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EXHIBIT 3(a)
DISTRIBUTION AGREEMENT
AGREEMENT dated as of _________________ by and between BANKERS LIFE
INSURANCE COMPANY OF NEW YORK ("Insurer"), a New York insurance company, on its
behalf and on behalf of each separate account identified in Schedule 1 hereto,
and IL SECURITIES, INC. ("Distributor"), an Indiana corporation.
WITNESSETH:
WHEREAS, Distributor is a broker-dealer that engages in the distribution
of variable insurance products and other investment products; and
WHEREAS, Insurer desires to issue certain variable insurance products
described more fully below to the public through Distributor acting as principal
underwriter;
NOW, THEREFORE, in consideration of their mutual promises, Insurer and
Distributor hereby agree as follows:
1. Additional Definitions
a. Contracts -- The class or classes of variable insurance products
set forth on Schedule 1 to this Agreement as in effect at the
time this Agreement is executed, and such other classes of
variable insurance products that may be added to Schedule 1 from
time to time in accordance with Section 11.b of this Agreement,
and including any riders to such contracts and any other
contracts offered in connection therewith. For this purpose and
under this Agreement generally, a "class of Contracts" shall mean
those Contracts issued by Insurer on the same policy form or
forms and covered by the same Registration Statement.
b. Registration Statement -- At any time that this Agreement is in
effect, each currently effective registration statement filed
with the SEC under the 1933 Act on a prescribed form, or
currently effective post-effective amendment thereto, as the case
may be, relating to a class of Contracts, including financial
statements included in, and all exhibits to, such registration
statement or post-effective amendment. For purposes of Section 9
of this Agreement, the term "Registration Statement" means any
document which is or at any time was a Registration Statement
within the meaning of this Section 1.b.
c. Prospectus -- The prospectus included within a Registration
Statement, except that, if the most recently filed version of the
prospectus (including any supplements thereto) filed pursuant to
Rule 497 under the 1933 Act subsequent to the date on which a
Registration Statement became effective differs from the
prospectus included within such Registration Statement at the
time it became
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effective, the term "Prospectus" shall refer to the most recently
filed prospectus filed under Rule 497 under the 1933 Act, from and
after the date on which it shall have been filed. For purposes of
Section 9 of this Agreement, the term "any Prospectus" means any
document which is or at any time was a Prospectus within the meaning
of this Section 1.c.
d. Fund -- An investment company in which the Separate Account invests.
e. Variable Account -- A separate account supporting a class or classes
of Contracts and specified on Schedule 1 as in effect at the time
this Agreement is executed, or as it may be amended from time to
time in accordance with Section 11.b of this Agreement.
f. 1933 Act -- The Securities Act of 1933, as amended.
g. 1934 Act -- The Securities Exchange Act of 1934, as amended.
h. 1940 Act -- The Investment Company Act of 1940, as amended.
i. SEC -- The Securities and Exchange Commission.
j. NASD -- The National Association of Securities Dealers, Inc.
k. Regulations -- The rules and regulations promulgated by the SEC
under the 1933 Act, the 1934 Act and the 1940 Act as in effect at
the time this Agreement is executed or thereafter promulgated.
l. Selling Broker-Dealer -- A person registered as a broker-dealer and
licensed as a life insurance agent or affiliated with a person so
licensed, and authorized to distribute the Contracts pursuant to a
sales agreement as provided for in Section 4 of this Agreement.
m. Agents Manual -- The agents manual and other written rules,
regulations and procedures provided by Insurer to insurance agents
appointed to sell its insurance contracts, as revised from time to
time.
n. Representative -- When used with reference to Distributor or a
Selling Broker-Dealer, an individual who is an associated person, as
that term is defined in the 1934 Act.
o. Application -- An application for a Contract.
p. Premium -- A payment made under a Contract by an applicant or
purchaser to purchase benefits under the Contract.
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q. Annuity Service Center -- The service office identified in the
Prospectus as the location at which Premiums and Applications are
accepted.
