EXHIBIT 1.A(3)(b)(i)
SCHEDULE I
COMPENSATION SCHEDULE
TO SELLING AGREEMENT FOR SECURITY LIFE
CORPORATE BENEFITS VARIABLE UNIVERSAL LIFE
This Schedule is an attachment to the ING America Equities, Inc. ("ING America Equities") Selling
Agreement by and among the parties pursuant to paragraph 17 of that Selling Agreement, effective
as of November 1, 2000, or the date that Selling Broker-Dealer submits an application for this
product, whichever is later. The provisions of this Schedule shall apply only to ING Security Life
Corporate Benefits Variable Universal Life policies solicited and issued while this Schedule is in
effect. All compensation payable under this Schedule shall be subject to the terms and conditions
contained herein at the time of issue of the policy by ING Security Life of Denver Insurance
Company ("ING Security Life").
| 1. | Commission Structure: |
| | |
| Commissions are payable on premiums paid in each year up to the target premium only. No
commissions are paid on premium in excess of the target premium. Any time a new
coverage segment is created, premiums allocated to that segment will be commissionable up
to that segment's target premium. The commission rates as a percent of target premium are
given in a table below. |
| | |
| Policy or Segment Year |
Commission Rate |
|---|
| 1 |
17.50% |
| 2 - 4 |
8.75% |
| 5 - 10 |
2% |
| 11+ |
0 |
| | |
| Premium received within 15 days prior to policy anniversary will result in the agent
receiving commissions at the same rate as if the premium was paid on the anniversary date. |
| | |
| If this product is sold with a maximum ATR coverage, the target premium could be zero
which would result in no commissions payable other than the annual trail commission
described in section 2 below. |
| | |
| 2. | Trail Commissions: are paid as a percent of the net account value.
The trail commission
is calculated monthly based on the net account value at the end of the prior month. It is
paid at the end of the policy year, provided the policy remains in force at that time and is
not subject to the grace period provisions. The trail commissions will continue when the
insured lives past age 100 and the continuation of coverage feature is in force. The
annual trail commission rates are given below. |
| | |
| Annual trail commission rates as a percent of the net account value: |
| Policy Year |
Trail Commission Rate |
| 1 - 10 |
0.20% |
| 11+ |
0.10% |
| | |
| 3. | Riders:
The Adjustable Term Insurance Rider has no target premium associated with it. |
| | |
| 4. | Commission Calculation: Commissions shall be calculated only on premium actually
received and accepted by ING Security Life. Commissions shall be paid only on an
earned basis. Outstanding loan amounts carried over are not considered commissionable
premium. |
| | |
| 5. | Premium Allocation: If the Stated Death Benefit has been increased since the policy
date, premiums received are allocated to the coverage segments in the same proportion
that the commission target premium for each segment bears to the total commission
target premium of the policy. |
| | |
| 6. | Death Benefit Increases: If a premium payment accompanies a request for a Stated
Death Benefit increase or is received while a request is pending, the payment will be
applied to the policy but commissions shall not be payable until the increase is effective.
The commission shall then be payable based on the premium being allocated among all
segments as it would normally and the new target premium after the increase. |
| | |
| 7. | Compensation Payments: Compensation on initial premium shall be due to the Selling
Broker-Dealer at the time of the issuance of the policy and for all other premium
payments at the time of the receipt and acceptance of premium by ING Security Life,
except that the amount, if any, and the time of payment of compensation on stated death
benefit increases, replacements, reissues, changes, conversions, exchanges, term
renewals, term conversions, premiums paid in advance, policies issued on a "guaranteed
issue" basis, policies requiring facultative reinsurance arrangements, and other special
cases and programs shall be governed by ING Security Life's underwriting and
administrative rules then in effect. The Compensation shall be payable to the Selling
Broker-Dealer in accordance with the Schedule I in effect at the time of issue of the
policy. |
| | |
| 8. | Commission Chargeback: In the event that a policy for which a commission has been
paid is lapsed or surrendered by the Policy Owner or has a reduction of stated death
benefit during the first three policy years, or is returned to ING Security Life for refund
of premium during the Free Look Period as described in the policy, ING Security Life
and ING America Equities shall require reimbursement from Selling Broker-Dealer as
shown below. |
| | |
| Policy or
Segment Year |
Commission Chargeback |
| 1 |
17.50% of first year premium up to target |
| 2 |
12.00% of first year premium up to target |
| 3 |
6.67% of first year premium up to target |
| 4+ |
0% |
| | |
| | If a premium payment for which a commission has been paid is refunded by ING Security
Life, a reimbursement of the commission paid on the amount refunded will be due from the
Selling Broker-Dealer. The reimbursement may be deducted by ING America Equities from
the next, or any subsequent, commission payment to Selling Broker-Dealer. |
| | |
| If the amount to be reimbursed exceeds compensation otherwise due, Selling Broker-Dealer
shall promptly reimburse ING America Equities before the next commission cycle. |
| | |
| 9. | Internal Exchanges: Commissions on the exchange of any policy issued by Security Life
or any other ING affiliate for Corporate Benefits Variable Universal Life, if any, will be
paid in accordance with the exchange procedures in effect at ING Security Life on the
date the exchange is completed. The commission rates and/or target premiums may be
adjusted in accordance with the rules in effect at the time of the exchange. |
| | |
| 10. | Compensation Vesting: Provision 5(a)(i) of the Supervisory and Sales Agreement does
not apply to Corporate Benefits VUL. If the policy servicing Representative is not the
original producer of the policy, the compensation payable on the policy will be paid to
the original Selling Broker-Dealer unless 1) the broker-dealer for the producer of the
original policy signs a commission relinquishment agreement; 2) the policyowner
expresses a written desire to terminate that prior relationship; or 3) the producer of the
original policy is no longer properly licensed or appointed to sell Corporate Benefits
Variable Universal Life. |
