IDS Life Insurance Company of New York
IDS Paraplanner License Agreement
This is an Agreement, made at Minneapolis, Minnesota, by and between IDS Life
Insurance Company of New York and you,
(Print Full Name)
executed and effective as of the date shown on the last line of this Agreement.
It defines your relationship with IDSL-NY as a Paraplanner. Both you and IDSL-NY
promise to comply with the terms of this Agreement and any properly executed
Riders to this Agreement.
Section I - Definitions
1. For purposes of this Agreement, the terms listed below have the special
meanings shown.
(a) "IDSL-NY" means IDS Life Insurance Company of New York.
(b) "IDS" means IDS Financial Services Inc. (formerly IDS Marketing
Corporation).
(c) "Affiliate" means any partnership, business, trust, company or
corporation affiliated with IDSL-NY at any time while this Agreement is
in effect.
(d) "Personal Financial Planner or Planner" means Personal Financial
Planner and Sales Representative.
(e) "Services" means financial planning, advisory, securities brokerage,
tax or other financial Services.
(f) "Products" means certificates, stock, other securities or investments,
lending products, life insurance and annuity policies and contracts,
and other insurance products.
(g) "Records and Materials" means all records, files, manuals, blanks,
forms, materials, supplies, stationery, literature, seminar materials,
computer software, licenses, papers and books that IDSL-NY or an
Affiliate furnishes or leases to you for use, with or without charge,
or that you create or prepare, including notes, memos and works of
authorship, in connection with the performance of this Agreement.
(h) "Client" means a person or entity who (1) purchases or holds a Product
or Service acquired from or through IDSL-NY or an Affiliate or one of
their Planners with the consent of IDSL-NY or the Affiliate, or (2)
authorized IDSL-NY, an Affiliate or one of their Planners to make
personal financial planning presentations to it or its employees or
members, or (3) is a member of a Client's household.
Section II - Appointment
1. You are employed as a Paraplanner by IDS or an IDS Personal Financial
Planner pursuant to an agreement, the terms of which prohibit you from
acting as an insurance agent while acting on behalf of IDS or Planner.
2. Your duties as a Paraplanner may require you to undertake activities which
are reserved by law to insurance agents
3. IDS or Planner has advised IDSL-NY that it will waive the full-time
requirement of its employment agreement with you to the extent necessary
for you to act as an agent of IDSL-NY, but only upon the express condition
that you will receive no compensation from IDSL-NY.
4. IDSL-NY appoints you to act as an agent of IDSL-NY in connection with your
activities as a Paraplanner in assisting duly licensed Planners of IDS and
IDSL-NY, but only in accordance with this Agreement and you accept that
appointment.
Section III - Business Activities of Paraplanner
Your duties as a Paraplanner may include activities necessitating you to act as
an agent of IDSL-NY. However, such activities will not include seeking
applications for insurance policies or annuity contracts.
Section IV - Status of Paraplanner
1. You are an independent contractor for IDSL-NY, and nothing in this
Agreement can be interpreted as creating an employer-employee relationship
between IDSL-NY and you or between any IDSL-NY Planner and you.
2. You will pay all expenses and fees you incur while carrying out the terms
of this Agreement and will comply with all applicable laws, ordinances and
regulations.
3. You will, before conducting any activities under this Agreement, obtain any
licenses or registrations required by law or IDSL-NY and a fidelity or
surety bond satisfactory to IDSL-NY and will maintain them in force until
this Agreement is terminated
4. This Agreement will terminate upon cancellation or non-renewal of any
license, registration or bond you are required to have by the terms of this
Agreement.
Section V - Undertakings By Paraplanner
1. You must have written approval from IDSL-NY before you issue or use in any
way any materials about IDSL-NY or about insurance policies and annuity
contracts issued by IDSL-NY
2. You will abide by all rules, regulations and policies of IDSL-NY and IDS.
3. You cannot alter or change the provisions of any insurance policy or
annuity contract distributed by IDSL-NY. You also cannot incur any
liability or expense on behalf of IDSL-NY
4. You agree to and authorize the assignment of any debt you owe IDSL-NY to
any Affiliate. You also agree to repay any assigned debt to the assignee.
5. When authorized to do so, you will promptly deliver premium receipts and
policies or contracts originating from applications solicited by a Personal
Financial Planner for life insurance and annuities, but only when no
signature by the applicant is required ' and only when applicant appears to
be in good health and the initial premium (if required) has been duly paid,
and other receipts and policies or contracts as required by IDSL-NY.
6. When authorized to do so, you will collect and immediately report and remit
to IDSL-NY renewal premiums or any loan repayments you receive with respect
to insurance and annuities sold by a Personal Financial Planner and any
payments with respect to other Products or Services sold by a Personal
Financial Planner.
7. You will send all payments, money or property you collect or receive to
IDSL-NY without commingling it with your own money or property.
Section VI - Compensation
You will not receive any compensation from IDSL-NY for any of your activities
under this Agreement.
Section VII - Termination
1. This Agreement terminates upon your death. This Agreement may be terminated
by either party without cause upon 5 days' written notice to the other
party and for cause may be terminated immediately by IDSL-NY. This
Agreement, if made as an accommodation for you while serving as a
Paraplanner employed by IDS, will terminate upon the termination of your
Paraplanner's Employment Agreement with IDS. If your agreement with a
Planner of IDS terminates, you agree to immediately notify IDS of such a
termination. A breach by you of any provision of this Agreement will also
terminate this Agreement.
