Re: Broker-Dealer
Marketing and Servicing Agreement
for Variable Life Contracts
EXHIBIT A - Compensation Schedule
for VUL Accumulator
Principal Life Insurance Company ("Principal" or "we") will pay commissions on
premiums we receive on sales of Policies made pursuant to the Broker-Dealer
Marketing and Servicing Agreement for Variable Life Contracts Agreement (the
"Agreement") according to the schedule below on premiums we receive.
We may, by written notice to Broker-Dealer (1) change this compensation
schedule; (2) discontinue the issuance of any form of Policy; and/or (3) fix or
change the amount of compensation on Policies issued in exchange for previously
issued Policies.
First Year Commissions
a) 50%* of premiums we receive up to the planned periodic premium, but not to
exceed target premium**.
b) 2.5% of premiums we receive that exceed the lesser of planned periodic
premium or target premium.
*See special provisions for Accounting Benefit Rider set out at the end of
this Exhibit. **The target premium is determined according to a rate per
$1,000 of face amount and varies by age and sex of the insured as set out
in the following table.
Target Premiums (Annual per $1,000 face amount)
----------- ------------ ------------ ------------ ------- -------------- ------------ ------------
Age Male Female Unisex Age Male Female Unisex
0 2.18 1.74 2.09 45 14.91 11.37 14.20
1 2.18 1.74 2.09 46 15.89 11.86 15.08
2 2.18 1.74 2.09 47 16.86 12.35 15.96
3 2.18 1.74 2.09 48 17.84 12.85 16.84
4 2.18 1.74 2.09 49 18.81 13.34 17.72
5 2.18 1.74 2.09 50 19.79 13.83 18.60
6 2.18 1.74 2.09 51 20.77 14.32 19.48
7 2.18 1.74 2.09 52 21.74 14.81 20.35
8 2.18 1.74 2.09 53 22.72 15.30 21.24
9 2.18 1.74 2.09 54 23.69 15.79 22.11
10 2.18 1.74 2.09 55 24.67 16.28 22.99
11 2.29 1.83 2.20 56 25.91 17.56 24.24
12 2.40 1.91 2.30 57 27.16 18.85 25.50
13 2.51 2.00 2.41 58 28.40 20.13 26.75
14 2.62 2.08 2.51 59 29.65 21.42 28.00
15 2.73 2.17 2.62 60 30.89 22.70 29.25
16 2.96 2.36 2.84 61 32.13 23.98 30.50
17 3.20 2.54 3.07 62 33.38 25.27 31.76
18 3.43 2.73 3.29 63 34.62 26.55 33.01
19 3.67 2.91 3.52 64 35.87 27.84 34.26
20 3.90 3.10 3.74 65 37.11 29.12 35.51
21 3.92 3.11 3.76 66 37.47 29.68 35.91
22 3.94 3.13 3.78 67 37.83 30.25 36.31
23 3.95 3.14 3.79 68 38.19 30.81 36.71
24 3.97 3.16 3.81 69 38.55 31.37 37.11
25 3.99 3.17 3.83 70 38.91 31.94 37.52
26 4.46 3.50 4.27 71 39.46 32.50 38.07
27 4.93 3.84 4.71 72 40.02 33.06 38.63
28 5.39 4.17 5.15 73 40.58 33.62 39.19
29 5.86 4.51 5.59 74 41.14 34.19 39.75
30 6.33 4.84 6.03 75 41.70 34.75 40.31
31 6.80 5.17 6.47 76 43.93 36.61 42.47
32 7.26 5.51 6.91 77 46.15 38.46 44.61
33 7.73 5.84 7.35 78 48.38 40.32 46.77
34 8.19 6.18 7.79 79 50.60 42.18 48.92
35 8.66 6.51 8.23 80 52.83 44.04 51.07
36 9.29 7.00 8.83 81 55.05 45.89 53.22
37 9.91 7.48 9.42 82 57.28 47.75 55.37
38 10.54 7.97 10.03 83 59.50 49.61 57.52
39 11.16 8.45 10.62 84 61.73 51.46 59.68
40 11.79 8.94 11.22 85 63.95 53.32 61.82
41 12.41 9.43 11.81
42 13.04 9.91 12.41
43 13.66 10.40 13.01
44 14.29 10.88 13.61
----------- ------------ ------------ ------------ ------- -------------- ------------ ------------
Asset Based Compensation ("Trail Compensation")
We will pay Trail Compensation commencing at the end of the first
quarter of Policy Year Six (6) and every quarter thereafter as long as
the Policy remains in effect and this Agreement is in effect and
active. The percentage of Trail Compensation we will pay is based on
the accumulated value ("AV") of a Policy (as shown on the Policy's
quarterly report) as shown in the following table:
Total % AV Trail Compensation
Year 6-10 0.25%
Year 11 + 0.15%
Breakdown of AV Trail Compensation
Year 6-10 0.15% - vested to the original selling agent
0.10% - non-vested to the servicing agent
Year 11 + 0.10% - vested to the original selling agent
0.05% - non-vested to the servicing agent
*One fourth of the annual Trail Compensation is multiplied by the total
AV on the last day of the contract quarter starting at the end of the
1st quarter in a Policy's sixth contract year.