2. Authorization and Appointment
a. Scope of Authority. Insurer hereby authorizes Distributor on an
exclusive basis, and Distributor accepts such authority, subject
to the registration requirements of the 1933 Act and the 1940 Act
and the provisions of the 1934 Act and conditions herein, to be
the distributor and principal underwriter for the sale of the
Contracts to the public in each state and other jurisdiction in
which the Contracts may lawfully be sold during the term of this
Agreement. Insurer hereby appoints Distributor as its
independent general agent for sale of the Contracts. Insurer
hereby authorizes Distributor to grant authority to Selling
Broker-Dealers to solicit Applications and Premiums to the extent
Distributor deems appropriate and consistent with the marketing
program for the Contracts or a class of Contracts, subject to the
conditions set forth in Section 4 of this Agreement. The
Contracts shall be offered for sale and distribution at premium
rates set from time to time by Insurer. Distributor shall use
its best efforts to market the Contracts actively, directly
and/or through Selling Broker-Dealers in accordance with Section
4 of this Agreement, subject to compliance with applicable law,
including rules of the NASD.
b. Limits on Authority. Distributor shall act as an independent
contractor and nothing herein contained shall constitute
Distributor or its agents, officers or employees as agents,
officers or employees of Insurer solely by virtue of their
activities in connection with the sale of the Contracts
hereunder. Distributor and its Representatives shall not have
authority, on behalf of Insurer: to make, alter or discharge any
Contract or other insurance policy or annuity entered into
pursuant to a Contract; to waive any Contract forfeiture
provision; to extend the time of paying any Premium; or to
receive any monies or Premiums (except for the sole purpose of
forwarding monies or Premiums to Insurer). Distributor shall not
expend, nor contract for the expenditure of, the funds of
Insurer. Distributor shall not possess or exercise any authority
on behalf of Insurer other than that expressly conferred on
Distributor by this Agreement.
3. Solicitation Activities
a. Distributor Representatives. No Distributor Representative shall
solicit the sale of a Contract unless at the time of such
solicitation such individual is duly registered with the NASD and
duly licensed with all applicable state insurance and securities
regulatory authorities, and is duly appointed as an insurance agent
of Insurer.
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b. Solicitation Activities. All solicitation and sales activities
engaged in by Distributor and the Distributor Representatives with
respect to the Contracts shall be in compliance with all applicable
federal and state securities laws and regulations, as well as all
applicable insurance laws and regulations and the Agents Manual. In
particular, without limiting the generality of the foregoing:
(1) Distributor shall train, supervise and be solely responsible
for the conduct of Distributor Representatives in their
solicitation of Applications and Premiums and distribution of
the Contracts, and shall supervise their compliance with
applicable rules and regulations of any insurance or
securities regulatory agencies that have jurisdiction over
variable insurance product activities.
(2) Neither Distributor nor any Distributor Representative shall
offer, attempt to offer, or solicit Applications for, the
Contracts or deliver the Contracts, in any state or other
jurisdiction unless Insurer has notified Distributor that such
Contracts may lawfully be sold or offered for sale in such
state, and has not subsequently revised such notice.
(3) Neither Distributor nor any Distributor Representative shall
give any information or make any representation in regard to a
class of Contracts in connection with the offer or sale of
such class of Contracts that is not in accordance with the
Prospectus for such class of Contracts, or in the
then-currently effective prospectus or statement of additional
information for a Fund, or in current advertising materials
for such class of Contracts authorized by Insurer.
(4) All Premiums paid by check or money order that are collected
by Distributor or any of its Representatives shall be remitted
promptly, and in any event not later than two business days,
in full, together with any Applications, forms and any other
required documentation, to BANKERS LIFE INSURANCE COMPANY OF
NEW YORK as directed in the Agent's Manual. Checks or money
orders in payment of Premiums shall be drawn to the order of
"BANKERS LIFE INSURANCE COMPANY OF NEW YORK." Premiums may be
transmitted by wire order from Distributor to the Annuity
Service Office in accordance with the procedures set forth in
the Agents Manual. If any Premium is held at any time by
Distributor, Distributor shall hold such Premium in a
fiduciary capacity and such Premium shall be remitted
promptly, and in any event not later than two business days,
to Insurer. Distributor acknowledges that all such Premiums,
whether by check, money order or wire, shall be the property
of Insurer. Distributor acknowledges that Insurer shall have
the unconditional right to reject, in whole or in part, any
Application or Premium.
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c. Representations and Warranties of Distributor. Distributor
represents and warrants to Insurer that Distributor is and shall
remain registered during the term of this Agreement as a
broker-dealer under the 1934 Act, is a member with the NASD, and is
duly registered under applicable state securities laws, and that
Distributor is and shall remain during the term of this Agreement in
compliance with Section 9(a) of the 1940 Act.
