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A Member of The Security 000 XX Xxxxxxxx Xx.
Benefit Group of Companies Xxxxxx, Xxxxxx 00000-0000
(000) 000-0000
SBL VARIABLE PRODUCTS
BROKER/DEALER
SALES AGREEMENT
BROKER/DEALER:
EFFECTIVE DATE:
1. Security Benefit Life Insurance Company, of Topeka, Kansas, and its
affiliated company, Security Distributors, Inc., hereinafter jointly called
"SBL", hereby authorize the above-designated Broker/Dealer to solicit and
service (1) variable annuities issued under Security Benefit Life Insurance
Company's several Variable Annuity Accounts and (2) variable life insurance
policies issued under Security Benefit Life Insurance Company's variable
life accounts, each of which has been registered as securities under the
Securities Act of 1933 with Security Distributors, Inc. (a member of the
National Association of Securities Dealers, Inc.) having been designated
Principal Underwriter thereof. Said variable annuity contracts and variable
life insurance policies are referred to herein as "Variable products."
2. Broker/Dealer hereby accepts such authorization to solicit and service such
SBL variable products and confirms that it is properly licensed to solicit
and service such variable products for SBL and is a member in good standing
of the National Association of Securities Dealers, Inc., hereinafter called
"NASD", and further agrees to notify SBL if it ceases to be a member of
NASD.
3. Broker/Dealer shall have the authority to recruit, train and supervise
registered representatives for the sale of variable products of SBL.
Appointment of any registered representative shall be subject to prior
approval of SBL. SBL reserves the right to require termination of any
registered representative's right to sell SBL variable products.
Broker/Dealer shall be responsible for any registered representative
appointed hereunder complying with the terms, conditions and limitations as
set forth in this Agreement. All registered representatives recruited by
Broker/Dealer to sell SBL's variable products shall be duly licensed as
annuity producers and/or insurance producers pursuant to applicable state
laws and regulations. Broker/Dealer shall be responsible for any registered
representative becoming so licensed.
4. Commissions on stipulated payments or premiums accepted by SBL on behalf of
an annuitant, participant, or policyholder of a variable product covered by
this Agreement will be in accordance with the Schedule of Commissions made
part of this Agreement, and are in full consideration of all services
rendered and expenses incurred hereunder by the Broker/Dealer or its
representatives. First year commissions are payable when an individual
variable annuity contract, group variable annuity certificate or variable
life insurance policy is issued and paid for upon an application submitted
through Broker/Dealer and accepted by the applicant thereof. Broker/Dealer
is not authorized to deduct commissions prior to forwarding any remittance
received to SBL. All checks or drafts received by the Broker/Dealer in
regards to any variable product shall be made payable to Security Benefit
Life Insurance Company. All compensation payable hereunder shall be subject
to a first lien and may be reduced or set off as to any indebtedness owed
by the Broker/Dealer to SBL. Any commissions paid to a third party at the
request of the Broker/Dealer shall be deducted from the commissions payable
hereunder.
5. Broker/Dealer agrees to be bound by the terms, conditions and limitations
set forth in this Agreement and the rules and practices of SBL that are now
and hereafter in force. Broker/Dealer agrees not to solicit or submit
applications for variable products to SBL unless it and its registered
representatives are properly licensed, and further agrees that it will
conform to all applicable state, federal and local laws and regulations in
conducting business under this Agreement. Both parties hereby agree to
abide by the applicable Rules of Fair Practice of the NASD which Rules are
incorporated herein as if set forth in full. The signing of this Agreement
and the purchase of variable products pursuant thereto is a representation
of SBL that Broker/Dealer is a properly registered Broker/Dealer under the
Securities and Exchange Act of 1934.
6. Neither the Broker/Dealer nor its representatives are authorized to make
any representations concerning the variable products, its sponsor (SBL),
the principal underwriter (Security Distributors, Inc.) or the underlying
mutual funds except those contained in the applicable current prospectuses
and in the printed information furnished by SBL. Broker/Dealer agrees not
to use any other advertising or sales material relating to the variable
products unless specifically approved in writing by SBL.
VA6972 (R3-87)
7. Broker/Dealer is not authorized and has no authority (a) to make, alter or
discharge any contract for or on behalf of SBL, (b) endorse any check or
draft payable to SBL, (c) to accept any variable product consideration
after the initial remittance, (d) to waive or modify any prospectus,
contract, policy or application provision, condition or obligation, and (e)
to extend the time for payment of any variable product consideration or
accept payment of any past due variable product consideration.