Compensation for Renewals
We will pay a renewal fee of 2.5% on all premiums we receive during
Policy Years two (2) through five (5) as long as the Policy remains in
effect and this Agreement is in effect and active.
Compensation on Increases
"Increase" is a face amount increase of a Policy; to determine the
amount of an Increase, if any, we compare the increased face amount of
a Policy against the highest policy face amount of that policy during
the immediately preceding three year period.
We will pay a 50%* commission on premiums we receive that are
attributable to the Increase and that we receive during the 12 months
following the Increase, up to the planned periodic premium for the
Increase amount, but not to exceed the target premium of the Increase
amount.
*See special provisions for Accounting Benefit Rider set out at the
end of this Exhibit.
Compensation Where VUL Accumulator Replaces Other Variable Life Policies Issued
by Principal Life Insurance Company
A. First year commission: We will pay first year commission on a new VUL
Accumulator Policy (the "Replacement Policy") that replaces an existing
Principal Variable Life Policy (the "Replaced Policy") in an amount which
is the sum of 1,2, 3 and 4, below:
1. First year commission at the rate set out in First Year Commissions of
this Exhibit will be applied to Replacement Policy premiums we receive
that exceed the premiums on the Replaced Policy, not to exceed the
lesser of the planned periodic premium or the target premium for the
Replacement Policy.
2. A percentage of the first year commission rate of the Replacement
Policy (as set out in the table below) based on the number of years
since the Replaced Policy was issued or updated*) will be applied to
the Replaced Policy planned periodic premium, not to exceed target
premium of the Replaced Policy. The commission rate paid according to
this paragraph and the table below shall in no event exceed the
applicable first year commissions rates as set out in the First Year
Commissions section of this Exhibit. * "updated" means any increase or
decrease of face amount of any Policy.
---------------------- ----------------------------------------- --------------------- -----------------------------------------
Years Since Date of Percentage of Replacement Policy's Years Since Date of Percentage of Replacement Policy's
Issue or Update of First Year Commission Rate Issue or Update of First Year Commission Rate
Replaced Policy Payable on Replaced Premium* Replaced Policy Payable on Replaced Premium*
0 - 3 0** 12 36
4 20 13 38
5 22 14 40
6 24 15 42
7 26 16 44
8 28 17 46
9 30 18 48
10 32 19 and later 50
11 34
---------------------- ------------------------------------ --------------------- -----------------------------------------
* "Replaced premium" mean the amount of premium on which a first year
commission has previously been paid.
** A commission equal to the renewal rate of the Replacement Policy will
be paid on replaced premium.
3. Commissions on cash values conserved and transferred from the Replaced
Policy into the Replacement Policy will be paid as follows:
o 2.5% of cash value transferred from a non-updated Replaced
Policy.
o 2.5% on cash value transferred from an updated Replaced Policy or
current yield policy.
These commissions will be paid only on cash values deposited as
unscheduled premiums except where a policy loan is carried over from
the Replaced Policy to the Replacement Policy. Where a policy loan is
carried over to a Replacement Policy, we will not pay a commission on
any unscheduled premium deposit created for the purpose of carrying
over the loan.