4. Selling Broker-Dealers. Distributor shall ensure that sales of the
Contracts by Selling Broker-Dealers comply with the following conditions,
and any additional conditions Insurer may specify from time to time.
a. Every Selling Broker-Dealer shall be both registered as a
broker-dealer with the SEC and a member of the NASD and licensed
as an insurance agent with authority to sell variable products or
associated with an insurance agent so licensed. Any individuals
to be authorized to act on behalf of Selling Broker-Dealer shall
be duly registered with the NASD as representatives of Selling
Broker-Dealer shall be duly registered with the NASD as
representatives of Selling Broker-Dealer with authority to sell
variable products, and shall be licensed as insurance agents with
authority to sell variable products. Distributor shall verify
that Selling Broker-Dealer and its Representatives are duly
licensed under applicable state insurance law to sell the
Contracts (or, if Broker-Dealer is not so licensed, that it is
associated with an entity so licensed).
b. Every Selling Broker-Dealer (or, if applicable, its associated
general insurance agency) and each of its Representatives shall have
been appointed by Insurer, provided that Insurer reserves the right
to refuse to appoint any proposed person, or once appointed, to
terminate such appointment.
c. Every Selling Broker-Dealer must enter into a written sales
agreement with Distributor which sales agreement, among other
things, will require such Selling Broker-Dealer to use its best
efforts to solicit applications for Contracts and to comply with
applicable laws and regulations, including the Insurer's rules
and regulations as reflected in the Agents Manual or otherwise
communicated to agents appointed by Insurer, and will contain
such other provisions as the Distributor deems to be consistent
herewith.
d. In view of Insurer's desire to ensure that Contracts will be sold
to purchasers for whom the Contracts will be suitable, the
written Sales Agreement shall require that Selling Broker-Dealers
and their Representatives not make recommendations to an
applicant to purchase a Contract in the absence of reasonable
grounds to believe that the purchase of the Contract is suitable
for the applicant. While not limited to the following, a
determination of suitability shall be based on information
supplied by an applicant after a reasonable inquiry concerning
the applicant's other security holdings, insurance and investment
objectives, financial
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situation and needs, and the likelihood that the applicant will
continue to make any premium payments contemplated by the Contract
applied for and will keep the Contract in force for a sufficient
period of time so that Insurer's acquisition costs are amortized
over a reasonable period of time.
5. Marketing Materials
a. Preparation and Filing. Insurer shall be primarily responsible
for the design and preparation of all promotional, sales and
advertising material relating to the Contracts. Insurer shall be
responsible for filing such material, as required, with the NASD
and any state securities regulatory authorities, on behalf of the
Distributor. Insurer shall be responsible for filing all
promotional, sales or advertising material, as required, with any
state insurance regulatory authorities. Insurer shall be
responsible for preparing the Contract forms and filing them with
applicable state insurance regulatory authorities, and for
preparing the Prospectuses and Registration Statements and filing
them with the SEC and state regulatory authorities, to the extent
required.
b. Use in Solicitation Activities. Insurer shall be responsible for
furnishing Distributor with such Applications, Prospectuses and
other materials for use by Distributor and any Selling
Broker-Dealers in their solicitation activities with respect to
the Contracts. Insurer shall notify Distributor of those states
or jurisdictions which require delivery of a statement of
additional information with a prospectus to a prospective
purchaser.
6. Compensation and Expenses
a. Insurer shall pay compensation for sales of the Contracts in
accordance with Schedule 2 hereto. Insurer shall pay compensation
payable to Distributor Representatives and to Selling
Broker-Dealers, on Distributor's behalf.
b. Insurer shall pay all expenses in connection with:
(1) the preparation and filing of each Registration Statement
(including each pre-effective and post-effective amendment
thereto) and the preparation and filing of each Prospectus
(including any preliminary and each definitive Prospectus);
(2) the preparation, underwriting, issuance and administration of
the Contracts;
(3) any registration, qualification or approval or other filing of
the Contracts or Contract forms required under the securities
or insurance laws of the states in which the Contracts will be
offered;
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(4) all registration fees for the Contracts payable to the SEC;
and
(5) the printing of all promotional materials definitive
Prospectuses for the Contracts and any supplements thereto for
distribution to existing Contractowners.
c. Distributor shall pay any expenses incurred by Distributor or its
Representatives or employees for the purpose of carrying out the
obligations of Distributor hereunder.
