XXXXXXX NATIONAL LIFE INSURANCE COMPANY
XXXXXXX NATIONAL Life Distributors, INC.
Member NASD.
Selling Agreement
This Agreement, dated, , _______ is by and among
and
(Broker/Dealer)
,
(Agency)
,
(Agency)
,
(Agency)
hereinafter taken together and referred to as ("Broker/Dealer"), XXXXXXX
NATIONAL LIFE INSURANCE COMPANY ("Insurer"), and XXXXXXX NATIONAL Life
Distributors, INC. (member NASD), a registered broker/dealer ("Distributor").
This Agreement is for the purpose of arranging for the distribution of certain
life and annuity contracts ("Contracts") issued by Insurer through sales people
who are licensed agents of the Insurer and Registered Representatives of the
Broker/Dealer (collectively referred to as "Registered Representative" or
"Registered Representatives").
Broker/Dealer is itself, or is affiliated with an entity which is registered as
a broker/dealer with the Securities and Exchange Commission (the "SEC") and
which is a member of the National Association of Securities Dealers, Inc. (the
"NASD"), and is also duly licensed as a life insurance agency under the
insurance laws of the various states in which it operates.
In consideration of the mutual promises and covenants contained in this
Agreement, Insurer and Distributor appoint those persons who are Registered
Representatives of Broker/Dealer and licensed agents of Insurer to solicit and
procure applications for the Contracts specified in the attached Schedule B.
This appointment is not deemed to be exclusive in any manner and only extends to
those jurisdictions in which the Contracts specified in the attached Schedule B
have been approved for sale and in which Broker/Dealer and respective Registered
Representative are properly licensed and appointed. All completed applications,
supporting documents and initial and subsequent payments are the sole property
of Insurer and must be promptly delivered to Insurer at such address as it may
from time to time designate. All applications are subject to acceptance by
Insurer in its sole discretion.
I. REGISTERED REPRESENTATIVES
Broker/Dealer is authorized to recommend Registered
Representatives for appointment as licensed agents of Insurer to solicit sales
of the Contracts specified in the attached Schedule B. Broker/Dealer warrants
that each such persons recommended for appointment shall be fully licensed under
the applicable state insurance and securities laws and a duly Registered
Representatives of Broker/Dealer.
Broker/Dealer is providing Distributor with a general letter
of recommendation for its Registered Representatives. See Schedule A attached
hereto. This letter must provide Distributor and Insurer with assurance that all
background investigations which are required by state and federal laws have been
made and that Broker/Dealer affirms that all appointees meet all state and
federal requirements, and should be appointed by Insurer. The letter also
warrants that all appointees have the necessary state and federal licenses and
registrations to transact business for the Insurer.
II. SALES MATERIAL
Broker/Dealer shall cause its officers, employees and
Registered Representatives not to use any material or information, including but
not limited to, written, audio, or video sales material, or prospectus unless
such material has been provided or approved by Insurer. In accordance with the
requirements of federal and certain state laws, Broker/Dealer shall maintain
complete records indicating the manner and extent of distribution of any such
solicitation material. This material shall be made available to appropriate
federal and state regulatory agencies as required by law or regulation.
Broker/Dealer shall hold Insurer, Distributor and their respective affiliates
harmless from any liability arising from the use of any material which has not
been specifically approved by Insurer or Distributor in writing, or used in a
manner which is inconsistent with Insurer's or Distributor's approval.
Broker/Dealer and its officers, employees, and Registered
Representatives are not authorized to make any other representations concerning
the Contracts except those contained in the prospectus then in effect and/or
sales material issued and approved by Insurer or Distributor.
III. PROSPECTUS DELIVERY
Broker/Dealer shall be responsible for compliance by its
Registered Representatives with the requirements that solicitation for variable
Contracts will be made by use of a currently effective prospectus, that a
prospectus will be delivered concurrently with each sales presentation and that
no statements shall be made to a client superseding or controverting any
statement made in the prospectus. Insurer and Distributor shall furnish
Broker/Dealer reasonable quantities of prospectuses at no cost.
IV. BROKER/DEALER COMPLIANCE
Broker/Dealer is a broker-dealer registered with the SEC and a
member in good standing of the NASD and shall fully comply with the rules and
requirements of the NASD and all other applicable federal and state laws, rules
and regulations, including insurance laws, applicable to the transactions
hereunder. Broker/Dealer shall establish rules, procedures, supervisory and
inspection techniques necessary to diligently supervise the activities of its
Registered Representatives. Upon request by Distributor or Insurer,
Broker/Dealer shall furnish appropriate records as are necessary to establish
diligent supervision.
In the event Broker/Dealer utilizes an affiliated entity to
satisfy broker-dealer requirements pursuant to authority granted under
applicable SEC no-action letters, such affiliated entity shall countersign this
Agreement and shall be duly bound hereby.
V. RECORDKEEPING
Broker/Dealer shall prepare and maintain full and accurate
records of the business transacted by its Registered Representatives under this
Agreement and shall forward to Insurer and Distributor such reports of said
business as Insurer or Distributor may prescribe. Insurer and Distributor shall
have the right to examine said records at reasonable times.
VI. INDEMNIFICATION
Broker/Dealer agrees to hold harmless and indemnify
Distributor and Insurer and their respective affiliates from any and all claims,
direct or indirect liabilities, losses and expenses which any such party may
incur resulting from requests, directions, actions or inactions of Broker/Dealer
and/or its officers, employees, or Registered Representatives based upon: (a)
any alleged untrue or untrue statement made by Broker/Dealer and/or its
officers, employees, or Registered Representatives, unless such statement is
contained in the registration statement, prospectus, or any Distributor or
Issuer approved sales material for any Contract, or (b) the failure of
Broker/Dealer and/or its officers, employees, or Registered Representatives to
comply with any provision of this Agreement.
VII. FIDELITY BOND
Broker/Dealer represents that all its directors, officers,
employees and Registered Representatives who have access to funds of Insurer or
who are covered by this Agreement are and will continue to be covered by a
blanket fidelity bond including coverage for larceny, embezzlement and other
defalcation, issued by a reputable bonding company. This bond shall be
maintained at Broker/Dealer expense. Such bond shall be at least equivalent to
the minimum coverage required under the NASD Rules of Fair Practice, endorsed to
extend coverage to life insurance and annuity transactions. Broker/Dealer
acknowledges that Insurer may require evidence that such coverage is in force
and Broker/Dealer shall promptly give notice to Insurer of any notice of
cancellation or change of coverage.
Broker/Dealer assigns any proceeds received from the fidelity
bond company to Insurer to the extent of Insurer's loss due to activities
covered by the bond. If there is any deficiency, Broker/Dealer shall promptly
pay Insurer that amount on demand and Broker/Dealer indemnifies and holds
harmless Insurer from any deficiency and from the cost of collection.
VIII. LIMITATIONS OF AUTHORITY
The Contract forms are the sole property of Insurer. No person
other than Insurer has the authority to make, alter or discharge any policy,
Contract, certificate, supplemental contract or form issued by Insurer. Insurer
may make such changes as it deems advisable in the conduct of its business or
discontinue at any time issuing any of its forms or contracts and no liability
to the Broker/Dealer will attach to Insurer or Distributor by reason of Insurer
so doing. No person other than Insurer has the right to waive any provision with
respect to any Contract or policy. No person other than Insurer has the
authority to enter into any proceeding in a court of law or before a regulatory
agency in the name of or on behalf of Insurer.
IX. COOPERATION
Broker/Dealer and its directors, officers, employees and
Registered Representatives shall cooperate with Insurer and/or Distributor in
the investigation and settlement of all claims against Broker/Dealer and/or its
directors, officers, employees, and Registered Representatives relating to the
solicitation or sale of Contracts under this Agreement. Broker/Dealer shall
promptly forward to Insurer and/or Distributor any notice or other relevant
information that may come into its possession.
