EX-1.(3)(b)
XXXXXXX NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
XXXXXXX NATIONAL LIFE DISTRIBUTORS, INC.
MEMBER NASD.
SELLING AGREEMENT
XXXXXXX NATIONAL LIFE INSURANCE COMPANY OF NEW YORK
XXXXXXX NATIONAL LIFE DISTRIBUTORS, INC.
MEMBER NASD.
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SELLING AGREEMENT
This Agreement, dated, ________________________, __________ is by and among
________________________________________________________________ and
________________________________________________________________
(Broker/Dealer)
___________________________________________________________________,
(Agency)
___________________________________________________________________,
(Agency)
___________________________________________________________________,
(Agency)
hereinafter taken together and referred to as ("Broker/Dealer"), XXXXXXX
NATIONAL LIFE INSURANCE COMPANY OF NEW YORK ("Insurer"), and XXXXXXX NATIONAL
Life Distributors, INC. (member NASD), a registered broker/dealer
("Distributor"). This Agreement is for the purpose of arranging for the
distribution of certain life and annuity contracts ("Contracts") issued by
Insurer through sales people who are licensed agents of the Insurer and
Registered Representatives of the Broker/Dealer (collectively referred to as
"Registered Representative" or "Registered Representatives").
Broker/Dealer is itself, or is affiliated with an entity which is registered as
a broker/dealer with the Securities and Exchange Commission (the "SEC") and
which is a member of the National Association of Securities Dealers, Inc. (the
"NASD"), and is also duly licensed as a life insurance agency under the
insurance laws of the various states in which it operates.
In consideration of the mutual promises and covenants contained in this
Agreement, Insurer and Distributor appoint those persons who are Registered
Representatives of Broker/Dealer and licensed agents of Insurer to solicit and
procure applications for the Contracts specified in the attached Schedule B.
This appointment is not deemed to be exclusive in any manner and only extends to
those jurisdictions in which the Contracts specified in the attached Schedule B
have been approved for sale and in which Broker/Dealer and respective Registered
Representative are properly licensed and appointed. All completed applications,
supporting documents and initial and subsequent payments are the sole property
of Insurer and must be promptly delivered to Insurer at such address as it may
from time to time designate. All applications are subject to acceptance by
Insurer in its sole discretion.
I. REGISTERED REPRESENTATIVES
Broker/Dealer is authorized to recommend Registered Representatives for
appointment as licensed agents of Insurer to solicit sales of the Contracts
specified in the attached Schedule B. Broker/Dealer warrants that each such
persons recommended for appointment shall be fully licensed under the
applicable state insurance and securities laws and a duly Registered
Representative of Broker/Dealer.
Broker/Dealer is providing Distributor with a general letter of
recommendation for its Registered Representatives. See Schedule A attached
hereto. This letter must provide Distributor and Insurer with assurance
that all background investigations which are required by state and federal
laws have been made and that Broker/Dealer affirms that all appointees meet
all state and federal requirements, and should be appointed by Insurer. The
letter also warrants that all appointees have the necessary state and
federal licenses and registrations to transact business for the Insurer.
II. SALES MATERIAL
Broker/Dealer shall cause its officers, employees and Registered
Representatives not to use any material or information, including but not
limited to, written, audio, or video sales material, or prospectus unless
such material has been provided or approved by Insurer. In accordance with
the requirements of federal and certain state laws, Broker/Dealer shall
maintain complete records indicating the manner and extent of distribution
of any such solicitation material. This material shall be made available to
appropriate federal and state regulatory agencies as required by law or
regulation. Broker/Dealer shall hold Insurer, Distributor and their
respective affiliates harmless from any liability arising from the use of
any material which has not been specifically approved by Insurer or
Distributor in writing, or used in a manner which is inconsistent with
Insurer's or Distributor's approval.
Broker/Dealer and its officers, employees, and Registered Representatives
are not authorized to make any other representations concerning the
Contracts except those contained in the prospectus then in effect and/or
sales material issued and approved by Insurer or Distributor.
III. PROSPECTUS DELIVERY
Broker/Dealer shall be responsible for compliance by its Registered
Representatives with the requirements that solicitation for variable
Contracts will be made by use of a currently effective prospectus, that a
prospectus will be delivered concurrently with each sales presentation and
that no statements shall be made to a client superseding or controverting
any statement made in the prospectus. Insurer and Distributor shall furnish
Broker/Dealer reasonable quantities of prospectuses at no cost.