7. Compliance
a. Maintaining Registration and Approvals. Insurer shall be responsible
for maintaining the registration of the Contracts with the SEC and
any state securities regulatory authority with which such
registration is required, and for gaining and maintaining approval
of the Contract forms where required under the insurance laws and
regulations of each state or other jurisdiction in which the
Contracts are to be offered.
b. Confirmations and 1934 Act Compliance. Insurer, as agent for
Distributor, shall confirm to each applicant for and purchaser of
a Contract in accordance with Rule 10b-10 under the 1934 Act
acceptance of Premiums and such other transactions as are
required by Rule 10b-10 or administrative interpretations
thereunder. Insurer shall maintain and preserve such books and
records with respect to such confirmations in conformity with the
requirements of Rules 17a-3 and 17a-4 under the 1934 Act to the
extent such requirements apply. Insurer shall maintain all such
books and records and hold such books and records on behalf of
and as agent for Distributor whose property they are and shall
remain, and acknowledges that such books and records are at all
times subject to inspection by the SEC in accordance with Section
17(a) of the 1934 Act.
c. Issuance and Administration of Contracts. Insurer shall be
responsible for issuing the Contracts and administering the
Contracts and the Variable Account, provided, however, that
Distributor shall have full responsibility for the securities
activities of all persons employed by the Insurer, engaged
directly or indirectly in the Contract operations, and for the
training, supervision and control of such persons to the extent
of such activities.
8. Investigations and Proceedings
a. Cooperation. Distributor and Insurer shall cooperate fully in
any securities or insurance regulatory investigation or
proceeding or judicial proceeding arising in connection with the
offering, sale or distribution of the Contracts distributed under
this Agreement. Without limiting the foregoing, Insurer and
Distributor
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shall notify each other promptly of any customer complaint or notice
of any regulatory investigation or proceeding or judicial proceeding
received by either party with respect to the Contracts.
9. Indemnification
a. By Insurer. Insurer shall indemnify and hold harmless
Distributor and each person who controls or is associated with
Distributor within the meaning of such terms under the federal
securities laws, and any officer, director, employee or agent of
the foregoing, against any and all losses, claims, damages or
liabilities, joint or several (Including any investigative, legal
and other expenses reasonably incurred in connection with, and
any amounts paid in settlement of, any action, suit or proceeding
or any claim asserted), to which distributor and/or any such
person may become subject, under any statute or regulation, any
NASD rule or interpretation, at common law or otherwise, insofar
as such losses, claims, damages or liabilities:
(1) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact or omission
or alleged omission to state a material fact required to
be stated therein or necessary to make the statements
therein not misleading, in light of the circumstances in
which they were made, contained in any (i) Registration
Statement or in any Prospectus or (ii) blue-sky
application or other document executed by Insurer
specifically for the purpose of qualifying any or all of
the Contracts for sale under the securities laws of any
jurisdiction; provided that Insurer shall not be liable
in any such case to the extent that such loss, claim,
damage or liability arises out of, or is based upon, an
untrue statement or alleged untrue statement or omission
or alleged omission made in reliance upon information
furnished in writing to Insurer by Distributor
specifically for use in the preparation of any such
Registration Statement or any such blue-sky application
or any amendment thereof or supplement thereto;
(2) result from any breach by Insurer of any provision of
this Agreement.
This indemnification agreement shall be in addition to any liability
that Insurer may otherwise have; provided, however, that no person
shall be entitled to indemnification pursuant to this provision if
such loss, claim, damage or liability is due to the willful
misfeasance, bad faith, gross negligence or reckless disregard of
duty by the person seeking indemnification.
b. By Distributor. Distributor shall indemnify and hold harmless
Insurer and each person who controls or is associated with
Insurer within the meaning of such terms under the federal
securities laws, and any officer, director, employee or
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agent of the foregoing, against any and all losses, claims, damages
or liabilities, joint or several (including any investigative, legal
and other expenses reasonably incurred in connection with, and any
amounts paid in settlement of, any action, suit or proceeding or any
claim asserted), to which Insurer and/or any such person may become
subject under any statute or regulation, any NASD rule or
interpretation, at common law or otherwise, insofar as such losses,
claims, damages or liabilities:
(1) arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact or omission or alleged
omission to state a material fact required to be stated
therein or necessary in order to make the statements therein
not misleading, in light of the circumstances in which they
were made, contained in any (i) Registration Statement or in
any Prospectus, or (ii) blue-sky application or other document
executed by Insurer specifically for the purpose of qualifying
any or all of the Contracts for sale under the securities laws
of any jurisdiction; in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance
upon information furnished in writing by Distributor to
Insurer specifically for use in the preparation of any such
Registration Statement or any such blue-sky application or any
amendment thereof or supplement thereto
(2) result because of any use by Distributor or any Distributor
Representative of promotional, sales or advertising material
not authorized by Insurer or any verbal or written
misrepresentations by Distributor or any Distributor
Representative or any unlawful sales practices concerning the
Contracts by Distributor or any Distributor Representative
under federal securities laws or NASD regulations; or
(3) result from any breach by distributor of any provision of
this Agreement.
