SELECTED BROKER AGREEMENT
|
Exhibit 26(c)(ii) |
|
AGREEMENT dated _________, 1984, by and between Pruco Securities |
Corporation (Distributor), a New Jersey corporation, and _________ (Broker), a
______ corporation.
|
WITNESSETH: |
|
In consideration of the mutual promises contained herein, the parties |
hereto agree as follows:
A. |
Definitions |
|
(1) Contracts - The variable appreciable life insurance contracts which |
|
Pruco Life Insurance Company (Company), an Arizona corporation, |
|
propose to issue and for which Distributor has been appointed the |
|
principal underwriter pursuant to a Distribution Agreement, a copy of |
|
which has been furnished to Broker. |
|
(2) Pruco Life Variable Appreciable Account, or the Account - The separate |
|
account established and maintained by Company pursuant to the laws of |
|
Arizona to fund the benefits under the Contracts. |
|
(3) Pruco Life Series Fund, Inc., or the Fund - An open-end management |
|
investment company registered under the 1940 Act, shares of which are |
|
sold to the Account in connection with the sale of the Contracts. |
|
(4) Registration Statement - The registration statements and amendments |
|
thereto relating to the Contracts, the Account, and the Fund, |
|
including financial statements and all exhibits. |
|
(5) Prospectus - The prospectuses included within the registration |
|
statements referred to herein. |
|
-2- |
|
(6) 1933 Act - The Securities Act of 1933, as amended. |
|
(7) 1934 Act - The Securities Exchange Act of 1934, as amended. |
|
(8) SEC - The Securities and Exchange Commission. |
B. |
Agreements of Distributor |
|
(1) Pursuant to the authority delegated to it by Company, Distributor |
|
hereby authorizes Broker during the term of this Agreement to solicit |
|
applications for Contracts from eligible persons provided that there |
|
is an effective Registration Statement relating to such Contracts and |
|
provided further that Broker has been notified by Distributor that the |
|
Contracts are qualified for sale under all applicable securities and |
|
insurance laws of the State or jurisdiction in which the application |
|
will be solicited. In connection with the solicitation of applications |
|
for Contracts. Broker is hereby authorized to offer riders that are |
|
available with the Contracts in accordance with instructions furnished |
|
by Distributor or Company. |
|
(2) Distributor, during the term of this Agreement, will notify Broker of |
|
the issuance by the SEC of any stop order with respect to the |
|
Registration Statement or any amendments thereto or the initiation of |
|
any proceedings for that purpose or for any other purpose relating to |
|
the registration and/or offering of the Contracts and of any other |
|
action or circumstance that may prevent the lawful sale of the |
|
Contracts in any state or jurisdiction. |
|
(3) During the term of this Agreement, Distributor shall advise Broker of |
|
any amendment to the Registration Statement or any amendment or |
|
supplement to any Prospectus. |
|
-3- |
C. Agreements of Broker
|
(1) It is understood and agreed that Broker is a registered broker/dealer |
|
under the 1934 Act and a member of the National Association of |
|
Securities Dealers, Inc. and that the agents or representatives of |
|
Broker who will be soliciting applications for the Contracts also will |
|
be duly registered representatives of Broker. |
|
(2) Commencing at such time as Distributor and Broker shall agree upon, |
|
Broker agrees to use its best efforts to find purchasers for the |
|
contracts acceptable to Company. In meeting its obligation to use its |
|
best efforts to solicit applications for Contracts, Broker shall, |
|
during the term of this Agreement, engage in the following activities: |
|
(a) Continuously utilize training, sales and promotional materials |
|
which have been approved by Company; |
|
(b) Establish and implement reasonable procedures for periodic |
|
inspection and supervision of sales practices of its agents or |
|
representatives and submit periodic reports to Distributor as may |
|
be requested on the results of such inspections and the |
|
compliance with such procedures. |
|
(c) Broker shall take reasonable steps to ensure that the various |
|
representatives appointed by it shall not make recommendations to |
|
an applicant to purchase a Contract in the absence of reasonable |
|
grounds to believe that the purchase of the Contract is suitable |
|
for such applicant. While not limited to the following, a |
|
determination of suitability shall be based on information |
|
furnished to a |
|
-4- |
|
representative after reasonable inquiry of such applicant |
|
concerning the applicant's insurance and investment objectives, |
|
financial situation and needs, and the likelihood that the |
|
applicant will continue to make the premium payments contemplated |
|
by the Contract. |
|
(3) All payments for Contracts collected by agents or representatives of |
|
Broker shall be held at all times in a fiduciary capacity and shall be |
|
remitted promptly in full together with such applications, forms and |
|
other required documentation to an office of the Company designated by |