IV. BROKER/DEALER COMPLIANCE
Broker/Dealer is a broker-dealer registered with the SEC and a member in
good standing of the NASD and shall fully comply with the rules and
requirements of the NASD and all other applicable federal and state laws,
rules and regulations, including insurance laws, applicable to the
transactions hereunder. Broker/Dealer shall establish rules, procedures,
supervisory and inspection techniques necessary to diligently supervise the
activities of its Registered Representatives. Upon request by Distributor
or Insurer, Broker/Dealer shall furnish appropriate records as are
necessary to establish diligent supervision.
In the event Broker/Dealer utilizes an affiliated entity to satisfy
broker-dealer requirements pursuant to authority granted under applicable
SEC no-action letters, such affiliated entity shall countersign this
Agreement and shall be duly bound hereby.
V. RECORDKEEPING
Broker/Dealer shall prepare and maintain full and accurate records of the
business transacted by its Registered Representatives under this Agreement
and shall forward to Insurer and Distributor such reports of said business
as Insurer or Distributor may prescribe. Insurer and Distributor shall have
the right to examine said records at reasonable times.
VI. INDEMNIFICATION
Broker/Dealer agrees to hold harmless and indemnify Distributor and Insurer
and their respective affiliates from any and all claims, direct or indirect
liabilities, losses and expenses which any such party may incur resulting
from requests, directions, actions or inactions of Broker/Dealer and/or its
officers, employees, or Registered Representatives based upon: (a) any
alleged untrue or untrue statement made by Broker/Dealer and/or its
officers, employees, or Registered Representatives, unless such statement
is contained in the registration statement, prospectus, or any Distributor
or Issuer approved sales material for any Contract, or (b) the failure of
Broker/Dealer and/or its officers, employees, or Registered Representatives
to comply with any provision of this Agreement.
VII. FIDELITY BOND
Broker/Dealer represents that all its directors, officers, employees and
Registered Representatives who have access to funds of Insurer or who are
covered by this Agreement are and will continue to be covered by a blanket
fidelity bond including coverage for larceny, embezzlement and other
defalcation, issued by a reputable bonding company. This bond shall be
maintained at Broker/Dealer expense. Such bond shall be at least equivalent
to the minimum coverage required under the NASD Rules of Fair Practice,
endorsed to extend coverage to life insurance and annuity transactions.
Broker/Dealer acknowledges that Insurer may require evidence that such
coverage is in force and Broker/Dealer shall promptly give notice to
Insurer of any notice of cancellation or change of coverage.
Broker/Dealer assigns any proceeds received from the fidelity bond company
to Insurer to the extent of Insurer's loss due to activities covered by the
bond. If there is any deficiency, Broker/Dealer shall promptly pay Insurer
that amount on demand and Broker/Dealer indemnifies and holds harmless
Insurer from any deficiency and from the cost of collection.
VIII. LIMITATIONS OF AUTHORITY
The Contract forms are the sole property of Insurer. No person other than
Insurer has the authority to make, alter or discharge any policy, Contract,
certificate, supplemental contract or form issued by Insurer. Insurer may
make such changes as it deems advisable in the conduct of its business or
discontinue at any time issuing any of its forms or contracts and no
liability to the Broker/Dealer will attach to Insurer or Distributor by
reason of Insurer so doing. No person other than Insurer has the right to
waive any provision with respect to any Contract or policy. No person other
than Insurer has the authority to enter into any proceeding in a court of
law or before a regulatory agency in the name of or on behalf of Insurer.
IX. COMMISSION LIMITATIONS
The commissions contained in Schedule B of this Agreement comply with the
applicable expense and compensation limitations set forth in the New York
Insurance Law governing the sale of the Contracts. The Insurer will not
knowingly permit to be paid, by any party, payments in excess of these
limitations.
X. COOPERATION
Broker/Dealer and its directors, officers, employees and Registered
Representatives shall cooperate with Insurer and/or Distributor in the
investigation and settlement of all claims against Broker/Dealer, Insurer,
and/or Distributor, and/or its directors, officers, employees, and
Registered Representatives relating to the solicitation or sale of
Contracts under this Agreement. Broker/Dealer shall promptly forward to
Insurer and/or Distributor any notice or other relevant information that
may come into its possession.
