Exhibit 10.6
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UNITED AMERICAN INSURANCE COMPANY
INDEPENDENT AGENT CONTRACT
This Contract, and the Commission Schedule(s) attached hereto and made a part
hereof for all purposes (collectively referred to as this Contract), made on
this ___ day of __________________, 19___ by an between UNITED AMERICAN
INSURANCE COMPANY (hereinafter referred to as Company), and ___________________
(hereinafter referred to as Agent) for the purpose of soliciting applications
for life and health insurance.
INDEPENDENT CONTRACTOR
It is expressly agreed that the relationship intended by this Contract between
Agent and Company shall be that of an Independent Contractor only, and that
nothing contained herein shall be construed to create the relationship of
employer and employee. This Contract or any benefit hereunder may not be
assigned, transferred, or pledged by the Agent.
MANNER OF CONDUCTING BUSINESS
Agent's clientele may be developed by him by any lawful means. He shall select
his own hours and workdays and is under no obligation to account to the Company
for his time. Company may hold sales meetings to acquaint the Agent with new
products and sales techniques for the benefit of the Agent. However attendance
at sales meetings will be optional and at the expense of the Agent. Agent shall
be free to exercise his own judgment as to the time, routine, place, method and
manner he solicits insurance. Agent shall not solicit outside the jurisdiction
for which he is licensed or contrary to the laws or insurance regulations of the
states where he operates.
The Company may from time to time make available to the Agent supplies, leads,
name lists, advertising matter and other material designed to assist Agent in
soliciting business. All such material any other policyholder information,
whether past, current or prospective, acquired by Agent shall remain the sole
property of the Company, shall not be duplicated and shall be returned to the
Company within five (5) days after the termination of this Contract.
EXPENSES
Agent shall be responsible for all expenses incurred in the production of
insurance for the Company. Agent shall at his own expense furnish his own means
of transportation, office or place of business, advertisements, form letters,
letterheads, circulars, and any other relevant expenses incurred in the
solicitation of insurance for the Company.
Agent shall be responsible to Company for all loss or damage arising from
business done by and entrusted to him and shall indemnify and hold Company
harmless from any and all expenses, costs, causes of action, loss or damages
resulting from fraudulent or unauthorized acts or omissions of Agent and any
sub-agent(s) under contract with Company and assigned to Agent.
POWERS, DUTIES & RESPONSIBILITIES
During the continuance of this Contract the Agent has the authority to:
A. Remit all applications for insurance to the Company for approval or
rejection and to collect only the initial premium payments due on such
applications.
B. Procure through sub-agent(s) or personally through the Company, applications
for insurance written by the Company.
C. When authorized by the Company and subject to Company approval recruit,
train, and supervise sub-agents.
D. Agent shall have the duty of properly representing Company and developing
his territory with diligence and in an ethical manner, and the Agent agrees
to conform to the rules, regulations, and practices of Company.
E. Agent shall be responsible to Company for all monies and securities received
by him for Company and shall hold such in trust separate from all other
funds and securities, and promptly remit same to Company.
F. Company reserves the right at any time to terminate the contract of any sub-
agent appointed by Company and assigned to Agent.
G. The Agent shall not insert or authorize the insertion of any advertising
matter bearing the Company's name in any publication, issue or distribute,
or authorize the issuance or distribution of any circular or paper on behalf
of the Company, without first submitting said advertising matter in writing
to Company and receiving prior written approval of Company.
COMMISSIONS
Company agrees to pay to the Agent commissions on business written by Agent or
any sub-agents assigned to him by the Company on premiums actually received and
earned by the Company in accordance with the Commission Schedule(s) attached
hereto. In the event Company shall, either during the continuance of this
Contract or after its termination, refund premiums under any policy to an
Insured, Agent shall immediately repay to Company the amount of any commission
paid him or his sub-agent(s) on the premium so refunded.
A. All commissions shall be calculated only on premium actually received by the
Company. Commissions will be calculated only on those premiums paid by or on
behalf of the insured. No commissions shall be paid on interest, or on
premium waived or commuted by reason of death, disability or exercise of
policy options.
B. Company at any time while this Contract is in force or after its termination
may set off against any claims by Agent for commission or other monies
accruing to the account of the Agent under the terms of this Contract any
debts, liabilities or obligations of the Agent to the Company. Agent further
agrees that any indebtedness now or hereafter owing to the Company or its
affiliates shall be secured by a first lien against the commissions or any
other monies payable to Agent under this Contract and any other contract
Agent may have with the Company or its affiliates.
C. All amounts owed to Company or its affiliates by Agent shall become due and
payable immediately upon notice to the Agent.
