Common use of Fiduciary Status Clause in Contracts

Fiduciary Status. a. To the extent that Broker-Dealer, Agency, or any of the Representatives act as an “investment advice fiduciary,” as defined in section 3(21) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) in connection with the distribution of Policies to (or purchase or funding of Policies with assets of) employer-sponsored retirement plans and individual participant accounts thereunder that are subject to ERISA, and/or plans subject to section 4975 of the Internal Revenue Code of 1986, as amended (“IRC”), such as individual retirement accounts (“IRAs”) described in sections 408 and 408A of the IRC (collectively, the “Covered Accounts”), each of them shall comply with standards of care and undivided loyalty applicable to plan fiduciaries under EXXXX and to fiduciaries under section 4975 of the IRC. Broker-Dealer and Agency acknowledge and agree that nothing in this Agreement shall cause or require the Company or LFD to provide any investment advice or recommendation, with respect to any Covered Account that acquires or holds a Policy or that uses its assets to purchase or fund a Policy. b. To the extent that Broker-Dealer, Agency, or any of the Representatives when providing investment advice, with respect to any Covered Account that acquires or holds a Policy or uses its assets to purchase or fund a Policy, may be engaged in prohibited transaction(s) described in section 406(a) or (b) of ERISA or section 4975(c) of the IRC, in connection with the provision of such advice, Broker-Dealer and Agency shall comply and shall ensure that each such Representative complies with all conditions of one or more applicable prohibited transaction exemptions (“PTEs”) that cover the prohibited transaction(s). c. Broker-Dealer and Agency acknowledge and agree that neither the Company nor LFD has any supervisory authority or responsibility over Broker-Dealer, Agency, or the Representatives, relating to their provision of investment advice, with respect to any Covered Account that acquires or holds a Policy or uses its assets to purchase or fund a Policy, notwithstanding the Company’s maintenance of a suitability supervision system for purposes of complying with laws, rules, and regulations adopted by states and their state insurance regulatory authorities relating to the suitability of recommendations of certain annuity and insurance transactions.

Fiduciary Status. a. To the extent that Broker-Dealer, Agency, or any of the Representatives act as an “"investment advice fiduciary,” " as defined in section 3(21) of the Employee Retirement Income Security Act of 1974, as amended (“"ERISA”") and/or the applicable rules issued by the United States Department of Labor ("DOL") at 29 CFR section 2510.3-21 (the "DOL Fiduciary Rule"), as in effect on April 10, 2017 (or any extended date that may be announced by the DOL, herein the "Applicability Date"), in connection with the distribution of Policies to (or purchase or funding of Policies with assets of) employer-sponsored retirement plans and individual participant accounts thereunder that are subject to ERISA, and/or plans subject to section 4975 of the Internal Revenue Code of 1986, as amended (“"IRC”"), such as individual retirement accounts (“"IRAs”") described in sections 408 and 408A of the IRC (collectively, the “"Covered Accounts”"), each of them shall comply with standards of care and undivided loyalty applicable to plan fiduciaries under EXXXX ERISA and to fiduciaries under section 4975 of the IRC. Broker-Dealer and Agency acknowledge and agree that nothing in this Agreement shall cause or require the Company or LFD to provide any investment advice or recommendation, or otherwise act as an "investment advice fiduciary," as defined in the DOL Fiduciary Rule, with respect to any Covered Account that acquires or holds a Policy or that uses its assets to purchase or fund a Policy. b. To the extent that Broker-Dealer, Agency, or any of the Representatives when providing "investment advice," as defined in the DOL Fiduciary Rule, with respect to any Covered Account that acquires or holds a Policy or uses its assets to purchase or fund a Policy, may be engaged in prohibited transaction(s) described in section 406(a) or (b) of ERISA or section 4975(c) of the IRC, in connection with the provision of such advice, Broker-Dealer and Agency shall comply and shall ensure that each such Representative complies with all conditions of one or more applicable prohibited transaction exemptions (“"PTEs”") that cover the prohibited transaction(s). c. With respect to any Policy acquired prior to or held on the Applicability Date) by a Covered Account (or funded with assets of a Covered Account), Broker-Dealer and Agency shall be responsible for fulfilling, or ensuring that the appropriate Representative(s) fulfill, any fiduciary obligations arising under the DOL Fiduciary Rule and complying or ensuring that the appropriate Representative(s) comply with the conditions of any applicable PTE for any investment advice, as defined in the DOL Fiduciary Rule, provided with respect to such Policy, on or after the Applicability Date. d. Broker-Dealer and Agency acknowledge and agree that neither the Company nor LFD shall be required to, nor shall they, provide any investment advice, as defined in the DOL Fiduciary Rule, on or after the Applicability Date, with respect to any Policy acquired, held by, or funded with assets of a Covered Account pursuant to this Agreement and/or for which Broker-Dealer or Agency is the firm-of-record. Notwithstanding the foregoing, the parties further acknowledge and agree that, solely if and to the extent the Company or LFD may be determined by any third party with authority to make such assessment (e.g., a court or regulator) to be providing investment advice as defined in the DOL Fiduciary Rule, on or after the Applicability Date, such advice shall be treated as (and is understood by the parties to be) advice to Broker-Dealer and/or Agency and their Representatives in their capacity as an independent fiduciary with financial expertise within the meaning of paragraph (c)(1) of the DOL Fiduciary Rule. Accordingly and in any such event: (i) the Company and LFD represent to Broker-Dealer and Agency that: (A) they are not undertaking to provide any such investment advice on an impartial basis, (B) they have a financial interest in the transaction which would affect the independent exercise of their best judgment on behalf of Broker-Dealer and Agency and their Covered Accounts and (C) they do not receive a fee or other compensation directly from the ultimate Covered Accounts for the provision of any such investment advice; and (ii) Broker-Dealer and Agency each represent and warrant to the Company, LFD and each of their affiliates that: (A) they are independent of the Company, LFD and their affiliates; (B) they are a fiduciary under ERISA and the IRC with respect to the Covered Account which is the ultimate subject of the investment advice; (C) they are capable of, and responsible for, evaluating investment risks on behalf of their Covered Accounts independently, both in general and with regard to the specific transaction entered into pursuant to this Agreement, (D) they are an entity described in Section (c)(1)(i)(A) through (D) of the DOL Fiduciary Rule, and (E) they understand that such investment advice is intended to be (and shall be) treated as advice to an independent fiduciary with financial expertise within the meaning of paragraph (c)(1) of the DOL Fiduciary Rule to the extent necessary so as not to cause the Company or LFD or any of its affiliates to be treated as "advice fiduciaries" within the meaning of ERISA or the IRC. e. Broker-Dealer and Agency acknowledge and agree that neither the Company nor LFD has any supervisory authority or responsibility over Broker-Dealer, Agency, or the Representatives, relating to their provision of investment advice, as defined in the DOL Fiduciary Rule, with respect to any Covered Account that acquires or holds a Policy or uses its assets to purchase or fund a Policy, notwithstanding the Company’s 's maintenance of a suitability supervision system for purposes of complying with laws, rules, and regulations adopted by states and their state insurance regulatory authorities relating to the suitability of recommendations of certain annuity and insurance transactions.

