1
EXHIBIT-99.B3(ii)
EXHIBIT 3 (ii)
Registered Representative Agreement
2
SENTRY LIFE INSURANCE COMPANY OF NEW YORK
SENTRY EQUITY SERVICES, INC.
HOME OFFICE:
The Atrium, 0 Xxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
--------------------------------------------------------------------------------
REGISTERED REPRESENTATIVES AGENT AGREEMENT
--------------------------------------------------------------------------------
AGREEMENT by and between Sentry Life Insurance Company of New York ("Sentry"),
Sentry Equity Services, Inc. ("SESI"), and Registered Representative __________
_______________________________________________________________________________
_______________ ("Representative") of _________________________________________
_______________________________________________________________________________
___________________________ ("Broker-Dealer").
Sentry, in consideration of and subject to the terms and conditions set forth
below, appoints Representative as its agent solely for the solicitation of
applications for the sales of certain insurance and annuity contracts ("Plans")
which are deemed to be securities under the Securities Act of 1933.
--------------------------------------------------------------------------------
I. THE PLANS
--------------------------------------------------------------------------------
The Plans issued by Sentry to which this Agreement applies are listed in the
Broker-Dealer's Compensation Schedule currently in effect.
--------------------------------------------------------------------------------
II. THE BROKER-DEALER
--------------------------------------------------------------------------------
The Broker-Dealer shall at all times during the continuance of this Agreement
be a registered broker-dealer with the Securities and Exchange Commission
("SEC"), a member of the National Association of Securities Dealers, Inc.
("NASD") and shall have a Broker-Dealer Supervisory and Service Agreement in
effect with Sentry and SESI, or if SESI is the Broker-Dealer the Principal
Underwriters Agreement shall be in effect between SESI and Sentry.
--------------------------------------------------------------------------------
III. REGISTRATION AND LICENSING
--------------------------------------------------------------------------------
(a) Representative, when soliciting for sales or selling the Plans, shall at
all times be associated with a SEC and NASD registered Broker-Dealer as a NASD
Registered Representative, and, if the particular jurisdiction requires, shall
be licensed or registered as a securities agent of the Broker-Dealer with which
the Representative is associated.
(b) Representative, when soliciting for sales or selling the Plans, must at all
times be validly licensed, registered or appointed by Sentry as an agent in
accordance with the jurisdictional requirements of the place where the
solicitations and sales take place.
(c) Representative may solicit for and sell the Plans any place the Plans are
filed or approved for sale by the governmental authorities having jurisdiction,
provided Representative, the Broker-Dealer with whom the Representative is
associated and Sentry are all validly licensed, registered or otherwise
qualified, as required for solicitation and sales of the Plans.
--------------------------------------------------------------------------------
IV. COMPLIANCE WITH LAWS, RULES AND REGULATIONS
--------------------------------------------------------------------------------
Representative shall comply strictly with: (a) the laws, rules and regulations
of all state or local governmental jurisdictions in which Representative
solicits applications for and sells Plans; (b) the laws, rules and regulations
of the SEC; (c) the rules of NASD; (d) the rules of the Broker-Dealer with
which he or she is associated; (e) the rules of SESI; (f) the rules of Sentry.
Representative understands that failure to comply with such laws, rules and
regulations may result in disciplinary action against the Representative by the
SEC, a state or other local regulatory agency that has jurisdiction, the NASD,
the Broker-Dealer with which the Representative is associated, SESI and Sentry.
Before any solicitations or sales of the Plans are made, Representative shall
become familiar with and abide by the laws, rules and regulations of all of the
above mentioned agencies or parties as are currently in effect and as they may
be changed from time to time.
--------------------------------------------------------------------------------
V. COMPENSATION
--------------------------------------------------------------------------------
Representative shall be entitled to receive through the Broker-Dealer with
which he or she has been associated, compensation based on all premiums and/or
purchase payments received by Sentry while this Agreement is in force from
applicants pursuant to applications for the Plans issued by Sentry provided
such applications were obtained by Representative and submitted to Sentry
through the Broker-Dealer with which Representative is associated.
