage
classes are --
Type of Absence from
Full-time Work Time Limit
Leave of absence End of the sixth policy
month following
the policy month in which the
Employee
ceased to be actively engaged
in work on a
full-time basis, but not after
he attains the
Limiting Age.
Temporary lay-off or part-time employment, End of the
policy month following the policy
for reasons other than disability month in which
the Employee ceased to be
actively engaged in work on a
full-time basis,
but not after he attains the
Limiting Age.
Part-time employment because of disability for
Commencement of such part-time employment.
which benefits are not provided under
the coverage by reason of the provision
ONot CoveredO of the coverage rider.
Disability, part-time employment None.
or retirement
31300
LTD U-101 ED 3-67 -38- G-91660
(1-2)
COVERAGE SCHEDULE (Continued)
Amount of Insurance:
Maximum Benefit Duration --
For total disability due to sickness or injury -- benefits to the
EmployeeOs attainment of age 65.
Adjusted Benefit --
With respect to Employees classified as President, Executive Vice
President or Senior Vice President of Northrop Corporation:
For any calendar month, the Adjusted Benefit is equal to the
smaller of
(1) the EmployeeOs Scheduled Benefit under this Coverage
Schedule, and
(2) the excess of (a) 60% of his monthly earnings over (b) his
Non-duplication Offset for that calendar month, determined
from the applicable Non-duplication Offset Supplement to this
Coverage Schedule.
With respect to all other Employees:
For any calendar month, the Adjusted Benefit is equal to the
smaller of
(1) the EmployeeOs Scheduled Benefit under this Coverage
Schedule, and
(2) the excess of (a) 60% of his monthly earnings up to
$3,333.34 of such earnings over (b) his Non-duplication
Offset for that calendar month, determined from the applicable Non-
duplication Offset Supplement to this Coverage Schedule.
Scheduled Benefit -- 60% of the EmployeeOs monthly earnings, but
not more than
(1) $3,750 with respect to an Employee classified as President
of Northrop Corporation;
(2) $3,000 with respect to an Employee classified as Executive
Vice President of Northrop
Corporation
(3) $2,500 with respect to an Employee classified as Senior Vice
President of Northrop
Corporation
(4) $2,000 with respect to all other Employees.
Exclusion Not Applicable:
Part (2) or Section B (Not Covered) does not apply with respect to any
Employee assigned to Vietnam, Laos or Cambodia from the time the
Employee leaves his residence or place of regular employment for the
assignment, whichever occurs last, until his return to his residence
or place of employment, whichever occurs first.
GRP 31300
LTD U-101 ED 3-67 -39 (1-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
SCHEDULE SUPPLEMENT
FOR EMPLOYEE LONG TERM DISABILITY INSURANCE
Effective August 1, 1970
Non-duplication Offset Supplement to Coverage Schedule
Made a Part of Employee Long Term Disability Insurance Coverage LTD
102 (6-5)
Under Group Policy No. G-91660
Non-duplication Offset:
The Non-duplication Offset used in determining the EmployeeOs Adjusted
Benefit under the Coverage Schedule for a calendar month is the
aggregate amount of benefits, payments or other compensation (adjusted
to a monthly basis if not so payable) which are described in the
applicable Offset Provisions below and which, for that month, he
receives or would be entitled to receive upon timely pursuit of claim
therefor.
Offset Provisions:
All of the following Offset Provisions apply to the Employee.
(A) Periodic benefits (including any commutation of, or substitute
for, such benefits) for loss of time on account of disability due
to sickness or injury arising out of employment with the
Employer, under or by reason of any workmenOs compensation law,
occupational disease law, or similar legislation, or the maritime
doctrine of maintenance, wages and cure.
(B) Periodic benefits, for loss of time on account of disability,
under or by reason of --
(1) any insurance or any health or welfare plan or other
employee benefit plan where the Employer, directly or
indirectly, has paid all or any portion of the cost or made
payroll deductions;
(2) the United States Social Security Act as amended from time
to time, including benefits thereunder with respect to
dependents of the Employee;
(3) any State, Provincial or other Federal law of the United
States or Canada, other than any law providing benefits or
payments on account of military service.
(C) Any full or partial wage or salary payments or other payments, by
the Employer to the Employee.
(D) Periodic benefits, in the nature of early retirement benefits,
under or by reason of any insurance, annuity or pension contract,
or any welfare plan or other employee benefit plan, where the
Employer, directly or indirectly, has paid all or any portion of
the cost or made payroll deductions. However, any such benefits
available at the EmployeeOs election, whether or not he is
disabled, are included under this (D) only if so elected.
(E) Periodic benefits, on account of disability, under any group life
insurance where the Employer, directly or indirectly, has paid
all or any portion of the cost or made payroll deductions, if the
Employee elects to receive such benefits.
(F) Periodic benefits under the United States Social Security Act as
amended from time to time, for any month after the EmployeeOs
attainment of age 62, including such benefits with respect to his
dependents. However, this (F) does not include benefits for any
month prior to his attainment of age 65, unless he elects to
receive benefits for that month.
GRP 31300
LTD U-102 ED 3-67 -40-
(6-5)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
a mutual life insurance company
Effective Date of Rider: January 1, 1981
Rider Attached to and Made a Part of Group Policy No. G-91660
Coverage Classes to which this Rider applies: All Employees of
Northrop Worldwide Aircraft Services, Inc.
OPTION TO CONTINUE COVERAGE OF DEPENDENT CHILD INCAPACITATED WHEN
SPECIFIED AGE LIMIT FOR CHILDREN IS ATTAINED:
If a qualified dependent child is mentally or physically incapable of
earning a living on the date any coverage under the Group Policy with
respect to such child would terminate due to attainment of the
specified age limit for children, and if within thirty-one days after
such date the Insurance Company receives due proof of such incapacity,
then such specified age limit shall not operate to terminate such
coverage under the Group Policy with respect to such child so long as
such child remains in such condition. This provision does not waive,
alter, or extend in any respect, other than as stated above, any of
the provisions, conditions, limitations and exceptions of the Group
Policy.
THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA
By
Secretary
ORD 29684-2 ED 8-66
P
NORRIS
Rider to Group Policy No. G-91660
Effective Date of Rider: August 1, 1983
MODIFICATION OF THE GROUP POLICYOS
TERM LIFE INSURANCE PROVISIONS
The Conversion Privilege of the Group PolicyOs Term Life Insurance
provisions is modified as follows: The benefits and premium under
each form of individual life insurance contract issued to males or
females shall be those that usually apply to males, except that for
any participating settlement under the individual contract payable for
the lifetime of one or more payees, the female rates will apply to
both male and female payees.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By
Assistant Secretary
Accepted by:
_______________________________, 19_____ NORTHROP CORPORATION
Witness ________________________________ By
__________________________________________________
(Signature and Title)
83500
GBT T 1012 (6-1)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
A Mutual Life Insurance Company
(Herein Called The Insurance Company)
Rider To Be Attached To and Made A Part of Group Policy No. G-91660
The Insurance Company and the Policyholder agree that, effective
August 1, 1970, the Policy is amended by the addition of the following
provision:
SPECIAL RESERVE
The Insurance Company may maintain a special reserve to be applied by
it from time to time toward stabilizing experience under the Policy.
Such reserve shall be established from premiums paid under the Policy,
and the amount of such reserve shall be determined by the Insurance
Company from time to time. Such reserve shall be credited with
interest at the end of each policy year, or in the event of
termination of the Policy, at the time of such termination. The
interest for the policy year or portion thereof, as the case may be,
shall be determined at the rate of 4 1/8% per annum and on the average
amount of the reserve during the period with respect to which the
interest is being computed, except that after this Rider has been in
effect for one full policy year and from time to time thereafter the
Insurance Company may change the rate to be used in the computation of
the interest on the reserve.
If at any time the Insurance Company shall determine that the amount
of the special reserve is then in excess of that required, the
Insurance Company shall pay such excess to the Policyholder as a
return of premium.
In the event of termination of the Policy, any balance remaining in
the special reserve after final application of the reserve by the
Insurance Company in accordance with the above provisions shall be
paid to the Policyholder as a return of premium, subject to the right
of the Insurance Company to defer the payment of any such return for
as long as six months after such final application but not exceeding
the period permitted by law.
The Insurance Company has caused this Rider to be executed this ninth
day of August, 1971.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Attest _________________________ By
Secretary
GC-3350 -45-
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Coverage Rider to Group Policy No. G-91660
Effective Date of Rider: January 1, 1982
EMPLOYEE SURVIVOR BENEFITS LIFE INSURANCE
A. DEATH BENEFIT WHILE A COVERED INDIVIDUAL.
If Prudential receives due written proof that the Employee died
while a covered individual and is survived by a Qualified Family
Member (see Coverage Schedule), a benefit is payable as of the
EmployeeOs death and as of each first day of a month thereafter on
which he is survived by a then Qualified Family Member and which
occurs within a Maximum Benefit Period (see Coverage Schedule)
beginning with the date of his death. Each benefit payable is the
applicable Monthly Benefit (see Coverage Schedule) except that the
first benefit is the pro-rata portion of the Monthly Benefit for the
balance of the month in which the death occurs and, if benefits are
payable for the full Maximum Benefit Period, the last benefit is the
pro-rata portion of the Monthly Benefit for the part of the month from
the due date of such benefit to the end of the Maximum Benefit Period.
The benefit due as of any date established above is payable to
the EmployeeOs widow or widower, if any, then a Qualified Family
Member, otherwise in equal shares to the EmployeeOs then Qualified
Family Member children.
B. DEATH BENEFIT DURING CONVERSION PERIOD.
If the Employee dies within thirty-one days after he ceased to be
covered individual while entitled (under Section D) to a conversion of
his insurance under this Coverage to an individual policy, benefits
will be payable as if such cessation had not occurred, whether or not
the Employee applied for conversion.
C. CONVERSION PRIVILEGE.
If an Employee ceasing to be a covered individual then has the
right to convert all or part of his Associated Protection to an
individual policy of life insurance, the provisions for the obtaining
of such policy shall apply as though this insurance under this
Coverage were Associated Protection. In applying those provisions,
his insurance under this Coverage shall be considered to equal the
present value of the payments which would have become due his
Qualified Family Members had he died upon such cessation, based upon
the morality tables described in the Group Policy.
D. MINORITY OR INCOMPETENCY
If a Qualified Family Member to whom any benefit is payable is a
minor or is otherwise incapable of giving a valid release for any
payment due, Prudential may, at its option, and until claim is made by
the duly appointed guardian or committee of such person, make payment
of the amount payable to such person at a rate not exceeding $100 per
month, to any person or institution appearing to it to have assumed
the custody and principal support of such person. The liability of
Prudential shall thereby be discharged to the extent of the amount so
paid.