This indemnification shall be in addition to any liability that
Distributor may otherwise have; provided, however, that no person
shall be entitled to indemnification pursuant to this provision if
such loss, claim, damage or liability is due to the willful
misfeasance, bad faith, gross negligence or reckless disregard of
duty by the person seeking indemnification.
c. General. Promptly after receipt by a party entitled to
indemnification ("indemnified person") under this Section 9 of
notice of the commencement of any action as to which a claim will
be made against any person obligated to provide indemnification
under this Section 9 ("indemnifying party"), such indemnified
person shall notify the indemnifying party in writing of the
commencement thereof as soon as practicable thereafter, but
failure to so notify
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the indemnifying party shall not relieve the indemnifying party from
any liability which it may have to the indemnified person otherwise
than on account of this Section 9. The indemnifying party will be
entitled to participate in the defense of the indemnified person but
such participation will not relive such indemnifying party of the
obligation to reimburse the indemnified person for reasonable legal
and other expenses incurred by such indemnified person in defending
himself or itself.
The indemnification provisions contained in this Section 9 shall
remain operative in full force and effect, regardless of any
termination of this Agreement. A successor by law of Distributor or
Insurer, as the case may be, shall be entitled to the benefits of
the indemnification provisions contained in this Section 9.
10. Termination. This Agreement shall terminate automatically if it is
assigned by a party without the prior written consent of the other
party. This Agreement may be terminated at any time for any reason by
either party upon 30 days' written notice to the other party, without
payment of any penalty. (The term "assigned" shall not include any
transaction exempted from Section 15(b)(2) of the 1940 Act.) This
Agreement may be terminated at the option of either party to this
Agreement upon the other party's material breach of any provision of
this Agreement or of any representation or warranty made in this
Agreement, unless such breach has been cured within 10 days after
receipt of notice of breach from the non-breaching party. Upon
termination of this Agreement all authorizations, rights and
obligations shall cease except the obligation to settle accounts
hereunder, including commissions on Premiums subsequently received for
Contracts in effect at the time of termination or issued pursuant to
Applications received by Insurer prior to termination.
11. Miscellaneous
a. Binding Effect. This Agreement shall be binding on and shall inure
to the benefit of the respective successors and assigns of the
parties hereto provided that neither party shall assign this
Agreement or any rights or obligations hereunder without the prior
written consent of the other party.
b. Schedules. The parties to this Agreement may amend Schedule 1 to
this Agreement from time to time to reflect additions of any
class of Contracts and Variable Accounts. The provisions of this
Agreement shall be equally applicable to each such class of
Contracts and each Variable Account that may be added to the
Schedule, unless the context otherwise requires. Insurer may
amend Schedule 2 unilaterally, from time to time. Any other
change in the terms or provisions of this Agreement shall be by
written agreement between Insurer and Distributor.
c. Rights, Remedies, and Obligations are Cumulative. The rights,
remedies and obligations contained in this Agreement are
cumulative and are in addition to any
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and all rights, remedies and obligations, at law or in equity, which
the parties hereto are entitled to under state and federal laws.
Failure of either party to insist upon strict compliance with any of
the conditions of this Agreement shall not be construed as a waiver
of any of the conditions, but the same shall remain in full force
and effect. No waiver of any of the provisions of this Agreement
shall be deemed, or shall constitute, a waiver of any other
provisions, whether or not similar, nor shall any waiver constitute
a continuing waiver.
d. Notices. All notices hereunder are to be made in writing and shall
be given:
if to Insurer, to: Xxxxxxx X. Xxxxxxxx
Bankers Life Insurance
Company of New York
00 Xxxxxxxxx Xxxx Xxxxxxxxx
Xxxxxxxx, XX 00000
if to Distributor, to: Xxx X. Xxxx
IL Securities, Inc.