The amount of compensation Representative shall receive from the Broker-Dealer
with which he or she is associated shall be determined in accordance with the
Broker-Dealer's compensation schedule for the Plans in effect at the time a
premium or a purchase payment is received by Sentry. Representative also
agrees that Sentry is not responsible for Representative's compensation and
that Representative shall look to and seek such compensation only from the
Broker-Dealer with which Representative is associated.
Representative shall not be entitled to any compensation based on premiums
and/or purchase payments received by Sentry after termination of this
Agreement.
30-55 2-87
3
--------------------------------------------------------------------------------
VI. APPLICATION PROCEDURES
--------------------------------------------------------------------------------
Representative shall have all applications for the Plans accurately completed
or reviewed and signed by the applicant and shall submit the applications to
Sentry through the Broker-Dealer with which Representative is associated
together with all payments received from applicants without any reductions.
Representative shall cause all checks or orders to be made payable to Sentry
Life Insurance Company of New York. Representative shall also comply with any
other application procedures that may be established by the Broker-Dealer, SESI
and Sentry which may be in effect from time to time and of which Representative
is notified.
--------------------------------------------------------------------------------
VII. GENERAL PROVISIONS
--------------------------------------------------------------------------------
A. RIGHT TO REJECTION.
Broker-Dealer and/or Sentry each in their sole discretion, may reject any
applications or payment remitted by Representative through the Broker-Dealer and
may refund an applicant's payments to the applicant. In the event such refunds
are made and if Representative has received compensation based on an applicant's
payment that is refunded, Representative shall promptly repay such compensation
to the Broker-Dealer. If repayment is not promptly made, the Broker-Dealer may
at its sole option deduct any amounts due it from Representative from future
commissions otherwise payable to Representative.
B. REPRESENTATIONS.
Representative shall not make any statements concerning the Plans except those
that are contained in the current prospectuses and sales literature approved by
the Broker-Dealer, SESI and Sentry and shall not solicit for applications or
make sales through the use of mailings, advertisements or other methods of
contact unless the material and method has the written approval of the
Broker-Dealer.
C. REPRESENTATIVE'S METHOD OF OPERATIONS.
Representative has the sole responsibility for developing prospects for sales
and is free to determine subject to any applicable regulatory requirements, to
whom, where and how solicitations and sales shall be made. Representative is
not required to devote any particular portion of Representative's time to
developing Plans business or as a Representative associated with the
Broker-Dealer or as an agent of Sentry, and shall not be reimbursed for any
operational or administrative expenses, but must pay such expenses out of
compensation which is described in Paragraph V above.
D. RELATIONSHIP.
The relationship of Representative to Sentry and SESI is that of independent
contractor solely for the sale of the Plans and nothing herein shall be
construed to create an employee-employer relationship between Representative and
SESI and Sentry. This Agreement does not create any exclusive rights of any
kind for either Representative, Broker-Dealer, SESI or Sentry.
E. ASSIGNMENT.
Neither this Agreement nor any of its benefits may be assigned by Representative
without the written consent of SESI and Sentry and any assignment of this
Agreement, compensation or other benefits of obligations hereunder shall not be
valid if made without such consent.
--------------------------------------------------------------------------------
VIII. TERMINATION
--------------------------------------------------------------------------------
This Agreement may be terminated by Sentry or on Sentry's behalf, by SESI or by
the Representative upon five (5) days written notice sent by certified mail to
the last address of record of the other party, and automatically terminates if:
(a) Representative ceases to be validly licensed, appointed and NASD
registered, or (b) the Broker-Dealer with which Representative is associated
ceases to have a Broker-Dealer Supervisory and Service Agreement for the Plans
in effect or ceases to be SEC or NASD registered.
Upon termination of this Agreement, any prospectus, applications or other
material and supplies furnished by Sentry, SESI or Broker-Dealer shall be
promptly returned to SESI or the Broker-Dealer.
