BROKER-DEALER SELLING AGREEMENT
AGREEMENT by and among The Lincoln National Life Insurance Company, an
Indiana corporation ("Company") doing business as a life insurance company, a
registered Broker-Dealer with the Securities and Exchange Commission ("SEC")
under the Securities Exchange Act of 1934 and a member of the National
Association of Securities Dealers, Inc. ("NASD"); [BROKER-DEALER NAME]
("Broker-Dealer"), also a registered Broker-Dealer with the Securities and
Exchange Commission under the Securities Exchange Act of 1934 and a member of
the NASD; and ("Agency"); and each additional insurance agency signatory hereto
(each of which shall also be referred to herein as "Agency").
WITNESSETH:
WHEREAS, the Company proposes to have Broker-Dealer's registered
representatives ("Representatives") who are also licensed to sell insurance in
appropriate jurisdictions solicit and sell certain variable insurance contracts
(the "Insurance Securities") more particularly described in this Agreement and
which are deemed to be securities under the Securities Act of 1933, and to sell
certain non-variable insurance contracts (the "Fixed Policies") more
particularly described in this Agreement (collectively the "Policies"); and
WHEREAS, the Company is the principal distributor of the Insurance
Securities and shall be responsible for the training and supervision of persons
involved with the solicitation and offer or sale of any of the Insurance
Securities, and proposes to delegate, to the extent legally permitted, said
training and supervisory duties to Broker-Dealer; and
WHEREAS, as full compensation, the Company will pay to Broker-Dealer, or,
if required by state law, to Agency, the compensation provided for in Schedule
A-1 on premiums paid to the Company on Policies sold by Broker-Dealer after this
Agreement becomes effective;
NOW THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the parties hereto agree as follows:
1. Appointment of Broker-Dealer. The Company hereby appoints Broker-Dealer
to sell the Policies through its Representatives and to provide certain
administrative services to facilitate solicitations for and sales of the
Policies.
Broker-Dealer agrees that its authority is limited to the solicitation and
marketing of the Policies in accordance with this Agreement and Broker-Dealer
agrees that it will not make, alter, modify or discharge any contract or extend
any provision thereof, or extend the time for payment of premiums or waive any
forfeiture or guarantee dividends or estimate future interest, mortality or
expense factors except through the use of authorized illustrations and
projections approved by the Company, or deliver any contract unless the
applicant is at the time of delivery in good health and insurable condition, or
incur any debts or liability against the Company. Nothing in this Agreement
shall create or be construed to create an exclusive authority to represent the
Company or to effect sales of Policies, either with respect to a specific
geographic territory, or otherwise.
2. The Policies. The Policies issued by the Company to which this
Agreement applies
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are listed in Schedule B-1. Schedule B-1 may be amended at any
time by the Company. The Company in its sole discretion and without notice to
Broker-Dealer, may suspend sales of any Policies or may amend any policies or
contracts evidencing such Policies if, in the Company's opinion, such suspension
or amendment is: (1) necessary for compliance with federal, state, or local
laws, regulations, or administrative order(s); or, (2) necessary to prevent
administrative or financial hardship to the Company. In all other situations,
the Company shall provide 30 days notice to Broker-Dealer prior to suspending
sales of any Policies or amending any policies or contracts evidencing such
Policies.
3. Securities Licensing. Broker-Dealer shall, at all times when performing
its functions under this agreement, be registered as a securities broker with
the SEC and be a member of the NASD and licensed or registered as a securities
broker-dealer in the states and other local jurisdictions that require such
licensing or registration in connection with variable insurance contract sales
activities or the supervision of Representatives who perform such activities in
the respective location.
4. Insurance Licensing. Broker-Dealer shall, at all times when performing
its functions under this agreement, be validly licensed as an insurance agency
in the states and other local jurisdictions that require such licensing or
registration in connection with Broker-Dealer's variable or fixed insurance
contract sales activities; or, in those states in which Broker-Dealer cannot or
does not obtain a corporate agent's license, shall maintain a contractual
relationship with an agency, which shall be validly licensed as an insurance
agency in such jurisdiction or jurisdictions. Such contractual relationship
shall be set forth in an agreement substantially equivalent to that set forth as
Exhibit A. Broker-Dealer shall provide the Company with a list of all licensed
insurance agencies relied upon by Broker-Dealer to comply with this paragraph
and covenants to maintain the completeness and accuracy of such list, and to
cause each such agency to become a signatory hereto(each of which shall
thereupon also be an "Agency" hereunder).