4. An additional 5% commission will be paid on the amount of replaced
premium if the total premium on the Replacement Policy is at least 25%
greater than the premium of the Replaced Policy.
Asset Based Compensation Trails are determined according to the
applicable rates set out in this Exhibit.
C. Commissions will not be paid when partial surrender amounts are used to
fund premium increases or new business.
D. For special situations, defined by the Insurer, involving replacement of
life policies, Insurer reserves the right to further modify commissions
payable on replacements outlined above.
Accounting Benefit Rider. Commission rate is reduced to 30% of target premium if
Accounting Benefit Rider ("ABR") is used.
EXHIBIT B - Compensation Schedule
SVUL Broker-Dealer
Supervisory and Service Agreement
Principal Life Insurance Company ("Principal" or "we") will pay commissions on
sales of Policies made pursuant to the Broker-Dealer Marketing and Servicing
Agreement for Variable Life Contracts Agreement (the "Agreement") according to
the schedule below on premiums we receive.
We may, by written notice to you, (1) change this compensation schedule; (2)
discontinue the issuance of any form of Policy; and/or (3) fix the amount of
compensation on Policies issued in exchange for previously issued Policies.
First Year Commissions
c) 50% of premiums we receive up to the planned periodic premium, not to
exceed target premium**.
d) 3% of premium we receive above the lesser of planned periodic or target
premium.
*The target premium is determined according to a rate per $1,000 of
face amount. This rate varies by age and sex of the insured.
Target Premiums (Annual per $1,000 face amount)
APPENDIX B
TARGET PREMIUMS
The target premiums for the Policy are based on the joint equivalent age (JEA)
of the insureds. The JEA takes into account the gender*, age, smoking status and
risk classification of each insured. The calculation is as follows:
1. Start with the unadjusted individual ages of insured #1 and insured #2.
Call this (X1) and (X2) respectively.
2. Take each individual age and adjust for gender.
if Male the gender adjustment is 0
if Female the gender adjustment is minus 5
if Unisex rating is used, the gender adjustment is minus 2
3. Take resulting individual ages from step 2 and adjust for smokers if
applicable.
if Male Smoker the smoker adjustment is plus 3
if Female Smoker the smoker adjustment is plus 2
if Unisex Smoker the smoker adjustment is plus 3
4. Take resulting individual ages from step 3 and adjust for substandard table
ratings, if any.
if table A rating then add 2
if table B rating then add 4
if table C rating then add 6
if table D rating then add 8
if table E rating then add 10
if table F rating then add 12
if table G rating then add 14
if table H rating then add 15
if rating is higher than table H then add 16.
5. The result of step 4 is the adjusted individual ages of insured #1 and
insured #2. Call this (X1A) and (X2A) respectively.
6. If (X1A) is greater than 100 then set (X1A) equal to 100.
7. If (X2A) is greater than 100 then set (X2A) equal to 100.
8. Take the difference between (X1A) and (X2A). Call this (XDIFF).
9. Look up (XDIFF) on the table below to find out what to add on to youngest
adjusted age.
XDIFF ADD ON
0 0
1 To 2 1
3 To 4 2
5 To 6 3
7 To 9 4
10 To 12 5
13 To 15 6
16 To 18 7
19 To 23 8
24 To 28 9
29 To 34 10
35 To 39 11
40 To 44 12
45 To 47 13
48 To 50 14
51 To 53 15
54 To 56 16
57 To 60 17
61 To 64 18
65 To 69 19
70 To 75 20
76 to 85 21
10. The JEA (Joint Equivalent Age) is equal to the Minimum of (X1A) and (X1B)
plus ADD ON from the table above.
Example:
Male Nonsmoker age 45 table rating A, Female Smoker age 57.