XI. PRINCIPLES OF ETHICAL MARKET CONDUCT
In all matters relating to the sale and marketing of life insurance and
annuity products, Insurer is fully committed to the following Principles:
(1) To conduct business according to high standards of honesty and fairness
and to render that service to its clients that, in the same circumstances,
it would apply to or demand for itself; (2) To provide competent and
client-focused sales and service; (3) To engage in active and fair
competition; (4) To provide advertising and sales material that are clear
as to purpose, and honest and fair as to content; (5) To handle client
complaints and disputes fairly and expeditiously; and (6) To maintain a
system of oversight and review that is reasonably designed to achieve
compliance with these Principles of Ethical Market Conduct. Broker/Dealer
acknowledges and agrees that it and its directors, officers, employees, and
Registered Representatives will conduct all of their activities that are
within the scope of this Agreement in accordance with these Principles.
XII. GENERAL PROVISIONS
A. WAIVER
Failure of any of the parties to promptly insist upon strict compliance
with any of the obligations of any other party under this Agreement shall
not be deemed to constitute a waiver of the right to enforce strict
compliance.
B. INDEPENDENT CONTRACTOR
Broker/Dealer is an independent contractor and not an employee or
subsidiary of Distributor or Insurer. (Registered Representatives are
independent contractors and not employees of Distributor or Insurer.)
C. INDEPENDENT ASSIGNMENT
No assignment of this Agreement or of commissions or other payments under
this Agreement shall be valid without the prior written consent of Insurer.
D. NOTICE
Any notice pursuant to this Agreement shall be mailed, postage paid, to the
last address communicated by the receiving party to other parties to this
Agreement.
E. SEVERABILITY
To the extent this Agreement may be in conflict with any applicable law or
regulation, this Agreement shall be construed in a manner not inconsistent
with such law or regulation. The invalidity or illegality of any provision
of this Agreement shall not be deemed to affect the validity or legality of
any other provision of this Agreement.
F. AMENDMENT
This Agreement may be amended in writing signed by the parties to this
Agreement.
G. TERMINATION
This Agreement may be terminated by any party upon written notice, and
termination shall be effective immediately.
H. NEW YORK LAW
This Agreement shall be construed in accordance with the laws of the state
of New York.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date set
forth above.
BROKER/DEALER:
_______________________________ ________________________________
Name of Broker/Dealer Name of Life Agent or Agency
(If other than Broker/Dealer)
_______________________________ _________________________________
Address Address
_______________________________ _________________________________
_______________________________ _________________________________
Signature: Signature:
_______________________________ _________________________________
Print Name: Print Name:
Title: ___________________________ Title: __________________________
Date: ___________________________ Date: __________________________
XXXXXXX NATIONAL LIFE XXXXXXX NATIONAL
INSURANCE COMPANY LIFE DISTRIBUTORS, INC.
OF NEW YORK 000 XXXXXXXX XXXXXXXXX, XXX. 0000
0000 XXXXXXXXXXX XXXXXX XXXXX XXXXXX, XX 00000
XXXXXXXX, XX 00000
_______________________________ _________________________________
Signature: Signature:
_______________________________ _________________________________
Print Name: Print Name:
Title: ___________________________ Title: __________________________
Date: ___________________________ Date: __________________________
SCHEDULE A
GENERAL LETTER OF RECOMMENDATION
Broker/Dealer hereby certifies to Distributor and Insurer that all the following
requirements shall be fulfilled by Broker/Dealer in conjunction with the
submission of licensing/appointment papers for all applicants as insurance
agents of Insurer. Broker/ Dealer, upon request, will forward proof of
compliance with the same to Distributor and Insurer in a timely manner.
1. We have made a thorough investigation relative to each applicant's
identity, residence and business reputation and declare that each applicant
is personally known to us, has been examined by us, has a good business
reputation, is reliable, is financially responsible and is worthy of a
license. Each individual is trustworthy, competent and qualified to act as
an agent for Insurer to hold himself out in good faith to the general
public.
2. We have on file a U-4 form which was completed by each applicant
intending to sell the Variable Contracts. We have fulfilled all the
necessary investigative requirements for the registration of each applicant
as a Registered Representative through our NASD member firm, and each
applicant is presently registered as an NASD Registered Representative. The
above information in our files indicated no fact or condition which would
disqualify the applicant from receiving a license, and all the findings of
all investigative information is favorable.
