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* * *
3. * * *[Petitioner] completes at least one
Individual Life Insurance Application for each
defined class of covered employees.
4. The aggregate number of employees within each
defined class of covered employees, on the
effective date of coverage, totals at least 2,000
lives.
5. The minimum annual premium for each covered
employee is $3,000 and the maximum annual premium
for each covered employee is $16,667.
6. AIG Life determines that each defined class of
covered employees identified on the attached
Client Master Information Form and each employee
identified on the Certification of Employee Census
are acceptable for underwriting purposes and that
the amounts of coverage applied for are
acceptable.
In addition, the Letter of Understanding required that petitioner
acknowledge and agree with the following:
1. This Letter of Understanding and attached Exhibits
A and B contain the entire agreement between the
parties and supersedes all previous agreements
entered into between Client and AIG Life, or
promises made with regard to the subject matter of
this letter.
2. * * * [Petitioner] has reviewed with its own legal
and tax advisors all present and future
implications of its ownership of the Policies,
including, but not limited to, the tax
consequences of loans and/or withdrawals from the
Policies and the deductibility thereof, and that
it has not relied upon any representations of AIG
certification, and that petitioner notify and obtain consent from
each employee on the census that insurance is to be issued on his
or her life.
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