1. (X1) = 45 and (X2) = 57
2. (X1) = 45 + 0 = 45; and (X2) = 57 - 5 = 52
3. (X1) = 45 + 0 = 45; and (X2) = 52 + 2 = 54
4. (X1) = 45 + 2 = 47; and (X2) = 54 + 0 = 54
5. (XIA) = 47; (X2A) = 54
6. (XIA) is not greater than 100
7. (X2A) is not greater than 100
8. (XDIFF) = (X2A) - (X1A) = 54 - 47 = 7
9. ADD ON = 4
10. JEA = minimum of (XIA) and (X2A) + ADD ON = 47 + 4 = 51
SVUL Target Premium Rates per $1000 of Face
JEA Target JEA Target JEA Target
<20 2.78 44 6.51 69 30.45
20 2.78 45 6.93 70 31.36
21 2.87 46 7.38 71 32.27
22 2.95 47 7.86 72 33.17
23 3.03 48 8.38 73 34.08
24 3.13 49 8.93 74 35.02
25 3.22 50 9.50 75 35.97
26 3.32 51 10.12 76 36.95
27 3.41 52 10.78 77 37.95
28 3.52 53 11.49 78 38.94
29 3.62 54 12.54 79 39.96
30 3.73 55 13.68 80 40.99
31 3.84 56 14.92 81 42.00
32 3.96 57 16.22 82 42.00
33 4.07 58 17.58 83 42.00
34 4.24 59 18.94 84 42.00
35 4.42 60 20.32 85 42.00
36 4.60 61 21.67 86 42.00
37 4.79 62 22.98 87 42.00
38 4.99 63 24.23 88 42.00
39 5.20 64 25.41 89 42.00
40 5.41 65 26.52 90 42.00
41 5.64 66 27.56 >90 42.00
42 5.87 67 28.56
43 6.11 68 29.53
* The cost of insurance rate for Policies issued in states which require
unisex pricing or in connection with employment related insurance and
benefit plans is not based on the gender of the insured.
Service Fees
A service fee of 1% on all premium received beyond the first policy year is paid
as long as the policy remains in effect and this Agreement remains active.
Compensation for Renewals
A renewal fee of 2% on all premiums received during policy years two
(2) through ten (10) is paid as long as the Policy remains in effect
and this Agreement remains in effect and active.
If the previous servicing agent of record was a Princor registered
representative and a new representative registered with you is
appointed to service the policy, only a 1% service fee will be paid on
the existing premium. A 2% renewal commission will be paid to your
representative on any premium increases while they service the Policy
in addition to the 1% service fee.
Compensation on Increases
An "increase" is defined as a face amount increase. We will compare the
increased face amount of the Policy against the highest Policy face
amount over the immediately preceding three year period to determine if
there is a Policy face amount increase during the current year.
A 50% commission will be paid on premium received during the first 12
months following the date of an face amount increase that is greater
than the premium level on which a high [50%] first year commission rate
was previously paid. The maximum premium on which a high [50%] first
year commission rate is paid will be limited to the lesser of total
planned periodic premium or total target premium amount of the policy
after a face amount increase has occurred.
Compensation for Replacement of Life Policies Issued by Principal Life Insurance
Company
A. First year commission is the sum of 1,2, 3 and 4 which follow.
1. A full first year commission rate as set out in First Year Commissions
of the exhibit will be applied to all new policy premium in excess of
the replaced premium but less than the planned periodic, not to exceed
target premium.
2. A percentage of the first year commission rate of the new policy
determined from the table below according to the number of years since
the replaced policy was issued or updated will be applied to the
replaced policy planned periodic premium, not to exceed target
premium. The resulting commission rate in the table shall in no event
exceed the applicable first year commissions rates as set out in the
First Year Commissions section of this exhibit.
--------------------- ----------------------------------------- ------------------- ------------------------------------------
Years Since Date of Percentage of New Policy's Years Since Date Percentage of New Policy's
Issue or Update First Year Commission Rate of Issue First Year Commission Rate
Payable on Replaced Premium* or Update Payable on Replaced Premium*
0 - 3 0** 12 36
4 20 13 38
5 22 14 40
6 24 15 42
7 26 16 44
8 28 17 46
9 30 18 48
10 32 19 and later 50
11 34
--------------------- ------------------------------------- ------------------- ------------------------------------------
*Replaced premium amounts will be defined as the level of premium on which a
first year commission was previously paid.