X. PRINCIPLES OF ETHICAL MARKET CONDUCT
In all matters relating to the sale and marketing of life
insurance and annuity products, Insurer is fully committed to the following
Principles: (1) To conduct business according to high standards of honesty and
fairness and to render that service to its clients that, in the same
circumstances, it would apply to or demand for itself; (2) To provide competent
and client-focused sales and service; (3) To engage in active and fair
competition; (4) To provide advertising and sales material that are clear as to
purpose, and honest and fair as to content; (5) To handle client complaints and
disputes fairly and expeditiously; and (6) To maintain a system of oversight and
review that is reasonably designed to achieve compliance with these Principles
of Ethical Market Conduct. Broker/Dealer acknowledges and agrees that it and its
directors, officers, employees, and Registered Representatives will conduct all
of their activities that are within the scope of this Agreement in accordance
with these Principles.
XI. GENERAL PROVISIONS
A. Waiver
Failure of any of the parties to promptly insist upon strict compliance
with any of the obligations of any other party under this Agreement shall not be
deemed to constitute a waiver of the right to enforce strict compliance.
B. Independent Contractor
Broker/Dealer is an independent contractor and not an employee or
subsidiary of Distributor or Insurer. (Registered Representatives are
independent contractors and not employees of Distributor or Insurer.)
C. Independent Assignment
No assignment of this Agreement or of commissions or other payments
under this Agreement shall be valid without the prior written consent of
Insurer.
D. Notice
Any notice pursuant to this Agreement shall be mailed, postage paid, to
the last address communicated by the receiving party to other parties to this
Agreement.
E. Severability
To the extent this Agreement may be in conflict with any applicable law
or regulation, this Agreement shall be construed in a manner not inconsistent
with such law or regulation. The invalidity or illegality of any provision of
this Agreement shall not be deemed to affect the validity or legality of any
other provision of this Agreement.
F. Amendment
This Agreement may be amended in writing signed by the parties to this
Agreement.
G. Termination
This Agreement may be terminated by any party upon written notice, and
termination shall be effective immediately.
H. Michigan Law
This Agreement shall be construed in accordance with the laws of the
state of Michigan. IN WITNESS WHEREOF, the parties have executed this Agreement
on the date set forth above.
BROKER/DEALER:
------------------------------- --------------------------------
Name of Broker/Dealer Name of Life Agent or Agency
(If other than Broker/Dealer)
------------------------------------- --------------------------------
Address Address
------------------------------- --------------------------------
Signature: _________________________ Signature: _______________________
Print Name: ________________________ Print Name: _______________________
Title: ___________________________ Title: ____________________________
Date: ___________________________ Date: ____________________________
XXXXXXX NATIONAL LIFE XXXXXXX NATIONAL
INSURANCE COMPANY Life Distributors, INC.
0000 Xxxxxxxxx Xxxxx 000 Xxxxxxxx Xxxxxxxxx, Xxx. 0000
Xxxxxxx, XX 00000 Xxxxx Xxxxxx, XX 00000
Signature: _________________________ Signature: _______________________
Print Name: ________________________ Print Name: _______________________
Title: ___________________________ Title: ____________________________
Date: ___________________________ Date: ____________________________
SCHEDULE A
General Letter of Recommendation
Broker/Dealer hereby certifies to Distributor and Insurer that all the following
requirements shall be fulfilled by Broker/Dealer in conjunction with the
submission of licensing/appointment papers for all applicants as insurance
agents of Insurer. Broker/ Dealer, upon request, will forward proof of
compliance with the same to Distributor and Insurer in a timely manner.
1. We have made a thorough 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, has a good business reputation,
is reliable, is financially responsible and is worthy of a license. Each
individual is trustworthy, competent and qualified to act as an agent for
Insurer to hold himself out in good faith to the general public.
2. We have on file a U-4 form which was completed by each applicant
intending to sell the Variable Contracts. 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 indicated 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 educational requirements have been met for the
specific jurisdiction each applicant is requesting a license/appointment in and
that all such persons have fulfilled the appropriate examination, education and
training requirements, and that all such persons are appropriately affiliated
with the Broker/Dealer as agents in the specific jurisdiction each applicant is
requesting appointment/licensure.
4. If the applicant is required to submit his picture, his signature,
and securities registration in the jurisdiction in which he is applying for a
license, we certify that those items forwarded to Distributor and Insurer 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 Insurer in order to place insurance chiefly or solely on his life or
property, lives or property of his relatives, 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, of 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 not permit any applicant to transact insurance as a
Registered Representative until duly licensed and appointed therefore. No
applicants have been given a contract or furnished supplies, nor have any
applicants been permitted to write, solicit business, or act as a Registered
Representative in any capacity, and they will not be so permitted until the
certificate of authority or license applied for, or appointment confirmation
(where required) is received.
--------------------------- ----------------------------
Principal Date
SCHEDULE B
Commission Schedules
All Products
These Commission Schedules are attached to and part of the Xxxxxxx National Life
Insurance Company and Xxxxxxx National Life Distributors, Inc. Selling Agreement
to which they are appended. They are subject to the terms and conditions of the
Agreement. In no event shall the Insurer be liable for payment with respect to
any solicitation made, in whole or in part, by any person not appropriately
licensed, registered and appointed with Insurer (where required) prior to the
commencement of such solicitation.
Insurer will pay all compensation due Broker/Dealer, or due any Registered
Representatives of Broker/Dealer, either directly to Broker/Dealer or, as
necessary to meet legal requirements, to the licensed Broker/Dealer affiliate or
individual Registered Representatives. Broker/Dealer hereby warrants that all
necessary contractual arrangements are in place to enable Insurer to pay
Broker/Dealer, or any of its affiliates, for business produced by Registered
Representatives of Broker/Dealer in the jurisdiction in which they hold
licenses. Broker/Dealer shall pay all compensation, if any, due to any person
including Registered Representatives of Broker/Dealer with respect to Contracts
which are subject to this Agreement, and no such Registered Representative of
Broker/Dealer, or other person shall have any claim against Insurer on account
of the sale or service of any such Contracts. Insurer shall have no obligation
to make compensation payments except as provided herein.
The Insurer shall not be liable, and the Broker/Dealer agrees to reimburse
Insurer for any commissions paid by the Insurer to the Broker/Dealer with
respect to: (a) a Contract (excluding annuitized Contracts and Perspective
Advisors) where the date of death is within six months from the date the
Contract is issued if the owner's death (or annuitant's death on an
annuitant-driven Contract) resulted from any cause or means other than from
bodily injuries effected solely through accidental means; (b) a Contract
(excluding annuitized Contracts, Perspective Advisors, and immediate annuities)
where illness brings about (or "results in") the Owner's request of a Terminal
Illness Benefit prior to or within six months from the date the Contract was
issued; (c) a Contract returned to the Insurer pursuant to the "Free Look"
provision of the Contract; (d) a Contract that is rescinded or not issued by the
Insurer, as determined by the Insurer in its sole discretion; (e) any situation
in which the Broker/Dealer and/or Registered Representative fails to conform to
applicable state regulations and/or Insurer policies and procedures; (f) any
situation in which the Broker/Dealer and/or Registered Representative fails to
reasonably cooperate with the Insurer; or (g) an immediate annuity Contract
where the premium is returned and the Contract is terminated prior to the first
annuity payment. Any such Commissions paid shall be charged back to the
Broker/Dealer. Broker/Dealer agrees to remit payment for outstanding balances
within 90 days. The Insurer reserves the right to automatically recoup any
charged back commission by offsetting them against future commission credits,
when available.