8. This Agreement shall not create or be construed as creating an
Employer-Employee or Master-Servant relationship between Broker/Dealer and
SBL.
9. Broker/Dealer agrees to keep accurate records on all business written and
moneys received under this Agreement. Such records may be examined by SBL
or its representatives at any reasonable time. All moneys and documents
belonging to SBL in possession of Broker/Dealer shall be held in trust and
shall not be used or commingled with funds or property belonging to
Broker/Dealer and shall be promptly remitted to SBL. Broker/Dealer agrees
to be responsible for any county or municipal occupational or privilege
fee, tax or license which may be required of Broker/Dealer or its
representatives as a result of business submitted under this Agreement.
10. Neither this Agreement nor the compensation payable hereunder shall be
assigned or pledged without the written consent of SBL. SBL reserves the
right to reject any assignment or pledge.
11. No consent or change in this agreement shall be binding upon SBL unless in
writing and signed by the president, a vice president, secretary or an
assistant secretary of SBL. Any failure of SBL to insist upon strict
compliance with the provisions of this Agreement shall not constitute or be
construed as a waiver thereof.
12. SBL shall have the right to decline or modify any application or to refund
any variable product consideration or any portion thereof, and
Broker/Dealer shall refund immediately upon request any commissions
received in connection therewith. All applications for variable products
are subject to acceptance by SBL and become effective only upon
confirmation by SBL. Broker/Dealer agrees to return to SBL without delay
any commissions received on a variable product, contract or policy if such
contract or policy is tendered for redemption within seven (7) business
days after acceptance of the application by SBL.
13. Variable products, contracts and policies will be offered to the public at
the price as outlined in the applicable variable product's current
prospectus. All cash surrenders require the written request and consent of
the contract or policy owner and such surrenders will conform to the
provisions set forth in the applicable contract or policy.
14. SBL has been and is designated Administrative Agent of Security
Distributors, Inc. to perform duties, including recordkeeping and payment
of commissions, necessary under this Agreement in connection with the
solicitation, sales and servicing of variable annuity contracts sold and
solicited hereunder.
15. SBL reserves the right to amend or terminate this Agreement at any time. In
the event Broker/Dealer ceases to be a member in good standing of the NASD,
this Agreement shall terminate automatically without notice. After
termination Broker/Dealer upon request, shall without delay pay in full any
indebtedness owed to SBL and return all SBL property to their home office.
In the event Broker/Dealer ceases doing business in such manner that
servicing would be impossible, SBL reserves the right to reassign the
business and service fees to another Broker/Dealer. Should Broker/Dealer
fail to comply with any of the terms of this Agreement, SBL reserves the
right to terminate this Agreement and terminate vesting as to all
commissions payable thereunder.
16. This Agreement is effective as of the Effective Date set forth above and
replaces any previous agreement between the parties relating to variable
products of SBL except as to any commissions payable thereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC. BROKER/DEALER
By XXXXXXX X XXXX
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Title: President (Signature of Principal)
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SECURITY BENEFIT LIFE INSURANCE COMPANY (Name of Principal)
By XXXXXXX X XXXX
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Title: Senior Vice President Title:
|_| Individual |_| Corporation
|_| Partnership
Tax Identification No.
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A Member of The Security 000 XX Xxxxxxxx Xx.
Benefit Group of Companies Xxxxxx, Xxxxxx 00000-0000
(000) 000-0000
SBL VARIABLE PRODUCTS
SCHEDULE OF COMMISSIONS
VARIFLEX--VARIABLE ANNUITY
BROKER/DEALER:
EFFECTIVE DATE OF SCHEDULE OF COMMISSIONS:
COMMISSIONS - This Schedule of Commissions is hereby made part of and amends the
above referenced Agreement with Security Benefit Life Insurance Company and
Security Distributors, Inc., (hereinafter jointly called SBL) and commissions
payable hereunder are subject to the provisions contained in said Agreement and
this Schedule of Commissions. Minimum premiums are as set out in the applicable
prospectus and policy. Commissions to a Broker/Dealer are equal to the
percentage of stipulated payments written by that Broker/Dealer on account of
new participants enrolled or increased stipulated payments written by that
Broker/Dealer on existing participants, as follows:
1. Installment Stipulated Payments: Payments received during the first Contract
Year and the succeeding nine Contract Years, for regular installment
payments, lump sums and other irregular payments (except for #4, below)
added to an individual installment payment contract or certificate of group
contract.
Commission Rate
5.0%
Payments of less than $25 are not accepted. Initial payments of less than
$2,500 are not accepted for non-tax-qualified contracts.