__________________________
Any provisions of the Group Policy affecting life insurance and
in conflict with Employee Survivor Benefits Life Insurance shall not
apply to this Coverage.
__________________________
GRP 32221 Group Employee Survivor
Benefits
SURV R-205 ED 5-67 Life Insurance Coverage
SURV 205 (6-2)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
COVERAGE SCHEDULE
FOR EMPLOYEE SURVIVOR BENEFITS LIFE INSURANCE
Effective: January 1, 1982
Made a Part of Employee Survivor Benefits Life Insurance Coverage SURV
205 (6-2)
Under Group Policy No. G-91660
Coverage Classes:
All Northrop Corporation Officers and Non-Officer Executives with
Qualified Family Members, whose enrolled earnings are (1) $65,000 or
more or (2) less than $65,000 who were insured under this coverage
January 31, 1981, and (3) have completed the period of employment to
the first of the month following ninety days or more of continuous
service on a full-time basis with the Employer, but excluding, in any
case, Wilcox Electric, Inc., Defense Systems Division, Northrop
Services, Inc. and Northrop Worldwide Aircraft Services, Inc.
Qualified Family Member:
The term OQualified Family MemberO, as of any date, means the then
living spouse or unmarried child of an Employee or the then surviving
widow, widower or unmarried child of a deceased Employee, excluding in
any case --
(1) a widow or widower who has received an interlocutory decree of
divorce or a decree of separate maintenance;
(2) a child who is (a) an Employee of the Policyholder, (b) on active
duty in any military, naval or air force of any country, or (c)
nineteen or more years of age unless (i) less than twenty-three
years of age and (ii) such childOs time is principally devoted to
attending an educational institution;
(3) a person who would otherwise become a Qualified Family Member as
of any date, unless and until reported to the Policyholder with
respect to the insurance, subject to the following --
No person shall become a Qualified Family Member after the
EmployeeOs death, except that this shall not apply to a child
reported before the end of the thirty-one day period immediately
following the date specified in this provision (3) and
(i) another child of the Employee is a Qualified Family Member
at the time of such report or
(ii) the reported child is born within thirty-one days prior to
the EmployeeOs death or is born after such death and the
EmployeeOs widow or widower is a Qualified Family Member at
the time of such report.
An EmployeeOs children includes his legally adopted children who are
dependent upon him for support and maintenance or, in the case of a
deceased Employee, were so dependent upon him at his death.
(Coverage Schedule
continued)
GRP 32222
SURV U-101 ED 5-67 (1-6)
COVERAGE SCHEDULE (Continued)
Insurance Provided:
Employee Insurance on the following basis-- [ ] Contributory
[ ] Non-Contributory
Associated Protection:
Employee Term Life Insurance under the Group Policy.
Assignment:
The insurance is assignable.
Benefits payable after an EmployeeOs death are not assignable and, to
the extent permitted by law, are not subject to the claims of any
creditor.
Mortality X X X X Tables referred to in Section D (Conversion
Privilege) of the Coverage
The following tables published by the U.S. Department of Health,
Education and Welfare.
Tables of mortality of Public Health Service Publication No. 1252:
For spouses-- United States White Females: 1959-61, with such
adjustment as determined by Prudential, at interest of
5% for first 5 years and 4 1/4% thereafter.
For children-- United States White Males: 1959-61, at interest of
5% for first 5 years and 4 1/4% thereafter.
Prudential shall have the right to change the basis for the
determination of present value under Section D, for future
conversions, as of any premium due date. The policyholder will be
notified whenever a change in such basis is made.
Continuance in Coverage Classes During Absence from Full-time Work
Continuance during such absence shall be for the same time, if any,
that the Employee is considered as continuing to be a member of the
coverage classes for the Associated Protection, except that he shall
not be considered as continuing in the coverage classes for Employee
Survivor Benefits Life Insurance if he ceases to have a Qualified
Family Member or if his absence is due to retirement.
Participation Condition:
Those conditions of the following section shall be determined without
regard to provision (3) of the definition of Qualified Family Member.
The Termination of Group Policy or of Insurance Provisions section of
the General Provisions.
Amount of Insurance:
Maximum Benefit Period:
The number of payments applicable to the EmployeeOs length of
continuous service with the Policyholder at the time of death, as
determined from the following table:
Continuous Service Number of Payments
Less than 10 years 12
10 years or more but less than 15 years 20
15 years or more but less than 20 years 30
20 years or more 40
*See next page.
(Coverage Schedule continued)
GRP 3222
SURV U-101 ED 5-67 (1-6)
THE PRUDENTIAL COMPANY OF AMERICA
COVERAGE SCHEDULE
FOR EMPLOYEE SURVIVOR BENEFITS LIFE INSURANCE
Effective January 1, 1982
Made a Part of Employee Survivor Benefits Life Insurance Coverage SURV
205 (6-
2)
Under Group Policy No. G-91660
CONTINUED
Amount of Insurance:* (Continued)
Monthly Benefit:
The EmployeeOs Monthly Benefit on any date shall, subject to the
OChanges in BenefitO provision, be the applicable amount indicated
below, according to length of continuous service with the Employer at
time of death.
(a) Less than 10 years $200.00
(b) 10 years or more, the amount applicable to the Employee under the
following table:
Classification Monthly Benefit*
All Employees according to Weekly Earnings, as follows:
Less than $220.00 $200.00
$220.00 or more but less than $250.00 $220.00
250.00 or more but less than 300.00 $250.00
300.00 or more but less than 350.00 $300.00
350.00 or more but less than 385.00 $350.00
385.00 or more but less than 450.00 $385.00
450.00 or more but less than 500.00 $450.00
500.00 or more but less than 600.00 $500.00
600.00 or more $600.00
*If and Employee becomes a covered individual under the Coverage of
which this Coverage Schedule is made a part, within thirty-one days
after his ceasing to be insured for employee survivor benefits life
insurance under another Group Policy issued to Northrop Corporation
(or a subsidiary of affiliate of Northrop Corporation), hereinafter
referred to as Oprior coverageO, and, if the Employee dies while a
covered individual under the Coverage and within said thirty-one days,
then the Monthly Benefit otherwise payable under the Coverage with
respect to the Qualified Family Members of the Employee for any month
for which a monthly benefit is payable under the prior coverage as a
result of the EmployeeOs death shall be the excess, if any, of the
Monthly Benefit otherwise payable under the prior Coverage.
(Coverage Schedule continued)
GRP 32222
SURV U-101
(1-6)
COVERAGE SCHEDULE (Continued)
Changes is Benefit--This applies to adjustments in Monthly Benefit
resulting from a change in weekly earnings or in Qualified Family
Members
(1) Increases in
weekly earnings - The EmployeeOs insurance will be increase to
the amount provided for his classification on the date of the
change. Such increase shall take effect on the first day, on
or after the date of the change, on which he is complying with
the active work requirement of the General Definitions.
(2) Decreases in
weekly earnings - The EmployeeOs insurance will be decreased
on the ate of the change to the amount then provided for his
classification, subject to the active work requirement of the
General Definitions.
(3) Changes in the
EmployeeOs Qualified Family Members - An adjustment in Monthly
Benefits caused by a change in the EmployeeOs qualified Family
Members shall take effect immediately, whether the change
occurs before or after the EmployeeOs death. The adjusted
Monthly Benefit shall be determined as if no change is his
weekly earnings occurred since the last previous determination
of his Transition Benefit.
EmployeeOs Classification - On dates established by practices of the
Employer, determination of the EmployeeOs classification under
the insurance shall be made by the Employer without
discrimination among persons in like circumstances and shall be
final and conclusive.
EmployeeOs Earnings: If an item is determined by an EmployeeOs
Earnings, it shall be based on the EmployeeOs Base Weekly
Earnings from the Employer. Base Weekly Earnings mean the
EmployeeOs gross straight time dollar remuneration for regularly
scheduled hours on a weekly basis including lead man
differentials, shift differentials, cost of living adjustments
and, for Cafeteria covered Employees, the value of meals provided
by the Employer. Base Weekly Earnings do not include bonuses,
incentive compensation, overtime pay, relocation allowances,
payment for extra hazardous work, per diems, extended work week
allowances, cost of living allowances for services abroad, or any
other bonuses, premiums, differentials or adjustments not
specifically included in the definition of Base Weekly Earnings
in the preceding sentence.
GRP 2222
SURV U-101 ED 5-67 (1-6)
Rider to Group Policy No. G-91660 Made a Part of
Coverage
LIFE 101(1-1)
Effective Date of Ride: August 1,1970
SUPPLEMENTARY RIDER PROVIDING RETIRED EMPLOYEE MAJOR MEDICAL EXPENSE
BENEFITS UNDER THE EMPLOYEE GROUP LIFE INSURANCE PROVISIONS OF GROUP
INSURANCE
POLICY NO. G-91660
Issued by
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(Herein Called The Insurance Company)
The Insurance Company hereby agrees that the following provisions
shall for a part of the Policy.
DEFINITIONS
As used in this Rider, the following terms shall have the meanings set
forth below:
The term Oretired EmployeeO means an Employee in one of the following
classifications who is retired by the Policyholder: (1) President;
Executive Vice President or Senior Vice President of Northrop
Corporation or (2) elected vice presidents each of whom has entered
into an employment agreement with the Policyholder.
The term Ocovered retired EmployeeO means a person insured under the
Policy as a retired Employee who, pursuant to the provisions of the
section of this rider entitled OAllocation of Portion of Group Life
Insurance for Disbursement as Retired Employee Supplementary Major
Medical Expense BenefitsO, has an unexpected allocation of a portion
of his group life insurance available toward the payments of benefits
under this Rider.
The term OphysicianO means a licensed practitioner of the healing arts
acting within the scope of his practice.
The term OhospitalO means (1) an institution which is operated
pursuant to law and is primarily engaged in providing on an in-patient
basis for the medical care and treatment of sick and injured persons
through medical, diagnostic and major surgical facilities, all of
which facilities must be provided on its premises, under the
supervision of a staff of Physicians and with twenty-four hour a day
nursing service, or (2) an institution not meeting all the
requirements of (1) but which is accredited as a hospital by the Joint
Commissions on Accreditation of Hospitals. In no event shall the term
OHospitalO included a convalescent nursing home or any institution or
part thereof which is used principally as a convalescent facility,
rest facility, nursing facility, or facility for the aged or for the
care of drug addicts or alcoholics.
