Item 24.b Exhibit (3)(a)
SERVICE FACILITIES AGREEMENT
THIS AGREEMENT, made and entered into this 1st day of April, 1987, by and
between Security Distributors, Inc., and Security Benefit Life Insurance
Company, both Kansas corporations.
WITNESSETH:
WHEREAS, Security Distributors, Inc. is a wholly-owned subsidiary of Security
Management Company, which is a wholly-owned subsidiary of Security Benefit
Group, Inc., which in turn is a wholly-owned subsidiary of Security Benefit Life
Insurance Company; and
WHEREAS, one of the purposes of Security Distributors, Inc., is to act as a
broker/dealer and principal underwriter pursuant to the requirements of the
Securities Act of 1934 for the offering and selling of Variable Annuity
Contracts and Variable Life Insurance Policies to be issued by Security Benefit
Life Insurance Company for investment in the various SBL Variable Annuity and
Variable Life Separate Accounts; and
WHEREAS, because Security Benefit Life Insurance Company has facilities for the
handling of the recordkeeping and other related administrative duties of
Security Distributors, Inc. pertaining to the sale of Variable Annuity Contracts
and Variable Life Insurance Policies;
NOW, THEREFORE, IT IS MUTUALLY AGREED between Security Distributors, Inc. and
Security Benefit Life Insurance Company, both Kansas corporations, that for and
in consideration of the principal underwriting and broker/dealer services
rendered and to be rendered by Security Distributors, Inc. relating to Security
Benefit Life Insurance Company's Variable Annuity and Variable Life operations,
Security Benefit Life Insurance Company convenants and agrees that it will
furnish services and facilities to Security Distributors, Inc. as hereinafter
set forth:
1. Administrative and clerical personnel as may be needed from time to time to
properly carry out the functions and duties of Security Distributors, Inc.
relating to the Variable Annuity and Variable Life operations.
2. Maintain all books and records of Security Distributors, Inc. in connection
with persons offering and selling Variable Annuity Contracts and Variable
Life Insurance Policies funded by various separate accounts of Security
Benefit Life Insurance Company who are licensed as insurance agents of
Security Benefit Life Insurance Company and are also Registered
Representatives of independent broker/dealers which have Selling Agreements
with Security Distributors, Inc. Such books and records to be maintained
and preserved in conformity with the requirements of Rule 17(a)-3 and
17(a)-4 of the Securities Act of 1934 to the extent that such requirements
are applicable to Variable Annuity Contracts and Variable Life Insurance
Policies.
3. All such books and records are to be maintained and held by Security
Benefit Life Insurance Company on behalf of and as agent for Security
Distributors, Inc. and such books and records shall remain the sole
property of Security Distributors, Inc.
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4. Such books and records shall at all times be subject to inspection by the
Securities and Exchange Commission in accordance with Section 17(a) of the
Securities Act of 1934 and the National Association of Securities Dealers,
Inc.
5. It is further understood and agreed that the making of any payments by
Security Benefit Life Insurance Company to registered representatives of
independent broker/dealers which have Selling Agreements with Security
Distributors, Inc. are performed as purely as administerial service and
that the records in respect thereof are properly reflected on the books and
records maintained by or for Security Distributors, Inc.
6. Since the crediting of a payment made by a participant (applicant of owner)
of a Variable Annuity Contract or by an owner of a Variable Life Insurance
Policy on the books and records maintained by or for Security Distributors,
Inc. constitutes the sale of a security, and, therefore, a "transaction" as
that term is used in Rule 15(c) 1-4 under the Securities Act of 1934, a
confirmation for each such transaction will be sent to the participant at
or before the completion of the transaction, and such confirmation shall
reflect the facts of the transaction, and the form thereof will show that
it is being sent on behalf of Security Distributors, Inc. and acting in the
capacity of agent for Security Benefit Life Insurance Company.
7. Security Distributors, Inc. has and does assume full responsibility for the
securities activities of all persons associated with it who are engaged
directly or indirectly in the Variable Annuity and/or Variable Life
operation of Security Benefit Life Insurance Company, each such person
being a "person associate" of Security Distributors, Inc. as defined in
Section 3(a)-18 of the Securities Act of 1934, and, therefore, a person for
whom Security Distributors, Inc. has full responsibility in connection with
training, supervision and control as contemplated by Section 15(b)(5)(E) of
the Securities Act of 1934, provided, however, Security Distributors, Inc.
shall not be responsible for persons not associated with it that are
registered broker/dealers or who are offering or selling Variable Annuity
Contracts or Variable Life Policies and are affiliated and registered with
a broker/dealer for such purposes.
ANY CHANGES in this Agreement shall be mutually agreed to by both parties and
shall be in writing.
THIS AGREEMENT shall be in effect as of April 1, 1987, and shall remain in
effect until otherwise terminated by either party upon thirty (30) days written
notice to the other party at that party's last known address as reflected on the
records of the terminating party.
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IN WITNESS WHEREOF, the parties by their duly authorized officers have executed
this Agreement on this 1st day of April, 1987.
SECURITY BENEFIT LIFE INSURANCE COMPANY
By: XXXXXX X. XXXXX
---------------------------------------------
Xxxxxx X. Xxxxx, President
ATTEST:
XXXXX X. XXXXX
-------------------------------------------------
Xxxxx X. Xxxxx, General Counsel and Secretary
SECURITY DISTRIBUTORS, INC.
By: XXXXXXX X. XXXXX
---------------------------------------------
Xxxxxxx X. Xxxxx, President
ATTEST:
XXXXXXX X. XXXXXX
-------------------------------------------------
Xxxxxxx X. Xxxxxx, Secretary
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