Exhibit (8)(ii)
RULE 22C-2 CUSTOMER INFORMATION AGREEMENT
Xxxxxxx Xxxxx Life Insurance Company (hereinafter referred to as
"Intermediary") and American Century Investment Services, Inc. ("Distributor"),
the distributor of the American Century family of mutual funds (the "Fund") have
previously entered into one of more agreements to offer Fund as an investment
option under Intermediary's variable annuity and/or life insurance contracts.
This Rule 22c-2 Customer Information Agreement ("Customer Information
Agreement") describes, among other things, the rights and obligations of the
parties hereto with respect to certain customer information to be provided to
Fund, or, if applicable, a Fund agent or other entity designated in writing by
Fund (collectively Fund's "Designee") by or on behalf of Intermediary in
connection with the processing of Intermediary's customers' purchase,
redemption, transfer and exchange transactions in accounts maintained with
respect to the Fund subject to the Participation Agreement.
Prior to the effective date of this Customer Information Agreement, the
Fund and the Intermediary agree that any request made to the Intermediary by the
Fund for Customer transaction information, and the Intermediary's response to
such request, shall be governed by the practices the Fund and the Intermediary
had utilized in the absence of a formal agreement, if any, to govern such
requests.
As used in this Agreement, the following terms shall have the following
meanings, unless a different meaning is clearly required by the contexts:
The term "Intermediary" shall mean an insurance company separate account.
The term "Fund" shall mean an open-end management investment company that
is registered or required to register under Section 8 of the Investment Company
Act of 1940 and includes (i) an investment adviser to or administrator for the
Fund; (ii) the principal underwriter or distributor for the Fund; or (iii) the
transfer agent for the Fund. The term not does include any "excepted funds" as
defined in SEC Rule 22c-2(b) under the Investment Company Act of 1940.
The term "Shares" means the interests of Customers corresponding to the
redeemable securities of record issued by the Fund under the Investment Company
Act of 1940 that are held by the Intermediary.
The term "Customer" means the holder of interests in a variable annuity or
variable life insurance contract issued by the Intermediary ("Contract"), or a
participant in an employee benefit plan with a beneficial interest in a
contract.
The term "Customer-Initiated Transfer Purchase" means a transaction that is
initiated or directed by a Customer that results in a transfer of assets within
a Contract to a Fund, but does not include transactions that are executed: (i)
automatically pursuant to a contractual or systematic program or enrollment such
as transfer of assets within a
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Contract to a Fund as a result of "dollar cost averaging" programs, insurance
company approved asset allocation programs, or automatic rebalancing programs;
(ii) pursuant to a Contract death benefit; (iii) one-time step-up in Contract
value pursuant to a Contract death benefit; (iv) allocation of assets to a Fund
through a Contract as a result of payments such as loan repayments, scheduled
contributions, retirement plan salary reduction contributions, or planned
premium payments to the Contract; or (v) pre-arranged transfers at the
conclusion of a required free look period.
The term "Customer-Initiated Transfer Redemption" means a transaction that
is initiated or directed by a Customer that results in a transfer of assets
within a Contract out of a Fund, but does not include transactions that are
executed: (i) automatically pursuant to a contractual or systematic program or
enrollments such as transfers of assets within a Contract out of a Fund as a
result of annuity payments, loans, systematic withdrawal programs, insurance
company approved asset allocation programs and automatic rebalancing programs;
(ii) as a result of any deduction of charges or fees under a Contract; (iii)
within a Contract out of a Fund as a result of scheduled withdrawals or
surrenders from a Contract; or (iv) as a result of payment of a death benefit
from a Contract.
The term "written" includes electronic writings and facsimile
transmissions.
Accordingly, in consideration of the mutual covenants herein contained, the
parties hereto intending to be legally bound agree as follows:
1. CUSTOMER INFORMATION
(A) AGREEMENT TO PROVIDE INFORMATION. Intermediary agrees to provide the
Fund or its Designee, if applicable, upon written request, the taxpayer
identification number ("TIN"), the Individual/International Taxpayer
Identification Number ("ITIN"), or other government-issued identifier ("GII")
and the Contract owner number or participant account number associated with the
Customer, if known, of any or all Customer(s) of the account, and the amount,
date and transaction type (purchase, redemption, transfer, or exchange) of every
purchase, redemption, transfer, or exchange of Shares held through an account
maintained by the Intermediary during the period covered by the request. As
specifically requested by the Fund or Fund's Designee, if applicable, in
writing, the Intermediary shall only be required to provide underlying Contract
activity information relating to Customer-Initiated Transfer Purchases or
Customer-Initiated Transfer Redemptions.
