FORTIS-Registered Trademark-
FORTIS INVESTORS, INC.
X.X. Xxx 00000
Xx. Xxxx, XX 00000
(000) 000-0000 BANK SUPPLEMENT TO FORTIS INVESTORS'
(000) 000-0000 DEALER SALES AGREEMENT
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THIS ADDENDUM is an agreement between _______________________________________,
("the Bank") and Fortis Investors, Inc. ("Investors"). It amends the Dealer
Sales Agreement ("Agreement") the parties entered into effective
________________ 19__ and all applicable product supplements to the
Agreement, including but not limited to the Mutual Fund, Variable Annuity
and Variable Universal Life Insurance Supplements. Not withstanding any other
provision of the Agreement, the parties agree as follows.
1. The Bank stipulates that it is a bank as defined in Section 3(a)(6) of
the Securities Exchange Act of 1934 as amended. Accordingly, it is duly
authorized to perform pursuant to the Agreement even though it is not
registered as a securities broker-dealer and shall not be required by the
Agreement to be a licensed securities broker-dealer or to be a member of
the National Association of Securities Dealers, Inc.
2. The Bank shall have no responsibility for the qualification of any mutual
fund, variable annuity, variable universal life or other securities or
variable products (collectively "products") for sale in any jurisdiction.
3. The Bank shall purchase shares of a product solely on the order of and
for the account of its customers.
4. The Bank shall not be responsible for selling on a "best efforts" basis,
and shall not have any responsibility to endorse or promote any product.
5. The Bank may use the name of the Investors' products in advertising which
lists the general products available through the bank.
6. If the Agreement is subject to the terms of any agreements between
Investors and others, Investors shall provide them to the Bank prior to
commencement of the Agreement.
7. The terms of this supplement shall not be amended without the prior
written consent of both parties.
8. Except as specifically provided otherwise in this Supplement, the Bank
shall be subject to the same requirements, and shall have the same rights,
as dealers under the attached Dealer Sales Agreement and any other
supplements to such Agreement.
This supplement becomes effective automatically the first time the Dealer
places an order for any product following its receipt of this document.
97774N (9/94)
FORTIS-Registered Trademark-
FORTIS INVESTORS, INC.
X.X. Xxx 00000
Xx. Xxxx, XX 00000
(000) 000-0000
(000) 000-0000 DEALER SALES AGREEMENT
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__________________________________________________, a Dealer sales organization
(the "Dealer") currently registered and in good standing with the Securities
and Exchange Commission ("SEC"), the National Association of Securities
Dealers, Inc. ("NASD"), and all necessary state regulators, with principal
offices at _________________________________________________________________,
hereby accepts membership in a selling group to distribute the following
products ("Products") (check applicable boxes) available through Fortis
Investors, Inc. ("Investors"):
SECURITIES ISSUED CONTRACTS ISSUED BY FORTIS BENEFITS INSURANCE COMPANY,
THROUGH FORTIS OR FIRST FORTIS LIFE INSURANCE COMPANY FOR CONTRACTS SOLD
INVESTORS, INC.: IN THE STATE OF NEW YORK (THE "INSURANCE COMPANIES"):
/_/ Mutual Funds /_/ Variable Universal Life Insurance
/_/ Variable Annuity
/_/ Fixed Annuity
Upon execution of this Agreement, the Dealer may participate in the
distribution of these Products, subject to the following terms and to those
contained in the applicable product supplement(s) to this Agreement.
1. COMPENSATION
The compensation payable shall be that described in the attached Product
supplement(s); or in subsequent supplements which may be sent to the Dealer.
2. DEALER ACTS FOR OWN ACCOUNT
In all sales of these products to the public, the Dealer shall act as Dealer
for its own account and not as agent for Investors, the issuers of the
Products underwritten by Investors, or any other Dealer.
3. SUITABILITY
The Dealer is responsible for determining suitability. In making such
determinations the Dealer agrees to comply with all applicable NASD rules and
requirements as well as all applicable federal and state laws and
regulations. In addition, the Dealer will abide by Investors' compliance
standards with respect to the sale of the Products. Investors' compliance
standards will be provided to the Dealer and may be amended from time to
time. Amended compliance standards shall become effective automatically upon
the Dealer's receipt of the amended compliance standards.
