Exhibit 1.(3)(c)
SCHEDULE
COMPENSATION
This schedule is attached to and made a part of the most current executed
Broker-Dealer and General Agent Selling Agreement (the "Agreement") between and
among Liberty Life Assurance Company of Boston ("Liberty Life"), Liberty Life
Distributors LLC ("Distributor"), ____________________ ("Broker-Dealer") and
_______________ ("General Agent").
The compensation for the variable life insurance and annuity products (the
"Contracts") referred to in the Agreement is as follows:
FOR FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE CONTRACTS, written on Form
FPV-98150, and any variations of these forms as may be required by insurance
regulatory authorities:
1. NEW BUSINESS COMMISSION AND EXPENSE REIMBURSEMENT ALLOCATION:
DISTRIBUTOR shall receive commissions in the following percentages for
each Contract for which Broker-Dealer is the broker-of-record:
First Contract Year: 30% of the total Premiums paid up to the twelve
times the commissionable monthly Premium and 4% of any Premium paid
in excess of that amount.(1)
Second and Third Contract Years: 4% of each Premium paid.
Fourth through Fifteenth Contract Years: 3% of each Premium paid.
Sixteenth+ Contract Years: 2% of each Premium paid.
However, no compensation shall be paid on Premium received from a Contract owner
when an existing life insurance or annuity contract issued by Liberty Life on
the same life has lapsed, been terminated or surrendered, been continued on a
nonforfeiture option, or been changed, modified or converted in any manner
within six months of the date of the application for the new Contract or twelve
months after the issue date of the new Contract, except to the extent that the
first year's annualized premium for the new Contract exceeds the first year's
annualized premium from the existing contract.
2. RETURN OF COMPENSATION IN SPECIFIED CIRCUMSTANCES
The following rules regarding "chargebacks" shall apply in connection with
the offer and sale of Contracts under this Agreement:
a. In the event that:
i. a Premium is returned because Liberty Life rejects the
application for the Contract under which such Premium has been paid or
because the Premium, or the related application, is not timely received by
Liberty Life as required herein, or a refund is made because a purchaser
exercises his or her free
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(1)In adddition, an expense reimbursement allowance may be paid equal to
up to 25% of the total Premiums paid in the first Contract Year up to twelve
times the commissionable monthly Premium.
look right under a Contract; or
ii. within the first twelve months after the date on which a
Contract was issued, the purchaser surrenders the Contract, or otherwise
rescinds the Contract, or the Contract lapses;
then, in any such event, Broker-Dealer shall not be entitled to any compensation
with respect to such Contract, and any and all compensation previously received
by Broker-Dealer based on all Premiums paid into the Contract shall be repaid to
Distributor, and Broker-Dealer shall pay any loss incurred as a result of a
Premium being returned which was not timely received or for which an application
was not timely received by Liberty Life.
b. If and to the extent that any loans or partial withdrawals are
made with respect to any Contract during the first year after issuance, the
compensation due to Broker-Dealer shall be recomputed as though the amount of
the loan or partial withdrawal had never been paid as a Premium.
c. If and to the extent that a Contract is exchanged for another
contract during the first contract year of the Contract, the compensation due to
Broker-Dealer shall be recomputed as though the Contract had never been issued.
Distributor shall have the right to collect from Broker-Dealer or to withhold
from future payments of compensation due to Broker-Dealer under this Agreement
an amount equal to any reduction in compensation effected by this Schedule, to
the extent permitted by applicable law; provided, however, that this option on
the part of Distributor shall not prevent both Distributor and Broker-Dealer or
either of them from pursuing any other means or remedies available to them to
recover such compensation. For purposes of this Schedule, the payment of a death
benefit pursuant to the terms of a Contract shall not be deemed a surrender or
rescission by a purchaser.