**A commission equal to the renewal rate of the new policy will be paid on
replaced premium.
3. Commissions on cash values conserved and transferred into the new
policy will be paid as follows:
o 3% of cash value transferred from a non-Updated policy.
o 1% on cash value transferred from an Updated policy or current
yield policy.
These commissions will be paid on cash values deposited as
unscheduled premiums. However, in situations where a policy loan
is carried over to the new policy, we will not pay a commission
on the unscheduled premium deposit created for the purpose of
carrying over the loan.
4. An additional 5% commission will be paid on the amount of policy
premium being replaced if the total premium in the new policy is at
least 25% greater than the premium of the replaced policy.
B. Service fees are determined according to the applicable rates for such as
set out in the exhibit.
C. Commissions will not be paid when partial surrender amounts are used to
fund premium increases or new business.
D. For special situations defined by the Insurer involving replacement of life
policies, the insurer reserves the right to further modify commissions
payable on replacements outlined above.
EXHIBIT C - Compensation Schedule
for PrinFlex(R) Life
(Sold only with the assistance of Executive Benefit Services (EBS(R)))
Principal Life Insurance Company ("Principal" or "we") will pay commissions on
premiums we receive on sales of Policies made pursuant to the Broker-Dealer
Marketing and Servicing Agreement for Variable Life Contracts Agreement (the
"Agreement") according to the schedule below.
We may, by written notice to Broker-Dealer (1) change this compensation
schedule; (2) discontinue the issuance of any form of Policy; and/or (3) fix or
change the amount of compensation on Policies issued in exchange for previously
issued Policies.
First Year Commissions
(a) 50%# of premiums we receive up to the planned periodic premium,
but not to exceed target premium*.
(b) 3% of premiums we receive that exceed the lesser of planned
periodic or target premium.
*The target premium is determined according to a rate per $1,000
of face amount and varies by age and sex of the insured.
# See Special Underwriting section at the end of this Exhibit.
Target Premiums (Annual per $1,000 face amount)
--------- ------------ ------------ ------------ --------- ------------ ------------ ------------
Age Male Female Unisex Age Male Female Unisex
0 3.50 2.83 3.41 45 14.31 11.93 14.00
1 3.50 2.83 3.41 46 15.08 12.53 14.75
2 3.50 2.83 3.41 47 15.90 13.16 15.54
3 3.50 2.83 3.41 48 16.77 13.83 16.39
4 3.50 2.83 3.41 49 17.70 14.54 17.29
5 3.50 2.83 3.41 50 18.68 15.30 18.24
6 3.50 2.83 3.41 51 19.74 16.10 19.27
7 3.50 2.83 3.41 52 20.86 16.94 20.35
8 3.50 2.83 3.41 53 22.05 17.85 21.50
9 3.50 2.83 3.41 54 23.32 18.80 22.73
10 3.50 2.83 3.41 55 24.67 19.82 24.04
11 3.65 2.91 3.55 56 26.11 20.90 25.43
12 3.80 3.00 3.70 57 27.65 22.05 26.92
13 3.95 3.08 3.84 58 29.30 23.29 28.52
14 4.10 3.17 3.98 59 31.05 24.62 30.21
15 4.25 3.25 4.12 60 32.93 26.06 32.04
16 4.62 3.63 4.49 61 34.94 27.60 33.99
17 4.99 4.00 4.86 62 37.10 29.26 36.08
18 5.36 4.38 5.23 63 39.40 31.06 38.32
19 5.73 4.75 5.60 64 41.86 32.97 40.70
20 6.10 5.13 5.97 65 44.48 35.02 43.25
21 6.11 5.16 5.99 66 47.29 37.21 45.98
22 6.12 5.20 6.00 67 50.30 39.58 48.91
23 6.13 5.23 6.01 68 53.52 42.14 52.04
24 6.14 5.27 6.03 69 56.98 44.93 55.41
25 6.15 5.30 6.04 70 60.71 47.98 59.06
26 6.29 5.42 6.18 71 64.73 51.30 62.98
27 6.43 5.54 6.31 72 69.02 54.93 67.19
28 6.57 5.65 6.45 73 73.62 58.86 71.70
29 6.71 5.77 6.59 74 78.48 63.12 76.48
30 6.85 5.89 6.73 75 83.65 67.71 81.58
31 7.17 6.16 7.04 76 87.77 71.45 85.65
32 7.51 6.44 7.37 77 91.89 75.20 89.72
33 7.87 6.74 7.72 78 96.00 78.94 93.78
34 8.26 7.06 8.10 79 100.12 82.69 97.85
35 8.66 7.40 8.50 80 104.24 86.43 101.92
36 9.10 7.76 8.93 81 113.32 95.74 111.03
37 9.55 8.13 9.37 82 122.40 105.05 120.14