4. ORDERS
Orders to purchase or redeem interests in Investors' Products: 1) must be
placed as described in the Products' current Prospectus; 2) must be
unconditional; 3) are subject to acceptance by Investors or the Insurance
Companies or both, as the case may be, and 4) become effective as described
in the current Prospectus.
97769N (9/94)
Investors and the Insurance Companies have the right in their sole discretion
to reject for any reason any order or insurance or annuity application. In
addition, with respect to insurance Products, many state insurance
departments require that owners be given a right of recision. In the event
that such a right of recision is exercised, or such a refund is made, the
Dealer agrees to promptly repay any compensation received as a result of such
sale, and that if such repayment is not made promptly, any such unrepaid
compensation may be deducted from any other sums owed the Dealer by Investors
or the Insurance Companies.
5. PAYMENT
All purchases shall be paid for as described in the Product's current
Prospectus. Otherwise, Investors reserves the right, without notice, to
immediately cancel the sale and, at its option, to hold the Dealer
responsible for any resulting loss suffered by Investors, the Insurance
Companies, or the issuer of the Product.
6. REPRESENTATIONS
(a) The Dealer is not authorized to make any representations concerning the
Products except those contained in the then current Prospectus, Statement of
Additional Information, or in current material furnished by Investors which
is officially designated as approved advertising or sales literature.
Investors will supply Prospectuses and reasonable quantities of supplemental
sales literature, sales bulletins and additional information as issued. The
Dealer agrees not to use other advertising and sales material relating to the
Products except that which conforms to the applicable requirements of the
Federal and State securities laws and which is approved in writing by
Investors in advance of such use.
(b) The Dealer agrees not to sell, or offer for sale, any Product unless the
Dealer has met all necessary Federal, NASD, and State regulatory licensing
and other requirements for doing so, including any Prospectus and Statement
of Additional Information delivery requirements and Section 26 of Article III
of the NASD Rules of Fair Practice (which pertains to the sale of investment
company securities); and agrees to be solely responsible for the proper
licensing, conduct and supervision of its representatives. Expulsion of
either party from the NASD will automatically terminate this Agreement
without notice.
7. INDEBTEDNESS
Compensation payable under this Agreement or any other agreement with
Investors or an affiliated company will be subject to offsets to repay any
indebtedness or claims now due, or which may become due at any time from the
Dealer to Investors or such affiliate. Investors or such affiliate will have
a lien on all such compensation, as security for the payment of any and all
such debts or claims, and Investors will have the right to deduct any monies
due from such compensation, together with legal interest, without any
requirement that it first obtain the Dealer's consent or give the Dealer
notice.
This lien and assignment will not be extinguished by the termination of this
Agreement and will be binding upon the Dealer's successors, executors,
administrators and assigns. Upon termination of this Agreement, all monies
and indebtedness due Investors will be payable immediately upon demand,
together with interest payable at the legal rate from the date of such
termination.
8. INDEMNIFICATION
(a) Investors shall indemnify, defend and hold harmless the Dealer and all of
its affiliates against all losses, claims, demands, liabilities, and
expenses, including reasonable legal and other expenses in defending claims
or liabilities arising from any untrue statement or alleged untrue statement
of a material fact contained in the prospectus or the registration statement
of the Product, as filed and in effect with the SEC, or any amendment or
supplement thereto, or in any application prepared or approved in writing by
counsel to the issuer of the Products and filed with any state regulatory
agency in order to register to qualify the Products under state securities
laws (the "blue sky applications"), or which shall arise out of or be based
upon any omission or alleged omission to state a material fact required to
be stated in the prospectus or the registration statement or any of the blue
sky applications or which is necessary to make the statements or a part
thereof not misleading. This indemnity provision shall survive the
termination of this Agreement.
