FORM OF
SELLING AGREEMENT
THIS AGREEMENT is made among Fidelity Security Life Insurance Company (the
"Insurance Company"), National Pension and Group Consultants, Inc.
("Underwriter") and ___________ ("Broker/Dealer"), together with its affiliated
insurance agencies (collectively, the "Selling Entities") as are specified on
the Selling Agreement Schedule Pages attached to this agreement as Exhibit 1
(the "Schedule Pages").
In consideration of the mutual promises contained in this agreement, the
parties agree as follows:
1. Purpose and Background. The Underwriter, the Insurance Company,
Broker/Dealer and Selling Entities enter into this agreement for the purpose of
authorizing Broker/Dealer and Selling Entities through certain of their
insurance licensed agents to solicit applications for such life insurance,
annuity contracts and such other insurance products as shall be mutually agreed
upon (collectively, the "Insurance Policies") as are listed on the Schedule
Pages. The Schedules Pages may be amended from time to time to add other
Insurance Policies and to note any additional insurance agency affiliates.
2. Licensing and Appointment. The Insurance Company has appointed
Underwriter to serve as the distributor and principal underwriter of the
variable life or variable annuity Insurance Policies. The Underwriter is
registered with the SEC, the National Association of Securities Dealers, Inc.
("NASD") and all appropriate state securities regulatory authorities as a
broker/dealer.
The Underwriter hereby appoints the Broker/Dealer to distribute the
variable Insurance Policies listed on the Schedule Pages through its validly
insurance licensed representatives ("Registered Representatives").
3. Securities Licensing/NASD Compliance. Broker/Dealer shall at all times
when performing its functions under this agreement, be registered as a
securities broker with the SEC and NASD and licensed or registered as a
securities broker/dealer in the states and other local jurisdictions that
require such licensing or registration in connection with sales of variable
products.
Broker/Dealer agrees to abide by all applicable state and federal rules and
regulations promulgated thereunder. For the purpose of compliance with any such
laws or regulations, Broker/Dealer acknowledges and agrees that in performing
Broker/Dealer services covered by this agreement, it is acting in the capacity
of an independent broker and dealer, as defined by the By-Laws of the NASD, and
not as an agent or employee of either Underwriter or any registered investment
company.
4. Insurance Licensing. Broker/Dealer and Selling Entities represent that
at all times when performing their functions under this agreement, each of them
shall be validly licensed as an insurance agency in the states and other
jurisdictions that require such licensing or registration in connection with
sales or solicitation of the Insurance Policies. Broker/Dealer represents that
the Selling Entities are properly authorized as required under applicable state
law to receive insurance commissions generated from sales of the Insurance
Policies.
5. Selling Entities; Sale and Solicitation of Variable Insurance Policies
Broker/Dealer and Selling Entities each represent that they will engage in
the solicitation and sale of Insurance Policies in accordance with applicable
securities laws and regulations. In this regard, Broker/Dealer may have
established affiliation agreements with each of the Selling Entities pursuant to
which such agencies may receive commissions from the sale of variable insurance
products.
In this process, Broker/Dealer represents that each Selling Entity is an
associated person as that term is defined under Section 3(a)(18) of the
Securities Exchange Act of 1934, as amended. Broker/Dealer further represents
that it will maintain supervision and control over the activities of each
Registered Representative appointed by a Selling Entity engaged in the
solicitation and sales of Insurance Policies pursuant to this agreement.
Broker/Dealer will ensure that each Selling Entity designated to receive
commissions on behalf of Broker/Dealer will be licensed as required to receive
commissions for the sale of variable products in each applicable state.
Additionally, Broker/Dealer represents that individuals who are not properly
licensed under securities laws and regulations will not engage in any way in the
solicitation or sale of variable Insurance Policies.
Broker/Dealer agrees that it will maintain such books and records
(including but not limited to FOCUS reports) as are necessary to comply with the
rules of the NASD or other self-regulatory organizations.
6. Appointment of Broker/Dealer and Selling Agencies. The Insurance Company
and Underwriter hereby authorize the Broker/Dealer and the Selling Entities to
sell those Insurance Policies listed on the Schedule Pages, as such pages may be
amended from time to time, including the variable Insurance Policies through its
validly appointed and licensed Registered Representatives. Broker/Dealer is also
appointed to perform certain administrative services necessary to facilitate the
solicitation and sales of the Insurance Policies.