The term OIllnessO means a bodily disorder, mental infirmity or bodily
injury.
(Continued)
GC-10319 -26a-
ALLOCATION OF PORTION OF GROUP LIFE INSURANCE
FOR DISBURSEMENT AS RETIRED EMPLOYEE
SUPPLEMENTARY MAJOR MEDICAL EXPENSE BENEFITS
A person who is insured under the Policy for non-contributory group
life insurance as a retired Employee may elect, by making written
request to the Policyholder on a form approved by the Insurance
Company, that any portion of such non-contributory life insurance, up
to a maximum of fifty percent (50%) of the amount of such non-
contributory insurance provided under the Policy on the life of the
retired Employee on and after the fourth anniversary of his
retirement, be allocated for disbursement as retired Employee
supplementary major medical expense benefits under the Policy as
hereinafter provided.
Any such allocation or allocations made by a covered retired Employee
in accordance with the provisions of the immediately preceding
paragraph shall effect a reduction in a like amount or amounts in the
amount of the retired EmployeeOs non-contributory life insurance
otherwise payable under the group life insurance provisions of the
Policy.
Benefits shall be payable under this Rider with respect to the
illnesses of a covered retired Employee only to the extent that there
remains an unexpected allocated portion of such group life insurance
available for such payment.
In the event of the death of a covered retired Employee, any portion
of group life insurance previously allocated for disbursement as
provided herein which remains unexpected after satisfaction of all
claims on account of charges incurred prior to the covered retired
EmployeeOs death, shall be payable to the person or persons otherwise
entitled thereto under the covered retired EmployeeOs remaining non-
contributory group life insurance under the Policy.
BENEFITS
Benefits shall be payable under this Rider, on the basis of the
eligible charges described in the subsection OEligible ChargesO, in an
amount equal to the amount, if any, by which the total eligible
charges incurred during each calendar year in connection with the
illnesses of a covered retired Employee exceed the deductible
applicable to such covered retired Employee for the calendar year.
The payment such benefits shall, however, be subject to the section
OIndividual Yearly MaximumO and all other provisions of this Rider.
Deductible - The deductible applicable to a covered retired Employee
for each calendar year shall be the sum of:
(a) $500.00, and
(b) the total of the charges for services, treatments and
supplies enumerated in the provisions of the subsection
OEligible ChargesO preceding the exceptions contained
therein which are incurred during each calendar year in
connection with the illnesses of a covered retired Employee,
to the extent to which such services, treatments and
supplies are provided for the covered retired Employee under
or by (i) Medicare (including benefits provided under the
voluntary program established by Medicare) and (ii) any
insurance coverage (other than under this Rider) with the
Insurance Company providing protection for such covered
retired Employee, in respect of which the Policyholder
shall, directly or indirectly, have paid all or any portion
of the cost.
(Continued)
GC-10319 -26b-
BENEFITS (Continued)
If, (1) all, or (2) any portion, of the amount under (a) above
has been satisfied by the application of charge incurred during
the last three months of a calendar year, then, in the case of
(1), the (a) portion of the deductible for the next ensuing
calendar year shall also be considered as having been satisfied,
and, in the case of (2), such amount may be used towards
satisfaction of the (a) portion of the deductible for the next
ensuing calendar year.
Eligible Charges - Eligible charges shall be the charges actually
made to the covered retired Employees on account of their
illnesses for the services, treatments and supplies ordered by a
physician, subject to the exceptions hereinafter set forth.
(1) Room and board (including all regular daily services ) in a
hospital;
(2) All other hospital services for medical care and treatment
exclusive of professional services;
(3) Anesthesia and its administration;
(4) Ambulance service;
(5) PhysiciansO services for medical care and treatment and
surgery, excluding dental services unless for the treatment
immediately below;
(6) Dental services rendered by a physician, dentist or dental
surgeon for the treatment of a fractured jaw or of
accidental injuries to natural teeth within twelve months of
the accident (the treatment to include replacement of such
natural teeth within said period);
(7) Professional nursing services rendered by a registered
graduate nurse other than a close relative;
(8) The following other service, treatments and supplies;
Oxygen and rental of equipment for its administration;
X-ray and laboratory examinations, excluding dental X-rays
unless rendered for dental treatment of a fractured jaw
of a accidental injuries to natural teeth within six
months of the accident;
Treatments by X-rays, and by radium or other radio-active
substances;
Treatments by a physiotherapist other than a close relative;
Drugs and medicines dispensed by a licensed pharmacist
Surgical dressingsO
Blood and blood plasma;
Artificial limbs and eyes;
Cast, splints, trusses, braces and crutches;
Rental of wheel chair, hospital bed, iron lung or other
similar durable equipment.
The term Oclose relativeO as used above in connection with a
registered graduate nurse and physiotherapist comprises the covered
retired EmployeeOs spouse, and a child, brother, sister, and parent of
the covered retired Employee and of the covered retired EmployeeOs
spouse.
(Continued)
GC-10319 -26c-
BENEFITS (Continued)
In no event shall the eligible charges include charges for services,
treatments or supplies which are not reasonable necessary for the care
ad treatment of illness, nor shall charges for any services, treatment
or supplies be included in excess of customary charges therefor or in
excess of such charges as would have been made in the absence of this
insurance. A customary charge means the usual charge made by the
person, group or other entity rendering or furnishing the services,
treatments or supplies but in no event shall it mean a charge in
excess of the general level of charges made by others rendering or
furnishing such services, treatments or supplies, within the area in
which the charge is incurred, for illnesses comparable in severity and
nature to the illness being treated. The term OareaO, referred to
above, as it would apply to any particular service, treatment or
supply , means a county or such greater area as is necessary to obtain
in representative cross section of persons, groups or other entities
rendering or furnishing such service, treatment or supply.
A charge shall be deemed to be incurred as of the date of the service,
treatment or purchase giving rise to the charge.
Exceptions - The eligible charges shall in no event include:
(a) Charges for eye refractions or examination for the fitting of
glasses or hearing aids.
(b) Charges for medical examinations of any covered retired Employee
for Ocheck-upO purposes when not incident and necessary to the
treatment of an illness.
(c) Charges incurred in connection with remedying a condition by
means of cosmetic surgery unless such condition is the result of
accidental bodily injuries sustained while a covered retired
Employee.
(d) Charges for services, treatments or supplies furnished by or for
the United States Government or any agency thereof, and charges
incurred during confinement in a hospital owned or operated by a
State, Province or political subdivision unless there is an
unconditional requirement to pay these last mentioned charges
without regard to any rights against others, contractual or
otherwise.
(e) Charges incurred in connection with illnesses due to an act of
war, declared or undeclared.
(f) Charges incurred for services, treatments and supplies in
connection with an illness of a covered retired Employee, to the
extent to which such services, treatments and supplies are
provided for the covered retired Employee under a workmenOs
compensation law, occupational disease law or similar legislation
on account of accidental bodily injury or disease arising out of
employment with the Policyholder.
INDIVIDUAL YEARLY MAXIMUM
Not more than $5,000 of benefits in the aggregate (herein called the
Individual Yearly Maximum) shall be payable by the Insurance Company
under the provisions of
(Continued)
GC-10319 -26d-
INDIVIDUAL YEARLY MAXIMUM (Continued)
this Rider with respect to all eligible charges incurred by a covered
retired Employee during each calendar year.
PAYMENT OF BENEFITS
All benefits provided in this Rider shall be paid to the retired
Employee as they accrue or as stated in the following sentence hereof
upon receipt of written proof covering the occurrence , character and
extent of the event for which claim is made. Indemnity, if any,
provided for loss of life shall be payable in accordance with the
provisions respecting such payment prescribed in the last paragraph of
the section of this Rider entitled OAllocation of Portion of Group
Life Insurance for Disbursement as Retired Employee Supplementary
Major Medical Expense BenefitsO.
NOT IN LIEU OF WORKMENOS COMPENSATION INSURANCE
The insurance under this Rider is not in lieu of and does not affect
any requirement for coverage by WorkmenOsO Compensation Insurance.
NO ASSIGNMENT
The insurance under this Rider shall be non-assignable.
__________________________________
IN WITNESS WHEREOF, The Prudential Insurance Company of America has
caused this Rider to be executed as of the effective date of the Rider
indicated on the first page hereof.
Secretary. President.
GC-10319 -26e-
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(Herein Called The Insurance Company)
Policyholder: Northrop Corporation
Group Policy No.: G-91660 Effective Date of
Rider: August 1, 1970
RIDER MADE A PART OF THE GROUP POLICY
(to be attached to the Group Policy)
The Insurance Company hereby agrees that the Policy is modified by the
addition of the following provisions:
INSURANCE CONTINUANCE FUND
1. Subject to the limitations set forth in Section 4 of this Rider,
this Rider shall be applicable to the following classes of
Employees of the Policyholder:
Those Employees designated as (1) President, Executive Vice
President, or Senior Vice President of Northrop Corporation or
(2) elected vice presidents each of whom has entered into an
employment agreement with the Policyholder, who have been retired
under the Retirement Plan for Salaried Employees of Northrop
Corporation and who are insured under Employee Term Life
Insurance Coverage Rider form LIFE 101(1-1), such Rider
hereinafter to be referred to as the Northrop Primary Group Life
Insurance Rider; provided, however, that the foregoing shall not
any time include any Employee who, on or prior to the date of
such treatment, shall have furnished proof of total and permanent
disability as provided under Section OExtension of Death BenefitO
of the Northrop Primary Group Life Insurance Rider and whose
insurance is extended as provided in such Section. The Employees
shall be limited to Employees in such designated classes.
Wherever reference is made in this Ride to Retired Employees
Coverage such reference shall mean the term insurance provided
under the Northrop Primary Group Life Insurance Rider for Retired
Employees as defined in this Section 1. Wherever reference is
made in this Rider to a Covered Retired Employee such reference
shall mean that Retired Employees Coverage as defined in this
Section 1 is provided for such person. Wherever reference is
made in this Rider to Other Employees Coverage such reference
shall mean the term insurance provided under the Northrop Primary
Group Life Insurance Rider for persons other than Retired
Employees as defined in this Section 1. The term OHome OfficeO
as used in this Rider means the Home Office of the Insurance
Company in the City of Newark, New Jersey or any of the other
Home or Head Offices of the Insurance Company.