JNL retains the right to withhold commission payment until expiration of the
"Free Look" provision.
All plans are subject to change and are not available in all states.
Fixed Annuities and Life Insurance Only
Commissions are not paid on renewal premiums which are deducted from a
Contract's cash accumulation account. Renewal Commissions shall not be allowed
on premiums deposited into an advance premium account unless and until such
premiums are due. No first-year Commissions are payable on Preliminary Term
Insurance premiums or on Flat Extra Premium assessed for nine (9) years or less.
The Broker/Dealer shall not be entitled to first-year or renewal commissions on
premiums waived or paid by the Insurer under the Waiver of Premium provisions of
any Contract. No first-year Commissions are payable on flexible-premium
annuities where the annuitant has an existing flexible premium annuity meeting
the same tax-qualifications criteria as the existing annuity. The premium will
be treated as a subsequent deposit, and the Broker/Dealer will be entitled to
the current renewal Commission. The Insurer reserves the right to offer
different Commission terms for Flexible Premium Fixed Annuity Contracts on
renewal deposits in excess of $500,000.
OWNER ISSUE AGE
Under 81
81 to 85
86 to 90
COMMISSION OPTIONS
Option A - 6.75% of Premium Payment
- OR -
Option B - 5.75% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
Option A - 3.375% of Premium Payment
- OR -
Option B - 2.875% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
Option A, B, and C - 1.00% of Premium Payment + 1.00% annual trail commission
Commission Option Selection Page
The Commission Schedules for both Registered Products (Variable Annuities) and
Non-Registered Products (Traditional Fixed Annuities, Equity-Indexed Annuities,
and Life Insurance) are on the following pages. Please review these schedules
and indicate the Commission Options selected on this page.
I. REGISTERED PRODUCTS (Variable Annuities)
The Commission Option Selection(s) and Default Commission Option Selection made
on this page apply to ALL registered products business produced by Broker/Dealer
pursuant to the Xxxxxxx National Life Insurance Company/Xxxxxxx National Life
Distributors, Inc. Selling Agreement. (Example: If you choose Option A below,
you have chosen Option A for ALL variable annuities issued by Xxxxxxx National
Life Insurance Company.)
____________ Option A
(Initial and Date)
_______________ Option B
(Initial and Date)
_______________ Option C
(Initial and Date)
Broker/Dealer's default selection is Option _____ if more than one Commission
Option is available, and Registered Representative fails to make selection on
business submitted to Insurer.
If the Broker/Dealer fails to select a default option (if more than one
Commission Option is available and Registered Representative fails to make
selection on business submitted to Insurer), it is agreed that Broker/Dealer's
default selection is Option A.
Internal Exchanges:
For Broker/Dealers who have selected Option C above, it is agreed that Option A
is elected.
II. NON-REGISTERED PRODUCTS (Traditional Fixed Annuities, Equity-Indexed
Annuities, and Life Insurance) The Commission Option Selection(s) and Default
Commission Option Selection made on this page apply to ALL non-registered
products business produced by Broker/Dealer pursuant to the Xxxxxxx National
Life Insurance Company/Xxxxxxx National Life Distributors, Inc. Selling
Agreement. (Example: If you choose Option A below, you have chosen Option A for
ALL traditional fixed annuities, equity-indexed annuities, and life insurance
products issued by Xxxxxxx National Life Insurance Company.)
____________ Option A
(Initial and Date)
_______________ Option B
(Initial and Date)
_______________ Option C
(Initial and Date)
Broker/Dealer's default selection is Option _____ if more than one Commission
Option is available, and Registered Representative fails to make selection on
business submitted to Insurer.
If the Broker/Dealer fails to select a default option (if more than one
Commission Option is available and Registered Representative fails to make
selection on business submitted to Insurer), it is agreed that Broker/Dealer's
default selection is Option A.
REGISTERED PRODUCT COMMISSION SCHEDULES
(Perspective, Defined Strategies, Perspective Advantage, and Perspective
Advisors) The Registered Product Commission Schedules on the following pages
shall be subject to all the provisions and restrictions contained in the Xxxxxxx
National Life Insurance Company/Xxxxxxx National Life Distributors, Inc. Selling
Agreement, including but not limited to the chargeback provisions. The following
Commission Schedules shall apply to business produced by Broker/Dealer and its
Registered Representatives pursuant to this Xxxxxxx National Life Insurance
Company/Xxxxxxx National Life Distributors, Inc. Selling Agreement.
The Insurer reserves the right to modify or terminate the commissions set forth
in these schedules.
INTERNAL EXCHANGE COMMISSION SCHEDULES
(JNL Fixed Annuity Contracts Exchanged for Perspective, Defined Strategies,
Perspective Advantage) The Internal Exchange Commission Schedules on the
following pages shall apply to Xxxxxxx National Life Insurance Company fixed
annuity Contracts exchanged for Perspective, Defined Strategies, or Perspective
Advantage Contracts by Broker/Dealer pursuant to the Xxxxxxx National Life
Insurance Company/Xxxxxxx National Life Distributors, Inc. Selling Agreement and
the internal exchange policies in effect at the time of the transfer. Exchanges
from Dual Fund TSA Annuities, Select/Pathfinder Annuities, and fixed annuity
contracts with a loan outstanding are not allowed.
The Insurer reserves the right to modify or terminate the commission schedules
and policies. INTERNAL EXCHANGES (JNL Fixed Annuity Contracts Exchanged for
Perspective Advisors) On Xxxxxxx National Life Insurance Company fixed annuity
Contracts exchanged for Perspective Advisors Contracts, surrender charges
remaining (if any) on the JNL fixed annuity Contracts are not waived. Full
commission will be paid on the new Perspective Advisors Contracts.
The Insurer reserves the right to modify or terminate the commission schedules
and policies. REGISTERED PRODUCT INTERNAL EXCHANGES (Perspective, Perspective
Advisors, Defined Strategies, Perspective Advantage) On Xxxxxxx National Life
Insurance Company Registered Product Contracts exchanged for other JNL
Registered Product Contracts, surrender charges remaining (if any) on the
Contract being exchanged are not waived. No commission will be paid on the new
Registered Product Contract.
The Insurer reserves the right to modify or terminate the commission schedules
and policies. NON-REGISTERED PRODUCT COMMISSION SCHEDULES (Traditional Fixed
Annuities, Equity-Indexed Annuities, and Life Insurance) The Non-Registered
Product Commission Schedules on the following pages shall be subject to all the
provisions and restrictions contained in the Xxxxxxx National Life Insurance
Company/Xxxxxxx National Life Distributors, Inc. Selling Agreement, including
but not limited to the chargeback provisions. The following Commission Schedules
shall apply to business produced by Broker/Dealer and its Registered
Representatives pursuant to this Xxxxxxx National Life Insurance Company/Xxxxxxx
National Life Distributors, Inc. Selling Agreement. However, nothing contained
herein shall require payment of commissions to Broker/Dealer for business
submitted directly to the Insurer by any Registered Representative with an
agreement and appointment with the Insurer.
The Insurer reserves the right to modify or terminate the commissions set forth
in these schedules. If commission rates are not shown, or where special premium
rate quotations are made, commission rates shall be such as may be fixed by the
Insurer.
Issue Age on Owner-Driven Contracts
If Owner is a non-natural entity, commission calculation based on Annuitant's
age. If Joint Owners, commission calculation based on older age.
Please see the following pages for Commission Schedules pursuant to this Xxxxxxx
National Life Insurance Company/Xxxxxxx National Life Distributors, Inc. Selling
Agreement.