|
Distributor. Checks or money orders in payment of initial premiums |
|
shall be drawn to the order of "Pruco Life Insurance Company." Broker |
|
acknowledges that the Company retains the ultimate right to control |
|
the sale of the Contracts and that the Distributor or Company shall |
|
have the unconditional right to reject, in whole or in part, any |
|
application for the Contract. In the event Company or Distributor |
|
rejects an application, Company immediately will return all payments |
|
directly to the purchaser and Broker will be notified of such action. |
|
In the event that any purchaser of a Contract elects to return such |
|
Contract pursuant to Rule 6e-2(b)(13)(viii) of the 1940 Act, the |
|
purchaser will receive a refund of any premium payments, plus or minus |
|
any change due to investment performance in the value of the invested |
|
portion of such premiums; however, if applicable state law so |
|
requires, the purchaser who exercises his short-term cancellation |
|
right will receive a refund of all payments made, unadjusted for |
|
investment experience prior to the cancellation. The Broker will be |
|
notified of any such action. |
|
-5- |
|
(4) Broker shall act as an independent contractor, and nothing herein |
|
contained shall constitute Broker, its agents or representatives, or |
|
any employees thereof as employees of Company or Distributor in |
|
connection with the solicitation of applications for Contracts. |
|
Broker, its agents or representatives, and its employees shall not |
|
hold themselves out to be employees of Company or Distributor in this |
|
connection or in any dealings with the public. |
|
(5) Broker agrees that any material it develops, approves or uses for |
|
sales, training, explanatory or other purposes in connection with the |
|
solicitation of applications for Contracts hereunder (other than |
|
generic advertising materials which do not make specific reference to |
|
the Contracts) will not be used without the prior written consent of |
|
Distributor and, where appropriate, the endorsement of Company to be |
|
obtained by Distributor. |
|
(6) Solicitation and other activities by Broker shall be undertaken only |
|
in accordance with applicable laws and regulations. No agent or |
|
representative of Broker shall solicit applications for the contracts |
|
until duly licensed and appointed by Company as a life insurance and |
|
variable contract broker or agent of Company in the appropriate states |
|
or other jurisdiction. Broker shall ensure that such agents or |
|
representatives fulfill any training requirements necessary to be |
|
licensed. Broker understands and acknowledges that neither it nor its |
|
agents or representatives is authorized by Distributor or Company to |
|
give any information or make any representation in connection with |
|
this Agreement or the offering of the Contracts other than those |
|
contained in the Prospectus or other solicitation material authorized |
|
in writing by Distributor or Company. |
|
-6- |
|
(7) Broker shall not have authority on behalf of Distributor or Company: |
|
make, alter or discharge any Contract or other form; waive any |
|
forfeiture, extent the time of paying any premium; receive any monies |
|
or premiums due, or to become due, to Company, except as set forth in |
|
Section C(3) of this Agreement. Broker shall not expend, nor contract |
|
for the expenditure of the funds of Distributor, nor shall Broker |
|
possess or exercise any authority on behalf of Broker by this |
|
Agreement. |
|
(8) Broker shall have the responsibility for maintaining the records of |
|
its representatives licensed, registered and otherwise qualified to |
|
sell the Contracts. Broker shall maintain such other records as are |
|
required of it by applicable laws and regulations. The books, accounts |
|
and records of Company, the Account, Distributor and Broker relating |
|
to the sale of the Contracts shall be maintained so as to clearly and |
|
accurately disclose the nature and details of the transactions. All |
|
records maintained by the Broker in connection with this Agreement |
|
shall be the property of the Company and shall be returned to the |
|
Company upon termination of this Agreement, free from any claims or |
|
retention of rights by the Broker. The Broker shall keep confidential |
|
any information obtained pursuant to this Agreement and shall disclose |
|
such information, only if the Company has authorized such disclosure, |
|
or if such disclosure is expressly required by applicable federal or |
|
state regulatory authorities. |
|
-7- |
D. |
Compensation |
|
(1) Pursuant to the Distribution Agreement between Distributor and |
|
Company, Distributor shall cause Company to arrange for the payment of |
|
commissions to Broker as compensation for the sale of each contract |
|
sold by an agent or representative of Broker. The amount of such |
|
compensation shall be based on a schedule to be determined by |
|
agreement of Company, Distributor and Broker. Company shall identify |
|
to Broker with each such payment the name of the agent or |
|
representative of Broker who solicited each Contract covered by the |