(B) PERIOD COVERED BY REQUEST. As mutually agreed upon by the parties, the
Fund or Fund's Designee, if applicable, may request in writing transaction
information as it deems necessary to investigate compliance with policies
established by the Fund for the purpose of eliminating or reducing any dilution
of the value of the outstanding shares issued by the Fund (the "Market Timing
Policies").
(C) TIMING OF REQUESTS. Fund requests for Customer information shall be
made no more frequently than quarterly except as the Fund deems necessary to
investigate compliance with the Fund's Market Timing Policies. Any requests made
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more frequently than quarterly shall be made in writing in a mutually agreed
upon format.
(D) FORM AND TIMING OF RESPONSE.
(1) Intermediary agrees to provide, promptly upon written request of
the Fund or its Designee, if applicable, the requested information specified in
1(a). If such request covers a period ninety (90) to one hundred eighty (180)
days prior to the date of the request, Intermediary agrees to use its best
efforts to provide the information specified in 1(a) within five (5) to ten (10)
business days. If Intermediary determines during the course of investigation
that due to the scope of the request, Intermediary will need additional time to
provide the requested information, Intermediary shall promptly notify Fund. If
requested by the Fund or its Designee, if applicable, Intermediary agrees to use
best efforts to determine promptly whether any specific person about whom it has
received the identification and transaction information specified in 1(a) is
itself a financial intermediary ("indirect intermediary") and, upon further
written request of the Fund or its Designee, if applicable, promptly either: (i)
provide (or arrange to have provided) the information set forth in 1(a) for
those Customers who hold an account with an indirect intermediary; or (ii)
restrict or prohibit the indirect intermediary from purchasing, in nominee name
on behalf of other persons, securities issued by the Fund. Intermediary
additionally agrees to inform the Fund whether it plans to perform (i) or (ii).
(2) Responses required by this paragraph must be communicated in
writing and in a format mutually agreed upon by the Fund or Fund's Designee, if
applicable, and the Intermediary; and
(3) To the extent practicable, the format for any transaction
information provided to the Fund should be consistent with the NSCC Standardized
Data Reporting Format.
2. LIMITATIONS ON USE OF INFORMATION. The Fund agrees not to use the information
received pursuant to this Agreement for any purpose other than as necessary to
comply with the provisions of Rule 22c-2 or to fulfill other regulatory or legal
requirements subject to the privacy provisions of Title V of the
Xxxxx-Xxxxx-Xxxxxx Act (Public Law 106-102) and comparable state laws.
(a) Fund acknowledges that (i) the purpose for providing Intermediary's
confidential Customer Data (as defined in 1(a)) to Fund or Fund's Designee, if
applicable, is to better enable Fund or Fund's Designee, if applicable, to
monitor for violations of the Fund's Market Timing Policies by Intermediary's
customers, and (ii) Fund or Fund's Designee, if applicable, is responsible for
determining when Fund or Fund's Designee, if applicable, need Intermediary's
assistance in monitoring and enforcing the Fund's Market Timing Policies through
a request for Customer Information pursuant to paragraph 1 or an instruction to
prohibit further purchases or exchanges pursuant to paragraphs 5 and 6
hereunder.
(b) Notwithstanding anything herein to the contrary, to the extent Fund or
its Designee, if applicable, receives Customer Data or any other Confidential
Data (as
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defined below, and together with the Customer Data hereinafter referred to as
the "Data"), Fund covenants, represents and warrants for Fund, Fund's Designee,
if applicable, and any parent, subsidiary or affiliate of either that: (i) Fund
shall not use any Data except to the extent necessary to carry out the purpose
of this Agreement and for no other purpose (including, without limitation, any
marketing, sales or other promotional efforts by any of Fund or; (ii) Fund shall
not disclose any Data to any third party, including, without limitation,
either's third party service providers without Intermediary's prior written
consent and an agreement in writing from the third party to use or disclose such
Data only to the extent necessary to carry out the purpose of this Agreement and
for no other purposes; (iii) Fund shall maintain, and shall require all third
parties approved under clause (ii) to maintain, effective information security
measures to protect the Data from unauthorized disclosure or use; and (iv) Fund
shall provide Intermediary with information regarding such security measures
upon Intermediary's reasonable request and promptly provide Intermediary with
information regarding any failure of such security measures or any security
breach related to the Data. For the purposes of this Agreement, "Confidential
Data" means the nonpublic personal information (as defined in 15 U.S.C. Section
6809(4)) of Intermediary (and/or Intermediary's parent, affiliated or subsidiary
companies) of customers or prospective customers received by Fund or Fund's
Designee, if applicable, under the terms of this Agreement or any other
agreement between Intermediary and Fund associated with the distribution of, or
services with respect to, the Fund, including, but not limited to: (a) an
individual's name, address, e-mail address, IP address, social security number,
and/or telephone number; (b) the fact that an individual has a relationship with
Intermediary and/or Intermediary's parent, affiliated or subsidiary companies;
or (c) an individual's other account information.