3. We certify that all educational requirements have been met for the
specific jurisdiction each applicant is requesting a license/appointment in
and that all such persons have fulfilled the appropriate examination,
education and training requirements, and that all such persons are
appropriately affiliated with the Broker/Dealer as agents in the specific
jurisdiction each applicant is requesting appointment/licensure.
4. If the applicant is required to submit his picture, his signature,
and securities registration in the jurisdiction in which he is applying for
a license, we certify that those items forwarded to Distributor and Insurer
are those of the applicant, and the securities registration is a true copy
of the original.
5. We hereby warrant that the applicant is not applying for a license
with Insurer in order to place insurance chiefly or solely on his life or
property, lives or property of his relatives, or liability of his
associates.
6. We certify that each applicant will receive close and adequate
supervision and that we will make inspection, when needed, of any or all
risks written by these applicants, to the end that the insurance interest
of the public will be properly protected.
7. We will not permit any applicant to transact insurance as a
Registered Representative until duly licensed and appointed therefore. No
applicants have been given a contract or furnished supplies, nor have any
applicants been permitted to write, solicit business, or act as a
Registered Representative in any capacity, and they will not be so
permitted until the certificate of authority or license applied for, or
appointment confirmation (where required) is received.
___________________________ ____________________________
Principal Date
SCHEDULE B
COMMISSION SCHEDULES
ALL PRODUCTS
These Commission Schedules are attached to and part of the Xxxxxxx National Life
Insurance Company of New York/Xxxxxxx National Life Distributors, Inc. Selling
Agreement to which they are appended. They are subject to the terms and
conditions of the Agreement. In no event shall the Insurer be liable for payment
with respect to any solicitation made, in whole or in part, by any person not
appropriately licensed, registered and appointed with Insurer (where required)
prior to the commencement of such solicitation.
Insurer will pay all compensation due Broker/Dealer, or due any Registered
Representatives of Broker/Dealer, either directly to Broker/Dealer or, as
necessary to meet legal requirements, to the licensed Broker/Dealer affiliate or
individual Registered Representatives. Broker/Dealer hereby warrants that all
necessary contractual arrangements are in place to enable Insurer to pay
Broker/Dealer, or any of its affiliates, for business produced by Registered
Representatives of Broker/Dealer in the jurisdiction in which they hold
licenses. Broker/Dealer shall pay all compensation, if any, due to any person
including Registered Representatives of Broker/Dealer with respect to Contracts
which are subject to this Agreement, and no such Registered Representative of
Broker/Dealer, or other person shall have any claim against Insurer on account
of the sale or service of any such Contracts. Insurer shall have no obligation
to make compensation payments except as provided herein.
The Insurer shall not be liable, and the Broker/Dealer agrees to reimburse
Insurer for any commissions paid by the Insurer to the Broker/Dealer with
respect to: (a) a Contract (excluding annuitized Contracts) where the date of
death is within six months from the date the Contract is issued if the owner's
death (or annuitant's death on an annuitant-driven Contract) resulted from any
cause or means other than from bodily injuries effected solely through
accidental means; (b) a Contract (excluding annuitized Contracts and immediate
annuities) where illness brings about (or "results in") the Owner's request of a
Terminal Illness Benefit prior to or within six months from the date the
Contract was issued; (c) a Contract returned to the Insurer pursuant to the
"Free Look" provision of the Contract; (d) a Contract that is rescinded or not
issued by the Insurer, as determined by the Insurer in its sole discretion; (e)
any situation in which the Broker/Dealer and/or Registered Representative fails
to conform to applicable state regulations and/or Insurer policies and
procedures; (f) any situation in which the Broker/Dealer and/or Registered
Representative fails to reasonably cooperate with the Insurer; or (g) an
immediate annuity Contract where the premium is returned and the Contract is
terminated prior to the first annuity payment. Any such Commissions paid shall
be charged back to the Broker/Dealer. Broker/Dealer agrees to remit payment for
outstanding balances within 90 days. The Insurer reserves the right to
automatically recoup any charged back commission by offsetting them against
future commission credits, when available.
JNL/NY retains the right to withhold commission payment until expiration of the
"Free Look" provision.
All plans are subject to change and are not available in all states.
