EXHIBIT 1.A(3)(C)
COMMISSION SCHEDULE
[LOGO OF FIRST VARIABLE LIFE INSURANCE COMPANY APPEARS HERE]
First Variable Capital Services, Inc.
0000 Xxxx Xxxx, Xxxxx 000
Xxx Xxxxx, Xxxxxxxx 000000-0000
Schedule of Variable Contract Commissions
Effective ________________, 1999
This Schedule of Commissions is attached to and made a part of the Selling
Broker-Dealer Agreement, as amended, between and among First Variable Capital
Services, Inc. ("FVCS"), First Variable Life Insurance Company ("First
Variable"), and the Selling Broker-Dealer. It replaces all prior schedules on
the Authorized Contracts shown below. Selling Broker-Dealer will be deemed to
have accepted this Schedule through the submission of new business after its
effective date, subject to any selection of commission options on page 5 of
this Schedule.
Variable Life Insurance Products
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Authorized
Contract Total Commission
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Capital Solutions VUL
(single life)
Commission Option I: Target Excess Yrs 2-5 Yrs 6+
Commission Option Age at Issue: 0 - 85 --------- ------ --------- -----------
II: Age at Issue: 0 - 85 95% 4.0% 3.5% 0.30% trail
100% 4.0% 3.5% 0.30% trail
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Capital Estate
Builder VUL
(survivorship joint Target Excess Yrs 2-5 Yrs 6+
life) Joint Age at Issue: 0 --------- ------ --------- -----------
Commission Option I: - 85 95% 4.0% 3.5% 0.30% trail
Joint Age at Issue: 0 100% 4.0% 3.5% 0.30% trail
Commission Option II: - 85
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Capital One Pay VL
(single life)
Commission Option I:
Age at Issue: 0 - 80 7.00% of premium
Age at Issue: 81+ 4.50% of premium
Commission Option II:
Age at Issue: 0 - 80 5.00% of first year premium, 0.40% trail
commission thereafter, starting in the 2nd
Contract Year
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See page 3 for definitions and requirements.
See page 4 for commission charge-back rules.
See page 5 for selection of Commission Options.
Schedule of Variable Contract Commissions - Continued
Effective _________________, 1999
Xxxxxxxx Xxxxxxx Products
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Authorized
Contract Total Commission
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Capital Six VA
Commission Option I: Age at Issue: 0 - 70 3.00% of first year premium
Age at Issue: 71 - 75 2.50% of first year premium
Age at Issue: 76 - 85 1.50% of first year premium
Age at Issue: 0 - 85 Other Contract Years:
Choice A
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0.50% trail commission years 2 - 6,
1.00% trail commission years 7+
Choice B
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0.25% trail commission years 2-6,
1.25% trail commission years 7+
Age at Issue: 0 - 85 Annuitization Commission:
Additional payment equal to three (3) times
trail commission in year contract is settled
under an annuity payout option
Commission Option II:
Age at Issue: 0 - 70 6.75% of first year premium, 1% of premium
received in other Contract years
Age at Issue: 71 - 85 5.25% of first year premium, 1% of premium
received in other Contract years
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Capital Five VA
Commission Option I: Age at Issue: 0 - 85 6.00% of first year premium; reducing 1.00% for
each year after Issue Age 80 (e.g., 5.00% of
first year premium for Issue Age 81)
Commission Option II: Age at Issue: 0 - 85 5.00% of first year premium with a 0.25% trail
commission; reducing 1.00% for each year after
Issue Age 80
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Capital No Load Age at Issue: 0 - 85 1.00% of first year premium, 1.00% trail
commission starting in year 2
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See page 3 for definitions and requirements.
See page 4 for commission charge-back rules.
See page 5 for selection of Commission Options.
Schedule of Variable Contract Commissions - Continued
Effective January 1, 1998
Definitions
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"Commission Option" - the payment method selected by the Selling Broker-Dealer
for the Authorized Contract shown. If a commission option is not selected as
required by First Variable, payment will be made under the default options
described in the "Selection of Commission Options" provisions on page 5 of this
Schedule.
"Excess" - first year premium received by First Variable on CAPITAL SOLUTIONS
VUL or CAPITAL ESTATE BUILDER VUL in excess of target premium.
"Age at Issue" - the attained age of the insured on the issue date for single
life variable life insurance products, and the highest attained age of the
annuitant and all contract owners on the issue date for variable annuity
products. For CAPITAL ESTATE BUILDER VUL, the "Joint" Age at Issue is the
equivalent joint age of the two insureds on the policy date, as determined by
First Variable.
"Target", "target premium" - a planned amount of first year premium that is
determined by First Variable based on the amount of insurance issued and the
sex, age and premium rate class of: (a) a single insured under CAPITAL
SOLUTIONS VUL; and (b) the two insureds under CAPITAL ESTATE BUILDER VUL.
"Trail", "trail commissions" - payments to the Selling Broker-Dealer based upon:
(a) the non-loaned Accumulation Values of both the Fixed and Separate Accounts
within an Authorized Contract; and (b) the rate for the applicable Authorized
Contract shown in the Schedule. All trail rates shown are on an annual basis,
and will be adjusted by First Variable to reflect quarterly calculations.