(b) The Dealer shall indemnify, defend and hold harmless Investors and all of
its affiliates, and the Insurance Companies and their affiliates and their
officers, directors, employees, agents, and assignees against all losses,
claims, demands, liabilities, and expenses, including reasonable legal and
other expenses incurred in defending any claims or liabilities, whether or
not resulting in any liability to any of them, of which they or any of them
may incur, including but not limited to alleged violations of the Securities
Act of 1933, as amended, and/or to the Securities Exchange Act of 1934, as
amended, arising out of the offer or sale by the Dealer of the Products
pursuant to this Agreement, arising out of the breach by the Dealer of any of
the terms and conditions of this Agreement, or arising out of the sale by the
Dealer of any other product or service not offered by Investors, other than
any claim, demand or liability arising from any untrue statement or alleged
untrue statement of a material fact contained in the prospectus or the
registration statement of the Products, as filed and in effect with the SEC
or any amendment or supplement thereto, or in any application prepared or
approved in writing by counsel to the issuer of the Products and filed with
any state regulatory agency in order to register or qualify the Products
under state securities laws (the "blue sky applications"), or which shall
arise out of or be based upon any omission or alleged omission to state a
material fact required to be stated in the prospectus or the registration
statement or any of the blue sky applications or which is necessary to make
the statement or a part thereof not misleading. This indemnity provision
shall survive the termination of this Agreement.
9. OTHER
(a) The Dealer agrees to comply with the terms of this Agreement and all of
Investors' and the Insurance Companies' procedures for the sale of the
Products, and agrees that no failure, neglect or forbearance by Investors or
the Insurance Companies to require strict performance of any such
requirements shall be construed as a waiver of their rights or privileges
hereunder.
(b) This Agreement may be terminated by either party upon seven days' written
notice.
(c) All written communications to Investors or the Insurance Companies shall
be sent to the address on the product's current Prospectus. Any notice to the
Dealer shall be duly given if mailed or telegraphed to the address shown in
the Agreement or the last known address of record.
(d) This Agreement becomes effective only when accepted and signed by
Investors, and shall be construed in accordance with
Minnesota law.
(e) There is a corresponding product supplement to this Agreement for each
of the boxes checked in the first paragraph of this Agreement which contains
additional information. Such supplements and/or this Agreement may be amended
by Investors from time to time and the amendments shall become effective
automatically the first time the Dealer places an order for any Product
following its receipt of the amended supplement.
--------------------------------- ---------------------------------
Dealer By: (Signature)
--------------------------------- ---------------------------------
Street Address Please print name
--------------------------------- ---------------------------------
City State Zip Title
---------------------------------
Tax Identification Number
for FORTIS INVESTORS, INC.
accepted by:
--------------------------------- ---------------------------------
Date Accepted
FORTIS-Registered Trademark-
FORTIS INVESTORS, INC.
X.X. Xxx 00000
Xx. Xxxx, XX 00000
(000) 000-0000 VARIABLE ANNUITY SUPPLEMENT TO
(000) 000-0000 DEALER SALES AGREEMENT
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1. THE CONTRACTS
The variable annuity contracts offered by Fortis Investors under this
Supplement are issued by First Fortis Life Insurance Company if sold in the
state of New York and by Fortis Benefits Insurance Company if sold in any
other state. See the current variable annuity Prospectuses for contract
features.
2. APPOINTMENT AND AUTHORITY
The Dealer, when appointed by Fortis Benefits Insurance Company and/or First
Fortis Life Insurance Company (herein called the "Insurance Companies"), is
authorized to take applications for variable annuity contracts offered by
Fortis Investors and issued by the Insurance Companies, to collect and send
initial premiums to the Insurance Companies, and to deliver and service
policies. These duties shall be performed only in states in which the Dealer
is properly licensed and the Insurance Companies are qualified to do business.
The Dealer is also authorized by Investors to recruit and nominate others,
hereafter Representatives, who, when duly licensed in any state where they
will be soliciting, will be appointed by the Insurance Companies. It is
understood and agreed that such Representatives will be Representatives of
the Dealer and that the Dealer shall be solely responsible for their conduct.
Representatives may accept applications for variable annuity contracts once
properly appointed. Investors and the Insurance Companies reserve the right
to refuse to appoint any nominated Representative or, once appointed, to
terminate any appointment.
The Dealer or Representative will not make, alter or discharge any contract
of insurance, nor waive any of the provisions of any such contract.