Commission Schedule -
Perspective Fixed and Variable Annuity(R)Contracts (VA200)
This Agreement, dated, , _______ is by and among
and
(Broker/Dealer)
,
(Agency)
,
(Agency)
,
(Agency)
hereinafter taken together and referred to as ("Broker/Dealer"), XXXXXXX
NATIONAL LIFE INSURANCE COMPANY ("Insurer"), and XXXXXXX NATIONAL Life
Distributors, INC. (member NASD), a registered broker/dealer ("Distributor").
This Agreement is for the purpose of arranging for the distribution of certain
life and annuity contracts ("Contracts") issued by Insurer through sales people
who are licensed agents of the Insurer and Registered Representatives of the
Broker/Dealer (collectively referred to as "Registered Representative" or
"Registered Representatives").
Broker/Dealer is itself, or is affiliated with an entity which is registered as
a broker/dealer with the Securities and Exchange Commission (the "SEC") and
which is a member of the National Association of Securities Dealers, Inc. (the
"NASD"), and is also duly licensed as a life insurance agency under the
insurance laws of the various states in which it operates.
In consideration of the mutual promises and covenants contained in this
Agreement, Insurer and Distributor appoint those persons who are Registered
Representatives of Broker/Dealer and licensed agents of Insurer to solicit and
procure applications for the Contracts specified in the attached Schedule B.
This appointment is not deemed to be exclusive in any manner and only extends to
those jurisdictions in which the Contracts specified in the attached Schedule B
have been approved for sale and in which Broker/Dealer and respective Registered
Representative are properly licensed and appointed. All completed applications,
supporting documents and initial and subsequent payments are the sole property
of Insurer and must be promptly delivered to Insurer at such address as it may
from time to time designate. All applications are subject to acceptance by
Insurer in its sole discretion.
I. REGISTERED REPRESENTATIVES
Broker/Dealer is authorized to recommend Registered
Representatives for appointment as licensed agents of Insurer to solicit sales
of the Contracts specified in the attached Schedule B. Broker/Dealer warrants
that each such persons recommended for appointment shall be fully licensed under
the applicable state insurance and securities laws and a duly Registered
Representatives of Broker/Dealer.
Broker/Dealer is providing Distributor with a general letter
of recommendation for its Registered Representatives. See Schedule A attached
hereto. This letter must provide Distributor and Insurer with assurance that all
background investigations which are required by state and federal laws have been
made and that Broker/Dealer affirms that all appointees meet all state and
federal requirements, and should be appointed by Insurer. The letter also
warrants that all appointees have the necessary state and federal licenses and
registrations to transact business for the Insurer.
II. SALES MATERIAL
Broker/Dealer shall cause its officers, employees and
Registered Representatives not to use any material or information, including but
not limited to, written, audio, or video sales material, or prospectus unless
such material has been provided or approved by Insurer. In accordance with the
requirements of federal and certain state laws, Broker/Dealer shall maintain
complete records indicating the manner and extent of distribution of any such
solicitation material. This material shall be made available to appropriate
federal and state regulatory agencies as required by law or regulation.
Broker/Dealer shall hold Insurer, Distributor and their respective affiliates
harmless from any liability arising from the use of any material which has not
been specifically approved by Insurer or Distributor in writing, or used in a
manner which is inconsistent with Insurer's or Distributor's approval.
Broker/Dealer and its officers, employees, and Registered
Representatives are not authorized to make any other representations concerning
the Contracts except those contained in the prospectus then in effect and/or
sales material issued and approved by Insurer or Distributor.
III. PROSPECTUS DELIVERY
Broker/Dealer shall be responsible for compliance by its
Registered Representatives with the requirements that solicitation for variable
Contracts will be made by use of a currently effective prospectus, that a
prospectus will be delivered concurrently with each sales presentation and that
no statements shall be made to a client superseding or controverting any
statement made in the prospectus. Insurer and Distributor shall furnish
Broker/Dealer reasonable quantities of prospectuses at no cost.
IV. BROKER/DEALER COMPLIANCE
Broker/Dealer is a broker-dealer registered with the SEC and a
member in good standing of the NASD and shall fully comply with the rules and
requirements of the NASD and all other applicable federal and state laws, rules
and regulations, including insurance laws, applicable to the transactions
hereunder. Broker/Dealer shall establish rules, procedures, supervisory and
inspection techniques necessary to diligently supervise the activities of its
Registered Representatives. Upon request by Distributor or Insurer,
Broker/Dealer shall furnish appropriate records as are necessary to establish
diligent supervision.
In the event Broker/Dealer utilizes an affiliated entity to
satisfy broker-dealer requirements pursuant to authority granted under
applicable SEC no-action letters, such affiliated entity shall countersign this
Agreement and shall be duly bound hereby.
V. RECORDKEEPING
Broker/Dealer shall prepare and maintain full and accurate
records of the business transacted by its Registered Representatives under this
Agreement and shall forward to Insurer and Distributor such reports of said
business as Insurer or Distributor may prescribe. Insurer and Distributor shall
have the right to examine said records at reasonable times.
VI. INDEMNIFICATION
Broker/Dealer agrees to hold harmless and indemnify
Distributor and Insurer and their respective affiliates from any and all claims,
direct or indirect liabilities, losses and expenses which any such party may
incur resulting from requests, directions, actions or inactions of Broker/Dealer
and/or its officers, employees, or Registered Representatives based upon: (a)
any alleged untrue or untrue statement made by Broker/Dealer and/or its
officers, employees, or Registered Representatives, unless such statement is
contained in the registration statement, prospectus, or any Distributor or
Issuer approved sales material for any Contract, or (b) the failure of
Broker/Dealer and/or its officers, employees, or Registered Representatives to
comply with any provision of this Agreement.
VII. FIDELITY BOND
Broker/Dealer represents that all its directors, officers,
employees and Registered Representatives who have access to funds of Insurer or
who are covered by this Agreement are and will continue to be covered by a
blanket fidelity bond including coverage for larceny, embezzlement and other
defalcation, issued by a reputable bonding company. This bond shall be
maintained at Broker/Dealer expense. Such bond shall be at least equivalent to
the minimum coverage required under the NASD Rules of Fair Practice, endorsed to
extend coverage to life insurance and annuity transactions. Broker/Dealer
acknowledges that Insurer may require evidence that such coverage is in force
and Broker/Dealer shall promptly give notice to Insurer of any notice of
cancellation or change of coverage.
Broker/Dealer assigns any proceeds received from the fidelity
bond company to Insurer to the extent of Insurer's loss due to activities
covered by the bond. If there is any deficiency, Broker/Dealer shall promptly
pay Insurer that amount on demand and Broker/Dealer indemnifies and holds
harmless Insurer from any deficiency and from the cost of collection.
VIII. LIMITATIONS OF AUTHORITY
The Contract forms are the sole property of Insurer. No person
other than Insurer has the authority to make, alter or discharge any policy,
Contract, certificate, supplemental contract or form issued by Insurer. Insurer
may make such changes as it deems advisable in the conduct of its business or
discontinue at any time issuing any of its forms or contracts and no liability
to the Broker/Dealer will attach to Insurer or Distributor by reason of Insurer
so doing. No person other than Insurer has the right to waive any provision with
respect to any Contract or policy. No person other than Insurer has the
authority to enter into any proceeding in a court of law or before a regulatory
agency in the name of or on behalf of Insurer.
IX. COOPERATION
Broker/Dealer and its directors, officers, employees and
Registered Representatives shall cooperate with Insurer and/or Distributor in
the investigation and settlement of all claims against Broker/Dealer and/or its
directors, officers, employees, and Registered Representatives relating to the
solicitation or sale of Contracts under this Agreement. Broker/Dealer shall
promptly forward to Insurer and/or Distributor any notice or other relevant
information that may come into its possession.
