Profit Sharing

Under this rider, if the group life insurance contract is for at least three years or renewed consecutively for three years, then we will share the profits of the policy during the three years policy-sharing period as per the following formula.

(a) Total premium received by Metropolitan Life during the profit sharing       period of three years.

(b) Less expense allowance for Metropolitan Life (certain percent of (a)).

(c) Less claims paid or payable including provision for claims that may have      incurred by the end of the profit sharing period but not reported.

The profit, if any, for the 3 year period will be equal to a-(b+c). If this amount is positive then we have a profit during the 3 year period. Certain percentage of this amount will be payable to the assured and adjusted accordingly from the premium payable in the first year of the subsequent profit sharing period of 3 years. This calculation will be done on a 3 year accumulated basis only and is available to clients whose average number of employees stays above 500 over the 3 year profit sharing period .

However, in case there is a loss accordingly to the above formula, the loss figure maybe carried over to the subsequent profit sharing period(s) until the loss is eliminated. Furthermore, the actual percentage of profit payable to the client will vary with the size of the group.