5. Appointments. Broker-Dealer shall assist the Company in the appointment
of Representatives under the applicable insurance laws to sell the Policies.
Broker-Dealer shall fulfill all requirements set forth in the General Letter of
Recommendation, attached as Schedule C-1 with respect to the Company, in
conjunction with the submission of licensing/appointment papers for all
applicants as insurance agents of the Company. All such licensing/appointment
papers should be submitted by Broker-Dealer to the Company or its duly appointed
agent. Notwithstanding such submission, the Company shall have sole discretion
to appoint, refuse to appoint, discontinue, or terminate the appointment of any
Representative as an insurance agent of the Company.
6. Securing Applications.
(a) All applications for the Company Policies shall be made on
application forms supplied by the Company and all payments collected by
Broker-Dealer or any Representative of Broker-Dealer shall be remitted promptly
in full, together with such application forms and any other required
documentation, directly to the Company at the address indicated on such
application or to such other address as the Company may, from time-to-time,
designate in writing. Broker-Dealer shall review all such applications for
completeness. Checks in payment on any such Policy shall be drawn to the order
of "The Lincoln National Life Insurance Company." All applications are subject
to acceptance or rejection by the Company at its sole discretion.
(b) All records or information obtained hereunder by Broker-Dealer
shall not be disclosed or used except as expressly authorized herein, and
Broker-Dealer will keep such records and information confidential, to be
disclosed only as authorized or if expressly required by federal or state
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regulatory authorities.
7. Money Received by Broker-Dealer. All money payable in connection with
any of the Policies, whether as premium or otherwise, and whether paid by or on
behalf of any policyholder, contract owner or anyone else having an interest in
the Policies, is the property of the Company and shall be transmitted
immediately in accordance with the administrative procedures of the Company
without any deduction or offset for any reason, including, by way of example but
not limitation, any deduction or offset for compensation claimed by
Broker-Dealer.
8. Supervision of Representatives.
(a) To the extent the Company and its representatives assist
Broker-Dealer and its representatives in the sale of the Policies, the Company
shall have full responsibility for the training and supervision of its
representatives, and such representatives will be qualified under applicable
federal and state law. The Company's representatives may receive compensation
for such sales activity in addition to the compensation paid by the Company to
Broker-Dealer or Agency as provided in Schedule A-1.
(b) Broker-Dealer shall have full responsibility for the training
and supervision of all Representatives associated with Broker-Dealer who are
engaged directly or indirectly in the offer or sale of the Insurance Securities,
and all such persons shall be subject to the control of and supervision of
Broker-Dealer with respect to such persons' securities regulated activities, and
to the control of Broker-Dealer or its appropriate licensed insurance agency
subsidiary with respect to such person's insurance regulated activities, in
connection with the solicitation and sale of and other communication with
respect to the Policies. Broker-Dealer, prior to allowing its Representatives to
solicit for sales or sell the Policies, shall require such Representatives to be
validly insurance licensed, registered and appointed by the Company as fixed
and/or variable contract agents in accordance with the jurisdictional
requirements of the place where the solicitations and sales take place as well
as the solicited person's or entity's place of residence; will cause such
Representatives to qualify under applicable federal and state laws to engage in
the sale of the Insurance Securities; will cause such Representatives to be
registered representatives of Broker-Dealer before such Representatives engage
in the solicitation of applications for the Insurance Securities; and will cause
such Representatives to limit solicitation of applications for the Policies to
jurisdictions where the Company has authorized such solicitation. Broker-Dealer
shall cause such Representatives' qualifications to be certified to the
satisfaction of the Company and shall notify the Company if any Representative
ceases to be a registered representative of Broker-Dealer or ceases to maintain
the proper licensing required for the sale of any of the Policies.
(c) Each party shall be liable for its own negligence and misconduct
hereunder.
9. Compliance with NASD Conduct Rules and Federal and State Securities
Laws. Broker-Dealer and the Company each shall fully comply with the
requirements of the NASD and of the Securities Exchange Act of 1934 and all
other applicable federal or state laws and will establish such rules and
procedures as may be necessary to cause diligent supervision of the securities
activities of the Broker-Dealer's Representatives and the Company's
representatives, respectively.
10. Notice of Representative's Noncompliance. In the event a
Representative fails or refuses to submit to supervision of Broker-Dealer or
otherwise fails to meet the rules and standards imposed by Broker-Dealer on its
Representatives, Broker-Dealer shall advise the Company of this
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fact and shall immediately notify such Representative that he or she is no
longer authorized to sell any of the Policies and Broker-Dealer shall take
whatever additional action may be necessary to terminate the sales activities of
such Representative relating to the Policies.