FIXED ANNUITIES AND LIFE INSURANCE ONLY
Commissions are not paid on renewal premiums which are deducted from a
Contract's cash accumulation account. Renewal Commissions shall not be allowed
on premiums deposited into an advance premium account unless and until such
premiums are due. No first-year Commissions are payable on Preliminary Term
Insurance premiums or on Flat Extra Premium assessed for nine (9) years or less.
The Broker/Dealer shall not be entitled to first-year or renewal commissions on
premiums waived or paid by the Insurer under the Waiver of Premium provisions of
any Contract.
COMMISSION OPTION SELECTION PAGE
The Commission Schedules for both Registered Products (Variable Annuities) and
Non-Registered Products (Traditional Fixed Annuities and Life Insurance) are on
the following pages. Please review these schedules and indicate the Commission
Options selected on this page.
I. REGISTERED PRODUCTS (PERSPECTIVE FIXED AND VARIABLE ANNUITY (REGISTERED))
__________________ Option A
(Initial and Date)
__________________ Option B
(Initial and Date)
__________________ Option C
(Initial and Date)
IF BROKER/DEALER FAILS TO INITIAL ANY OF THE OPTION SELECTIONS, IT IS AGREED
THAT BROKER/DEALER HAS SELECTED ALL OF THE COMMISSION OPTION SELECTIONS.
BROKER/DEALER'S DEFAULT SELECTION IS OPTION _____ if more than one Commission
Option is available, and Registered Representative fails to make selection on
business submitted to Insurer.
If the Broker/Dealer fails to select a default option (if more than one
Commission Option is available and Registered Representative fails to make
selection on business submitted to Insurer), it is agreed that Broker/Dealer's
default selection is Option A.
II. NON-REGISTERED PRODUCTS (TRADITIONAL FIXED ANNUITIES AND LIFE INSURANCE)
The Commission Option Selection(s) and Default Commission Option Selection made
on this page apply to ALL non-registered products business produced by
Broker/Dealer pursuant to the Xxxxxxx National Life Insurance Company of New
York/Xxxxxxx National Life Distributors, Inc. Selling Agreement. (EXAMPLE: IF
YOU CHOOSE OPTION A BELOW, YOU HAVE CHOSEN OPTION A FOR ALL TRADITIONAL FIXED
ANNUITIES AND LIFE INSURANCE PRODUCTS ISSUED BY XXXXXXX NATIONAL LIFE INSURANCE
COMPANY OF NEW YORK.)
__________________ Option A
(Initial and Date)
__________________ Option B
(Initial and Date)
__________________ Option C
(Initial and Date)
IF BROKER/DEALER FAILS TO INITIAL ANY OF THE OPTION SELECTIONS, IT IS AGREED
THAT BROKER/DEALER HAS SELECTED ALL OF THE COMMISSION OPTION SELECTIONS.
BROKER/DEALER'S DEFAULT SELECTION IS OPTION _____ if more than one Commission
Option is available, and Registered Representative fails to make selection on
business submitted to Insurer.
If the Broker/Dealer fails to select a default option (if more than one
Commission Option is available and Registered Representative fails to make
selection on business submitted to Insurer), it is agreed that Broker/Dealer's
default selection is Option A.
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ISSUE AGE ON OWNER-DRIVEN CONTRACTS
If Owner is a non-natural entity, commission calculation based on Annuitant's
age. If Joint Owners, commission calculation based on older age.
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PERSPECTIVE FIXED AND VARIABLE ANNUITY COMMISSION SCHEDULES
The Perspective Fixed and Variable Annuity Commission Schedule on the following
page shall be subject to all the provisions and restrictions contained in the
Xxxxxxx National Life Insurance Company of New York/Xxxxxxx National Life
Distributors, Inc. Selling Agreement, including but not limited to the
chargeback provisions.
The following Commission Schedule shall apply to business produced by
Broker/Dealer and its Registered Representatives pursuant to this Xxxxxxx
National Life Insurance Company of New York/Xxxxxxx National Life Distributors,
Inc. Selling Agreement.
The Insurer reserves the right to modify or terminate the commissions set forth
in these schedules.
NON-REGISTERED PRODUCT COMMISSION SCHEDULES
(TRADITIONAL FIXED ANNUITIES AND LIFE INSURANCE)
The Non-Registered Product Commission Schedules on the following pages shall be
subject to all the provisions and restrictions contained in the Xxxxxxx National
Life Insurance Company of New York/Xxxxxxx National Life Distributors, Inc.