2. For the purpose of providing the Retired Employees Coverage
subject to the terms and conditions of the Policy and the
limitations set forth in this Rider, the Policyholder shall pay
to the Insurance Company premium charges determined by the
Insurance Company in accordance with such cost estimates as may
from time to time be made by the Insurance Company, such premium
charges to be referred to in this Rider as basic premium charges.
Basic premium charges under this Rider in amounts determined by
the Insurance Company, as specified in the preceding sentences,
shall be due during the continuance of this Rider on
GC-10311 -47a-
the same dates as the premium charges for the Other Employees
Coverage, provided, however, that no basic premium charges under
the Rider shall be due after the termination of the Other
Employees Coverage.
Whenever the Insurance Company determines that a policy dividend,
or any portion thereof, declared on the Policy during the
continuance of this Rider is attributable to the Retired
Employees Coverage, such policy dividend, or portion thereof, as
the case may be, shall be applied by the Insurance Company as a
supplemental premium charge under this Rider, regardless of
whether on or prior to the date on which such policy dividend is
declared, basic premium charges under this Rider have ceased to
be due.
3. The basic and supplemental premium charges under this Rider paid
to or applied by the Insurance Company in accordance with the
provisions of Sections 2 and 7 of this Rider shall be accounted
for in a fund maintained by the Insurance Company with respect
to the Policy, referred to in this Rider as the Insurance
Continuance Fund. The Insurance Continuance Fund shall from time
to time be increased by interest, in accordance with the
provisions of the second paragraph of this Section 3, and
decreased by the basic cost of insurance charges, and any
supplemental cost of insurance charges, in accordance with the
provisions of the last paragraph of this Section 3.
Interest shall be added to the Insurance Continuance Fund on each
policy anniversary of the Policy occurring during the continuance
of this Rider, and in the event of the termination of this Rider,
also on the day following the date of such termination. The
interest for any period, whether a policy year as defined in the
last sentence of this paragraph, or part of a policy year, shall
be computed at such rate or rates as determined by the Insurance
Company to be applicable with respect to such period. Any other
elements required for the computation of the interest, including
the dates as of which the basic and supplemental premium charges
under this Rider will be added to the Insurance Continuance Fund
shall be determined by the Insurance Company. The term Opolicy
yearO as used in this Rider shall mean a period commencing on a
policy anniversary and ending on the last day prior to the next
succeeding policy anniversary, provided, however, that with
respect to the period ending on the last day prior to the policy
anniversary next following the effective date of the Rider the
term Opolicy yearO shall mean the period commencing on the
effective date of this Rider and ending on the last day prior to
the policy anniversary next following the effective date of this
Rider.
Unless otherwise agreed upon by the Insurance Company and the
Policyholder, the basic cost of insurance charge for the Retired
Employees Coverage shall be deducted from the Insurance
Continuance Fund on the first day of each month during the
continuance of this Rider and the amount so deducted each month
shall be equal to the product of the total amount of the Retired
Employees Coverage in force on such day and the average monthly
basic cost of insurance rate then in effect. If the deduction
from the Insurance Continuance Fund is made other than monthly ,
the amount deducted from time to time shall be determined by a
method mutually agreeable to the Insurance Company and the
Policyholder.
GC-10311 -47b-
The Insurance Company will determine as of the first due date of
a basic premium charge under this Rider on which there are
covered Retired Employees, an average monthly basic cost of
insurance rate for the Retired Employee Coverage by applying the
individual rate for the Retired Employees Coverage Basic Cost of
Insurance Rates, as set forth below, to the amounts of insurance
in force at the respective ages, nearest birthday, of all persons
who are then Covered Retired Employees, and dividing the
aggregate amount so obtained by the total amount of such
insurance, provided, however, that if no persons became Covered
Retired Employees prior to the discontinuance of the payment of
the basic premium charges under this Rider by the Policyholder,
the determination shall be made on such other date as may be
determined by the Insurance Company on which there are Covered
Retired Employees.
Initial Table of Individual Basic Cost of Insurance Rates Per
$1,000 of Insurance under the Policy on Retired Employees
Rate Basis. - The individual rates set forth below are based on
the Commissioners 1960 Standard Group Mortality Table and 3%
interest.
Age Age Age
Nearest Monthly Nearest Monthly Nearest Monthly
Birthday Rate Birthday Rate Birthday Rate
45 $.68 57 $1.97 69 $5.34
46 .74 58 2.14 70 5.81
47 .81 59 2.32 71 6.32
48 .89 60 2.51 72 6.84
49 .97 61 2.72 73 7.38
50 1.06 62 2.96 74 7.95
51 1.16 63 3.21 75 8.56
52 1.26 64 3.48 76 9.24
53 1.38 65 3.78 77 10.00
54 1.51 66 4.11 78 10.86
55 1.65 67 4.48 79 11.81
56 1.80 68 4.89 80 12.83
Rates for ages not shown herein will be determined by the
Insurance Company on the same Rate Basic as specified above and
will be furnished upon request.
**************************
The Insurance Company may (a) as of any due date of a basic cost
of insurance charge, and (b) whenever the extent of the Retired
Employees Coverage is changed by agreement of the Insurance
Company and the Policyholder, change the table of individual
basic cost of insurance rates on the basis of which further basic
cost of insurance charges, including any then due, shall be
computed, by notifying the Policyholder prior to the date as of
which the basic cost of insurance rates are to be changed. The
Insurance Company, however, shall not have the right to change
the table of individual basic cost of insurance rates under (a)
of this paragraph prior to the first anniversary of the effective
date of this Rider, nor, after such anniversary, more than once
during any twelve (12) consecutive months.
GC-10311 -47c-
The Insurance Company or the Policyholder may (a) as of any
policy anniversary of the Policy following the effective date of
this Rider, and (b) as of any due date of a basic cost of
insurance charge on which the table of individual basic cost of
insurance rates may be changed, in accordance with the provisions
of the preceding paragraph of this Section 3, and (c) whenever
the extent of the Retired Employees Coverage is changed by
agreement of the Insurance Company and the Policyholder, require
that the average monthly basic cost of insurance rate be
determined according to the then attained ages of all persons who
are then Covered Retired Employees and the table of individual
basic cost of insurance rates then in effect.
Whenever 105% of the incurred benefit charges for the Retired
Employees Coverage, as defined in the next sentence of this
paragraph, is for any policy year in excess of the basic cost of
insurance charge for the Retired Employees Coverage for the same
policy year, as determined by the Insurance Company in accordance
with the provisions of the third paragraph of this Section 3, a
supplemental cost of insurance charge for the Retired Employees
Coverage shall be deducted from the Insurance Continuance Fund as
of the policy anniversary next following the end of such policy
year, provided that this Rider is continued in force to the end
of such policy year, in an amount equal to the lesser of (i) such
excess, and (ii) the balance in the Insurance Continuance Fund as
of such policy anniversary. The term Oincurred benefit charges
for the Retired Employees CoverageO as used in this paragraph
shall, for any policy year, mean (i) the amount of claims and
conversions charges, as determined by the Insurance Company, for
the Retired Employees Coverage, recorded by the Insurance Company
during such policy year, plus (ii) the estimated amount of claims
and conversions charges, as determined by the Insurance Company,
for the Retired Employees Coverage, unrecorded by the Insurance
Company as of the end of such policy year but chargeable to the
experience of the Policy as of the end of such policy year, less
(iii) the amount corresponding to (ii) of this sentence that was
used by the Insurance Company to determine the incurred benefit
charges for the Retired Employees Coverage for the preceding
policy year. In the event of the termination of this Rider prior
to the end of a policy year, the Insurance Company shall
determine the supplemental cost of insurance charge for the
period from the last preceding policy anniversary of the Policy
to the termination date of this Rider by a method consistent with
the principles specified in the preceding sentences of this
paragraph, as if the termination of this Rider had occurred at
the end of a policy year, but taking the shorter duration into a
account, and deduct the supplemental cost of insurance charge so
determined as of the day following such termination date. The
Insurance Company may, by notifying the Policyholder, change the
percentage f incurred benefit charges specified in the first
sentence of this paragraph, as of any date on which the average
monthly basic cost of insurance rate may be redetermined in
accordance with the provisions of the preceding paragraph,
provided, however, that any new percentage of incurred benefit
charges shall not be applicable to any period elapsed prior to
the date as of which the change in the percentage of incurred
benefit charges is made.
4. Anything in the Policy to the contrary notwithstanding, the
Policyholder may either (a) discontinue the payment of the basic
premium charges under this Rider, but continue the payment of the
premium charges for the Other Employees Coverage, or (b)
discontinue both payment of the basic premium charges under this
Rider and the payment of the premium charges for the Other
Employees
GC-10311 -47d-
Coverage. The discontinuance by the Policyholder of the payment
of the basic premium charges under the Rider, under the
circumstances specified in (a) of the first sentence of this
paragraph, shall not effect the termination of this Rider nor the
termination of the Policy, either with respect to the Retired
Employees Coverage or with respect to the Other Employees
Coverage. The discontinuance by the Policyholder of the payment
of the basic premium charges under this Rider, under the
circumstances specified in (b) of the first sentence of this
paragraph, shall effect the termination of the Policy with
respect to the Other Employees Coverage only, whereas this Rider
and the Policy with respect to the Retired Employees Coverage
shall remain in force until this Rider terminates.
In the event of the discontinuance by the Policyholder of the
amount of the basic premium charges under this Rider, no person
who is not a Covered Retired Employee at the time when such
discontinuance is deemed to occur, within the meaning specified
in Section 6 of this Rider, may thereafter become a Covered
Retired Employee, except as otherwise provided hereafter in this
Section 4, but any person who is then a Covered Retired Employee
shall, subject to the terms and conditions of the Policy and the
limitations set forth in this Rider, remain insured under the
Policy for the Retied Employees Coverage until this Rider
terminates or such person ceases to be a Retired Employee,
whichever occurs earlier.
If the Insurance Continuance Fund, on or after the date of
discontinuance by the Policyholder of the payment of the basic
premium charges under this Rider is in excess of the amount
estimated by the Insurance Company to be sufficient to provide
for the periodic continuance of the Retired Employees Coverage on
all persons who at the time when such discontinuance is deemed to
occur, within the meaning specified in Section 6 of this Rider,
are Covered Retired Employees, for as long as such persons remain
Retired Employees, the Policyholder and the Insurance Company may
agree that certain persons who are then not Covered Retired
Employees shall thereafter be eligible to become insured under
the Policy for the Retired Employees Coverage, subject to the
terms and conditions of the Policy and the limitations set forth
in this Rider. Any such estimate of the sufficiency of the
Insurance Continuance Fund shall be made by the Insurance Company
by a method consistent with the cost estimates referred to in
Section 2 of this Rider.