0000 X. Xxxxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
or such other address as such party may hereafter specify in
writing. Each such notice to a party shall be either hand delivered
or transmitted by registered or certified United States mail with
return receipt requested, or by overnight mail by a nationally
recognized courier, and shall be effective upon delivery.
e. Interpretation; Jurisdiction. This Agreement constitutes the
whole agreement between the parties hereto with respect to the
subject matter hereof, and supersedes all prior oral or written
understandings, agreements or negotiations between the parties
with respect to such subject matter. No prior writings by or
between the parties with respect to the subject matter hereof
shall be used by either party in connection with the
interpretation of any provision of this Agreement. This
Agreement shall be construed and its provisions interpreted under
and in accordance with the internal laws of the state of Indiana
without giving effect to principles of conflict of laws.
f. Severability. This is a severable Agreement. In the event that
any provision of this Agreement would require a party to take
action prohibited by applicable federal or state law or prohibit
a party from taking action required by applicable federal or
state law, then it is the intention of the parties hereto that
such provision shall be enforced to the extent permitted under
the law, and, in any event, that all other provisions of this
Agreement shall remain valid and duly enforceable as if the
provision at issue had never been a part hereof.
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g. Section and Other Headings. The headings in this Agreement are
included for convenience of reference only and in no way define or
delineate any of the provisions hereof or otherwise affect their
construction or effect.
h. Counterparts. This Agreement may be executed in two or more
counterparts, each of which taken together shall constitute one
and the same instrument.
i. Regulation. This Agreement shall be subject to the provisions of the
1933 Act, 1934 Act and 1940 Act and the Regulations and the rules
and regulations of the NASD, from time to time in effect, including
such exemptions from the 1940 Act as the SEC may grant, and the
terms hereof shall be interpreted and construed in accordance
therewith.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by such authorized officers on the date specified below.
BANKERS LIFE INSURANCE COMPANY OF NEW YORK
By:
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Name:
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Title:
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IL SECURITIES, INC.
By:
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Name:
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Title:
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SCHEDULE 1
Bankers Life Insurance Company of New York Separate Account I
The Visionary Choice: Flexible Premium Deferred Variable Annuity
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SCHEDULE 2
COMPENSATION
Bankers Life Insurance Company of New York shall pay IL Securities, Inc. a
concession on all contracts sold by it or by Selling Broker-Dealers to whom
it has authorized to participate in the sale of the contracts.
Bankers Life Insurance Company of New York shall, on behalf of IL Securities,
Inc., pay to Broker-Dealer and concession on each Contract for which the
Broker-Dealer is the Broker-of-Record. The concession shall be determined in
accordance with the Compensation Schedule attached to and made a part of the
Selling Broker's Selling Agreement.
Concessions payable to IL Securities shall be determined in accordance with this
Schedule.
1. Sales by IL Securities:
a. Concession Schedule for the Visionary. IL Securities may select one of
the following Options for each Agent. Once an Option is selected for an
Agent it may not be changed and the Option is applicable for each and
every contract on which that Agent is the writing Agent.
NEW PREMIUM ASSET TRAIL
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YEARS 1-9 YEARS 10+ ALL YEARS
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Option A 6.00% 1.00% -0-
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Option B 4.75% 1.00% 0.25%
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Option C 3.50% 1.00% 0.50%
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Option D 1.00% 1.00% 1.00%
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Asset trails concessions are paid on the value of a Contract as of its
contract anniversary day.
b. Concessions on Withdrawn Premium. IL Securities will repay all
concession paid on premiums which were withdrawn or removed from a
Contract within 12 months of the date of the premium payment.
c. Concessions on Replacements. Concession on a Contract which replaces an
existing contract issued by Bankers Life Insurance Company of New York (or
any of its affiliated companies) shall be paid as follows:
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1. The concession on premium paid in excess of the cash surrender
value of the existing contract will be payable at the first year
rate.
2. The concession on premiums equal to the excess of the cash
surrender value of the existing contract will be payable at the rate
for year 10.
Replacement is defined as the issue of a new contract where an existing
contract(s) is (are) surrendered within one year of the issue of the new
contract.
2. Sales by Selling Broker-Dealers.
NEW PREMIUM
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Years 1-10 Years 10+
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1.00% .15%
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