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D. Subject to the Company's right to set off as set forth in the Contract, the
limitations and exceptions described below and the provisions of the Loan
Agreement Section of this Contract payment of renewal commissions upon
termination of this Contract will be vested unless one of the following
conditions occurs:
(1) This Contract is terminated for cause or for any violations of any of
the provisions or agreements of the Contract.
(2) Any debit balance is not repaid within 120 days of contract
termination.
(3) In any calendar year following termination the amount of vested renewal
commissions paid under this Contract is less than $500.00.
E. At the option of the Company, payment of commissions will be held in
abeyance for 120 days after termination to determine the existence of any
sums due Company which are to be set off against commissions.
This Contract shall be terminated by the death of the Agent and all eligible
renewal commissions shall be then vested and payable to the surviving spouse.
If there is no surviving spouse then such renewal commissions shall be paid to
the Executors or Administrators of the Agent's Estate.
The Company reserves the right to alter, increase, decrease, modify or withdraw
the Commission Schedule and/or Loan Agreement Provisions of this Contract at any
time. However, any change shall apply from and after the effective date of such
change on business produced after that date.
LOAN AGREEMENT
If agent elects, Company may make periodic loans to Agent against future
credited commissions on applications written and submitted to the Company by
Agent or any Subagents assigned to Agent. Such loans shall be made in lieu of
payment of credited commissions as provided in the Commission Schedule.
A. Such loan shall be a percentage of annualized insurance premium on
production submitted on completed applications. The percentage loaned will
be determined in the sole discretion of the Company.
B. Any loan proceeds shall be reduced by the amount of chargebacks to Agent's
account from any source.
INDEBTEDNESS
Any indebtedness owed by the Agent to the Company shall be paid upon notice to
the Agent. In addition to the provisions of paragraph Deportment all
indebtedness of the Agent to Company shall be secured by a first lien on any
commissions or renewal commissions due or to become due the Agent. The Company
may at any time offset against all commissions accrued or to accrue to the
Agent, any debt due from the Agent to the Company, whether now existing or
hereafter arising. In the event any indebtedness is placed in the hands of a
collection agent or attorney, or both, Company shall be entitled to recover
reasonable collection and attorney's fees, unless either party pleads otherwise.
DEPORTMENT
Should the Agent at any time, either before or after termination of this
Contract, wrongfully withhold any funds belonging to any applicant for
insurance, a policyholder or the Company; or should the Agent induce any
policyholder to lapse, relinquish or surrender a policy with the Company; or
should the Agent be in default under, or fail to comply with any provision,
covenant, representation or warranty contained in this Contract or any other
Contract agreement, or in any document or instrument related thereto, between
the Agent and the Company; or should the Agent fail to comply with any State
insurance laws or regulations, or Federal laws or regulations under which he or
it is licensed or is otherwise subject; then the Agent shall immediately forfeit
his or its right to receive any commissions or any other compensation due or to
become due, whether vested or otherwise, under this Contract or any other
agreement with the Company.
ADDITIONAL PROVISIONS
This Contract is personal and not transferable. Any assignment, transfer, or
sale of this Contract or any right to interest herein, without prior written
consent of Company, shall not be valid or in any way binding upon Company.
The use of the masculine gender shall include the feminine gender and the use of
the singular shall include the plural where appropriate.
This Contract takes effect on the date and year first above written.
TERMINATION
This Contract may be terminated at the will of either party hereto, for any
reason or without cause, at any time upon actual notice, written or oral.
Cancellation or loss of license shall automatically terminate this Contract.
IN WITNESS WHEREOF, this Contract has been signed by the parties hereto.
UNITED AMERICAN INSURANCE COMPANY
BY:______________________________
President
___________________________ ______________________________
Date Signature of Agent
Re: Loan Agreement:
I hereby elect to receive loans when made available by the Company for:
[ ] Health
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[ ] Life
[ ] I do not elect to receive loans from the Company.
____________________________ ______________________________
Date Signature of Agent
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UNITED AMERICAN INSURANCE COMPANY
INDEPENDENT AGENT
SCHEDULE OF COMMISSIONS
General Agent shall receive commissions provided below on business personally
written by Agent or any Sub-Agent(s) assigned to Agent.
RENEWAL YEARS
FIRST YEAR YEARS PERCENT
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LIFE
----
400-Series Final Expense/ 110% 2-5 20%
Joint Last Survivor 6 Plus 10%
21 Pay 110% All 10%
10-Year Renewable Term 80% All 10%
500-Series 90% All 10%
900-Series 80% All 10%
300-Series 7% -- --
Single Premium Lifestyle Annuity 6%++ -- --
++Subject to chargebacks for first year policy surrenders and benefit payments.