5. The Retired Employees Coverage shall, unless otherwise specified
in this Rider, be subject to all the terms and conditions of the
Policy applicable thereto while this Rider remains in force,
provided, however, that by agreement of the Policyholder and the
Insurance Company the terms and conditions of the Policy with
respect to the Retired Employees Coverage may be changed from
time to time.
6. A grace period of thirty one-one days will be allowed for the
payment of any basic premium charges under this Rider except the
first. If any basic premium charge under this Rider is not paid
within the days of grace, the discontinuance of the payment of
the basic premium charges under this Rider shall be deemed to
have occurred at the end of such grace period, unless otherwise
agreed upon by the Insurance Company and the Policyholder. The
foregoing provisions of this Section 6 are applicable only to the
basic premium charges under this Rider and
GC-10311 -47e-
shall not modify any provisions of the Policy, or of any other
rider attached thereto, which apply to the payment of the premium
charges for the Other Employees Coverage.
7. The Insurance Company may terminate this Rider, provided written
notice of the CompanyOs intention to effect such termination as
of a certain date has been given to the Employer at least 31 dyas
in advance of such date, whenever, as of the date the Insurance
Company gives such notice, the Insurance Company determines that
the Insurance Continuance Fund does not equal or exceed 40% of
the sum of the amounts of insurance for Covered Retired Employees
immediately prior to the earlier of the Covered Retired
EmployeeOs retirement or attainment of age 65.
The termination of this Rider as specified in the preceding
paragraph shall be effective on the date specified in the notice
of this Insurance Company, excetp that the Employer may pay to
the Insurance Company prior to such date a supplemental premium
charge, whereupon the Insurance CompanyOs notice of intention to
effect such termination shall be deemed withdrawn and this Rider
shall continue in force beyond the date on which termination was
to become effective, subject to the terms and conditions of the
Policy and the limitations set forth in this Rider. The
supplemental premium charge referred to in the preceding sentence
will be determined by the Insurance Company, at the request of
the Employer, by a method consistent with the cost estimates
referred to in Section 2 of this Rider.
This Rider shall terminate automatically upon receipt by the
Insurance Company at the Home Office of written notice from the
Employer of the last person to die of the group of persons
composed of all persons who either are Covered Retired Employees
or are eligible to become Covered Retired Employees.
8. Upon the termination of this Rider, the Policy shall terminate
with respect to the Retired Employees Coverage, and any persons
who are then Covered Retired Employees shall automatically cease
to be insured under the Policy for the Retired Employees Coverage
at the same time as the termination of this Rider becomes
effective. The Insurance Company will as soon as practicable
thereafter determine, by the first in, first our rule of
accounting, which of the basic and supplementla premium charges
under this Rider paid to or applied by the Insurance Company,
increased by interest, as determined in accordance with the
provisions of the second paragraph of Section 3 of this Rider,
and which of the basic and supplemental premium charges under
this Rider paid to or applied by the Insurance Company were (c)
not required to be used, either in full or in part, for such
purpose. If such determination discloses that any basic and
supplemental premium charges under this Rider paid to or applied
by the Insurance Company will pay to the Policyholder, in the
manner specified in the following paragraph of this Section 8, a
refund equal to the sum of (A) and (B), as defined in the last
two sentences
GC-10311 -47f-
of this paragraph, to be used for the sole benefit of employees.
Payment by the Insurance Company in accordance with the
provisions of the first paragraph of this Section 8, shall
completely discharge the liability of the Insurance Company with
respect to any amount of amounts so paid. The term (A) as used
in the third sentence this paragraph means an amount equal to the
unused portion of any basic and supplemental premium charge
included in (b) of the second sentence of this paragraph, either
increased by the excess of (i) 95% of the interest on such unused
portion of any basic and supplemental premium charge to the
termination date of this Rider, as determined in accordance with
the provisions of the second paragraph of Section 3 of this
Rider, over (ii) 5% of such unused portion of any basic and
supplemental premium charge, if (i) is greater than (ii), or
decreased by the excess of (ii) over (i), if (i) is smaller than
(ii). The term (B) as used in the third sentence of this
paragraph means the aggregate of the basic and supplemental
premium charges included in (c) of the second sentence of this
paragraph, either increased by the excess of (i) the aggregate of
(i) the aggregate of 95% of the interest on each of such basic
supplemental premium charges to the termination date of this
Rider, as determined in accordance with the provisions of the
second paragraph of Section 3 of this Rider, over (ii) 5% of the
aggregate of such basic and supplemental premium charges, if (i)
is greater than (ii), or decreased by the excess of (ii) over
(i), if (i) is smaller than (ii)
The Insurance Company will pay the amount due by reason of the
termination of the Rider, in accordance with the provisions of
the first paragraph of this Section 8, in 120 monthly
installments. The first such installment shall be due on the day
following the end of the six monthsO period commencing with the
policy anniversary next following the termination date of this
Rider, regardless of whether on such policy anniversary the
Policy is in force with respect to the Other Employee Coverage or
not, and each subsequent installment shall be due on the
corresponding day of each month thereafter until all installments
have been paid, provided, however, that the Insurance Company may
at any time and from time to time advance the due date of any one
or more of such installments including the first installment.
Each installment shall be equal to the sum of (i) the 120th part
of the amount due by reason of the termination of this Rider, in
accordance with the provisions of the first paragraph of this
Section 8, and (ii) interest on (i) computed at such effective
rate or rates as determined by the Insurance Company from time to
time, but not less than 2 per cent per annum. for the day
following the termination date of this Rider to the date on which
such installment is paid.
Whenever the Insurance Company, in accordance with the provisions
of this Section 8, determines as an effective rate of interest
for any period of time, such rate shall be used by the Insurance
Company with respect to all interest calculations required under
this Section 8 for the same period of time.
The Insurance Company has caused this Rider to be executed as of the
effective date of the Rider indicated on the first page hereof.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By
Secretary
GC-10311 -47g-
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(Herein Called the Insurance Company)
Policyholder: NORTHROP CORPORATION
Group Policy No.: G-91660 Effective Date of
Rider: October 1,1980
RIDER MADE A PART OF THE GROUP POLICY
(to be attached to the Group Policy)
The Insurance Company hereby agrees that the policy is modified by the
addition of the following provisions:
INSURANCE CONTINUANCE FUND
Subject to the limitations set forth in the section ODiscontinuance of
Premium ChargesO, this Rider shall be applicable to:
Those Employees of Northrop Corporation classified as Chairman of the
Board and Chief Executive Officer, President and Chief Operating
Officer, or Senior Vice President, who prior to, on , or after the
effective date of this Rider have been, are, or shall be retired under
the Retirement Plan for Salaried Employees of Northrop Corporation,
except that this Rider shall not be applicable to any employees of the
Policyholder who on or prior to the date of their retirement shall
have furnished proof of total and permanent disability as provided
under the section OExtended Death Benefit During Total DisabilityO of
Group Employee Term Life Insurance Coverage Riders LIFE 604(6-4) or
LIFE 604(6-5), forming part of the Policy and whose insurance is being
extended as provided in such section.
Definitions
Whenever used in this Rider, the following terms shall have the
respective meanings set forth below:
ORetired EmployeesO means those employees of the Policyholder to
whom this Rider is applicable.
ORetired Employees CoveragesO means the term insurance provided
under the Group Employee Term Life Insurance Coverage Riders LIFE
604(6-4) and LIFE 604(6-5), forming parts of the Policy for Retired
Employees, and for which cost of insurance charges are made in
accordance with the provisions of the section OFund MaintenanceO.
OCovered Retired EmployeesO means Retired Employees for whom
Retired Employees Coverage is provided.
OOther Employees CoverageO means the term insurance provided under
the Group Employee Term Life Insurance Coverage Riders LIFE 604(6-
4) and LIFE 604(6-5), forming parts of the Policy, for persons
other than Retired Employees.
OPolicy YearO means the period commencing on the effective date of
this Rider and ending the last day prior to the policy anniversary
of the Policy next following the effective date of this Rider, and
subsequent period commencing on a policy anniversary of the Policy.
Policy Anniversaries of the Policy shall be deemed to continue to
occur after termination of the Retired Employees Coverage or of the
Policy.
GC-10442
OIncurred Benefit Charges for the Retired Employees CoverageO means
the sum of the following charges for Retired Employees Coverage as
determined by the Insurance Company: (I) the amount of claims and
conversion charges recorded by the Insurance Company during any Policy
Year, plus (ii) the estimated amount of claims and conversion charges
unrecorded by the Insurance Company as of the end of such Policy Year
but chargeable to the experience of the Policy as of the end of such
Policy Year, less (iii) the amount corresponding to (ii) of this
sentence that was used by the Insurance Company to determine the
incurred benefit charges for the preceding Policy Year.
OHome OfficeO means the Home Office of the Insurance Company in the
City of Newark, New Jersey, or any of the other Home or Head Offices
of the Insurance Company.
Premium Charges
Basic Premium Charges - For the purpose of providing the Retired
Employees Coverage subject to the terms and conditions of the Policy
and the limitations set forth in this Rider, the Policyholder shall
pay to the Insurance Company premium charges determined by the
Insurance Company in accordance with such cost estimates as may from
time to time be made by the Insurance Company, such premium charges to
be referred to in this Rider as basic premium charges. The first
basic premium charge under this Rider is due on the effective date of
this Rider and subsequent basic premium charges under this Rider in
amounts determined by the Insurance Company, as specified in the
preceding sentence, shall be due during the continuance of the Retired
Employees Coverage on the same dates as the premium charges under this
Rider shall be due after the termination of the Other Employees
Coverage.
Supplemental Premium Charges - Whenever the Insurance Company
determines that a policy dividend, or any portion thereof, declared on
the Policy as of a policy anniversary of the Policy, is attributable
to the Retired Employees Coverage, such policy dividend, or portion
thereof, as the case may be, shall be applied by the Insurance Company
as a supplemental premium charge under this Rider, regardless of
whether on or prior to such policy anniversary basic premium charge
under this Rider have ceased to be due. During continuance of the
Retired Employees Coverage, in computing the average rate and the
premium charge for the insurance in force under the Group Employee
Term Life Insurance Coverage Riders LIFE 604(6-4) and LIFE 604(6-5),
forming parts of the Policy, the Retired Employees Coverage shall be
excluded for any purpose other than the determining of the amount by
which each individual rate per $1,000 of insurance, as specified in
the section OComputation Riders LIFE 604(6-4) and LIFE 604(6-5), is
increased.