2. Payments under Single Payment Contracts (Deferred or Immediate): Payments
received under a single payment contract, except for premiums and payments
received under #4, below.
Commission Rate
5.0%
3. Service Fees: 5% of each Annuitant's or Participant's Stipulated Payments
made in the eleventh and subsequent Contract Years of participation for
which no other commissions are payable.
4. Transfer of SBL Contract Values: During any Contract Year for the cash, loan
or surrender value of other life insurance or annuity contracts issued by
SBL or other members of The Security Benefit Group of Companies applied to
an individual contract or group certificate under this Schedule of
Commissions.
Source of Transfer Values Commission Rate
SBL Variable Annuity Account I contracts 3.0%
SBL VA III or VA IV contracts 0.0%
Other contracts To be determined per case
5. Annuitization: An Annuitization Fee of 2% of the Amount Applied to commence
an immediate life contingent settlement for a Participant or beneficiary of
a Participant, is payable to that Broker/Dealer who has secured from such
Participant or beneficiary the proper forms and information and
significantly assisted the client and SBL in such settlement. An
Annuitization Fee will not be paid if annuitization occurs before the end of
the fifth contract year or on contributions made within the 13 month period
before the immediate life contingent settlement is to commence.
6. Contract Termination: Any commissions paid on increased contributions made
during the 18 months prior to surrender after the Contract has been in force
over six years will be charged back. "Increased contributions" shall mean
for this provision those contributions made during the 18 months prior to
surrender that exceed by more than 10% the average of contributions made
during the 19th through 36th months prior to surrender.
Any commissions paid on a contract under which a death benefit is paid
during the first five contract years shall be charged back on the following
basis if the annuitant was 65 years of age or older on the first day of the
first contract year: 100% if death occurs in the first contract year, 80% in
the second contract year, 60% in the third contract year, 40% in the fourth
contract year, and 20% in the fifth contract year.
For contracts not specifically set forth above, commissions and service fees
shall be determined by SBL.
VA 6275 (3-87)
SERVICE FEES - Service fees are payable only if the above referenced Agreement
is in full force and effect at the time the service fee is payable as to a
particular Stipulated Payment and are contingent upon satisfactory service and
performance of duties according to SBL's rules and administrative procedures.
SBL shall be the sole judge of satisfactory service.
CONTRACT YEAR - For the purpose of this Schedule, the term "contract year" as
applied to individual contracts shall be measured from the date the first
stipulated payment is credited to the Contract. For a certificate under a group
contract "contract year" shall be measured from the date the first payment is
credited to the certificate.
CHANGE - SBL reserves the right at any time, with or without notice, to change,
modify or discontinue any plan of Variable Annuity or the commissions and
service fees payable thereon. Any such change, however, shall not affect
certificates or contracts of participants already in effect.
CHANGE OF DEALER - Contract Owners shall have the right to designate other
Broker/Dealers. Upon notice of such designation to SBL, commissions shall be
payable to other Broker/Dealers on any stipulated payments due or received by
SBL on account of Participants written by those other Broker/Dealers and on
increases written on existing Participants by those other Broker/Dealers.
Contract Owners shall also have the right to terminate a Broker/Dealer. Upon
notice of such termination to SBL, no further commissions or service fees shall
be payable on any stipulated payments due or received by SBL after such notice
for new Participants written by the terminated Broker/Dealer or increased
stipulated payments for existing Participants written by the terminated
Broker/Dealer.
VESTING OF COMMISSIONS - If the above referenced Broker/Dealer Agreement is
terminated, first year and renewal commissions payable under this Schedule of
Commissions prior to said termination, will be vested in Broker/Dealer provided
that:
(a) The above referenced Broker/Dealer Agreement has been in force for not
less than one year or Variable Annuities issued under said Agreement
have produced not less than $10,000.00 of Stipulated Payments; and,
(b) Broker/Dealer is at the time such commissions are payable properly
licensed to receive such commission payments.
Any such vesting shall terminate as to renewal commissions and no further
renewal commissions shall be payable under this Schedule of Commissions, if:
(a) Broker/Dealer fails to service contract owner(s) and perform duties
satisfactory to SBL; or
(b) Commissions on Variable Annuities paid to Broker/Dealer by SBL during
previous calendar year amounted to less than $240.00.
THIS SCHEDULE OF COMMISSIONS replaces any previous Schedule of Commissions for
the plans indicated as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC.
By XXXXXXX X XXXX
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Title: President
SECURITY BENEFIT LIFE INSURANCE COMPANY
By XXXXXXX X XXXX
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Title: Senior Vice President