3. RESPONSIBILITIES
The Dealer agrees to comply with all applicable insurance and securities laws
and regulations relating to the business of insurance and with all rules and
regulations of the Insurance Companies, and shall indemnify and hold
Investors and the Insurance Companies harmless for any and all claims,
expenses, costs, and damages which may be asserted by any third party or
parties against Investors or the Insurance Companies arising from any breach
of this Agreement.
4. COMPENSATION
FORTIS BENEFITS INSURANCE COMPANY CONTRACTS:
The Dealer sales commission is 5% of the purchase amount (3% if the owner or
annuitant is 80-84 years old, 1.5% if 85-90), plus an annual service fee of
..25% when units totalling $1,000,000 or more have been sold and remain on the
records of Fortis Benefits with a value of $1,000,000 or more. Commissions
will be paid twice monthly. There is no commission on sales accomplished
through exchange of products.
FIRST FORTIS LIFE INSURANCE COMPANY CONTRACTS:
The Dealer sales commission is 6% of the purchase amount (3.5% if the owner
or annuitant is 80-84 years old, 1.75% if 85-90). Commissions will be paid
twice monthly. There is no commission on sales accomplished through exchange
of products.
Service fees are not payable as commissions, but only as additional
compensation to the Dealer for Service and Conservation of policies in force.
Service fees will terminate upon termination of the Agreement.
Investors reserves the right to revise the compensation payable herein from
time to time, but any such revision will apply only to purchase payments
received after the effective date of such revision.
97772N (9/94)
If the premium on any policy is refunded by the Insurance Companies for any
reason, or if the Insurance Companies cancel or reduce the amount of a policy
for any cause, either before or after termination of the Agreement, the
Dealer agrees to repay on demand any compensation received on that premium.
Investors will furnish the Dealer with a statement of account, no less
frequently than monthly. The compensation payable under this Supplement will
be paid monthly as long as this agreement remains in effect. In the event of
termination of this Agreement all compensation payable under this Supplement
shall terminate.
5. GENERAL PROVISIONS
A. FEES, SUPPLIES, SOFTWARE AND RECORDS. The Dealer will pay fees in
accordance with published rules and regulations. All ratebooks,
printed material, computer software and other supplies furnished by
the Insurance Companies, and all documents and records of any and
every description relating to the Insurance Companies' business or the
names and addresses of policyholders and description of their
coverages are confidential information and will not be used by or
otherwise disclosed to another party for any purpose whatsoever and
will be delivered to Investors upon demand. Upon any termination of
this Agreement all such confidential information will be returned to
Investors.
B. ASSIGNMENT. No assignment of this Agreement or of any compensation due
the Dealer will be valid unless authorized in advance in writing by an
officer of Investors. Any such assignment will be subject to and
subordinate to any and all indebtedness of the Dealer to Investors.
C. AMENDMENT. No modification of the Agreement or Schedule will bind
Investors unless it is made in writing and executed by an officer of
Investors.
6. ORDERS
Applications to purchase variable annuity contracts sold in the state of New
York, together with a remittance for the full amount of the order (made
payable to "First Fortis Life Insurance Company"), should be sent to Xxxx
Xxxxxx Xxx 0000, Xxxxxxxx, XX 00000. Applications to purchase variable
annuity contracts sold in any other state, together with a remittance for the
full amount of the order (made payable to "Fortis Benefits Insurance
Company"), should be sent to Post Xxxxxx Xxx 00000, Xx. Xxxx, XX 00000. No
telephonic orders will be accepted.
FORTIS-Registered Trademark-
FORTIS INVESTORS, INC.
X.X. Xxx 00000
Xx. Xxxx, XX 00000
(000) 000-0000 VARIABLE UNIVERSAL LIFE INSURANCE
(000) 000-0000 SUPPLEMENT TO DEALER SALES AGREEMENT
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1. APPOINTMENT AND AUTHORITY
The Dealer, when appointed by Fortis Benefits Insurance Company (herein
called the Company), is authorized to take applications for products listed
in the current Dealer Compensation Schedule, to collect and send initial
premiums to the Company, and to deliver and service policies. These duties
shall be performed only in states in which the Dealer is properly licensed
and the Company is qualified to do business.