A supplemental premium charge may also be payable under the section
OTermination of Retired Employees CoverageO.
Fund Maintenance
The basic and supplemental premium charges under this Rider paid to or
applied by the Insurance Company shall be accounted for in a fund
maintained by the Insurance Company with respect to the Policy,
referred to in this Rider as the Insurance Continuance Fund.
GC-10442 -2-
Interest Additions - Interest shall be added to the Insurance
Continuance Fund (1) on each policy anniversary of the Policy
occurring during the continuance of this Rider and (2) on the day
following the termination of the Retired Employees Coverage, and (3)
on the day of the termination of this Rider. The interest for aEy
period, whether a Policy Year of part of a Policy Year, shall be
computed at such rate or rates as detemined by the Insurance Company
to be applicable with respect to such period. Any other elements
required for the computation of the interest, including the dates as
of which the basic and supplemental premium charges under this Rider
will be added to the Insurance Continuance Fund, shall be determined
by the Insurance Company.
Basic Cost of Insurance Charge Deductions - Unless otherwise agreed
upon by the Insurance Company and the Policyholder, the basic cost of
insurance charges for the Retired Employees Coverage shall be deducted
from the Insurance Continuance Fund on the first day of each month
during the continuance of the Retired Employees coverage and the
amount so deducted each month shall be equal to the product of the
total amount of the Retired Employees Coverage in force on such day
and the average monthly basic cost of insurance rate then in effect.
If the deduction from the Insurance Continuance Fund is made other
than monthly, the amount deducted from time to time shall be
determined by a method mutually agreeable to the Insurance Company and
the Policyholder.
The Insurance Company will determine as of the first due date of a
basic premium charge under this Rider on which there are Covered
Retired Employees, an average monthly basic cost of insurance rate for
the Retired Employees Coverage by applying the individual rates
specified in the Initial Table of Individual Basic Cost of Insurance
Rates, as set forth below, the amounts of insurance in force at the
respective ages, nearest birthday, of all person who are then Covered
Retired Employees and dividing the aggregate amount so obtained by the
total amount of such insurance, provided, however, that if no persons
become Covered Retired Employees prior to the discontinuance of the
payment of the basic premium charges under this Rider by the
Policyholder the determination shall be made on such other date as may
be determined by the Insurance Company on which there are Covered
Retired Employees.
Initial Table of Individual Basic Cost of Insurance Rates Per $1,000
of
Insurance under the Policy on Retired Employees*
Rate Basis - The individual rates set forth below are based on the
Commissioners 1960 Standard Group Mortality Table and 3% interest.
Age Age Age
Nearest Monthly Nearest Monthly Nearest Monthly
Birthday Rate Birthday Rate Birthday Rate
45 $.68 57 $1.97 69 $5.34
46 .74 58 2.14 70 5.81
47 .81 59 2.32 71 6.32
48 .89 60 2.51 72 6.84
49 .97 61 2.72 73 7.38
50 1.06 62 2.96 74 7.95
51 1.16 63 3.21 75 8.56
52 1.26 64 3.48 76 9.24
53 1.38 65 3.78 77 10.00
54 1.51 66 4.11 78 10.86
55 1.65 67 4.48 79 11.81
56 1.80 68 4.89 80 12.83
GC-10442 -3-
Rates for ages not shown herein will be determined by the Insurance
Company on the same Rate Basic as specified above and will be
furnished upon request.
**************************
The Insurance Company may (a) as of any due date of a basic cost of
insurance charge, and (b) whenever the extent of the Retired Employees
Coverage is changed by agreement of the Insurance Company and the
Policyholder, change the table of individual basic cost of insurance
rates on the basis of which further basic cost of insurance charges,
including any then due, shall be computed, by notifying the
Policyholder prior to the date as of which the basic cost of insurance
rates are to be changed. The Insurance Company, however, shall not
have the right to change the table of individual basic cost of
insurance rates under (a) of this paragraph prior to the first
anniversary of the effective date of this Rider, nor, after such
anniversary, more than once during any twelve (12) consecutive months.
The Insurance Company or the Policyholder may (a) as of any policy
anniversary of the Policy following the effective date of this Rider,
and (b) as of any due date of a basic cost of insurance charge on
which the table of individual basic cost of insurance rates may be
changed, in accordance with the provisions of the preceding paragraph
of this Section 3, and (c) whenever the extent of the Retired
Employees Coverage is changed by agreement of the Insurance Company
and the Policyholder, require that the average monthly basic cost of
insurance rate be determined according to the then attained ages of
all persons who are then Covered Retired Employees and the table of
individual basic cost of insurance rates then in effect.
Supplemental Cost of Insurance Charge Deductions - Whenever 105% of
the incurred benefit charges for the Retired Employees Coverage for
any Policy Year exceeds the basic cost of insurance charges for the
Retired Employees Coverage for the same Policy Year, as determined by
the Insurance Company, such excess hereinafter referred to as Amount
A, a supplemental cost of insurance charge for the Retired Employees
Coverage shall be deducted from the Insurance Continuance Fund as of
the policy anniversary of the Policy next following the end of such
Policy Year, provided that the Retired Employees coverage continued in
force to the end of such Policy Year. Such supplemental cost of
insurance charge shall be -
(a) if, after the deduction of Amount A from the Insurance
Continuance Fund, the balance in the Insurance Continuance
Fund as of such policy anniversary, after the addition as of
such policy anniversary of interest and of any supplemental
premium charge arising from dividends, is greater than the
Amount B referred to hereafter in this paragraph - The
Amount A;
(b) if the conditions specified in ((a) above is not satisfied -
The positive excess, if any, of (i) the balance in the
Insurance Continuance Fund as of such policy anniversary of
interest and of any supplemental premium charge arising from
dividends, over (ii) the Amount B below as of such policy
anniversary.
The Amount B as of any policy anniversary of the Policy shall be
determined by the Insurance Company whenever a supplemental cost of
insurance charge is to be deducted from the Insurance Continuance Fund
as of such policy anniversary in accordance with the provisions of the
section OCapital Adjustments, Additions, and DeductionO if the balance
of the Insurance Continuance Fund as of such policy anniversary were
reduced to a level such that such final capital charge would exactly
liquidate the Insurance Continuance Fund.
GC-10442 -4-
In the event of the termination of the Retired Employees Coverage
prior to the end of a Policy Year, the Insurance Company shall
determine the supplemental cost of insurance charge for the Retired
Employees Coverage for the period from the policy anniversary of the
Policy immediately preceding the date of termination of the Retired
Employees Coverage to such termination date by a method consistent
with the above principles as if the termination of the Retired
Employees Coverage had occurred at the end of the Policy Year, but
taking the shorter duration into account, and deduct the supplemental
cost of insurance charge for the Retired Employees Coverage so
determined as of the day following the date of such termination.
The Insurance Company may, by notifying the Policyholder, change the
percentage of Incurred Benefit Charges for the Retired Employees
Coverage specified in the first paragraph of this subsection, as of
any date on which the average monthly basic cost of insurance rate may
be redetermined in accordance with the provisions of the preceding
subsection, provided, however that any new percentage of Incurred
Benefit Charges for the Retired Employees Coverage shall not be
applicable to any period elapsed prior to the date as of which the
change in the percentage of Incurred Benefit Charges for the Retired
Employees Coverage is made.
Capital Adjustments: Additions and Deductions - Whenever
(i) the balance in the Insurance Continuance Fund as of a date
on which interest is to be added to the Insurance
Continuance Fund is smaller than
(ii) the balance in the Insurance Continuance Fund as of the
immediately preceding date on which interest had been added
to the Insurance Continuance Fund, the Insurance Continuance
Fund shall, as of the same date as specified in (i), be
increased or decreased by an amount, hereinafter referred to
as a capital adjustment, determined by the Insurance Company
to be applicable to this Rider as of such date.
For the purpose of (i) above, the balance in the Insurance Continuance
Fund as of a particular date shall be determined by the Insurance
Company after the addition as of such date of interest, but before the
deduction as of such date of any supplemental cost of insurance charge
for the Retired Employees Coverage and before the addition as of such
date of any supplemental premium charge arising from dividends, and
before making as of such date any capital adjustment, provided,
however that the balance in the Insurance Continuance Fund shall be
considered to be zero (1) as of any date on which the supplemental
cost of insurance charge for the Retired Employees Coverage is to be
deducted, if as of such date the conditions specified in (a) of the
preceding subsection is not satisfied, and (2) as of the day on which
the last refund is to be made under the section ORefund of Fund
BalanceO.
For the purpose of (ii) above, the balance in the Insurance
Continuance Fund as of a particular date shall be determined by the
Insurance Company after the addition of interest and after making any
capital adjustment, in either case as of such date, but before the
deduction of any supplemental cost of insurance charge for the Retired
Employees Coverage and before the addition of any supplemental premium
charge arising from dividends, in either case as of such date.
Refund Deductions - Refunds shall be deducted from the Insurance
Continuance Fund in accordance with the provisions of the section
ORefund of Fund BalanceO.
GC-10442 -5-
Grace Period for Basic Premium Charges
A grace period of thirty-one days will be allowed for the payment of
any basic premium charges under this Rider except the first. If any
basic premium charge under this Rider is not paid within the days of
grace the discontinuance of the payment of the basic premium charges
under this Rider shall be deemed to have occurred at the end of such
grace period, unless otherwise agreed upon by the Insurance company
and the Policyholder. This grace period applies only to the basic
premium charges under this Rider and shall not modify any provisions
of the Policy or of any other rider attached thereto, which apply to
the payment of the premium charges for the Other Employees Coverage.
Discontinuance of Premium Charges
Anything in the Policy to the contrary notwithstanding, the
Policyholder may either (a) discontinue the payment of the basic
premium charges under his Rider, but continue the payment of the
premium charges for the Other Employees Coverage, or (b) discontinue
both the payment of the basic premium charges under this Rider and the
payment of the premium charges for the Other Employees coverage. The
discontinuance by the Policyholder of the payment of the basic premium
charges under this Rider, under circumstances specified in (a), shall
not effect either the termination of the Retired Employees Coverage or
the termination of the Other Employees Coverage. The discontinuance
by the Policyholder of the payment of the basic premium charges under
this Rider and of the premium charges for the Other Employees
Coverage, referred to in (b), shall effect the termination of the
Other Employees Coverage only, whereas the Retired Employees Coverage
shall continue in force until terminated in accordance with the
provisions of the next section.