Selling Entities are each appointed general agencies of Insurance Company
and each is authorized to sell the Insurance Policies listed on the Schedule
Pages.
Pursuant to the appointments described in this Section 6, Broker/Dealer and
Selling Entities must comply with the following requirements:
(a) All securities services provided in connection with the sale of
variable Insurance Policies will be through Broker/Dealer and its Registered
Representatives;
(b) All individuals soliciting sales of Insurance Policies will be properly
licensed and appointed by the Insurance Company as required in accordance with
the state insurance laws of those jurisdictions in which the Insurance Policies
are distributed;
(c) Unregistered employees will not engage in any securities activities,
nor receive any compensation based on transactions in insurance securities or
the provision of securities advice;
(d) Broker/Dealer will maintain books and records relating to transactions
in insurance securities at its home office; and
(e) Customers purchasing variable Insurance Policies will make their checks
payable to Insurance Company unless a netting agreement has been entered into.
For the purpose of compliance with any applicable state insurance laws or
regulations promulgated under them, Broker/Dealer and the Selling Entities
acknowledge and agree that solely in performing the insurance-selling functions
reflected by this agreement, they or the Registered Representative are acting as
the agent of the Insurance Company, and in that capacity are authorized only to
solicit applications from the public for the Insurance Policies.
7. Responsibility for Registered Representatives Activities. Broker/Dealer
and Selling Entities will select and supervise persons whom they will train to
solicit applications for the Insurance Policies in conformance with applicable
state and federal laws and regulations. Persons engaged in the sale of variable
Insurance Policies will be registered representatives of Broker/Dealer in
accordance with the rules of the NASD. All individuals soliciting sales of
Insurance Policies will be properly licensed and appointed by the Insurance
Company in accordance with the state insurance laws of those jurisdictions in
which the Insurance Policies may lawfully be distributed.
The Insurance Company shall have authority to determine whether to appoint
or terminate a particular Registered Representative of the Broker Dealer as an
insurance agent of the Insurance Company. Broker/Dealer agrees to cooperate in
supplying information or making recommendations necessary to complete such
insurance agent appointments.
Additionally, Broker/Dealer represents and warrants that it has reviewed
the "General Recommendation Letter" set forth as Exhibit 1 to this agreement and
that all of the information contained in the General Recommendation Letter is
true for each of its agents for whom it seeks appointment. Should Broker/Dealer
become aware of any information which would contradict the representations
contained in the General Letter of Recommendation for any of its Registered
Representatives who the Insurance Company has appointed, it will promptly
provide such information to the Insurance Company.
Broker/Dealer further represents and warrants that each of its Registered
Representatives who have been appointed by the Insurance Company will continue
to meet the requirements set forth in the General Letter of Recommendation.
In jurisdictions which require that Insurance Company perform background
information prior to appointment, Broker/Dealer agrees to provide such
information as may be necessary to perform such review, including but not
limited to obtaining permission from each Registered Representative who seeks
such appointment.
Upon request by Underwriter, Broker/Dealer and/or any such Selling Entities
shall furnish such appropriate records as may be necessary to establish
supervision of its Registered Representatives in connection with sales of the
Insurance Policies. Upon Underwriter's review of such supervisory materials,
Broker/Dealer shall make such changes to its registered representatives' rules
of conduct as Underwriter may reasonably request but only to the extent that
such requests relate to sales of the Insurance Policies.
Broker/Dealer shall notify Underwriter if any Registered Representative
ceases to be a registered representative of Broker/Dealer or ceases to maintain
the proper licensing required for the sale of the Insurance Policies or fails to
meet material rules and standards imposed by either Broker/Dealer or the Selling
Entities.
8. Suitability of Sales of Contract. Broker/Dealer will review all contract
and policy applications for suitability, completeness, and correctness as to
form. Broker/Dealer shall also be responsible for ensuring compliance with NASD
suitability rules and standards applicable to purchases of the Insurance
Policies and that all sales are in compliance with applicable laws and
regulations.
Broker/Dealer will promptly, but in no case later than the end of the
business day that Broker/Dealer receives applications and payment, forward to
the Insurance Company, at the address provided, all such applications found
suitable and in good form, together with any payments received with such
applications. Broker/Dealer will immediately return to the applicant all
applications deemed by Broker/Dealer to be unsuitable together with any payments
received therewith. The Insurance Company reserves the right to reject any
Insurance Policy application and return any payment made in connection with an
application which is rejected. Insurance Policies issued will be forwarded to
Broker/Dealer, or at the direction of Broker/Dealer, to the Registered
Representative for delivery to the Contract Owner. Broker/Dealer shall obtain
and retain a written receipt for each Insurance Policy which it or its
Registered Representative delivers.