38 10.03 8.53 9.84 83 131.48 114.36 129.25
39 10.54 8.94 10.33 84 140.56 123.67 138.36
40 11.09 9.38 10.87 85 149.64 132.98 147.47
41 11.66 9.83 11.42
42 12.26 10.32 12.01
43 12.91 10.82 12.64
44 13.59 11.36 13.30
--------- ------------ ------------ ------------ --------- ------------ ------------ ------------
Service Fees
We will pay a service fee of 0.5% on all premium we receive beyond the
first policy year as long as the Policy remains in effect and this
Agreement is in effect and active.
Compensation for Renewals
A renewal fee of 2% on all premium received beyond the first policy
year is paid as long as the policy remains in effect and this Agreement
remains in effect and active.
If the previous servicing agent of record was a Princor registered
representative and a new representative registered with you is
appointed to service the Policy, only a 1% service fee will be paid on
the existing premium. A 2% renewal commission will be paid to your
representative on any premium increases while they service the policy
in addition to the 1% service fee.
Compensation on Increases
An "Increase" is a face amount increase of a Policy. To determine the
amount of an Increase, if any, we compare the increased face amount of
a Policy against the highest policy face amount of that Policy during
the immediately preceding three year period.
We will pay a 50%# commission on premiums we receive during the 12
months following the Increase, provided that the commission rate is
limited to the lesser of the planned periodic premium for the Increase
amount or the target premium of the Increase amount.
# See Special Underwriting paragraph below.
Compensation Where Prinflex Replaces Other Variable Life Policies Issued by
Principal
A. First year commission: We will pay first year commission on a new Prinflex
Policy (the "Replacement Policy") that replaces an existing Principal
Variable Life Policy (the "Replaced Policy") in an amount that is the sum
of 1,2, 3 and 4, below.
1. First year commission at the rate set out in First Year Commissions of
this Exhibit will be applied to Replacement Policy premiums we receive
that exceed the premiums on the Replaced Policy, not to exceed the
lesser of the planned periodic premium or the target premium for the
Replacement Policy.
2. A percentage of the first year commission rate of the Replacement
Policy (as set out in the table below) based on the number of years
since the Replaced Policy was issued or updated*) will be applied to
the Replaced Policy planned periodic premium, not to exceed target
premium of the Replaced Policy. The commission rate paid according to
this paragraph and the table below shall in no event exceed the
applicable first year commissions rates as set out in the First Year
Commissions section of this Exhibit.
(* "updated" means any increase or decrease of face amount of any Policy.)
---------------------- ----------------------------------------- --------------------- -----------------------------------------
Years Since Date of Percentage of New Policy's Years Since Date of Percentage of New Policy's
Issue or Update First Year Commission Rate Issue or Update First Year Commission Rate
Payable on Replaced Premium* Payable on Replaced Premium*
0 - 3 0** 12 36
4 20 13 38
5 22 14 40
6 24 15 42
7 26 16 44
8 28 17 46
9 30 18 48
10 32 19 and later 50
11 34
---------------------- ----------------------------------------- --------------------- -----------------------------------------
* Replaced premium amounts will be defined as the level of premium on
which a first year commission was previously paid.
** A commission equal to the renewal rate of the new policy will be paid
on replaced premium.
3. Commissions on cash values conserved and transferred from the Replaced
Policy to the Replacement Policy will be paid as follows:
o 3% of cash value transferred from a non-Updated policy.
o 1% on cash value transferred from an Updated policy or current
yield policy.