Commissionable Contracts
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Commission is payable on Authorized Contracts only if sold by sales
representatives associated with the Selling Broker-Dealer/General Agent (or its
affiliated insurance agency) at the time of sale.
Premium and Trail Commissions
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Premium must be received in good order by First Variable at its Variable Service
Center; first year premium must be received during the first Policy/Contract
Year (12 months after the issue date) of an Authorized Contract.
Trail commissions starting in the 2nd Policy/Contract Year begin at the end of
the fifteenth (15th) Policy/Contract month after issue, and continue each
Contract quarter thereafter during the Accumulation Period. Trail commissions
starting in the 7th Contract Year begin at the end of the 25th Contract Quarter
(75th Contract month) after issue. Trail commissions are not vested and are
conditional upon remaining the broker-dealer of record of the contract at the
time of payment.
Transfers
---------
Commission on transfers to or from another annuity contract or life insurance
policy issued by First Variable or its affiliates will be payable only to the
extent permitted under the rules established by First Variable or the affected
affiliate.
Schedule of Variable Contract Commissions - Continued
Effective __________, 1999
Commission Chargebacks
----------------------
Commissions paid by First Variable will be charged back to Selling Broker-Dealer
upon lapse, surrender, or death of a Contract Owner (or Annuitant if Contract
Owner is a non-natural person) as follows:
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CAPITAL SOLUTIONS VUL Lapse:
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and Commission Option I: 100% of the commission paid charged back upon lapse
CAPITAL ESTATE BUILDER during the first 6 policy months, and 50% of the commission paid charged back
VUL upon lapse during the 7th through 14th policy months.
Commission Option II: 100% of the commission paid charged back upon lapse
during the first 6 policy months, 75% of the commission paid charged back upon
lapse during the 7th through 12th policy months, 50% of the commission paid
charged back upon lapse during the 13th through 18th policy months, and 25%
of the commission paid charged back upon lapse during the 19th through 26th
policy months.
Surrender after Inspection Period: None
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Death: None
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CAPITAL ONE PAY VUL Lapse: None
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Surrender after Inspection Period: None
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Death: None
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CAPITAL SIX VA Surrender after Inspection Period: None
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Death: Commission Option II Only: The greater of: (a) 50% of the commission
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paid; or (b) 3.75% of first year premium charged back upon death within the
first Contract Year.
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CAPITAL FIVE VA Surrender after Inspection Period: 100% of the commission paid charged back
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upon surrender during the first 6 months after a contract payment is credited
to the contract, and 50% of the commission paid charged back upon surrender
during the 7th through 12th months after the issue date.
Death: None
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CAPITAL NO LOAD VA Surrender after Inspection Period: 100% of the commission paid charged back
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upon surrender within the first Contract Year.
Death: 100% of the commission paid charged back upon death within the first
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Contract Year.
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ALL AUTHORIZED If a policy or contract is: (a) surrendered during the inspection period; or
CONTRACTS: (b) rescinded at any time as a result of a material misrepresentation made in
the application which resulted in the issuing of a contract which would not
otherwise have been issued, then 100% of the commission paid will be charged
back to the Selling Broker-Dealer. All amounts charged back will constitute
an indebtedness of the Selling Broker-Dealer to First Variable and, without
limitation, a lien on any further amounts due the Selling Broker-Dealer from
First Variable.
Schedule of Variable Contract Commissions - Continued
Effective _____________________, 1999
Selection of Commission Options
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Commission Options vary by Authorized Product. The Commission Option for
CAPITAL SOLUTIONS VUL and CAPITAL ESTATE BUILDER VUL must be made by the Selling
Broker-Dealer for all sales of these products. For all other Authorized
Contracts, the selection of a Commission Option is made at the time of sale. If
no selection is in effect or is not clearly specified at the time of sale, First
Variable will pay commission under the applicable default option.
CAPITAL SOLUTIONS VUL and CAPITAL ESTATE BUILDER VUL: The following Commission
Option is selected for all sales of these products:
[_] Commission Option I _____ (Initial)
[_] Commission Option II _____ (Initial)
If no option is selected, the default option is the option in effect for Capital
Solutions VUL under the Schedule of Variable Contract Commissions dated January
1, 1998. For selling agreements effective on and after the date of this
Schedule of Variable Contract Commissions, the default option is Commission
Option I.
CAPITAL ONE PAY VUL: The default option is Commission Option I.
CAPITAL SIX VA: The default option is Commission Option II.
CAPITAL FIVE VA: The default option is Commission Option I.
ACCEPTANCE AND CONFIRMATION. The undersigned Selling Broker-Dealer hereby
accepts, on behalf of itself and its affiliated insurance agencies, the above
Schedule of Variable Contract Commission and confirms its selection of the
Commission Option as set forth above.
Name of Selling Broker-Dealer:___________________________________
By:________________________________
Print Name:________________________
Title:_____________________________
Date:______________________________