9. Solicitation/Representatives Concerning the Contracts. Broker/Dealer
will perform the selling functions required by this agreement in accordance with
the terms and conditions of any applicable prospectus(es). Broker/Dealer will
make only representations included in the prospectus or in any authorized
supplemental material. No sales solicitations, including the delivery of
supplemental sales literature or other such materials, shall occur, be delivered
to, or used with a prospective purchaser unless accompanied or preceded by
appropriate and then-current prospectus(es).
Any material prepared or used by Broker/Dealer or its Registered
Representative, which describes in whole or in part or refers by name or form to
any of the Insurance Policies or underlying funds or uses the name of the
Insurance Company, Underwriter or the logos or service marks of any of them, or
the name, logos or service marks of any "Affiliated Company" of any of them, as
that term is defined in Section 2(a)(2) of the Investment Company Act of 1940,
must be approved by Underwriter in writing prior to any such use.
Broker/Dealer and Selling Entities acknowledge that information pertaining
to Underwriter and Insurance Company is proprietary in nature. Selling Entities
agree that they will not disclose any information concerning Insurance Company's
or Underwriter's products, services or programs to any person for consideration
or otherwise unless Insurance Company and/or Underwriter consent to such use in
writing. Broker/Dealer and Selling Entities agree that, following the
termination of this agreement for any reason, they will not enter into any plan,
program scheme or course of action which would systematically attempt to induce
any Contract owner(s) away from Insurance Company, except that Broker/Dealer may
always recommend a move to another company's product if such move would be more
suitable than Insurance Company' product for a particular client or clients or
in the event of a detrimental change in the financial stability of Insurance
Company which Broker/Dealer believes would jeopardize its clients.
10. Client Information/Confidential Information During the term of this
agreement Insurance Company and Underwriter will have access to confidential
information ("Confidential Information"). Confidential Information includes, but
is not limited to, the names, addresses, telephone numbers, social security
numbers, documents, profiles and portfolios of Registered Representatives and of
applicants for and purchasers of Insurance Policies. Neither Underwriter nor
Insurance Company shall use, copy or disclose such Confidential Information in
any systematic manner, except as required to perform services under this
agreement. The parties acknowledge that the Insurance Company may continue to
service the Insurance Policies sold pursuant to this agreement, including, as
appropriate, to accept additional contributions and premium for and to modify,
add, or exchange coverage to the Insurance Policy of a policyowner who purchased
from an agent of the Selling Entities.
The parties also understand that Insurance Company and/or Underwriter may
respond to policyowners inquiries concerning other Insurance Company products
and services. The parties also agree that this Section 10 shall not apply to
individuals with whom the Underwriter or Insurance Company have a pre-existing
relationship. Similarly, the parties understand that Broker/Dealer and Selling
Entities may have access to trade secrets belonging to the Insurance Company and
the Underwriter. Broker/Dealer agrees that it will not use or disclose such
trade secrets without the written permission of the Insurance Company and/or the
Underwriter, as the case may be.
11. Compensation. Compensation payable to Broker/Dealer on sales of the
Insurance Policies sold by Registered Representatives will be paid to the
Selling Entity Broker/Dealer designates, in accordance with the compensation
schedule(s) set forth on the Schedule Pages. Such Schedule Pages may be amended
from time to time and compensation will be paid in accordance with the
compensation schedule in effect at the time the premium payments are received by
the applicable Insurance Company (in the case of annuities) or at the time the
applications are received (in the case of life insurance). The Insurance Company
and Underwriter reserve the privilege of revising the compensation schedules set
forth in the Schedule Pages at any time with reasonable prior written notice to
Broker/Dealer.
12. Assignment of Agreement. This agreement may not be assigned except by
mutual consent and will continue, subject to the termination by any party on
written notice to the other party, except that in the event Broker/Dealer ceases
to be a registered Broker/Dealer or a member of the NASD, this agreement will
immediately terminate. Underwriter reserves the right to designate, at its sole
discretion, an alternative Principal Underwriter for the distribution of the
Contracts covered by this agreement with 30 days prior written notice to
Broker/Dealer, except in the event that FSL replaces Underwriter as discussed
below.