Except as otherwise provided hereafter in this section, in the event
of the discontinuance by the Policyholder of the payment of the basic
premium charges under this Rider, no persons may become Covered
Retired Employees after the date when such discontinuance is deemed to
occur, within the meaning specified in the preceding section, but any
persons who on such date are Covered Retired Employees shall, subject
to the terms and conditions of the Policy and limitations set forth in
this Rider, remain Covered Retired Employees until the Retired
Employees Coverage terminates or such persons cease to be Retired
Employees, whichever occurs earlier.
If the Insurance Continuance Fund, on or after the date of
discontinuance by the Policyholder of the payment of the basic premium
charges under this Rider, is in excess of the amount estimated by the
Insurance Company to be sufficient to provide for basic periodic
continuance of the Retired Employees Coverage on all persons who at
the time when such discontinuance is deemed to occur, within the
meaning specified in the preceding section, are Covered Retired
Employees, for as long as such persons remain Retired Employees, the
Policyholder and the Insurance Company may agree that certain person
who are then not Covered Retired Employees shall thereafter be
eligible to become Covered Retired Employees, subject to the terms and
conditions of the Policy and the limitations set forth in this Rider.
Any such estimate of the sufficiency of the Insurance Continuance Fund
shall be made by the Insurance Company by a method consistent with the
cost estimates referred to in the section OPremium ChargesO.
GC-10422 -6-
Termination of Retired Employees Coverage
The Insurance Company may terminate the Retired Employees Coverage,
provided written notice of the Insurance CompanyOs intention to effect
such termination as of a certain date has been given to the
Policyholder at least 31 days in advance of such date, whenever, as of
the date the Insurance Company gives such notice,
(a) prior to the discontinuance by the Policyholder of the
payment of the basic premium charges under this Rider, the
sum of (i) the number of persons insured for the Retired
Employees Coverage and (ii) the number of persons insured
for the Other Employees Coverage, is less than twenty-five,
or
(b) the Insurance Company determines that the Insurance
Continuance Fund does not equal or exceed 80% of the amount
of the insurance then in force under the Policy for the
Retired Employees Coverage.
The termination of the Retired Employees Coverage shall be effective
on the date specified in the notice of the Insurance Company, except
that in the case of the termination under (b) above, the Policyholder
may pay up to the Insurance Company prior to such date a supplemental
premium charge, whereupon the Insurance CompanyOs notice of intention
to effect such termination shall be deemed withdrawn and the Retired
Employees Coverage shall continue in force beyond the date on which
the termination was to become effective, subject to the terms and
conditions of the Policy and the limitations set forth in this Rider.
Such supplemental premium charge will be determined by the Insurance
Company, at request of the Policyholder, by a method consistent with
the cost estimate referred to in the section OPremium ChargesO.
The Retired Employees Coverage shall terminate automatically upon
receipt by the Insurance Company at the Home Office of written notice
from the Policyholder of the death of the last person to die of the
group of persons composed of all persons who either are Covered
Retired Employees or are eligible to become Covered Retired Employees.
Upon termination of the Retired Employees Coverage any persons who are
then Covered Retired Employees will automatically cease to be insured
under the Policy for the Retired Employees Coverage at the same time
as the termination of the Retired Employees Coverage becomes
effective.
Refund of Fund Balance
The Insurance Company will as soon as practicable after the
termination date of the Retired Employees Coverage determine the
balance in the Insurance Continuance Fund as of the day following the
termination of the Retired Employees Coverage, calculated in
accordance with the provisions of the section OFund MaintenanceO, and
if such balance is greater than zero make refunds to the Policyholder,
in the manner specified below to be used for the sole benefit of
employees. Any such refund shall be deducted from the Insurance
Continuance Fund on the due date of the respective refund and the
making of any refund by the Insurance Company to the Policyholder in
accordance with the provisions of this section shall completely
discharge the liability of the Insurance Company with respect to the
refund so made.
GC-10442 -7-
The first of the refunds shall be due on the day following the end of
the six monthsO period commencing with the policy anniversary of the
Policy next following the termination date of the Retired Employees
Coverage, regardless of whether the Policy is then in force for Other
Employees Coverage, and on each subsequent refund shall be due on the
corresponding day of each month thereafter until the balance in the
Insurance Continuance Fund has been reduced to zero.
Each refund, except the last one, shall be equal to the greater of (a)
2% of the balance in the Insurance Continuance Fund determined by the
Insurance Company as of the day following the termination of the
Retired Employees Coverage, and (b) $1,000. The last refund shall be
equal to the balance in the Insurance Continuance Fund as of the due
date of such refund after the addition as of such date of interest and
of any supplemental premium charge arising from dividends, and after
the deduction as of such date of any supplemental cost of insurance
charge, and after making as of such date the capital adjustment
applicable to this Rider.
Anything hereinabove to the contrary notwithstanding, the Policyholder
and the Insurance Company may at any time and from time to time agree
to increase the amount of any one or more of such refundsO or to
advance the due date thereof, or both.
Termination of Rider
This Rider shall terminate automatically (i) on the day on which the
last refund referred to in the preceding section has been made by the
Insurance Company to the Policyholder, or (ii) if the Insurance
Company determines that the balance in the Insurance Continuance Fund
as of the day following the termination of the Retired Employees
Coverage is zero or less than zero.
______________________________
The Retired Employees Coverage shall, unless otherwise specified in
this Rider, be subject to all the terms and conditions of the Policy
applicable thereto, provided, however, that by agreement of the
Policyholder and the Insurance Company the terms and conditions of the
Policy with respect to the Retired Employees Coverage may be changed
from time to time.
_______________________________
IN WITNESS WHEREOF, The Prudential Insurance Company of America has
caused this Rider to be executed as of the effective date of the Rider
indicated above.
Secretary
GC-10442 -8-
Group Policy Nos. G-91207, GH-91207, GI-91207, GM-91207, GS-91207,
GZ-91207, G-91555, G-91556, G-91609, G-91665, G-93551, GD-93551, G-
93558, GO-93558, G-95305, G-95609
collectively called the Group Contract below.
ADDITIONAL PREMIUMS
for insurance under these Coverages of the Group Contract.
A. DEFINITIONS.
Contract Year means a period of time:
(1) starting with the Contract Date and ending with the day before
the first Contract Anniversary; or
(2) starting with a Contract Anniversary and ending with the day
before the next Contract Anniversary.
Additional Premiums means premiums for the insurance under the Group
Contract required by Section B.
Regular Premiums means premiums for the insurance under the Group
Contract other than any Additional Premiums.
B. ADDITIONAL PREMIUMS
An Additional Premium is due for the insurance under the Group
Contract: (1) on the last day of each Contract Year after these
provisions become effective; and (2) on the date the Group Contract
ends (if other than the end of a Contract Year).
The Additional Premium for each Contract Year is equal to 10% of the
Regular Premium for that Contract Year.
If an Additional Premium is due for a period of less than a Contract
Year, because these provisions do not become effective on a Contract
Anniversary, or because the Group Contract ends on other than the last
day of a Contract Year, that shorter period of time will be used to
determine the Additional Premium.
C. CHANGES IN THE PERCENT USED TO COMPUTE ADDITIONAL PREMIUMS.
Prudential may change the percent used to compute the Additional
Premiums: (1) on each Contract Anniversary; and (2) at any other
time the premium rates under the Group Contract may be changed.
Prudential will inform the Contract Holder of any change in the
percent.
Percents used to compute the Additional Premium will be applied to the
Regular Premium for the part of the Contract Year they were in effect.
______________________________
83500
APC 1004
#21795
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
a mutual life insurance company
AMENDMENT TO GROUP POLICY Nos. G-95609, G-91207, GH-91207, GM-91207.
GZ-91207, G-91555, G-91556, G-91660, G-91665 and G-93551
(to be attached to and made a part of the Policy)
The Policy holder and the Insurance Company hereby agree as follows:
1. The insurance form listed in Column I below is attached to this
Amendment and forms part of the Group Policy as of such form's
effective date, the corresponding insurance form, if any, listed
in Column II.
Column I Column II
GC-4204 GC-4204
effective December 31, 1988 effective December
31, 1982
2. Effective December 31, 1988, premiums will be computed on the
following basis for the insurance indicated.
BRANCH 01 - Northrop Ventura Division
Applicable Coverage Monthly Rate per Employee
Non-Contributory Employee Insurance Dependents
Insurance
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employee Monthly
Benefit.
Weekly Income Accident
and Sickness $0.063 per $10.00 of
Weekly Benefit
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Term Life
$1,203
Weekly Income Accident
and Sickness $0.063 per $10.00 of
Weekly Benefit
BRANCH 02 - Precision Products Salaried
Non-Contributory Employee Insurance Dependents Insurance
Term Life $0.152 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Survivor Benefit Life $0.063 per $100 of
Employees Monthly Benefit
Continued
BRANCH 02 - Precision Products Salaried (Continued)
Applicable Coverage Monthly Rate per Employee
Non-Contributory Employee Insurance Dependents
Insurance
Dependents Term Life
$0.362
Weekly Income Accident
and Sickness - Exempt $0.213 per $10.00 of
Weekly Benefit
Contributory
Term Life $0.425 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
BRANCH 03 - Precision Products Hourly
Non-Contributory
Term Life $0.152 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Survivor Benefit Life $0.063 per $100 of
Employees Monthly
Benefit.
Dependents Term Life
$0.362
Weekly Income Accident
and Sickness - Exempt $1.009 per $10.00 of
Weekly Benefit
BRANCH 05 - Aircraft Division
Non-Contributory
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefit.
Weekly Income Accident
and Sickness $0.063 per $10.00 of
Weekly Benefit
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Term Life
$1.203
Weekly Income Accident
and Sickness - Exempt $0.063 per $10.00 of
Weekly Benefit
New York Disability
Benefits Law $1.862
Continued
BRANCH 06 - Northrop Electronics West Coast
Applicable Coverage Monthly Rate per Employee
Non-Contributory Employee Insurance Dependents
Insurance
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefit.
Contributory
Term Life $0.430 per $1.000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Terms Life
$1.203
Weekly Income Accident
and Sickness-Exempt $0.063 per $10.00 of
Weekly Benefit
BRANCH 17 - Electro-Mechanical Division
Non-Contributory
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefits.
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Terms Life
$1.203
Weekly Income Accident
and Sickness-Exempt $0.063 per $10.00 of
Weekly Benefit
BRANCH 23 - Defense Systems Division
Non-Contributory Employee Insurance Dependents
Insurance
Term Life $0.123 per $1,000 of
insurance
Additional Term Life $0.414 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Weekly Income Accident
and Sickness-Exempt $0.446 per $10.00 of
Weekly Benefit
Continued
BRANCH 28 - Northrop International Inc.