|
payment. |
|
(2) Neither Broker nor any of its agents or representatives shall have any |
|
right to withhold or deduct any part of any premium it shall receive |
|
for purposes of payment of commission or otherwise. Neither Broker nor |
|
any of its agents or representatives shall have an interest in any |
|
compensation paid by Company to Distributor, now or hereafter, in |
|
connection with the sale of any Contracts hereunder. |
E. |
Complaints and Investigations |
|
(1) Broker and Distributor jointly agree to cooperate fully in any |
|
insurance regulatory investigation or proceeding or judicial |
|
proceeding arising in connection with the Contracts marketed under |
|
this Agreement. Broker and Distributor further agree to cooperate |
|
fully in any securities regulatory investigation or proceeding or |
|
judicial proceeding with respect to Broker, Distributor, their |
|
affiliates and their agents or representatives to the extent that such |
|
investigation or proceeding is in connection with Contracts marketed |
|
under this Agreement. Broker shall furnish applicable |
|
-8- |
|
federal and state regulatory authorities with any information or |
|
reports in connection with its services under this Agreement which |
|
such authorities may request in order to ascertain whether the |
|
Company's operations are being conducted in a manner consistent with |
|
any applicable law or regulation. |
F. |
Term of Agreement |
|
(1) This Agreement shall continue in force for one year from its effective |
|
date and thereafter shall automatically be renewed every year for a |
|
further one year period; provided that either party may unilaterally |
|
terminate this Agreement upon thirty (30) days' written notice to the |
|
other party of its intention to do so. |
|
(2) Upon termination of this Agreement, all authorizations, rights and |
|
obligations shall cease except (a) the agreements contained in Section |
E hereof; (b) the indemnity set forth in Section G hereof; and (c) the
|
obligations to settle accounts hereunder, including payments on |
|
premiums subsequently received for Contracts in effect at the time of |
|
termination or issued pursuant to applications received by Broker |
|
prior to termination. |
G. |
Indemnity |
|
(1) Broker shall be held to the exercise of reasonable care in carrying |
|
out the provisions of this Agreement. |
|
(2) Distributor agrees to indemnify and hold harmless Broker and each |
|
officer or director of Broker against any losses, claims, damages or |
|
liabilities, joint or several, to which Broker or such officer or |
|
director become subject, under the 1933 Act or otherwise, insofar as |
|
such losses, claims, damages or liabilities (or actions |
|
-9- |
|
in respect thereof) arise out of or are based upon any untrue |
|
statement or alleged untrue statement of a material fact, required to |
|
be stated therein or necessary to make the statements therein not |
|
misleading, contained in any Registration Statement or any |
|
post-effective amendment thereof or in the Prospectus or any amendment |
|
or supplement to the Prospectus. |
|
(3) Broker agrees to indemnify and hold harmless Company and Distributor |
|
and each of their current and former directors and officers and each |
|
person, if any, who controls or has controlled Company or Distributor |
|
within the meaning of the 1933 Act or the 1934 Act, against any |
|
losses, claims, damages or liabilities to which Company or Distributor |
|
and any such director or officer or controlling person may become |
|
subject, under the 1933 Act or otherwise, insofar as such losses, |
|
claims, damages or liabilities (or actions in respect thereof) arise |
|
out of or are based upon: |
|
(a) Any unauthorized use of sales materials or any verbal or written |
|
misrepresentations or any unlawful sales practices concerning the |
|
Contracts by Brokers; or |
|
(b) Claims by agents or representatives or employees of Broker for |
|
commissions, service fees, development allowances or other |
|
compensation or renumeration of any type; |
|
(c) The failure of Broker, its officers, employees, or agents to |
|
comply with the provisions of this Agreement; and Broker will |
|
reimburse Company and Distributor and any director or officer or |
|
controlling person of either for any legal or other expenses |
|
reasonably incurred by Company, Distributor, or such director, |
|
officer or |
|
-10- |
|
controlling person in connection with investigating or defending |
|
any such loss, claims, damage, liability or action. This |
|
indemnity agreement will be in addition to any liability which |
|
Broker may otherwise have. |
H. |
Assignability |
|
This Agreement shall not be assigned by either party without the written |
|
consent of the other. |
I. |
Governing Law |
|
This Agreement shall be governed by and construed in accordance with the |
|
laws of the State of New Jersey. |
|
In Witness Whereof, the parties hereto have caused this Agreement to be |
duly executed as of the day and year first above written.
|
PRUCO LIFE CORPORATION |
|
(Distributor) |
|
By______________________________ |
|
(Broker) |
|
By______________________________ |