The parties understand that if FSL replaces Underwriter any such
substituted party will automatically assume all of Underwriter's rights and
duties under this agreement. FSL may assume such functions itself, or assign
these to affiliated, properly licensed broker-dealers. FSL will notify
Broker/Dealer if any such substitution occurs.
13. Indemnification. No party to this agreement will be liable for any
obligation, act or omission of the other. Each party to this agreement will hold
harmless and indemnify the (1) Registered Investment Companies which are used to
fund the Contracts, (2) Insurance Company, (3) Underwriter, (4) Broker/Dealer,
and (5) Selling Entities, as appropriate, for any loss or expense suffered as a
result of the violation or noncompliance by any party to this agreement of any
of the terms of this agreement or of any applicable law or regulation. No party
nor any of its employees or agents will be liable to the other party for any
direct, special or consequential damages arising out of or in connection with
the performance of any services pursuant to this agreement. Each party to this
agreement agrees to indemnify and hold harmless any other affected party for any
losses, claims, damages or liabilities (or actions in respect thereof) which
arise out of or are based on any untrue statement or alleged untrue statement of
a material fact required to be stated or necessary to make the statements made
not misleading in the connection with the solicitation, sale, or administration
of the of the Insurance Policies.
14. Notices. All notices to the Insurance Company or Underwriter relating
to this agreement should be sent to the attention of :
Fidelity Security Life Insurance Company
0000 Xxxxxxxx
Xxxxxx Xxxx, Xxxxxxxx 00000
Attention: ____________________
All notices to Broker/Dealer will be duly given if mailed or faxed to the
address provided to Insurance Company by Broker/Dealer from time to time.
15. Independent Contractors. Underwriter and Insurance Company are
independent contractors with respect to Broker/Dealer, Selling Entities, and
Registered Representatives.
16. Governing Law. This agreement shall be construed in accordance with and
governed by the laws of the state of Missouri.
17. Amendment of Agreement. Except as provided in this section, the terms
of this agreement may not be amended except by the written agreement of all
parties hereto. Notwithstanding the requirement that any amendment to this
agreement be in writing, the parties agree that Underwriter reserves the right
to amend this agreement at any time, and the submission of an application by
Broker/Dealer after notice of any such amendment has been sent to the other
parties shall constitute the other parties' agreement to any such amendment. The
parties also agree that Insurance Company may amend the Compensation Schedules
attached to Exhibit 1 of this agreement at any time upon reasonable notice in
writing to the Broker/Dealer and Selling Entities. Following provision of notice
of a change in compensation schedules, submission of additional business shall
operate to ratify acceptance of such schedules.
18. Termination. This agreement may be terminated, without cause, by any
party upon 90 days' prior written notice, and may be terminated, for failure to
perform satisfactorily or other cause, by any party immediately; and shall be
terminated if Broker/Dealer shall cease to be a registered Broker/Dealer under
the Securities Exchange Act of 1934, as amended, or a member of the NASD.
Notwithstanding, the following sections shall survive any such termination:
Sections 7, 9, 10 11, 13, 16, 19, 20, and 21.
19. Waiver Upon Termination. Failure of any party to terminate this
agreement for any of the causes set forth in this agreement will not constitute
a waiver of the right to terminate this agreement at a later time for any of
these causes.
20. Books and Records. Broker/Dealer and Selling Entities shall maintain
all books and records required by applicable laws and regulations in connection
with the offer and sale of the Insurance Policies. The books, accounts and
records of Broker/Dealer and Selling Entities relating to the sale of the
Insurance Policies shall be maintained so as to clearly and accurately disclose
the nature and details of all transactions. Underwriter and Insurance Company
reserve the right to request reasonable periodic inspection of such books and
records as relate to the sale and solicitation of the Insurance Policies.
21. Cooperation with Regulatory Investigations. Broker/Dealer, Selling
Entities and Underwriter and Insurance Company agree to cooperate fully in any
insurance, securities or other regulatory investigation, inquiry, inspection, or
proceeding or in any judicial proceeding arising in connection with the
Insurance Policies. Broker/Dealer and Underwriter shall cooperate with each
other to resolve any customer complaint, and each agrees to promptly notify the
other upon receipt of notice of any investigation, claim, or proceeding
involving the Insurance Policies or any situation which would materially affect
the respective party's ability to perform its obligations hereunder. Each of the
parties to this agreement agrees that it will promptly notify the other parties
of any material claim of which it becomes aware involving the sale or
solicitation of the Insurance Policies.