X. PRINCIPLES OF ETHICAL MARKET CONDUCT
In all matters relating to the sale and marketing of life
insurance and annuity products, Insurer is fully committed to the following
Principles: (1) To conduct business according to high standards of honesty and
fairness and to render that service to its clients that, in the same
circumstances, it would apply to or demand for itself; (2) To provide competent
and client-focused sales and service; (3) To engage in active and fair
competition; (4) To provide advertising and sales material that are clear as to
purpose, and honest and fair as to content; (5) To handle client complaints and
disputes fairly and expeditiously; and (6) To maintain a system of oversight and
review that is reasonably designed to achieve compliance with these Principles
of Ethical Market Conduct. Broker/Dealer acknowledges and agrees that it and its
directors, officers, employees, and Registered Representatives will conduct all
of their activities that are within the scope of this Agreement in accordance
with these Principles.
XI. GENERAL PROVISIONS
A. Waiver
Failure of any of the parties to promptly insist upon strict compliance
with any of the obligations of any other party under this Agreement shall not be
deemed to constitute a waiver of the right to enforce strict compliance.
B. Independent Contractor
Broker/Dealer is an independent contractor and not an employee or
subsidiary of Distributor or Insurer. (Registered Representatives are
independent contractors and not employees of Distributor or Insurer.)
C. Independent Assignment
No assignment of this Agreement or of commissions or other payments
under this
Agreement shall be valid without the prior written consent of Insurer.
D. Notice
Any notice pursuant to this Agreement shall be mailed, postage paid, to
the last address communicated by the receiving party to other parties to this
Agreement.
E. Severability
To the extent this Agreement may be in conflict with any applicable law
or regulation, this Agreement shall be construed in a manner not inconsistent
with such law or regulation. The invalidity or illegality of any provision of
this Agreement shall not be deemed to affect the validity or legality of any
other provision of this Agreement.
F. Amendment
This Agreement may be amended in writing signed by the parties to this
Agreement.
G. Termination
This Agreement may be terminated by any party upon written notice, and
termination shall be effective immediately.
H. Michigan Law
This Agreement shall be construed in accordance with the laws of the
state of Michigan. IN WITNESS WHEREOF, the parties have executed this Agreement
on the date set forth above.
BROKER/DEALER:
------------------------------- --------------------------------
Name of Broker/Dealer Name of Life Agent or Agency
(If other than Broker/Dealer)
---------------------------------------- --------------------------------
Address Address
------------------------------- --------------------------------
Signature: _________________________ Signature: _______________________
Print Name: ________________________ Print Name: _______________________
Title: ___________________________ Title: ____________________________
Date: ___________________________ Date: ____________________________
XXXXXXX NATIONAL LIFE XXXXXXX NATIONAL
INSURANCE COMPANY Life Distributors, INC.
0000 Xxxxxxxxx Xxxxx 000 Xxxxxxxx Xxxxxxxxx, Xxx. 0000
Xxxxxxx, XX 00000 Xxxxx Xxxxxx, XX 00000
Signature: _________________________ Signature: _______________________
Print Name: ________________________ Print Name: _______________________
Title: ___________________________ Title: ____________________________
Date: ___________________________ Date: ____________________________
SCHEDULE A
General Letter of Recommendation
Broker/Dealer hereby certifies to Distributor and Insurer that all the following
requirements shall be fulfilled by Broker/Dealer in conjunction with the
submission of licensing/appointment papers for all applicants as insurance
agents of Insurer. Broker/ Dealer, upon request, will forward proof of
compliance with the same to Distributor and Insurer in a timely manner.
1. We have made a thorough 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, has a good business reputation,
is reliable, is financially responsible and is worthy of a license. Each
individual is trustworthy, competent and qualified to act as an agent for
Insurer to hold himself out in good faith to the general public.
2. We have on file a U-4 form which was completed by each applicant
intending to sell the Variable Contracts. 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 indicated 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 educational requirements have been met for the
specific jurisdiction each applicant is requesting a license/appointment in and
that all such persons have fulfilled the appropriate examination, education and
training requirements, and that all such persons are appropriately affiliated
with the Broker/Dealer as agents in the specific jurisdiction each applicant is
requesting appointment/licensure.
4. If the applicant is required to submit his picture, his signature,
and securities registration in the jurisdiction in which he is applying for a
license, we certify that those items forwarded to Distributor and Insurer 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 Insurer in order to place insurance chiefly or solely on his life or
property, lives or property of his relatives, 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, of 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 not permit any applicant to transact insurance as a
Registered Representative until duly licensed and appointed therefore. No
applicants have been given a contract or furnished supplies, nor have any
applicants been permitted to write, solicit business, or act as a Registered
Representative in any capacity, and they will not be so permitted until the
certificate of authority or license applied for, or appointment confirmation
(where required) is received.
--------------------------- ---------------------------
Principal Date
SCHEDULE B
Commission Schedules
All Products
These Commission Schedules are attached to and part of the Xxxxxxx National Life
Insurance Company and Xxxxxxx National Life Distributors, Inc. Selling Agreement
to which they are appended. They are subject to the terms and conditions of the
Agreement. In no event shall the Insurer be liable for payment with respect to
any solicitation made, in whole or in part, by any person not appropriately
licensed, registered and appointed with Insurer (where required) prior to the
commencement of such solicitation.
Insurer will pay all compensation due Broker/Dealer, or due any Registered
Representatives of Broker/Dealer, either directly to Broker/Dealer or, as
necessary to meet legal requirements, to the licensed Broker/Dealer affiliate or
individual Registered Representatives. Broker/Dealer hereby warrants that all
necessary contractual arrangements are in place to enable Insurer to pay
Broker/Dealer, or any of its affiliates, for business produced by Registered
Representatives of Broker/Dealer in the jurisdiction in which they hold
licenses. Broker/Dealer shall pay all compensation, if any, due to any person
including Registered Representatives of Broker/Dealer with respect to Contracts
which are subject to this Agreement, and no such Registered Representative of
Broker/Dealer, or other person shall have any claim against Insurer on account
of the sale or service of any such Contracts. Insurer shall have no obligation
to make compensation payments except as provided herein.
The Insurer shall not be liable, and the Broker/Dealer agrees to reimburse
Insurer for any commissions paid by the Insurer to the Broker/Dealer with
respect to: (a) a Contract (excluding annuitized Contracts and Perspective
Advisors) where the date of death is within six months from the date the
Contract is issued if the owner's death (or annuitant's death on an
annuitant-driven Contract) resulted from any cause or means other than from
bodily injuries effected solely through accidental means; (b) a Contract
(excluding annuitized Contracts, Perspective Advisors, and immediate annuities)
where illness brings about (or "results in") the Owner's request of a Terminal
Illness Benefit prior to or within six months from the date the Contract was
issued; (c) a Contract returned to the Insurer pursuant to the "Free Look"
provision of the Contract; (d) a Contract that is rescinded or not issued by the
Insurer, as determined by the Insurer in its sole discretion; (e) any situation
in which the Broker/Dealer and/or Registered Representative fails to conform to
applicable state regulations and/or Insurer policies and procedures; (f) any
situation in which the Broker/Dealer and/or Registered Representative fails to
reasonably cooperate with the Insurer; or (g) an immediate annuity Contract
where the premium is returned and the Contract is terminated prior to the first
annuity payment. Any such Commissions paid shall be charged back to the
Broker/Dealer. Broker/Dealer agrees to remit payment for outstanding balances
within 90 days. The Insurer reserves the right to automatically recoup any
charged back commission by offsetting them against future commission credits,
when available.
JNL retains the right to withhold commission payment until expiration of the
"Free Look" provision.
All plans are subject to change and are not available in all states.
