Exhibit 1.A(3)(b)(i)
SCHEDULE I
COMPENSATION SCHEDULE
TO SELLING AGREEMENT FOR SECURITY LIFE
CORPORATE BENEFITS VARIABLE UNIVERSAL LIFE
This Schedule is an attachment to the ING America Equities, Inc. ("ING America Equities") Selling
Agreement by and among the parties pursuant to paragraph 17 of that Selling Agreement, and is effective
as of July 1, 2001, or the date that Selling Broker-Dealer submits an application for this product, whichever
is later. The provisions of this Schedule shall apply only to ING Security Life Corporate Benefits Variable
Universal Life policies solicited and issued while this Schedule is in effect. All compensation payable under
this Schedule shall be subject to the terms and conditions contained herein at the time of issue of the policy
by ING Security Life of Denver Insurance Company ("ING Security Life").
- Commission Structure:
| | Commissions are payable on premiums paid in each year up to the target premium only. No
commissions are paid on premium in excess of the target premium. Any time a new coverage
segment is created, premiums allocated to that segment will be commissionable up to that segment's
target premium. The commission rates as a percent of target premium are given in a table below. |
| |
| Policy or Segment Year |
Commission Rate |
|---|
| 1 |
17.50% |
| 2 - 4 |
8.75% |
| 5 - 10 |
2% |
| 11+ |
0 |
| |
| | Premium received within 15 days prior to policy anniversary will result in the agent receiving
commissions at the same rate as if the premium was paid on the anniversary date. |
| |
| If this product is sold with a maximum ATR coverage, the target premium could be zero which would
result in no commissions payable other than the annual trail commission described in section 2 below. |
- Trail Commissions: are paid as a percent of the net account value. The trail commission is
calculated monthly based on the net account value at the end of the prior month. It is paid at
the end of the policy year, provided the policy remains in force at that time and is not subject to
the grace period provisions. The trail commissions will continue when the insured lives past age
100 and the continuation of coverage feature is in force. The annual trail commission rates are
given below.
| | Annual trail commission rates as a percent of the net account value: |
| |
| Policy Year |
Trail Commission Rate |
|---|
| 1 - 10 |
0.20% |
| 11+ |
0.10% |
- Riders: The Adjustable Term Insurance Rider has no target premium associated with it.
- Commission Calculation: Commissions shall be calculated only on premium actually received
and accepted by ING Security Life. Commissions shall be paid only on an earned basis.
Outstanding loan amounts carried over are not considered commissionable premium.
- Premium Allocation: If the Stated Death Benefit has been increased since the policy date,
premiums received are allocated to the coverage segments in the same proportion that the
commission target premium for each segment bears to the total commission target premium of
the policy.
- Death Benefit Increases: If a premium payment accompanies a request for a Stated Death
Benefit increase or is received while a request is pending, the payment will be applied to the
policy but commissions shall not be payable until the increase is effective. The commission shall
then be payable based on the premium being allocated among all segments as it would normally
and the new target premium after the increase.
- Compensation Payments: Compensation on initial premium shall be due to the Selling
Broker-Dealer at the time of the issuance of the policy and for all other premium payments at
the time of the receipt and acceptance of premium by ING Security Life, except that the
amount, if any, and the time of payment of compensation on stated death benefit increases,
replacements, reissues, changes, conversions, exchanges, term renewals, term conversions,
premiums paid in advance, policies issued on a "guaranteed issue" basis, policies requiring
facultative reinsurance arrangements, and other special cases and programs shall be governed
by ING Security Life's underwriting and administrative rules then in effect. The Compensation
shall be payable to the Selling Broker-Dealer in accordance with the Schedule I in effect at the
time of issue of the policy.
- Commission Chargeback: In the event that a policy for which a commission has been paid is
lapsed or surrendered by the Policy Owner or has a reduction of stated death benefit during the
first three policy years, or is returned to ING Security Life for refund of premium during the
Free Look Period as described in the policy, ING Security Life and ING America Equities
shall require reimbursement from Selling Broker-Dealer as shown below.
| Policy or
Segment Year |
Commission Chargeback |
|---|
| 1 |
17.50% of first year premium up to target |
| 2 |
12.00% of first year premium up to target |
| 3 |
6.67% of first year premium up to target |
| 4+ |
0% |
| |
| | If a premium payment for which a commission has been paid is refunded by ING Security Life, a
reimbursement of the commission paid on the amount refunded will be due from the Selling
Broker-Dealer. The reimbursement may be deducted by ING America Equities from the next, or
any subsequent, commission payment to Selling Broker-Dealer. |
| |
| If the amount to be reimbursed exceeds compensation otherwise due, Selling Broker-Dealer shall
promptly reimburse ING America Equities before the next commission cycle. |
- Internal Exchanges: Commissions on the exchange of any policy issued by Security Life or any
other ING affiliate for Corporate Benefits Variable Universal Life, if any, will be paid in
accordance with the exchange procedures in effect at ING Security Life on the date the
exchange is completed. The commission rates and/or target premiums may be adjusted in
accordance with the rules in effect at the time of the exchange.
| | Special procedures and policies apply to internal exchanges of Corp I, II, II, and IV into
CBVUL. Under the procedures, the following commissions are payable: |
| |
| Premium Received Up to
Target |
Commission Rate |
|---|
| Rollover Amount |
7.0% |
| Year 1 |
17.5% |
| Year 2 - 4 |
8.75% |
- Compensation Vesting: Provision 5(a)(i) of the Supervisory and Sales Agreement does not
apply to Corporate Benefits VUL. If the policy servicing Representative is not the original
producer of the policy, the compensation payable on the policy will be paid to the original
Selling Broker-Dealer unless 1) the broker-dealer for the producer of the original policy signs
a commission relinquishment agreement; 2) the policyowner expresses a written desire to
terminate that prior relationship; or 3) the producer of the original policy is no longer properly
licensed or appointed to sell Corporate Benefits Variable Universal Life.