Selling Agreement including, but not limited to, the chargeback provisions.
The following Commission Schedules shall apply to business produced by
Broker/Dealer and its Registered Representatives pursuant to this Xxxxxxx
National Life Insurance Company of New York/Xxxxxxx National Life Distributors,
Inc. Selling Agreement. However, nothing contained herein shall require payment
of commissions to Broker/Dealer for business submitted directly to the Insurer
by any Registered Representative with an agreement and appointment with the
Insurer.
The Insurer reserves the right to modify or terminate the commissions set forth
in these schedules.
If commission rates are not shown, or where special premium rate quotations are
made, commission rates shall be such as may be fixed by the Insurer.
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PLEASE SEE THE FOLLOWING PAGES FOR COMMISSION SCHEDULES PURSUANT TO THIS XXXXXXX
NATIONAL LIFE INSURANCE COMPANY OF NEW YORK/XXXXXXX NATIONAL LIFE DISTRIBUTORS,
INC. SELLING AGREEMENT.
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COMMISSION SCHEDULE - PERSPECTIVE FIXED AND VARIABLE ANNUITY CONTRACTS (VA202)
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COMMISSION OPTIONS
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Under 81 Option A - 6.75% of Premium Payment
- OR -
Option B - 5.75% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
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81 to 85 Option A - 3.375% of Premium Payment
- OR -
Option B - 2.875% of Premium Payment
+ .25% annual trail commission
- OR -
Option C - 2.00% of Premium Payment
+ 1.00% annual trail commission
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86 to 90 Option A, B, and C - 1.00% of Premium Payment
+ 1.00% annual trail commission
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TRAIL COMMISSIONS:
Commissions are paid quarterly, based on contract value calculated at the end of
each calendar quarter. Commissions are paid on each Contract that has been in
force at least 12 months.
PERSPECTIVE ADVISORS FIXED AND VARIABLE ANNUITY (REGISTERED) CONTRACTS (VA402NY)
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COMMISSIONS
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1.10% annual trail commission on each Contract (Commissions are paid quarterly,
beginning at the end of the quarter in which the Contract is issued, based on
Contract Value calculated at the end of each calendar quarter.)
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The Insurer reserves the right to modify or terminate the commissions set forth
in this schedule.
ANNUITIZATION COMMISSION SCHEDULE
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Perspective Fixed and Variable Annuity (VA202)
Annuity Option Selected Percent of Contract Value at
Annuity Date
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ANNUITY OPTION 1 - Life Income 2.0%
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ANNUITY OPTION 2 - Joint and Survivor Annuity 2.0%
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ANNUITY OPTION 3 - Life Annuity with 120 or 240 2.0%
Monthly Payments Guaranteed
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ANNUITY OPTION 4 - Income for a Specified Period 2.0%
(Periods of 10 years or more)
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If Commission Option A or B was selected for the Contract at issue, the above
referenced commissions would be paid only if Annuitization occurred after the
fifth Contract Year.
If Commission Option A or B was selected for the Contract at issue, and the
original issue age was 86-90, the above referenced commissions would be paid
only if Annuitization occurred after the first Contract Year.
If Commission Option C was selected for the Contract at issue, the
above-referenced commission would be paid only if Annuitization occurred after
the first Contract Year.
Upon Annuitization, Trail Commission under Commission Options A (at issue ages
above 85), B and C cease to be paid.
COMMISSION SCHEDULE - FIXED ANNUITIES
------------------- ------------------------------- ----------- ----------- ------------------ --------------
Single Premium Premium Level (Minimum Shown) Owner's Options
Fixed Annuity Age
A B C
1st Year 1st Year/Trail % Trail % Only
% Only
------------------- ------------------------------- ----------- ----------- ------------------ --------------
------------------- ------------------------------- ----------- ----------- ------------------ --------------
Action (R) $2,000-3,999 0-70 3.0 1.50/.30 .50
$4,000-4,999 4.0 2.0/4.0 .65
$5,000 and Up 6.0 3.0/6.0 1.0
$10,000 and Up 71-80 6.0 3.0/6.0 1.0
$10,000 and Up 81-85 3.0 1.50/.30 .50
------------------- ------------------------------- ----------- ----------- ------------------ --------------
------------------- ------------------------------- ----------- ----------- ------------------ --------------
Immediate Annuity Net Premium N/A 4.0 N/A N/A
(IAL/NY)
------------------- ------------------------------- ----------- ----------- ------------------ --------------
ALTERNATE COMMISSION OPTIONS
OPTION A provides a one-time, up-front commission payment based on 1st-year
premiums with no trail or renewal commissions.