11. Prospectuses, Sales Promotion Material and Advertising.
(a) Broker-Dealer shall be provided with prospectuses relating to
the Insurance Securities and such other material as the Company determines to be
necessary or desirable for use in connection with sales of such Policies. No
sales promotion materials or any advertising relating to the Insurance
Securities shall be used by Broker-Dealer unless the specific item has been
approved in writing by the Company, which consent shall not be unreasonably
withheld or delayed.
(b) Broker-Dealer shall be provided with advertising and sales
material relating to the fixed Policies and such other material as the Company
determines to be necessary or desirable for use in connection with sales of such
Policies. No sales promotion materials or any advertising relating to the Fixed
Policies shall be used by Broker-Dealer unless the specific item has been
approved in writing by the Company, which consent shall not be unreasonably
withheld or delayed.
(c) In addition, Broker-Dealer shall not print, publish or
distribute any advertisement, circular or any document relating to the Company
unless such advertisement, circular or document shall have been approved in
writing by the Company; provided, however, that nothing herein shall prohibit
Broker-Dealer from advertising fixed or variable insurance in general or on a
generic basis.
(d) Broker-Dealer agrees that all computer software containing the
rates and values of products issued by the Company whether or not distributed
through the Company, all rate books, computer printouts, client files, policies,
brochures, prospectuses, sales promotion materials, whether in hard copy or
computer format, containing the name/logo of the Company or any affiliated
company, are furnished to Broker-Dealer in confidence, and Broker-Dealer agrees
to refrain from reproducing, publishing, or disclosing such material other than
in the ordinary course of business. Broker-Dealer further agrees that all such
property shall be returned to the Company upon demand or upon termination of
this Agreement.
12. Right of Rejection. The Company, in its sole discretion, may reject
any applications or payments remitted by Representative through Broker-Dealer
and may refund an applicant's payments to the applicant. In the event such
refunds are made and if Broker-Dealer has received compensation based on an
applicant's payment that is refunded, Broker-Dealer shall promptly repay such
compensation to the Company. If repayment is not promptly made, the Company may
at its sole option deduct any amounts due it from Broker-Dealer from future
commissions otherwise payable to Broker-Dealer pursuant to this agreement. This
provision shall survive termination of this Agreement.
13. Compensation.
(a) Commissions, Fees and Allowances. Sales compensation payable to
Broker-Dealer in connection with the Policies shall be paid by the Company to
the Agency, (or, only if Broker-Dealer is also a corporate insurance agency
permitted to receive such compensation, to Broker-Dealer in its capacity as an
Agency) and Broker-Dealer hereby appoints Agency to receive on its behalf any
and all compensation that may be due and payable to Broker-Dealer in accordance
with the provisions set forth in Schedule A. The Company will provide
Broker-Dealer or Agency with a
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copy of its current Schedule of Sales Compensation for the Policies. These fees
and commissions will be paid as a percentage of premiums received and accepted
by the Company on applications obtained by the various Representatives of
Broker-Dealer. Upon termination of this Agreement all compensation to the Agency
hereunder shall cease; however, Broker-Dealer and/or Agency shall continue to be
liable for any chargebacks or for any other amounts advanced by or otherwise due
to the Company hereunder.
(b) Changes to Compensation Schedule. The Company may, upon at least
ten (10) days prior written notice, change its Schedule of Sales Compensation.
Any such change shall apply to compensation due on applications received by the
Company after the effective date of such notice.
(c) Restrictions.
(i) If Broker-Dealer, Agency or any Representative shall
rebate or offer to rebate all or any part of a premium on a policy issued by the
Company in violation of applicable state insurance laws or regulations, or if
Broker-Dealer, Agency or any Representative shall withhold any premium on any
Policy issued by the Company, or if Broker-Dealer, Agency or any Representative
rebates or offers to rebate all or any part of a commission paid or payable upon
the sale of a Policy in violation of applicable state insurance laws or
regulations, the Company may, at its option, terminate this Agreement.
(ii) If Broker-Dealer, Agency or any Representative shall at
any time induce or endeavor to induce any owner of a Policy to relinquish the
Policy except under circumstances where there is reasonable grounds for
believing the Policy or interest therein is not suitable for such person, any
and all compensation due hereunder shall cease and terminate.
