Common use of Right of Rejection Clause in Contracts

Right of Rejection. The Company, in its sole discretion, may reject any applications or payments remitted by Representatives through Broker-Dealer and may refund an applicant's payments. If the Company should reject any application for a Policy, the Company will immediately return any funds directly to the prospective purchaser, and Broker-Dealer will be notified of such refused application. In the event such refunds are made and if Broker-Dealer or Agency has received compensation based on an applicant's payment that is refunded, Broker-Dealer shall promptly repay such compensation to the Company. If repayment is not promptly made, the Company may at its sole option deduct any amounts due it from Broker-Dealer or Agency from future commissions otherwise payable to Broker-Dealer or Agency pursuant to this agreement. This provision shall survive termination of this Agreement.

Right of Rejection. The Company, in its sole discretion, may reject any applications or payments remitted by Representatives through Broker-Dealer and may refund an applicant's payments. If the Company should reject any application for a Policy, the Company will immediately return any funds directly to the prospective purchaser, and Broker-Dealer will be notified of such refused application. In the event such refunds are made and if Broker-Dealer or Agency has received compensation based on an applicant's payment that is refunded, Broker-Dealer shall promptly repay such compensation to the Company. If repayment is not promptly made, the Company may at its sole option deduct any amounts due it from Broker-Dealer or Agency from future commissions otherwise payable to Broker-Dealer or Agency pursuant to this agreement. This provision shall survive termination of this Agreement.