Fixed Annuities and Life Insurance Only
Commissions are not paid on renewal premiums which are deducted from a
Contract's cash accumulation account. Renewal Commissions shall not be allowed
on premiums deposited into an advance premium account unless and until such
premiums are due. No first-year Commissions are payable on Preliminary Term
Insurance premiums or on Flat Extra Premium assessed for nine (9) years or less.
The Broker/Dealer shall not be entitled to first-year or renewal commissions on
premiums waived or paid by the Insurer under the Waiver of Premium provisions of
any Contract. No first-year Commissions are payable on flexible-premium
annuities where the annuitant has an existing flexible premium annuity meeting
the same tax-qualifications criteria as the existing annuity. The premium will
be treated as a subsequent deposit, and the Broker/Dealer will be entitled to
the current renewal Commission. The Insurer reserves the right to offer
different Commission terms for Flexible Premium Fixed Annuity Contracts on
renewal deposits in excess of $500,000.
OWNER ISSUE AGE
Under 81
81 to 85
86 to 90
COMMISSION OPTIONS
Option A - 6.75% of Premium Payment
- OR -
Option B - 5.75% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
Option A - 3.375% of Premium Payment
- OR -
Option B - 2.875% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
Option A, B, and C - 1.00% of Premium Payment + 1.00% annual trail commission
Trail Commissions:
Commissions are paid quarterly, based on contract value calculated at the end of
each calendar quarter. Commissions are paid on each Contract that has been in
force at least 12 months.
Internal Exchange Commission Schedule -
Perspective Fixed and Variable Annuity(R)Contracts (VA200)
Owner Issue Ages under 81
Surrender Charge Option A Option B
Remaining On Percent of Initial PremiumPercent of Initial Premium/
JNL Fixed Annuity Contract Annual Trail % on Contract thathas
been in force at least 12 months
6.25%-7.00% None Not Available
5.75%-6.24% .25% Not Available
5.25%-5.74% .75% Not Available
4.75%-5.24% 1.25% .25%/.25%
4.25%-4.74% 1.75% .75%/.25%
3.75%-4.24% 2.25% 1.25%/.25%
3.25%-3.74% 2.75% 1.75%/.25%
2.75%-3.24% 3.25% 2.25%/.25%
2.25%-2.74% 3.75% 2.75%/.25%
1.75%-2.24% 4.25% 3.25%/.25%
1.25%-1.74% 4.75% 3.75%/.25%
.75%-1.24% 5.25% 4.25%/.25%
.25%-.74% 5.75% 4.75%/.25%
Less than .25% 6.25% 5.25%/.25%
OWNER Issue ages 81-85
Surrender Charge Option A Option B
Remaining On Percent of Initial PremiumPercent of Initial Premium/
JNL Fixed Annuity Contract Annual Trail % on Contract that has
been in force at least 12 months
3.25%-7.00% None Not Available
2.75%-3.24% .125% Not Available
2.25%-2.74% .625% .125%/.25%
1.75%-2.24% 1.125% .625%/.25%
1.25%-1.74% 1.625% 1.125%/.25%
.75%-1.24% 2.125% 1.625%/.25%
.25%-.74% 2.625% 2.125%/.25%
Less than .25% 3.125% 2.625%/.25%
Commission Schedule -
Xxxxxxx National Life(R)Defined Strategies Variable AnnuitySM Contracts (VA200)
OWNER ISSUE AGE
Under 81
81 to 85
86 to 90
COMMISSION OPTIONS
Option A - 6.50% of Premium Payment
- OR -
Option B - 5.50% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
Option A - 3.25% of Premium Payment
- OR -
Option B - 2.75% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
Option A, B, and C - 1.00% of Premium Payment + 1.00% annual trail commission
Trail Commissions:
Commissions are paid quarterly, based on contract value calculated at the end of
each calendar quarter. Commissions are paid on each Contract that has been in
force at least 12 months.
Internal Exchange Commission Schedule -
Xxxxxxx National Life(R)Defined Strategies Variable AnnuitySM Contracts (VA200)
Owner Issue Ages Under 81
Surrender Charge Option A Option B
Remaining On Percent of Initial Premium Percent of Initial Premium/
JNL Fixed Annuity Contract Annual Trail % on Contract that has
been in force at least 12 months
5.75% - 7.00% None Not Available
5.25% - 5.74% 0.50%/0% Not Available
4.75% - 5.24% 1.00%/0% 0%/0.25%
4.25% - 4.74% 1.50%/0% 0.50%/0.25%
3.75% - 4.24% 2.00%/0% 1.00%/0.25%
3.25% - 3.74% 2.50%/0% 1.50%/0.25%
2.75% - 3.24% 3.00%/0% 2.00%/0.25%
2.25% - 2.74% 3.50%/0% 2.50%/0.25%
1.75% - 2.24% 4.00%/0% 3.00%/0.25%
1.25% - 1.74% 4.50%/0% 3.50%/0.25%
0.75% - 1.24% 5.00%/0% 4.00%/0.25%
0.25% - 0.74% 5.50%/0% 4.50%/0.25%
Less than 0.25% 6.00%/0% 5.00%/0.25%
Owner Issue Ages 81-85
Surrender Charge Option A Option B
Remaining On Percent of Initial Premium Percent of Initial Premium/
JNL Fixed Annuity Contract Annual Trail % on Contract that has
been in force at least 12 months
2.75% - 7.00% None Not Available
2.25% - 2.74% 0.50%/0% 0%/0.25%
1.75% - 2.24% 1.00%/0% 0.50%/0.25%
1.25% - 1.74% 1.50%/0% 1.00%/0.25%
0.75% - 1.24% 2.00%/0% 1.50%/0.25%
0.25% - 0.74% 2.50%/0% 2.00%/0.25%
Less than 0.25% 3.00%/0% 2.50%/0.25%
Commission Schedule -
Perspective Advantage Fixed and Variable AnnuitySM Contracts (VA600)
Owner Issue Age COMMISSION OPTIONS
Under 76
Option A - 5.00% of Premium Payment
+ .00% annual trail commission in contract years 2 - 9
+ 1.00% annual trail commission in contract years 10+
- OR -
Option B - 4.00% of Premium Payment
+ .25% annual trail commission in contract years 2 - 9
+ 1.00% annual trail commission in contract years 10+
- OR -
Option C - 1.00% of Premium Payment
+ 1.00% annual trail commission in contract years 2 - 9
+ 1.00% annual trail commission in contract years 10+
76 to 80
Option A - 3.00% of Premium Payment
+ .00% annual trail commission in contract years 2 - 9
+ .50% annual trail commission in contract years 10+
- OR -
Option B - 2.40% of Premium Payment
+ .25% annual trail commission in contract years 2 - 9
+ .50% annual trail commission in contract years 10+
- OR -
Option C - .50% of Premium Payment
+ .50% annual trail commission in contract years 2 - 9
+ .50% annual trail commission in contract years 10+
Trail Commissions:
Commissions are paid quarterly, based on contract value calculated at the end of
each calendar quarter. Commissions are paid on each Contract that has been in
force at least 12 months.