22. Fidelity Bond. Broker/Dealer represents that all of its directors,
officers, employees and Registered Representatives are and shall be continuously
covered by a blanket fidelity bond, covering for larceny and embezzlement,
issued by a reputable bonding company. This bond shall be maintained at
Broker/Dealer's expense and shall be, at least, of the form, type and amount
required under the NASD Rules of Fair Practice.
23. Counterparts. This agreement may be executed in one or more
counterpart, each of which shall be deemed in all respects an original.
24. Arbitration. Broker/Dealer, Selling Entities and Underwriter and
Insurance Company agree that any dispute or claim arising out of the terms of
this agreement shall be submitted and settled in accordance with the Code of
Arbitration Procedure of the NASD.
In reliance on the representations set forth and in consideration of the
undertakings described herein, the parties represented below do hereby contract
and agree. This agreement is effective ________________.
FIDELITY SECURITY LIFE INSURANCE COMPANY
By:__________________________________________
Name:________________________________________
Title:_________________________________________
NATIONAL PENSION AND GROUP CONSULTANTS, INC.
By: _____________________________________
Name:___________________________________
Title:____________________________________
----------------------
(Broker/Dealer)
By:_____________________________
Name: __________________________
Title:____________________________
----------------------
(Insurance Agency)
By:_____________________________
Name: __________________________
Title:____________________________
----------------------
(Insurance Agency)
By:_____________________________
Name: __________________________
Title:____________________________
Exhibit 1
Selling Agreement Schedule Page
Broker/Dealer and Selling Entities are authorized to solicit applications
for the life insurance policies, annuity contracts and the other insurance
products listed below:
FSL Flexible Premium Variable Annuity
All products described herein are subject to state availability. Compensation
Schedules and additional terms for each product described above are listed on
the following pages. Consistent with the terms of this agreement, Compensation
Schedules may be changed at any time.
Payment of compensation for any product is subject to the following conditions
and limitations, in addition to any applicable provision of this agreement.
1. Chargebacks of Commissions. If the Insurance Company returns all or a
portion of a premium paid with respect to an Insurance Policy, Broker/Dealer
shall be obligated to refund to Underwriter applicable commissions on the amount
of such premium only where:
(a) consistent with this agreement, the Insurance Policy solicited is
returned as not taken under the policy "free look" provisions;
(b) premiums are refunded due to overpayments, errors in billing or in the
timing of automatic premium collection deductions, or errors resulting in policy
reissue;
(c) the check delivered in payment of any contract premium does not clear
and the premium collection deductions, or errors resulting in policy reissue;
(d) the Insurance Policy on which commission payments were made is
terminated or premium is refunded because the Registered Representative(s) or
Broker-Dealer who sold the Insurance Policy committed an act, error or omission
which materially contributed to the termination of the Insurance Policy or the
need to return premium;
(e) the Insurance Company rejects the application;
(f) a judicial or regulatory authority directs the Insurance Company to
return premium payments without assessment of a surrender charge;
(g) the applicant's initial premium on a 1035 exchange is returned because
the expected rollover amount from another policy or contract is not transferred
due to the exchange not meeting the legal requirements to qualify for a tax-free
exchange;
(h) the Insurance Company returns unearned premium on a life insurance
contract as required by the provisions of the policy;
(i) the Insurance Company determines that it has a legal liability to
return premiums on a life insurance contract within the first year after the
Insurance Policy is issued; or
(j) the Insurance Company and Broker/Dealer mutually agree to return all or
a portion of a premium with respect to a particular contract or policy.
2. Free Look Provision. If any Insurance Policy is redeemed at any time or
if within 45 days after confirmation by the Insurance Company of any premium
payments credited to an Insurance Policy, that Insurance Policy is tendered for
full or partial surrender, or the life at risk thereunder dies, then, at the
option of the Insurance Company or Underwriter, no commission will be payable
with respect to such premium payments and any commission previously paid for
said premium payments must be refunded to the Insurance Company or Underwriter
as directed by Underwriter. Underwriter agrees to notify Broker/Dealer with 10
business days after the request for repurchase or redemption, or notification of
death of the life at risk is received by the Insurance Company.