--------------------------------------------------------------------------------
IX. SESI AS BROKER-DEALER
--------------------------------------------------------------------------------
If SESI and Broker-Dealer are the same person or legal entity, such person or
legal entity shall have the rights and obligations hereunder of both SESI and
Broker-Dealer and this Agreement shall be binding and enforceable by and
against such person or legal entity in both capacities.
--------------------------------------------------------------------------------
X. MISCELLANEOUS
--------------------------------------------------------------------------------
This Agreement may not be modified unless the modification is in writing signed
by all parties; however, if an application for a Plan is submitted to Sentry by
the Representative after Sentry has notified Representative of a modification
in this Agreement, such modification shall automatically be effective for
business submitted after such notice.
This Agreement shall be governed by the laws of the State of New York.
This Agreement shall be effective upon execution by SESI.
--------------------------------------------------------------------------------
Approved and Accepted:
---------------------------------------------------
Broker-Dealer
By
------------------------------------------------
---------------------------------------------------
Registered Representative
Dated
---------------------------------------------
SENTRY LIFE INSURANCE COMPANY OF NEW YORK
By Xxxxxxx Xxxxxx
------------------------------------------------
President
SENTRY EQUITY SERVICES, INC.
By
------------------------------------------------
Dated
---------------------------------------------
4
SENTRY REGISTERED REPRESENTATIVE
COMMISSION SCHEDULES
EFFECTIVE JANUARY 1, 1987
Attached to and made a part of the REGISTERED REPRESENTATIVES AGENT AGREEMENT
between SENTRY LIFE INSURANCE COMPANY OF NEW YORK, ("SENTRY"), SENTRY EQUITY
SERVICES, INC. ("SESI") AND REGISTERED REPRESENTATIVE ("PAYEE").
--------------------------------------------------------------------------------
COMMISSIONS
--------------------------------------------------------------------------------
Commissions will be paid by SESI to PAYEE based on gross premiums or purchase
payments paid in cash or check and accepted by SENTRY on plans made available
by SENTRY under said REGISTERED REPRESENTATIVES AGENT AGREEMENT, except that
commissions will not be paid on premiums or purchase payments submitted
directly from surrender proceeds of fixed annuity products issued by SENTRY
Commissions will be paid at rates determined in accordance with the following
schedule:
VARIABLE ANNUITIES
COMMISSION RATE
(% OF PREMIUM)
3.0%
--------------------------------------------------------------------------------
SERVICE FEES
--------------------------------------------------------------------------------
Service Fees will be paid annually by SESI to PAYEE based on a percentage rate
of aggregate in force contract values with respect to plans sold by Payee.
Service Fees will be paid at rates determined in accordance with the following
schedule:
VARIABLE ANNUITIES
A service fee will be paid by SESI to PAYEE at the annual
rate of .10% of the cash values of variable annuities
attributable to PAYEE and in force during the year.
NOTE: Service Fee payments are contingent upon SESI's receipt of
distribution expense reimbursement from Advisers Management Trust.
(12(b) 1 Revenue)
--------------------------------------------------------------------------------
REPAYMENT OF COMMISSIONS
--------------------------------------------------------------------------------
In the event that a contract is surrendered within the first year of the issue
date, a portion of the commission paid thereon shall be charged back to the
PAYEE based on the following schedule:
VARIABLE ANNUITIES
CHARGE BACK AS A %
OF COMMISSIONS RECEIVED
DURATION THAT CONTRACT DURING THE FIRST
WAS IN-FORCE CONTRACT YEAR
Less than 3 months 100%
Greater than or equal to 3 months,
but less than 6 months 75%
Greater than or equal to 6 months,
but less than 9 months 50%
Greater than or equal to 9 months,
but less than 12 months 25%
--------------------------------------------------------------------------------
OTHER PROVISIONS
--------------------------------------------------------------------------------
In the event a policy, contract, or certificate is returned to SENTRY pursuant
to the so called "ten day free look" or "right to return contract" provisions
of the policy or contract, the full commission paid thereon shall be charged
back to the PAYEE. It should be noted that the ten day period in which an
Owner may return the contract commences upon receipt of the contract by the
Owner. If a contract is mailed to the PAYEE for delivery to the Owner, such a
"ten day free look" must be exercised within 30 days of the mailing date to be
timely. If an owner returns a contract within 10 days after receipt by the
Owner, but it is more than 30 days after mailing to the PAYEE, the PAYEE shall
be responsible for paying to the Owner any loss in contract value as a result
of late delivery.