Internal Exchange Commission Schedule -
Perspective Advantage Fixed and Variable AnnuitySM Contracts (VA600)
Owner Issue Ages Under 75
Surrender Charge Option A Option B
Remaining On Percent of Initial Premium Percent of Initial Premium/
JNL Fixed Annuity Contract Annual Trail % on Contract that has
been in force at least 12 months
4.25% - 4.50% 0.50%/0% Not Available
3.75% - 4.24% 1.00%/0% Not Available
3.25% - 3.74% 1.50%/0% 0.50%/0.25%
2.75% - 3.24% 2.00%/0% 1.00%/0.25%
2.25% - 2.74% 2.50%/0% 1.50%/0.25%
1.75% - 2.24% 3.00%/0% 2.00%/0.25%
1.25% - 1.74% 3.50%/0% 2.50%/0.25%
0.75% - 1.24% 4.00%/0% 3.00%/0.25%
0.25% - 0.74% 4.50%/0% 3.50%/0.25%
Less than 0.25% 5.00%/0% 4.00%/0.25%
Owner Issue Ages 76-80
Surrender Charge Option A Option B
Remaining On Percent of Initial Premium Percent of Initial Premium/
JNL Fixed Annuity Contract Annual Trail % on Contract that has
been in force at least 12 months
2.25% - 4.50% None Not Available
1.75% - 2.24% 0.50%/0% Not Available
1.25% - 1.74% 1.00%/0% 0.50%/0.25%
0.75% - 1.24% 1.50%/0% 1.00%/0.25%
0.25% - 0.74% 2.00%/0% 1.50%/0.25%
Less than 0.25% 2.50%/0% 2.00%/0.25%
Commission Schedule -
Perspective Advisors Fixed and Variable AnnuitySM Contracts (VA400)
COMMISSIONS
1.10% annual trail commission on each contract (Commissions are paid quarterly,
beginning at the end of the quarter in which the policy is issued, based on
contract value calculated at the end of each calendar quarter.)
Annuitization Commission Schedule
Perspective Fixed and Variable Annuity (VA200)
Perspective Advisors Fixed and Variable Annuity (VA400)
Xxxxxxx National Life Defined Strategies Variable Annuity (VA200)
Perspective Advantage Fixed and Variable Annuity (VA600)
Annuity Option Selected Percent of Contract Value at
Annuity Date
Annuity Option 1 - Life Income 2.0% Annuity Option 2 - Joint and
Survivor Annuity 2.0% Annuity Option 3 - Life Annuity with 120 or 240
Monthly Payments Guaranteed 2.0% Annuity Option 4 - Income for a
Specified Period (Periods of 10 years or more) 2.0%
Perspective, Defined Strategies, and Perspective Advantage:
If Commission Option A or B was selected for the Contract at issue, the above
referenced commissions would be paid only if Annuitization occurred after the
fifth Contract Year.
If Commission Option A or B was selected for the Contract at issue, and the
original issue age was 86-90, the above referenced commissions would be paid
only if Annuitization occurred after the first Contract Year. (For Perspective
and Defined Strategies only. Not for Perspective Advantage.)
If Commission Option C was selected for the Contract at issue, the
above-referenced commission would be paid only if Annuitization occurred after
the first Contract Year.
Upon Annuitization, Trail Commission under Commission Options A (at issue ages
above 85), B and C cease to be paid.
Perspective Advisors:
Upon Annuitization, all trail commission will cease.
Commission Schedule
ELITE 500SM Index Deferred Annuity
(XXX-DA400)
Commissions are paid on Premium Payments made to the Contract, and on Contract
values reallocated to new Contract Options after the maturity of the existing
Contract Option.
Commissions for transfers which occur prior to the maturity of an existing
Contract Option are calculated in the following manner: 1. Determine Commissions
payable on Contract values reallocated to the new Contract Option assuming it
was made after the maturity of the existing Contract Option.
2. Determine commissions payable on a new Contract Option.
The Commission payable is (1) less (2).
Contract Option Period Issue Ages 0-80 (Owner) Issue Ages 81-85 (Owner)
Percent of Premium Percent of Premium
(or subsequent allocations) (or subsequent
allocations)
1-year 0.75% 0.375%
7-year 5.75% 2.875%
9-year 6.75% 3.375%
Commission Schedule
ELITE 90SM Equity Indexed Annuity
(XXX-DA500)
Issue Ages 0-80 (Owner) Issue Ages 81-85 (Owner)
Percent of Premium Percent of Premium
6.75% 3.375%
XXX Multi-Index Deferred Annuity
XXX Multiple Index Deferred Annuity (XXX-DA200)
Contract Issue Ages 0-80 Issue Ages 81-85
Option (Owner) (Owner)
Period Percent of Premium Percent of Premium
1-year .75% .375%
2-year 1.75% .875%
3-year 2.75% 1.375%
4-year 3.75% 1.875%
5-year 4.75% 2.375%
6-year 5.25% 2.625%
7-year 5.75% 2.875%
8-year 6.25% 3.125%
9-year 6.75% 3.375%
10-year 6.75% 3.375%
Commissions are paid on Premium Payments made to the Contract, and on Contract
values reallocated to new Contract Options after the maturity of the existing
Contract Option.
Commissions for transfers (including Earnings Lock-Ins) which occur prior to the
maturity of an existing Contract Option are calculated in the following manner:
1. Determine Commissions payable on Contract values reallocated to the new
Contract Option assuming it was made after the maturity of the existing Contract
Option.
2. Determine Commissions payable on Contract values reallocated to a new
Contract Option for the same number of years as that remaining in the existing
Contract Option.
The Commission payable is (1) less (2).
Commission Schedule -- FIXED ANNUITIES
OPTIONS
JNL Select+ A B C
Guaranteed
Period
1 Issue Age 0-80 .75 N/A N/A
2 1.75 .90/.90 .90
3 2.75 1.375/.80 1.00
4 3.75 1.875/.75 1.10
5 4.75 2.375/.75 1.15
6 5.25 2.625/.70 1.10
7 5.75 2.875/.65 1.05
8 6.25 3.125/.65 1.05
9 6.75 3.375/.60 1.05
10 6.75 3.375/.55 1.00
OPTIONS
JNL Select+ A B C
Guaranteed
Period
1 Issue Age 81-85 .375 N/A N/A
2 .875 .450/.450 .450
3 1.375 .688/.400 .500
4 1.875 .938/.375 .550
5 2.375 1.188/.375 .575
6 2.625 1.313/.350 .550
7 2.875 1.438/.325 .525
8 3.125 1.563/.325 .525
9 3.375 1.688/.300 .525
10 3.375 1.688/.275 .500
Flexible Premium Plans First Year Renewal
Flexible Premium I** 6% 6% (2-5 yrs)
0.1%*
(6th & subsequent anniversaries)
QFlex 4.25% 5.5% (2-10 yrs)
* Commission is a percentage of accumulated value on the anniversary
date. However, such commission must be returned to the Insurer if the
policyowner surrenders the policy within 30 days of such anniversary
date.
** First-year commissions are payable also on increases over the largest
prior year premiums during the first 10 policy years for qualified
plans (except IRAs).
+ Commissions are paid on initial premium and on accumulated value which
is renewed at the end of each guaranteed period. However, such
commission must be returned to the Insurer if the policyowner
surrenders the policy within 30 days of each guaranteed period renewal
date.