The Dealer is also authorized by Investors to recruit and nominate others,
hereafter Representatives, who, when duly licensed in any state where they
will be soliciting, will be appointed by the Company. It is understood and
agreed that such Representatives will be Representatives of the Dealer and
that the Dealer shall be solely responsible for their conduct.
Representatives may accept applications for products listed in the current
Dealer Compensation Schedule once properly appointed. Investors and the
Company reserve the right to refuse to appoint any nominated Representative
or, once appointed, to terminate any appointment.
The Dealer or Representative will not make, alter or discharge any contract
of insurance, nor waive any of the provisions of any such contract.
2. RESPONSIBILITIES
The Dealer agrees to comply with all applicable insurance and securities laws
and regulations relating to the business of insurance and with all rules and
regulations of the Company, and shall indemnify and hold Investors and the
Company harmless for any and all claims, expenses, costs, and damages which
may be asserted by any third party or parties against Investors or the
Company arising from any breach of this Agreement.
3. COMPENSATION
The current Dealer Compensation Schedule sets forth the compensation payable
on premiums paid in cash for policies issued, delivered and accepted upon
applications taken by any Representative who is under the direction of the
Dealer. The right is reserved to Investors to change the commission rates and
any such revisions will apply only to applications issued after the effective
date of such revisions. Any compensation paid by Investors to Representatives
under the supervision of the Dealer will be deducted from the Dealer's
compensation.
If the premium on any policy is refunded by the Company for any reason, or if
the Company cancels or reduces the amount of a policy for any cause, either
before or after termination of the Agreement, the Dealer agrees to repay on
demand any compensation received on that premium.
Investors will furnish the Dealer with a statement of account, no less
frequently than monthly. In the event of termination of this Agreement, the
following limitations on Compensation will apply:
A. NORMAL TERMINATION. If the Agreement is terminated other than for
cause, Investors will pay the Dealer First Year Commissions and
Renewal Commission to which the Dealer would have been entitled had
this Agreement remained in effect and the rights to all other
compensation will terminate.
B. TERMINATION OF COMPENSATION. If during any calendar year after
termination of the Agreement, the total amount of compensation payable
to the Dealer under this Agreement is less than one thousand dollars
($1,000), no further commissions or other compensation will be earned
or paid in any subsequent year under this Agreement.
97771N (9/94)
C. TERMINATION FOR CAUSE. If the Dealer: (1) fails or refuses to comply
with the provisions of this Agreement; (2) seeks to induce any
policyholder to discontinue payment of premium or to relinquish any
policy with the Company, or aids others to do so; (3) defrauds or
attempts to defraud Investors or the Company; (4) withholds any funds
or property of Investors or the Company; or (5) has any of the
required insurance or securities licenses (including NASD license)
revoked, then the Dealer's rights or interest to compensation under
this Supplement shall terminate.
D. SERVICE FEES. Service fees are not payable as commissions, but only as
additional compensation to the Dealer for Service and Conservation of
policies in force. Service fees will terminate upon termination of
the Agreement.
4. GENERAL PROVISIONS
A. FEES, SUPPLIES, SOFTWARE AND RECORDS. The Dealer will pay fees in
accordance with published rules and regulations. All ratebooks,
printed material, computer software and other supplies furnished by
the Company, and all documents and records of any and every description
relating to the Company's business or the names and addresses of
policyholders and description of their coverages are confidential
information and will not be used or otherwise disclosed to another party
for any purpose whatsoever and will be delivered to Investors upon demand.
B. ASSIGNMENT. No assignment of this Agreement or of any compensation due
the Dealer will be valid unless authorized in advance in writing by an
officer of Investors. Any such assignment will be subject to and
subordinate to any and all indebtedness of the Dealer to Investors.
C. AMENDMENT. No modification of the Agreement or Schedule will bind
Investors unless it is made in writing and executed by an officer of
Investors.
5. ORDERS
Applications to purchase variable universal life contracts, together with a
remittance for the full amount of the order (made payable to "Fortis Benefits
Insurance Company"), should be send to X.X. Xxx 00000, Xx. Xxxx, XX 00000.
No telephone orders will be accepted.