3. Rebating. If Broker/Dealer or any Registered Representative of
Broker/Dealer rebates or offers to rebate all or any part of a premium on an
Insurance Policy issued by the Insurance Company in violation of applicable
state insurance laws or regulations, or if Broker/Dealer or any Registered
Representative of Broker/Dealer shall withhold any premium on an Insurance
Policy issued by the Insurance Company, the same may be grounds for termination
of this agreement by Underwriter. If Broker/Dealer induces or attempts to induce
any Insurance Policy owner to relinquish an Insurance Policy except under
circumstances where there is reasonable grounds for believing the policy,
contract or certificate is not suitable for such person, Broker-Dealers right to
receive any compensation under this agreement shall cease and terminate.
COMMISSION SCHEDULE FOR
ANNUITY CONTRACTS
This Schedule is attached to and is made a part of this agreement. In no
event will FSL be liable for the payment of any compensation with respect to any
solicitation made, in whole or in part, by any person not appropriately licensed
to conduct such activities.
The compensation arrangements described below shall govern commission
payouts. Commission will be paid in accordance with instructions received from
Broker/Dealer.
1. Commissions based on premium payments will be based only on premium
actually received and accepted by the Insurance Company.
2. No commission will be earned on the initial exchange of any FSL
contract. Subsequent premium payments will, as permitted by law be eligible for
commission payments.
3. The Insurance Company reserves the right to reduce first year
commissions and renewal commissions if necessary, on any annuity contracts sold
to residents of any jurisdiction which imposes new, and/or additional premium or
similar taxes or charge. In such event, the Insurance Company will notify
Broker/Dealer.
4. If, within 45 days after confirmation of any premium credited to any
Insurance Policy by the Insurance Company, the Insurance Policy is canceled or
surrendered, or if the Insurance Policy owner shall die, then, at the option of
the Insurance Company, no commissions will be payable with respect to that
premium and any commission previously paid on that premium must be refunded to
the Insurance Company.
Compensation is listed by annuity product as follows:
EXHIBIT 2
GENERAL LETTER OF RECOMMENDATION
Broker/Dealer ("we") hereby represent and warrants to Fidelity Security
Life Insurance Company ("FSL") that all the following requirements will be
fulfilled in conjunction with the submission of licensing/appointment papers for
all applicants as sub-agents submitted by Broker/Dealer. Broker/Dealer will,
upon request, forward proof of compliance with same to XXX.
0. We have made a thorough and diligent inquiry and investigation relative
to each applicant's identity, residence and business reputation and declare that
each applicant is personally known to us, has been examined by us, is known to
be of good moral character, has a good business reputation, is reliable, is
financially responsible and is worthy of appointment by FSL. Each individual is
trustworthy, competent and qualified to act as an agent for FSL to hold himself
out in good faith to the general public. Broker/Dealer will notify FSL of any
applicant who has been discharged from bankruptcy within three years preceding
the date of application.
2. We have on file a X-000, X-000, or U-4 form which was completed by each
applicant. We have fulfilled all the necessary investigative requirements for
the registration of each applicant as a registered representative through our
NASD member firm, and each applicant is presently registered as an NASD
registered representative.
The above information in our files indicates no fact or condition which
would disqualify the applicant from receiving a license and all the findings of
all investigative information is favorable.
3. We certify that all education requirements have been met for the
specific state each applicant is requesting a license in, and that, all such
persons have fulfilled the appropriate examination, education and training
requirements.
4. If the applicant is required to submit his picture, his signature, and
securities registration in the state in which he is applying for a license, we
certify that those items forwarded to FSL are those of the applicant and the
securities registration is a true copy of the original.
5. We hereby warrant that the applicant is not applying for a license with
FSL in order to place insurance chiefly and solely on his life or property,
lives or property of his relatives, or property or liability of his associates.
6. We certify that each applicant will receive close and adequate
supervision, and that we will make inspection when needed or any or all risks
written by these applicants, to the end that the insurance interest of the
public will be properly protected.
7. We will be responsible for all acts and omissions of each applicant
within the scope of his agency appointment during any period of a temporary
license and a permanent license. This responsibility is full and complete
without regard to any technical distinction between this relationship and that
which exists in law between principal and agent.
8. We will not permit any applicant to transact insurance as an agent until
duly licensed therefore. No applicants have been given a contract or furnished
supplies, nor have any applicants been permitted to write, solicit business, or
act as an agent in any capacity, and they will not be so permitted until the
certificate of authority or license applied for is received.