2. If IDSL-NY believes that it may have the right to terminate this Agreement
for cause, IDSL-NY can notify you that it is investigating whether cause
for termination exists. This suspension can be given instead of terminating
this Agreement, in order to provide time for determining the facts. Until
the notice is retracted, it has the same effect on your rights as a notice
of termination for cause. When the investigation has been completed, if not
before, IDSL-NY will notify you whether your suspension is lifted or the
Agreement is terminated for cause. If the Agreement is terminated, the
termination takes effect on the date you received the notice of suspension.
3. (a) All Records and Materials are the property of IDSL-NY, an Affiliate
or one of their associated companies All rights to Records and
Materials that you prepare or create in connection with the performance
of this Agreement are hereby assigned to IDSL-NY. You agree that you
will not reproduce or allow the reproduction of the Records and
Materials in any manner whatsoever except pursuant to written policy or
consent of IDSL-NY.
(b) You are responsible for the safekeeping of these items Such Records and
Materials are open to inspection by IDSL-NY at any time during your
normal business hours You must return them and all copies of them to
IDSL-NY at any time on request. When this Agreement ends, all of these
items remain IDSL-NY property. You must return all of them, together
with any licenses you have or control, without demand or compensation.
(c) While this Agreement i8 in effect and after it ends, you agree that you
will not reveal the contents of any IDSL-NY property or allow them to
be revealed, except in connection with carrying out your duties under
the Agreement. You will not reveal the names and addresses of IDSL-NY
Clients or any other information about them, including financial
information. You also will not reveal any of this information about
potential Clients, to whom a presentation has been made by an IDSL-NY
Planner, who might reasonably be expected to do business with IDSL-NY
or an Affiliate. You will not allow any of this information about
Clients or potential Clients to be revealed.
(d) You agree that the identity of Clients and potential Clients is
confidential information. For one year after this Agreement ends, you
agree not to use any such information in connection with any business
in competition with IDSL-NY or an Affiliate.
4. (a) You must not, without the written consent of IDSL NY, use any
information you acquired while this Agreement was in force in a manner
adverse to the interests of IDSL-NY or an Affiliate. You also must not:
(1) Encourage or induce anyone to terminate an agreement with IDSL-NY
or an Affiliate without IDSL-NY's consent;
(2) Encourage or induce any annuity or policy holder to give up a
policy or contract; or
(3) Promote or make unwarranted claims against IDSL-NY or an
Affiliate.
(b) All of the above provisions apply while the Agreement is in effect and
after it ends.
5. For one year after this Agreement ends, you agree that you will not, in the
territory where you acted as a Paraplanner under this or any other
agreement with IDSL-NY or an Affiliate, directly or indirectly offer for
sale, sell or seek an application for any Product or Service issued or
provided by any company to or from a Client you contacted, dealt with or
learned about while you represented IDSL-NY or an Affiliate or because of
that representation. You are excepted from this restriction only if you
carry out these activities as a Planner or manager of IDSL-NY or with the
written consent of IDSL-NY.
6. You must not do anything to damage the goodwill of IDSL-NY or an Affiliate.
7. (a) You agree that:
(1) The violation of the provisions in paragraphs 3, 4, 5 and 6 of
this section will result in damage to IDSL-NY that cannot be
determined exactly and for which IDSL-NY has no adequate remedy
under the law; and that
(2) IDSL-NY has the specific right to enforce these provisions; and
that
(3) IDSL-NY is entitled to an injunction to keep you from violating
the provisions or to enforce them.
(b) If a dispute involving this Agreement is submitted for arbitration
under the Code of Arbitration Procedure of the National Association of
Securities Dealers or otherwise, you agree that IDSL-NY is entitled to
an injunction by a court of competent jurisdiction to keep you from
violating these restrictions while the arbitration is pending.
Section VIII - Miscellaneous
1. This Agreement is a New York contract, governed by New York law.
2. If IDSL-NY waives any provision of this Agreement, the waiver applies only
to that provision, not to any other parts of the Agreement. A waiver is
effective only when it is in writing and signed by an authorized IDSL-NY
officer.
3. If the laws of any state prohibit any provision of this Agreement, the laws
apply only to that provision. They do not invalidate the remaining portion
of the Agreement.
4. Any notice to IDSL-NY under this Agreement must be given to the home office
of IDSL-NY in Albany, New York. Any notice given to you under this
Agreement is considered to have been given if delivered to you in person or
mailed to your last known address on file with the IDSL-NY home office in
Albany.
5. You and IDSL-NY both acknowledge that no oral or written representations
were made about this Agreement or about the relationship between you and
IDSL-NY that are not set forth in this Agreement. Your rights and IDSL-NY's
rights are governed only by this Agreement and by any other subsequent
written agreements or riders between you and IDSL-NY and signed by an
authorized officer of IDSL-NY.
Section IX - Nonassignable
You may not assign this Agreement without IDSL-NY's written consent.
Section X - Prior Agreements
This Agreement terminates and supersedes any existing agreements between the
parties whether executed effective the same date as this agreement or otherwise.
However, this provision does not impair your right to any commissions or
overwriting payable under such an agreement for business written under that
agreement or your right to any compensation earned and unpaid under that
agreement.
Section XI - Effective Date
IN WITNESS of the provisions of this Agreement as described above, you and
IDSL-NY have entered into this Agreement with the understanding that it becomes
effective on , 19 .
IDS Life Insurance Company of New York
By
Paraplanner Assistant Secretary
D.O. Number
Paraplanner No.