(c) Fund explicitly acknowledges that all of the Data is Intermediary's
exclusive property and shall remain so notwithstanding any release thereof in
accordance with the terms of this Agreement.
(d) Fund shall safeguard and preserve as confidential and not use, except
as expressly provided herein, any or all information other than the Data
provided pursuant to, or in connection with, this Agreement to Fund or Fund's
Designee, if applicable, including, but not limited to, Intermediary's
affiliate's branch office names and identification numbers, Xxxxxxx Xxxxx
Financial Advisor names, as well as Intermediary's affiliate's, parent's or
subsidiary's systems, business, plans and operations, which information
collectively shall include any such information that is orally disclosed to Fund
or Fund's Designee, if applicable, or learned by Fund or Fund's Designee, if
applicable, while on Intermediary's premises or derived as a result of, or in
connection with, this Agreement and its subject matter or any other agreement
between Intermediary and Fund associated with the distribution of or services
with respect to the Funds.
(e) Except as expressly provided for herein, Fund will not, without first
obtaining Intermediary's prior written consent, disclose to any person, firm or
enterprise, or use for Fund's benefit, any Confidential Data. Fund and Fund's
Designee, if any, shall limit Fund's disclosure of the Confidential Data to as
few persons as reasonably possible and only to those persons with a need to know
that are Fund's or Fund's Designee's, if applicable, employees or independent
contractors engaged by Fund or Fund Designee, if
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applicable, and subject to an agreement to maintain the confidentiality of
information provided to such independent contractors. Fund and Fund's Designee,
if any, shall take all steps necessary to prevent disclosure of any Confidential
Data in a manner consistent with Fund's obligations under this Agreement. Fund
and Fund's Designee, if any, shall have no obligation with respect to particular
information to the extent, but only to the extent, that such information: (i) is
already rightfully known to Fund or Fund's Designee, if applicable, at the time
it is obtained from Intermediary, free from any obligation to keep such
information confidential, as demonstrated by competent evidence; (ii) is or
becomes publicly known through no wrongful act of Fund or Fund's Designee, if
applicable, or without breach of any terms and conditions of this Agreement;
(iii) is rightfully received from a third party without restriction and without
breach of any terms and conditions of this Agreement, as demonstrated by
competent evidence; or (iv) is required to be disclosed by law, regulation, or
customer order (provided that Fund or Fund Designee, if applicable, shall
promptly notify Intermediary of any such use or requirement prior to disclosure
in order to afford such Intermediary an opportunity to seek a protective order
to prevent or limit public disclosure of the information).
(f) Upon Intermediary's request, Fund or Fund's Designee, if any, shall
promptly return the Confidential Data (and any copies, extracts, and summaries
thereof) to Intermediary, or, with Intermediary's written consent, shall
promptly destroy, in a manner satisfactory to Intermediary, such materials (and
any copies, extracts, and summaries thereof) and shall further provide
Intermediary with written confirmation of same.
3. REMEDIES. Each party acknowledges that in the event of a breach or threatened
breach of this Agreement, the other party may have no adequate remedy at law,
and, accordingly, shall be entitled to obtain an injunction against such breach.
However, no specification in this Agreement of a specific legal or equitable
remedy shall be construed as a waiver of or a prohibition against any other
legal or equitable remedies in the event of a breach of a provision of this
Agreement. With respect to any breach of this agreement by Fund Designee,
Intermediary shall be entitled to pursue legal and equitable relief from
Distributor as well as from Fund Designee.
4. ADOPTION OF INTERMEDIARY'S MARKET TIMING POLICIES. If Fund considers, at any
time, the adoption of Intermediary's or Intermediary's affiliate(s) Market
Timing Policies in lieu of the Fund's Market Timing Policies for Customers
investing through Intermediary, Fund shall provide Intermediary written notice
of any such consideration at least 90 (ninety) days in advance of implementing
any such policy and secure Intermediary's prior written consent to such
arrangements.
5. AGREEMENT TO RESTRICT TRADING. Intermediary agrees to execute written
instructions from the Fund to restrict or prohibit further purchases or
exchanges of Shares by a Customer that has been identified by the Fund as having
engaged in transactions of the Fund's Shares (directly or indirectly through the
Intermediary's account) that violate policies established by the Fund for the
purpose of eliminating or reducing any dilution of the value of the outstanding
Shares issued by the Fund. Unless otherwise directed by the
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Fund, any such restrictions or prohibitions shall only apply to
Customer-Initiated Transfer Purchases or Customer-Initiated Transfer Redemptions
that are effected directly or indirectly through Intermediary. Instructions
shall in writing and sent to Intermediary xxxxxxxxxxx@xxx.xx.xxx or facsimile at
000-000-0000:
Xxxxxxx Xxxxx Insurance Group Services, Inc.