Applicable Coverage Monthly Rate per Employee
Non-Contributory Employee Insurance Dependents
Insurance
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefits.
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Term Life
$1.203
Weekly Income Accident
and Sickness-Exempt $0.446 per $10.00 of
Weekly Benefit
BRANCH 30 - Northrop International Inc.
Non-Contributory
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefits.
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Term Life
$1.203
Weekly Income Accident
and Sickness-Exempt $0.063 per $10.00 of
Weekly Benefit
BRANCH 23 - Dakota Manufacturing Plant
Non-Contributory
Term Life $0.245 per $1,000 of
insurance
Accidental Death
and Dismemberment $1.044 per $1,000 of
insurance
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefits.
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Weekly Income Accident
and Sickness-Exempt $0.063 per $10.00 of
Weekly Benefit
Continued
BRANCH 39 - NWASI
Applicable Coverage Monthly Rate per Employee
Employee Insurance Dependents
Insurance
Term Life and Dependents
Term Life $8.905 *
Accidental Death
and Dismemberment $1.183
Weekly Income Accident
and Sickness-Exempt
(Non-Contributory) $18.546
Dependents Term Life
(Contributory) $0.747
* Included in the Employee Insurance
BRANCH 47 - Northrop International Aircraft
Non-Contributory
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefits.
Contributory
Term Life $0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Term Life
$1.203
Weekly Income Accident
and Sickness-Exempt $0.063 per $10.00 of
Weekly Benefit
BRANCH 55 - Northrop Industries
Non-Contributory
Term Life $6.130
Accidental Death
and Dismemberment $1.086
Survivor Benefit Life $0.045 per $100 of
Employees Monthly
Benefits.
Contributory
Term Life 0.430 per $1,000 of
insurance
Accidental Death
and Dismemberment $0.044 per $1,000 of
insurance
Dependents Term Life
$1.203
Weekly Income Accident
and Sickness-Exempt $0.063 per $10.00 of
Weekly Benefit
Continued
BRANCH 72 - Disabled Lives
Applicable Coverage Monthly Rate per Employee
Non- Contributory Employee Insurance Dependents
Insurance
Term Life $0.245 per $1,000 of
insurance
Survivor Benefit Life $0.045 per $100 of
Employee Monthly
Benefit
BRANCH 315 - Retired Lives
Term Life (Contributory) $2.444 per $1,000 of
insurance
3. Effective December 31, 1988, the percent used to calculate the
additional premium under for 83500 APC 1004 will be 10%
4. With respect to the Non-Contributory Term Life, Survivor Benefit
Life, Dependent Term Life, accidental Death Dismemberment and
Weekly Income Accident and Sickness benefits provided for active
employees, the premium rates and percent used to calculate the
additional premium shown in 2. and 3. above will not be changed
prior to January 1, 1993, unless the number of employees insured
under the policy decreases to less than 80% of the number of
employees insured on December 31, 1988.
It is agreed that such change or changes shall form a part of the
Group Policy, but not unless both the Policy holder and the Insurance
Company have hereto affixed their respective signatures.
NORTHROP CORPORATION EMPLOYEE INSURANCE
BENEFIT PLANS MASTER TRUST PURSUANT TO
, 19 AN ASSIGNMENT BY NORTHROP CORPORATION
(Full or Corporate Name of Policyholder)
Witness By
(Signature and Title) Trustee
Woodland Hills, California THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA
November 14, 1989
_______________________________________________
Assistant Secretary
ORD 23585 (6807a)
Group Policy No.: G-95609, G-91207, GH-91207, GM-91207, GZ-91207, G-
91555, G-91556, G-91660,
G-91665 and G-93551.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
A Mutual Life Insurance Company
(Herein Called The Insurance Company)
Rider To Be Attached To and Made A Part Of Group Policy Nos.: G-
95609, G-91207, GH-91207, GM-91207, GZ-91207, G-91556, G-91660, G-
91665 and G-93551.
The Insurance Company and the Policy holder, agree that, effective
December 31, 1988, the policy is amended by the addition of the
following provision:
SPECIAL RESERVE
The Insurance Company may maintain a special reserve to be applied by
it from time to time toward stabilizing experience under the Policy
with respect to the Non-Contributory Employee Term Life, the Non-
Contributory Employees Survivor Benefits Life Insurance, the non-
contributory Dependent Term Life Insurance, the Non-contributory
Employee Accidental Death and Dismemberment Insurance and the Non-
contributory Employee Weekly Income Accident and Sickness Insurance.
Such reserve shall be established from premiums paid under the Policy
and the amount of such reserve shall be determined by the Insurance
Company from time to time. Such reserve shall be credited with
interest at the end of each policy year, or in the event of
termination of the Policy, at the time of such termination. The
interest for the policy year or portion thereof, as the case may be,
shall be determined at the rate of not less than 5% per annum and on
the average amount of the reserve during the period with respect to
which the interest is being computed, except that after this Rider has
been in effect for a period extending from the effective date of this
Rider to the next policy anniversary and from time to time thereafter
the Insurance Company may change the rate to be used in the
computation of the interest on the reserve.
If at any time the Insurance Company shall determine that the amount
of the special reserve is then excess of that required, the Insurance
Company shall pay such excess to the Policy holder as a return of
premium.
Any return to the Policyholder of the balance of the special reserve,
or any portion thereof , in accordance with the provisions of this
Rider, shall be applied by the Policyholder solely for the benefit of
retired employees or active employees, or both.
The Insurance Company has caused this Rider to be executed this
fourteenth day of November, 1989.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By
Assistant Secretary
GC-4204
Group Policy No.: G-95609, G-91207, GH-91207, GI-91207, GM-91207, GZ-
91207, G-91555,
G-91556, G-91660, G-91665, G-93551, GD-93551, G-93558 and G-95305.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
A Mutual Life Insurance Company
(Herein Called The Insurance Company)
Rider To Be Attached To and Made A Part Of Group Policy Nos.: G-
95609, G-91207, GH-91207, GI-91207, GM-91207, GZ-91207, G-91555, G-
91556, G-91660, G-91665, G-93551, GD-93551, G-93558 and G-95305.
The Insurance Company and the Policy holder, agree that, effective
December 31, 1982, the policy is amended by the addition of the
following provision:
SPECIAL RESERVE
The Insurance Company may maintain a special reserve to be applied by
it from time to time toward stabilizing experience under the Policy.
Such reserve shall be established from premiums paid under the Policy,
and the amount of such reserve shall be determined by the Insurance
Company from time to time. Such reserve shall be credited with
interest at the end of each policy year, or in the event of
termination of the Policy, at the time of such termination. The
interest for the policy year or portion thereof, as the case may be,
shall be determined at the rate of not less than 5% per annum and on
the average amount of the reserve during the period with respect to
which the interest is being computed, except that after this Rider has
been in effect for a period extending from the effective date of this
Rider to the next policy anniversary and from time to time thereafter
the Insurance Company may change the rate to be used in the
computation of the interest on the reserve.
If at any time the Insurance Company shall determine that the amount
of the special reserve is then excess of that required, the Insurance
Company shall pay such excess to the Policy holder as a return of
premium.
In the event of termination of the Policy, any balance remaining in
the special reserve after final application of the reserve by the
Insurance Company in accordance with the above provisions shall be
paid to the Policyholder as a return of premium.
Any return to the Policyholder of the balance of the special reserve,
or any portion thereof , in accordance with the provisions of this
Rider, shall be applied by the Policyholder solely for the benefit of
retired employees or active employees, or both.
The Insurance Company has caused this Rider to be executed this
seventeenth day of December, 1982.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By
Vice President,
Group Insurance Underwriting
Accepted by:
NORTHROP CORPORATION
(Date) (Policyholder)
Witness
(Signature and Tittle)
GC-4204
Group Policy Nos. G-91207, GH-91207, GI-91207, GM-91207, GS-91207,
GZ-91207,
G-91555, G-91556, G-91609, G-91665, G-93551, GD-93551, G-93558, GO-
93558, G-95305, and G-95609.
Effective Date: August 1, 1984
RIDER FORM MADE A PART OF GROUP POLICIES
G-91207, GH-91207, GI-91207, GK-91207, GM-91207, GS-91207,
GZ-91207, G-91555, G-91556, G-91660, G-91665, G-93551,
GD-93551, G-93558, GO-93558, G-95305 and G-95609.
issued by
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(Herein Called the Insurance Company)
It is hereby agreed that the group policies specified above,
collectively, shall be considered as a single group policy, No. GT-
91207, for the purpose of determining and crediting the portion, if
any, of divisible surplus of the Insurance Company accruing upon said
group policies.
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By
Assistant Secretary
GC-3222
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
a mutual life insurance company
AMENDMENT TO GROUP POLICY NOS. G-6324, GH-91555,
G-91556, G-91660, G-91207, GO-91207, GH-91207, GZ-91207
G-93551, G-93558, GO-93558, G-93160, GH-91207 and GY-91207
(to be attached to and mad a part of each of the above numbered Group
Policies)
The Policyholder and the Insurance Company hereby agree as follows:
Effective June 1, 1974, the Group Policies are amended to provide
that any provisions of the Group Policies to the contrary
notwithstanding, an Employee who becomes covered for Term Life
Insurance within 31 days after his ceasing to be a covered
individual for Term Life Insurance under another Group Policy
issued to Northrop Corporation (or a subsidiary or affiliate of
Northrop Corporation), hereinafter referred to as Oprior Group
PolicyO, then, during said 31 day period, his amount of Term Life
Insurance under the Group Policy shall be reduced by the amount
of Term Life Insurance and the amount of any Survivor Benefits
Life Insurance (present value) which he is entitled to convert
under the provisions of said prior Group Policy.
It is agreed that such change or changes shall from a part of the
Policy, but not unless both the Policyholder and the Insurance Company
have hereto affixed their respective signatures.
AUGUST 12, 1974 NORTHROP CORPORATION
(Full or Corporate Name of
Policyholder)
Vice President
Industrial
Relations
Witness____________________________
By____________________________________
(Signature and Title)
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
Los Angeles, California
__________________________________, 1974 By
_______________________________
ORD 13455-A Ed 5-58 74-2-4355
Dates Referenced Herein
| This ‘10-K’ Filing | | Date | | Other Filings |
|---|
| |  |
| Filed on: | | 2/22/96 | | None on these Dates |
| For Period End: | | 12/31/95 |
| | 1/1/93 |
| | 1/1/92 |
| List all Filings |
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