These commissions will be paid on cash values deposited as unscheduled
premiums. However, in situations where a policy loan is carried over
to the Replacement Policy, we will not pay a commission on the
unscheduled premium deposit created for the purpose of carrying over
the loan.
4. We will pay an additional 5% commission on the amount of Policy
premium being replaced if the total premium in the Replacement Policy
is at least 25% greater than the premium of the Replaced Policy.
B. Service fees are determined according to the applicable rates for such as
set out in the exhibit.
C. Commissions will not be paid when partial surrender amounts are used to
fund premium increases or new business.
D. For special situations defined by the Insurer involving replacement of life
policies, the Insurer reserves the right to further modify commissions
payable on replacements outlined above..
Special Underwriting. Commission rate is reduced to 45% if Batch underwriting or
Expanded Non-Medical underwriting is used. Commission rate is reduced to 30% if
Guaranteed Issue underwriting is used. Commission rate is reduced to 30% if
Accounting Benefit Rider ("ABR") is used. Commission rate is reduced to 25% when
ABR is used with Guaranteed Issue. Other arrangements may be made with different
compensation amounts.
EXHIBIT D - Expense Reimbursement Schedule
Principal Life Insurance Company ("Principal" or "we") will reimburse the
broker-dealer for expenses incurred by them on sales of Policies made pursuant
to the Broker-Dealer Marketing and Servicing Agreement for Variable Life
Contracts (the "Agreement") according to the schedule below. We may, by written
notice to you, (1) change this compensation schedule; (2) discontinue the
issuance of any form of Policy; and/or (3) fix or change the amount of
compensation on Policies issued in exchange for previously issued Policies.
New York Insurance Department Limitations
The Broker-Dealer and Principal Life agree that the maximum payment under this
Agreement shall be subject to the terms of a plan we submitted to and was
approved by the New York State Insurance Department. The determination of
whether payments exceed the maximum amount permissible shall be solely our
responsibility. Any amounts paid by us to you that are deemed to exceed the
maximum amount permissible shall become a debt from you to us. We reserve the
right to set-off any such indebtedness against any amount payable under this
Agreement or any other contract you have with us or any our affiliates.
Expense Reimbursement Amounts
We agree to pay you an expense reimbursement allowance on premiums during the
first Policy year as follows:
VUL Accumulator
o 25%# of premiums we receive up to the planned periodic Premium, but not to
exceed target premium. See Exhibit A for schedule of Target Premiums.
# Allowance is reduced to 15% if Accounting Benefit Rider (ABR) is used.
Other arrangements may be made with different compensation amounts.
SVUL
o 25% of premium received up to the planned periodic premium, not to exceed
target premium. See Exhibit B for schedule of Target Premiums.
PrinFlex Life(R) (sold only with the assistance of Executive Benefit Services,
Inc ("EBS"))
o 5%# of premium we receive up to the planned periodic premium, but not to
exceed target premium. See Exhibit C for schedule of Target Premiums.
# Allowance is reduced to 4.5% if Batch underwriting or Expanded Non-Medical
underwriting is used. Allowance is reduced to 3% if Guaranteed Issue
underwriting is used. Allowance is reduced to 3% if Accounting Benefit
Rider (ABR) is used. Allowance is reduced to 2.5% when ABR is used with
Guaranteed Issue. Other arrangements may be made with different
compensation amounts.
.
Executive Benefit Services Assistance
For policies sold with sales and/or policy administration assistance* of EBS or
its designees, the Expense Reimbursement Allowance payable will be 5% of the
premium received up to the planned periodic premium, but not to exceed target
premium as shown in either Exhibit C for PrinFlex Life (R).
*Sales and/or policy administration assistance of EBS may consist of one or more
services, including, for example, marketing support, Case Review/Design, Case
Management, Proposals, Financial Analysis, Plan Implementation Support,
Underwriting Coordination, Internet based administration. The determination of
when sales are made subject to the sales and/or policy administration assistance
of EBS shall be made by Principal in its sole discretion.