Attention: Service Center Controller
0000 Xxxx Xxxx Xxxxx
Xxxxxxxxxxxx, XX 00000
with a copy to:
Financial Data Services, Inc.
Attention: President
0000 Xxxx Xxxx Xxxxx Xxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Email: xxxxxxxxxxxxxx@xx.xxx
6. FORM OF INSTRUCTIONS. Instructions must include the TIN, ITIN, or GII and the
specific individual Contract owner number or participant account number
associated with the Customer, if known, and the specific restriction(s) to be
executed. If the TIN, ITIN, GII or the specific individual Contract owner number
or participant account number associated with the Customer is not known, the
instructions must include an equivalent identifying number of the Customer(s) or
account(s) or other agreed upon information to which the instruction relates.
Upon request of the Intermediary, Fund agrees to provide to the Intermediary,
along with any written instructions to prohibit further purchases or exchanges
of Shares by Customer, information regarding those trades of the contract holder
that violated the Fund's policies relating to eliminating or reducing any
dilution of the value of the Fund's outstanding Shares.
7. TIMING OF RESPONSE. Intermediary agrees to execute instructions as soon as
reasonably practicable, but not later than five business days after receipt of
the instructions by the Intermediary.
8. NOTICE. All notices in connection with this Agreement shall be in writing and
sent to Intermediary at:
Xxxxxxx Xxxxx Insurance Group, Inc.
Attention: General Counsel
0000 Xxxxxxx Xxxxx Xxxxx, 0xx Xxxxx
Xxxxxxxxxx, XX 00000
Email: xxxxx_xxxxxxx@xx.xxx
Facsimile: (000) 000-0000
Financial Data Services, Inc.
Attention: President
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0000 Xxxx Xxxx Xxxxx Xxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Email: xxxxxxxxxxxxxx@xx.xxx
, and sent to Fund at the address Fund has provided at the end of this
Agreement.
Notice shall be deemed to have been given on the date it was delivered
personally to the other party or any officer or was either received by express
delivery or telecopy (with receipt) by the other party at its address specified
in this Agreement. Either party may change the address to which notices to it
shall be sent by giving notice thereof in accordance with this provision.
9. CONSTRUCTION OF THE AGREEMENT; FUND PARTICIPATION AGREEMENTS. The parties
have entered into one or more Agreements between or among them for the purchase
and redemption of shares of the Funds by the accounts in connection with the
Contracts. This Agreement supplements those Agreements. To the extent the terms
of this Agreement conflict with the terms of an Agreement, the terms of this
Agreement shall control.
10. TERMINATION. This Agreement will terminate upon the termination of the Fund
Participation Agreements except as specifically provided in paragraph 15.
11. GOVERNING LAW. The validity of this Agreement, the construction and
enforcement of its terms, and interpretation of the rights and duties of the
parties shall be governed by the laws of the State of New York without giving
effect to provisions relating to conflict of laws.
12. NAMING OF A DESIGNEE. If Fund desires to name an entity as a "Designee" for
the purposes of this Agreement, Fund shall do so in writing in advance of the
provision of any Customer Information to that entity. Distributor shall be fully
responsible for Fund Designee's compliance with the terms and conditions of this
agreement.
12. AMENDMENT. No modification, amendment, supplement to, or waiver of this
Agreement or any of its provisions or any schedule hereto shall be binding upon
the parties hereto unless made in writing and duly signed by the party against
whom enforcement thereof is sought. Either party's failure or delay to enforce
at any time any of the provisions of this Agreement, or to exercise any option
which is herein provided, or to require at any time performance of any of the
provisions hereof, shall in no way be construed to be a waiver of such
provisions of this Agreement.
13. SEVERABILITY. In the event any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable,
the remaining provisions of this Agreement shall be unimpaired, and the invalid,
illegal, or unenforceable provision(s) shall be replaced by a mutually
acceptable provision(s), which being valid, legal, and enforceable, comes
closest to the intention of the parties underlying the invalid, illegal, or
unenforceable provision(s).
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14. SURVIVAL OF TERMINATION. The following paragraphs shall survive the
termination of this Agreement: 2, 3, 8, 10, 11, and this paragraph 15.
15. EFFECTIVE DATE. This Agreement shall become effective as of the later of
dates set forth below when executed by each of the parties hereto.
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IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
executed as of the date first above written.
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By: Xxxxxx Xxxxxxxxx
Title: Vice President & Senior Counsel
Xxxxxxx Xxxxx Life Insurance Company
Firm Name:
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By:
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Name
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Title
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Address:
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Date:
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