Commission Schedule-- FIXED ANNUITIES
Premium Level Issue OPTIONS
(Minimums Shown) Age A B C
Action
Action One
Action Two
Bonus MAX
Bonus MAX One
Bonus MAX Two
MAX
Super MAX
Immediate
Annuity
$2,000-3,999 0-70 3.0 1.50/.30.50
$4,000-4,999 4.0 2.0/.40 .65
$5,000 & Up 6.0 3.0/.60 1.0
$10,000 & Up 71-80 6.0 3.0/.60 1.0
$10,000 & Up 81-85 3.0 1.50/.30.50
$5,000 & Up 0-70 4.0 2.0/.40 .65
$10,000 & Up 71-80 4.0 2.0/.40 .65
$10,000 & Up 81-85 2.0 1.0/.20 .325
$2,000-3,999 0-70 5.0 2.5/.50 .80
$4,000-4,999 6.0 3.0/.60 1.0
$5,000 & Up 8.0 4.0/.80 1.35
$10,000 & Up 71-80 8.0 4.0/.80 1.35
$10,000 & Up 81-85 4.0 2.0/.40 .65
$2,000-3,999 0-70 3.0 1.50/.30.50
$4,000-4,999 4.0 2.0/.40 .65
$5,000 & Up 6.0 3.0/.60 1.0
$10,000 & Up 71-80 6.0 3.0/.60 1.0
$10,000 & Up 81-85 3.0 1.50/.30.50
$5,000 & Up 0-70 4.0 2.0/.40 .65
$10,000 & Up 71-80 4.0 2.0/.40 .65
$10,000 & Up 81-85 2.0 1.0/.20 .325
$2,000-3,999 0-70 5.0 2.5/.50 .80
$4,000-4,999 6.0 3.0/.60 1.0
$5,000 & Up 8.0 4.0/.80 1.35
$10,000 & Up 71-80 8.0 4.0/.80 1.35
$10,000 & Up 81-85 4.0 2.0/.40 .65
$1,000-1,999 0-70 3.0 1.50/.30.50
$2,000 & Up 4.0 2.0/.40 .65
$5,000 & Up 71-80 4.0 2.0/.40 .65
$5,000 & Up 81-85 2.0 1.0/.20 .325
$5,000 & Up 0-80 6.0 3.0/.60 1.0
$5,000 & Up 81-85 3.0 1.50/.30.50
Net Premium N/A 4 N/A N/A
Option A provides a onetime, commission payment based on 1st-year premiums with
no trail or renewal commissions. Option B provides both an up-front commission
and trail for the life of a fixed annuity, or up-front commissions, renewals for
years 2-10, and service fees. Option C provides level commissions each year for
the first ten policy years, with service fees thereafter (if applicable), or
trail commissions for the life of the fixed annuity.
Fixed annuity trail commissions are based on a percentage of accumulated value
at policy anniversary net of policy loans.
Commission Schedule -- LIFE
OPTIONS
A B C
Interest-Sensitive Whole Life
Ultimate(R)7 75 60/5/1 16/1
Ult II, Lifeline, Last Survivor, Joint, Unisex 90 75/5/1 18/1
Last Survivor >80 60 45/5/1 12/1
Life
Universal Life One N/A 85*/5/1 N/A
Two N/A 90*/5/1 N/A
Term
JNL's RewardSM 10/15/20-Year R&C 90 75/4/0 15/0
YRT Prime N/A 65/4/1 14/0
Choice N/A 40/4/1 10/0
Lifeline Term 90 75/4/0 15/0
Decreasing Term 100 75/7.5/1 17/1
Riders+
Family & Child Rider 90 70/7.5/117/1
Single Premium Drop-in Rider 5 0 N/A
DIPPR 5 0 N/A
If a life policy has two or more elements (base and rider), Insurer will pay the
commission option that is common between the elements. For instance, an Ultimate
II with a Prime or Choice 10-Year rider will pay commissions only under Option A
or C, since the term rider does not have an Option B.
Insurer will pay Option A on all life policies with Annual Premium Drop-in
Riders.
Most policy fees are not commissionable.
* Up to Target premium. Amounts over Target earn 5%.
+ Term policies written as riders: Same commission as if written as term
policies. Other riders not listed above (Waiver of Premium, Accidental
Death Benefit): First-year and renewal commissions are payable at the
same rate as the base policy. Note: Not all riders attach to all
policies; check the rate book for details.
XXXXXXX NATIONAL LIFE INSURANCE COMPANY
XXXXXXX NATIONAL LIFE DISTRIBUTORS, INC. MEMBER NASD
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ADDENDUM TO SELLING AGREEMENT
This Addendum, dated _______________ ___, _____, to the Selling Agreement,
dated ___________________ ___, _____, is by and among
____________________________________________________________________ and
(Broker/Dealer)
--------------------------------------------------------------------------------
(Agency)
--------------------------------------------------------------------------------
(Agency)
--------------------------------------------------------------------------------
(Agency)
herinafter taken together and referred to as ("Broker/Dealer"), XXXXXXX NATIONAL
LIFE INSURANCE COMPANY ("Insurer"), and XXXXXXX NATIONAL LIFE DISTRIBUTORS, INC.
("Distributor"). The purpose of this Addendum is to amend the Selling Agreement
among the parties to add the provisions set forth below. This Addendum does not
delete any provision of the Selling Agreement, except to the extent of any
contradiction. The paragraph numbering and headings of this Addendum correspond
to the Selling Agreement, and the provisions set forth under each heading are
added to the corresponding section of the Selling Agreement.
I. REGISTERED REPRESENTATIVES
Continued solicitation for the Contracts shall be contingent upon the continuing
qualification of the Registered Representatives by possession of the required
licenses, appointments, and registrations. Broker/Dealer shall notify
Distributor immediately in writing if any Registered Representative appointed by
Insurer ceases to be a registered representative of Broker/Dealer or ceases to
be properly licensed in any state.
II. SALES MATERIAL
Upon receipt or approval of updated prospectuses and other material,
Broker/Dealer shall promptly discard or destroy all outdated copies of such
materials, except as needed to maintain proper records.
III. PROSPECTUS DELIVERY
No sales solicitation, 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 the appropriate then current
prospectus, the then current prospectus for the underlying funds funding the
Contract, and where required by state law, the then current statement of
additional information.
Broker/Dealer agrees to comply with the established rules and regulations of
Insurer now in effect or which may be established hereafter.
IV. BROKER/DEALER COMPLIANCE
Broker/Dealer is specifically charged with the responsibility of supervising its
Registered Representatives' compliance with all applicable suitability
requirements under federal or state law or the regulations of the NASD.
Broker/Dealer is specifically charged with providing or arranging for adequate
training to ensure that Registered Representatives have thorough knowledge of
each Contract and the ability to make appropriate product presentations and
suitability determinations in compliance with applicable law. Broker/Dealer and
the Registered Representatives shall not recommend the purchase of a Contract to
a prospective purchaser unless they have reasonable grounds to believe that such
purchase is suitable for the prospective purchaser and is in accordance with
applicable regulations of any regulatory authority, including the SEC and the
NASD. While not limited to the following, a determination of suitability shall
be based on information concerning the prospective purchaser's insurance and
investment objectives, risk tolerance, need for liquidity, and financial and
insurance situation and needs. An appropriate principal of Broker/Dealer shall
approve each application as to suitability before forwarding such application to
Insurer.
Broker/Dealer shall notify Distributor and Insurer immediately in writing if
Broker/Dealer fails to comply with any of the laws and regulations applicable to
it.
IX. COOPERATION
Broker/Dealer will promptly notify Distributor and Insurer of any complaint or
claim or any notice of any regulatory investigation or proceeding received by
Broker/Dealer or its affiliates relating to the Distributor, Insurer, any
associated person of Distributor or Insurer, or the Contracts, or any or
threatened or filed arbitration action or civil litigation arising out of
solicitation of the Contracts.
IN WITNESS WHEREOF, the parties have executed this Addendum as of the date set
forth above.
BROKER/DEALER:
----------------------------------- ----------------------------------
Name of Broker/Dealer Name of Life Agent or Agency (If other
than Broker/Dealer)
----------------------------------- -----------------------------------
Address Address
Signature: __________________________ Signature: __________________________
Print Name: _________________________ Print Name: _________________________
Title: ______________________________ Title: ______________________________
Date: ______________________________ Date: ______________________________
XXXXXXX NATIONAL LIFE XXXXXXX NATIONAL
INSURANCE COMPANY LIFE DISTRIBUTORS, INC.
1Corporate Way 000 Xxxxxxxx Xxxxxxxxx, Xxx. 0000
Xxxxxxx, XX 00000 Xxxxx Xxxxxx, XX 00000
Signature: __________________________ Signature: __________________________
Print Name: _________________________ Print Name: _________________________
Title: ______________________________ Title: ______________________________
Date: ______________________________ Date: ______________________________