OPTION B provides both an up-front commission and trail for the life of a fixed
annuity contract.
OPTION C provides only trail commissions for the life of a fixed annuity
contract.
Fixed annuity trail commissions are based on a percentage of accumulated value
at policy anniversary net of policy loans.
COMMISSION SCHEDULE - LIFE
--------------------------------------------- ---------------- ------------------------- --------------------
OPTIONS
B
Term A 1st Year %/Years C
1st Year % Only 2-10 %/11+ % Years 1-10 %/11+ %
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Reward (SM) 10-(L1662-1), 15-(L1672-1),
20-(L1672-1) Year Term (1)
90 75/4/0 15/0
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Riders(2)
--------------------------------------------- ---------------- ------------------------- --------------------
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Family (9397B) & Child (9396B) Rider
90 70/7.5/1 17/1
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Universal Life (UL2002)(1) N/A 91(3)/5(4)/2 N/A
--------------------------------------------- ---------------- ------------------------- --------------------
If a life policy has two or more elements (base and rider), Insurer will pay the
commission option that is common between the elements. the provisions and
restrictions set forth in the Selling Agreement continue to apply to all
business submitted.
Most policy fees are not commissionable. All contracts are subject to change.
Commission chargebacks may apply in certain circumstances.
1. INCLUDES EXPENSE REIMBURSEMENT ALLOWANCE (ERA). (FIRST-YEAR COMMISSIONS
ABOVE 55% REPRESENT AN EXPENSE REIMBURSEMENT ALLOWANCE.)
2. TERM POLICIES WRITTEN AS RIDERS: Same commission as if written as non-rider
term policies. OTHER RIDERS NOT LISTED ABOVE (Waiver of Premium Accidental
Death Benefit and Terminal Illness Rider): First-year and renewal
commissions are payable at the same rate as the base policy. NOTE: Not all
riders attach to all polices; check the rate book for details.
3. UP TO TARGET PREMIUM. AMOUNTS OVER TARGET EARN THE RENEWAL RATE.
4. ALSO PAID ON EXCESS PREMIUM (GREATER THAN TARGET PREMIUM).
COMMISSION SCHEDULE -
JNL(REGISTERED)/NY TARGET SELECT(SM)
FLEXIBLE PREMIUM DEFERRED ANNUITY (A502)
------------------- -------------------------------------------- --------------------------------------------
Guaranteed Period Owner Issue Ages 0-80 Owner Issue Ages 81-85
------------------- -------------------------------------------- --------------------------------------------
------------------- -------------- -------------- -------------- -------------- -------------- --------------
A B C A B C
------------------- -------------- -------------- -------------- -------------- -------------- --------------
------------------- -------------- -------------- -------------- -------------- -------------- --------------
1-year 0.750% N/A N/A 0.375% N/A N/A
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2-year 1.750% N/A N/A 0.875% N/A N/A
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3-year 2.250% N/A N/A 1.125% N/A N/A
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4-year 2.750% N/A N/A 1.375% N/A N/A
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5-year 3.250% N/A N/A 2.625% N/A N/A
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6-year 3.750% N/A N/A 1.875% N/A N/A
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7-year 4.000% N/A N/A 2.000% N/A N/A
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8-year 4.000% N/A N/A 2.000% N/A N/A
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9-year 4.000% N/A N/A 2.000% N/A N/A
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10-year 4.000% N/A N/A 2.000% N/A N/A
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Commission Option A = 1st Year % Only
Commission Option B = N/A
Commission Option C = N/A
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Commissions are paid at the time of premium payment. No commissions are paid
upon renewal of Guaranteed Periods.
COMMISSION OPTION SELECTION(S):
The Commission Option selected shall be the same as currently on file with
Insurer for Broker/Dealer's non-registered product business.
If more than one Commission Option is available and Registered Representation
fails to make a selection on business submitted to Insurer, it is agreed that
Broker/Dealer's default selection for non-registered product business will be
paid. Subsequent premiums to each Contract shall be subject to the Commission
option selected.
The Insurer reserves the right to modify or terminate the commissions set forth
in this schedule.