Fiduciary Status. a. A. To the extent that Broker-Dealer, Agency, or Dealer and/or any of the its Registered Representatives act or Brokers acts as an “investment advice fiduciary,” as defined as defined in section 3(21) of the Employee Retirement Income Security Act of 1974, as amended (“"ERISA”") and/or the applicable rules issued by the United States Department of Labor ("DOL") at 29 CFR section 2510.3-21 (the "DOL Fiduciary Rule"), in connection with the distribution of Contracts and/or Policies to (or purchase or funding of Contracts and/or Policies with assets of) employer-sponsored retirement plans and individual participant accounts thereunder that are subject to ERISA, and/or to plans subject to section 4975 of the Internal Revenue Code of 1986, as amended (“IRC”), ) such as individual retirement accounts (“IRAs”) described in sections section 408 and 408A of the IRC (collectively, the “Covered COMB. BDSA_6-2017 Accounts”), each of them Broker-Dealer shall comply with standards of care and undivided loyalty applicable to plan fiduciaries under EXXXX and to fiduciaries under section 4975 of fiduciary standards. If, in acting as an investment advice fiduciary, the IRC. Broker-Dealer and Agency acknowledge and agree that nothing in this Agreement shall cause or require the Company or LFD to provide any investment advice or recommendation, with respect to any Covered Account that acquires or holds a Policy or that uses its assets to purchase or fund a Policy. b. To the extent that Broker-Dealer, Agency, or any of the Representatives when providing investment advice, with respect to any Covered Account that acquires or holds a Policy or uses its assets to purchase or fund a Policy, may be engaged in a prohibited transaction(s) described in section 406(a) or (b) of ERISA or section 4975(c) of the IRC, in connection with the provision of such advicerespect to any Covered Account that acquires or holds Contracts and/or Policies, Broker-Dealer and Agency shall comply and shall ensure that each such Representative complies with all conditions of one or more an applicable prohibited transaction exemptions exemption (“PTEsPTE”) that cover covers the prohibited transaction(s)transaction. c. B. With respect to any Contract and/or Policies acquired or held by a Covered Account prior to or held on June 9, 2017 (the “Applicability Date”), Broker-Dealer shall be responsible for fulfilling any fiduciary obligations arising under the DOL Fiduciary Rule and Agency complying with the requirements of any applicable PTEs for any investment advice, as defined in the DOL Fiduciary Rule, provided with respect to such Contracts and/or Policies, on or after the Applicability Date. C. The parties acknowledge and agree that neither the Company nor LFD Distributor shall be required to, nor shall either of them, provide any investment advice, as defined under the DOL Fiduciary Rule, on or after the Applicability Date with respect to any Contract and/or Policy acquired, held by, or funded with proceeds of a Covered Account for which Broker-Dealer is the firm-of-record. D. The parties acknowledge and agree that neither Company nor Distributor has any supervisory authority over, or any supervisory responsibility over for, Broker-Dealer, Agency, Dealer or the Representativesits Registered Representatives or Brokers, relating to their provision of investment advice, as defined in the DOL Fiduciary Rule, with respect to any Covered Account that acquires or holds a Contract and/or Policy or uses its assets proceeds to purchase or fund a Contract and/or Policy, or compliance with applicable PTEs, notwithstanding the Company’s maintenance of a suitability supervision system for purposes of complying with laws, rules, rules and regulations adopted by states and their state insurance regulatory authorities relating to the suitability of recommendations of certain annuity and insurance transactions. E. The Parties acknowledge and agree that compliance by Broker-Dealer with the DOL Fiduciary Rule does not obviate the requirement to comply with any other applicable law.