1
EXHIBIT 3(g)
AMENDMENT TO SELLING AGREEMENT
2
TRILLIUM SCHEDULE I
CANADA LIFE INSURANCE COMPANY OF NEW YORK
PAYMENT SCHEDULE AS OF OCTOBER 1, 1997
Subject to the terms and conditions of this Agreement, CLAFS will make payments
of commission and expense allowance to Selling Firms based upon the premiums
and purchase payments received from such Selling Firms, in accordance with
applicable law, in the percentages shown below:
BROKER DEALER CONCESSION
------------------------
OWNER'S ISSUE AGE 0-80 OWNER'S ISSUE AGE 81-85
---------------------- -----------------------
Option A1: 5% of premium plus .25%, on Option A2: 2.25% of premium plus .25%
an annual basis, based on account annual trail, calculated as in Option
value of associated premium, .0625% A1.
first payable at end of 5th quarter
of the associated premium, end of Option B2: 3% of premium, no trail.
following quarters thereafter.
Option B1: 6.5% of premium, no trail.
Option C: 2% of premium plus .75%
annual trail, calculated as in Option
A1.
NOTE: ALL ASSET BASED PAYMENTS START BEING PAID IN THE FIFTH QUARTER AFTER THE
POLICY IS ISSUED, ARE PAYABLE QUARTERLY THEREAFTER, AND ARE BASED ON POLICY
VALUE AT THE TIME OF ASSET BASED PAYMENT CALCULATION.
ALL PAYMENTS IN THIS SCHEDULE, INCLUDING TRAIL PAYMENTS, ARE 50% COMMISSION AND
50% EXPENSE ALLOWANCE.
Chargebacks: (i) In the event a Contract is returned to CLNY pursuant to a "Free
Look" provision, the full B/D concession paid thereon or retained by Selling
Firm pursuant to net submission of premium or purchased payments shall be
charged back to Selling Firm. (ii) Should any premium or purchase payment on
any Contract issued by CLNY be refunded for any reason, Selling Firm shall repay
or return B/D Concession by it with respect to such premium or purchase payment.
(iii) If a Contract was not issued as a result of failure by Selling Firm to
submit to CLNY an application sufficient to satisfy state insurance laws or CLNY
eligibility requirements then amounts paid to Selling Firm shall be returned or
repaid. (iv) If a Contract was tendered to CLNY for redemption within ten
business days of the date of activity then amounts paid to Selling Firm shall be
returned or repaid, (v) For annuitizations within 6 months of issue, 100% of
all B/D Concession paid to Selling Firm will be returned or repaid, offset by an
amount from 1.25% to 3%, depending on the amount and duration of payout; and for
annuitizations from months 7-12 after issue, 50% of all B/D Concession paid to
Selling Firm shall be returned or repaid, offset by an amount from 1.25% to 3%,
depending on the amount and duration of payout. For any premium or purchase
payment that has been in the Contract for more than 12 months, there shall be
no charge back on B/D Concession. To the extent permitted by law, the amount
so charged back may, at the option of CLNY, be set off against B/D Concession
otherwise due to Selling Firm. In addition, such other compensation will be
payable as are from time to time agreed by the parties to the foregoing
Agreement and which is in accordance with applicable law, and will be added to
this Schedule.
NOTE: If there is more than one owner of a policy, the age of the oldest owner
determines the level of payment.
OVER
3
PAGE 2
EXPENSE ALLOWANCE
Total payments may consist of agent commissions, override and/or expense
allowance.
If expense allowances are payable, they are subject to the following conditions
and limitations:
1. Lapses and surrenders in the first year, and any returns of first year
premium made by CLNY, will result in proportionate chargebacks of any
expense allowances paid for said premiums.
2. No expense allowance will be used to effect compensation in excess of the
limits of Section 4228 of the Insurance Law of New York.
3. No expense allowance will be due or payable after the termination of this
Contract except for first year expense allowances for policies written
prior to such termination.
4. Notwithstanding any of the other terms and conditions governing payment of
expense allowances in this Contract, and to conform with the requirements
of Section 4228 of the Insurance Law and the applicable regulations
resulting therefrom and other governing sections of the law, the following
will apply:
a. The maximum expense allowance payments shall be such that when added to
first year commissions, exclusive of overriding commissions not
exceeding 5% of first year premiums, the total shall not exceed 91% of
first year premiums for ordinary life and annuity policies and
contracts other than single premium policies and contracts.
b. The maximum expense allowance shall not exceed 100% of the commissions
payable on single premium policies and contracts, or the overall 7% of
premium limit.
In monitoring the maximum allowances rules in this paragraph 4, CLNY will apply
those in a. and b., above, on a "per-policy" basis.
