SCHEDULE B COMPENSATION SCHEDULE TO SUPERVISORY AND SELLING AGREEMENT FOR SOUTHLAND LIFE FUTURE DIMENSIONS VARIABLE LIFE POLICY FORM 15210-95
Exhibit 1.A(3)(c)(ii)
SCHEDULE B
COMPENSATION SCHEDULE
TO SUPERVISORY AND SELLING AGREEMENT FOR
SOUTHLAND LIFE FUTURE DIMENSIONS VARIABLE LIFE POLICY FORM 15210-95
This Schedule forms a part of the Agreement among ING America Equities, Southland and the Selling Broker-Dealer and Agency (or Agencies) signatory thereto, pursuant to Section 5 of the Agreement. The provisions of this Schedule will apply only to Southland Life Future Dimensions Variable Life Policies ("Policies") solicited and issued while this Schedule is in effect. All compensation payable under this Schedule will be subject to the terms and conditions contained herein at the time of issue of a Policy by Southland.
- Commission Structure:
(i) Gross Dealer Concession PREMIUM CALCULATION Target 80% of all Target Premium paid during the first policy year. Excess 3.5% of all premiums paid in excess of Target Premium during the first policy year. Renewals 3.5% of all premiums paid in policy years 2-10. (ii) Production Bonus: A bonus percentage will be separately determined based on each Representative's production of all Southland products during the six-month periods ending June 30 and December 31. Any such production outside the regular course or scope of the Representative's employment with Selling Broker-Dealer shall be included in determining bonus eligibility. The required production levels and bonus percentages are as follows: LEVEL PRODUCTION REQUIREMENT PRODUCTION BONUS (%) Level I $15,000 Paid Annualized Premium 10% Level II $30,000 Paid Annualized Premium 20% Level III $45,000 Paid Annualized Premium 30% The percentage so derived will be applied to variable universal life first policy year Target Premiums actually received by Southland during the bonus period. A Representative must also have an aggregate Southland 13-month persistency of 85% or better at the end of the applicable bonus period, in order to qualify.
The bonus will be paid during the month following the end of the applicable bonus period.
(iii) Trail Commission: A .25% trail commission on an annualized basis is calculated at the end of each Policy Month (as defined in the Policy) based on the Policy's then current Accumulation Value (as defined in the Policy). The trail commission will be payable monthly beginning in the 6th Policy Year (as defined in the Policy) and will terminate after the 20th Policy Year or on the Maturity Date (as defined in the Policy), if earlier, provided that the Policy is in force on such dates.
Trail commissions will be payable on policies issued on or after January 1, 1999.
- Target Premium: The Target Premium is an amount determined from tables published by
Southland with respect to a Policy or rider upon which commissions are based. As it applies to
future business, the Target Premium may be changed from time to time by Southland. The Target
Premium applicable to a particular coverage shall be determined from the table in force when the
first premium for such coverage is entered as paid in the accounting records of Southland.
- Paid Annualized Premium: Paid Annualized Premium is an amount determined from tables
with respect to a policy, contract or rider upon which bonuses are based and shall be governed by
Southland Life's administrative rules then in effect.
- Riders: All riders, with the exception of the Adjustable Term Rider and the Guaranteed
Minimum Death Benefit Rider, are commissionable and will have separate Target Premiums which
are set at issue and are level thereafter. The Adjustable Term Insurance Rider and the Guaranteed
Minimum Death Benefit Rider have no Target Premium associated with them. Flat extra ratings
with a duration of six years or more are commissionable and substandard table ratings are
commissionable based upon the first year additional cost of insurance charge.
- 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 guideline
annual premium for each segment bears to the total guideline annual premium of the Policy.
- Commission Calculation: Commission shall be calculated only on premium actually
received and accepted by Southland. Commission shall be paid only on an earned basis.
- Commission Payments: Commission 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 Southland, except that the amount, if any, and the time
of payment of commission on replacements, reissues, changes, conversions, exchanges, term
renewals, term conversions, premiums paid in advance, Policies requiring facultative reinsurance
arrangements, and other special cases and programs shall be governed by Southland's underwriting
and administrative rules then in effect. The commission shall be payable to the Selling Broker-Dealer in accordance with the Schedule B in effect at the time of issue of the Policy. Nominal
commissions will be deferred until such time that commissions payable are equal to or greater than
the minimum commission payable. Minimum commission payments shall be governed by
Southland's administrative rules then in effect.
- Commission Chargeback: Southland and ING America Equities shall require
reimbursement from Selling Broker-Dealer equal to 100% of the compensation paid in the event
of any of the following:
- a Policy is returned to Southland for refund of premium during the Free Look Period as described in the Policy
- upon lapse or surrender by the Policy Owner during the first twelve months.
If a premium payment for which a commission has been paid is refunded by Xxxxxxxxx, a reimbursement of the compensation 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.
The provisions of this paragraph 8 shall survive termination of this Schedule and/or the Agreement.
- Broker-Dealer Transfer: In the event that a Representative terminates from the Selling
Broker-Dealer of record, the compensation provisions set forth in the Agreement will apply.
- Internal Exchanges: Compensation on the exchange of any Southland policy for a Future
Dimensions variable life Policy will be paid in accordance with the exchange procedures in effect
at Southland 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. If the
Representative responsible for the exchange is not the producer of the original policy, and the
original producer is still active with Southland, no compensation will be payable to the
Representative or the Selling Broker-Dealer.
- Termination and Amendment: Southland and ING America Equities reserve the right to
terminate or amend this Schedule by providing written notification to the Selling Broker-Dealer
in accordance with Sections 9, 15 and 17 of the Agreement. With the exception of the terms
changed by any such Amendment, all other terms and conditions of the original Schedule shall
remain in full force and effect.
This Schedule shall be effective as of June 1, 2000 or the date the operative Agreement is accepted and executed by Xxxxxxxxx, whichever is later.