REFUNDS
Should any premium or purchase payment on any policy, contract, or
certificate issued by SENTRY be refunded, for any reason, PAYEE shall repay or
return commissions received by it with respect to such premiums or purchase
payment.
5
PRODUCER AGENT
COMMISSION SCHEDULES
EFFECTIVE JANUARY 1, 1987
Attached to and made a part of the REGISTERED REPRESENTATIVES AGENT AGREEMENT
between SENTRY LIFE INSURANCE COMPANY OF NEW YORK, ("SENTRY"), SENTRY EQUITY
SERVICES, INC. ("SESI") AND REGISTERED REPRESENTATIVE ("PAYEE").
--------------------------------------------------------------------------------
COMMISSIONS
--------------------------------------------------------------------------------
Commissions will be paid by SESI to PAYEE based on gross premiums or purchase
payments paid in cash or check and accepted by SENTRY on plans made available
by Sentry under said REGISTERED REPRESENTATIVES AGENT AGREEMENT, except that
commissions will not be paid on premiums or purchase payments submitted
directly from surrender proceeds of fixed annuity products issued by SENTRY.
Commissions will be paid at rates determined in accordance with the following
schedule:
VARIABLE ANNUITIES
COMMISSION RATE
(% OF PREMIUM)
3.1%
--------------------------------------------------------------------------------
SERVICE FEES
--------------------------------------------------------------------------------
Service Fees will be paid annually by SESI to PAYEE based on a percentage rate
of aggregate in force contract values with respect to plans sold by PAYEE.
Service Fees will be paid at rates determined in accordance with the following
schedule:
VARIABLE ANNUITIES
A service fee will be paid by SESI to PAYEE at the annual
rate of .10% of the cash values of variable annuities
attributable to Payee and inforce during the year.
Note: Service Fee payments are contingent upon SESI's receipt of
distribution expense reimbursement from Advisers Management
Trust. (12(b) 1 Revenue)
--------------------------------------------------------------------------------
REPAYMENT OF COMMISSIONS
--------------------------------------------------------------------------------
In the event that a contract is surrendered within the first year of the issue
date, a portion of the commission paid thereon shall be charged back to the
PAYEE based on the following schedule:
VARIABLE ANNUITIES
CHARGE BACK AS A %
OF COMMISSIONS RECEIVED
DURATION THAT CONTRACT DURING THE FIRST
WAS IN-FORCE CONTRACT YEAR
Less than 3 months 100%
Greater than or equal to 3 months,
but less than 6 months 75%
Greater than or equal to 6 months,
but less than 9 months 50%
Greater than or equal to 9 months,
but less than 12 months 25%
--------------------------------------------------------------------------------
OTHER PROVISIONS
--------------------------------------------------------------------------------
In the event a policy, contract, or certificate is returned to SENTRY pursuant
to the so called "ten day free look" or "right to return contract" provision
of the policy or contract, the full commission paid thereon shall be charged
back to the PAYEE. It should be noted that the ten day period in which an
Owner may return the contract commences upon receipt of the contract by the
Owner. If a contract is mailed to the PAYEE for delivery to the Owner, such a
"ten day free look" must be exercised within 30 days of the mailing date to be
timely. If an owner returns a contract within 10 days after receipT by the
Owner, but it is more than 30 days after mailing to the PAYEE, the PAYEE shall
be responsible for paying to the Owner any loss in contract value as a result
of late delivery.
REFUNDS
Should any premium or purchase payment on any policy, contract, or certificate
issued by SENTRY be refunded, for any reason, PAYEE shall repay or return
commissions received by it with respect to such premiums or purchase payment.