No Commissions payable on flat extra premiums, premiums waived or premiums
paid by automatic premium loan.
HEALTH
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Individual Medicare Supplements*
- First Time Applicants under age 66 40% All 20%
(except Disability Medicare)
- Applicants age 66 & over, 26% All 26%
Disability Medicare
CASH BENEFIT CANCER 75% All 20%
Florida only 55% All 15%
ALL OTHER HEALTH PLANS 60%+ All 15%
LONG TERM CARE**
Issue Ages 1st YEAR YRS 2 - 10 YRS 11+
---------- -------- ---------- ------
0-54 82% 10% 5%
55-64 77% 10% 5%
65-69 72% 10% 5%
70-74 67% 10% 5%
75-79 62% 10% 5%
80+ 57% 10% 5%
* No commissions will be paid on any portion of the premium for the Part B
deductible coverage, nor any portion of the service fee for the Automatic
Claims Filing service. Renewal years commissions will not include any portion
of rate increases.
**Commissions will not be paid on Long Term Care premium that is attributable to
the Non-Forfeiture Option or the United American Partner's Program.
+ Plus registration fee (less $1 on monthly and quarterly modes).
Renewal years Commissions will not include any portion of rate increases.
________________________ _______________________________________
Date Signature of General Agent
The Company reserves the right to change the rates at any time. Other products
may be made available in the future with commission rates to be set at such
time. The Company in its sole discretion will determine which products will be
available for sale and may withdraw any products at any time.
This commission schedule is subject to any change required by federal or state
law or regulation.
UNITED AMERICAN INSURANCE COMPANY
________________________________________
President
FOR STATES LISTED BELOW
MO/MS/MT/NV/OH/OK/TN/WY
H98LTC
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UNITED AMERICAN INSURANCE COMPANY
LONG TERM CARE
SCHEDULE OF COMMISSIONS
EFFECTIVE JANUARY 1, 1997
_________________________________________
| |
| THIS IS AN ADDENDUM TO YOUR CONTRACT |
| PLEASE KEEP THIS WITH YOUR CONTRACT |
_________________________________________
___________________________________________________________________________________________
XXX XXXXXXXXXX (00, X00, H98- One Check)
___________________________________________________________________________________________
Issue Ages 1st YEAR YRS 2 - 10 YRS 11+
___________________________________________________________________________________________
0-54 82 10 5
55-64 77 10 5
65-69 72 10 5
70-74 67 10 5
75-79 62 10 5
80+ 57 10 5
___________________________________________________________________________________________
Commissions will not be paid on Long Term Care premium that is attributable to
the Non-Forfeiture Option or the United American Partner's Program
Renewal years Commissions will not include any portion of rate increases.
The Company reserves the right to change the rates at any time. Other products
may be made available in the future with commission rates to be set at such
time. The Company in its sole discretion will determine which products will be
available for sale and may withdraw any products at any time.
This commission schedule is subject to any change required by federal or state
law or regulation.
UNITED AMERICAN INSURANCE COMPANY
__________________________________
President
Long Term Care (01,H20,H98 - One Check)
Eff. 11/01/96 - 010897 LTC01.add
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UNITED AMERICAN INSURANCE COMPANY
HEALTH COMMISSION SCHEDULE
INDEPENDENT AGENT CONTRACT
Agent shall receive commissions provided below on business personally written by
Agent or any Sub-Agent(s) assigned to Agent.
RENEWAL YEARS
FIRST YEAR YEARS PERCENT
----------- ------------- --------
Individual Medicare Supplements*
- First Time
Applicants under age 66 40% All 20%
(except Disability Medicare)
- Applicants age 66 & over, 26% All 26%
Disability Medicare
Cash Benefit Cancer 75% All 20%
Florida only 55% All 15%
Long Term Care 60% All 15%
All Other Health Plans 60%+ All 15%
* No commissions will be paid on any portion of the premium for the Part B
deductible coverage, nor any portion of the service fee for the Automatic
Claims Filing service or the United American Partners Program. Renewal years
commissions will not include any portion of rate increases.
+ Plus registration fee (less $1 on monthly and quarterly modes).
_________________________ _______________________________________
Date Signature of Agent
The Company reserves the right to change the rates at any time. Other products
may be made available in the future with commission rates to be set at such
time. The Company in its sole discretion will determine which products will be
available for sale and may withdraw any products at any time.
UNITED AMERICAN INSURANCE COMPANY
By: ___________________________________
President
HEALTH LEVEL STATES
FOR ALL STATES EXCEPT THE FOLLOWING STATE SPECIALS
CT/IN/KS/KY/ME/MA/MI/MN/NJ/OR/PA/TX/WA/WV/WY
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