(iii) Nothing in this Agreement shall be construed as giving
Broker-Dealer or Agency the right to incur any indebtedness on behalf of the
Company. Broker-Dealer and Agency each hereby authorizes the Company to set off
their respective liabilities to the Company against any and all amounts
otherwise payable to them by the Company.
14. Policy Delivery. The Company may, upon written request of
Broker-Dealer, transmit Policies to Broker-Dealer for delivery to Policyowners.
Broker-Dealer hereby agrees to deliver all such Policies to policyowners
promptly upon its receipt thereof from the Company. Broker-Dealer agrees that
the indemnification provisions of this Agreement include any and all costs,
expenses, loss, damages and attorneys' fees resulting from Broker-Dealer's
failure to perform or inability to prove performance of the undertakings
described in this paragraph, and authorizes the Company to set off any amount it
owes the Company under this paragraph against any and all amounts otherwise
payable to or on behalf of Broker-Dealer by the Company pursuant to this
agreement. The Company reserves the right to revoke or withdraw this privilege,
in whole or in part, at any time, and without prior notice.
15. Indemnification.
(a) The Company shall indemnify and hold Broker-Dealer and Agency
harmless from any and all cost, expense, loss or damages, including reasonable
attorneys' fees, resulting from any negligent, fraudulent or unauthorized acts
or omissions by the Company, its employees and authorized agents.
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(b) Broker-Dealer and Agency shall indemnify and hold the Company
harmless from any and all costs, expenses, loss or damages, including reasonable
attorneys' fees, resulting from any negligent, fraudulent or unauthorized acts
or omissions of Broker-Dealer or its Representatives.
16. Waiver. Failure of any party to insist upon strict compliance with any
of the conditions of this Agreement shall not be construed as a waiver of any of
the conditions, but the same shall remain in full force and effect. No waiver of
any of the provisions of this Agreement shall be deemed, or shall constitute a
waiver of any other provisions, whether or not similar, nor shall any waiver
constitute a continuing waiver.
17. Independent Contractors.
(a) The Company is an independent contractor with respect to
Broker-Dealer, its Representatives and Agency. Nothing contained in this
Agreement shall create, or shall be construed to create, the relationship of
employer and employee between the Company and Broker-Dealer, its Representatives
or Agency.
(b) Broker-Dealer shall, in its sole discretion, select the persons
from whom it will solicit applications for Policies, as well as the time, manner
and place of solicitation.
18. Limitations. No party other than the Company shall have the authority
to make, alter, or discharge any policy, contract, or certificate issued by the
Company, to waive any forfeiture or to grant, permit, or extend the time for
making any payments, or to guarantee earnings or rates, or to alter the forms
which the Company may prescribe or substitute other forms in place of those
prescribed by the Company, or to enter into any proceeding in a court of law or
before a regulatory agency in the name of or on behalf of the Company.
19. Fidelity Bond.
(a) Broker-Dealer represents that all of its directors, officers,
employees and Representatives who are appointed pursuant to this Agreement as
the Company agents for state insurance law purposes or who have access to funds
of the Company, including but not limited to funds submitted with applications
for the Policies or funds being returned to owners, shall at all times be
covered by a blanket fidelity bond, including coverage for larceny and
embezzlement, issued by a reputable bonding company. This bond shall be
maintained by Broker-Dealer at Broker-Dealer's expense. Such bond shall be, at
least, of the form, type and amount required under the NASD Conduct Rules.
Broker-Dealer shall maintain Errors and Omissions insurance coverage in an
amount and with a company satisfactory to the Company. The Company may require
evidence, satisfactory to it, that such coverage is in force and Broker-Dealer
shall give prompt written notice to the Company of any notice of cancellation or
change of coverage.
(b) Broker-Dealer shall assign any proceeds received from the
fidelity bonding company to the Company to the extent of any loss to the Company
due to activities covered by the bond. If there is any deficiency amount,
whether due to a deductible or otherwise, Broker-Dealer shall promptly pay the
Company such amount on demand and Broker-Dealer hereby indemnifies and holds
harmless the Company from any such deficiency and from the costs of collection
thereof (including reasonable attorneys' fees).
20. Binding Effect. This Agreement shall be binding on and shall inure to
the benefit of
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the parties to it and their respective successors and assigns; provided however,
that Broker-Dealer may not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Company.
21. Regulations. The parties agree to observe and comply with all
applicable local, state, and federal laws and rules or regulations, and to fully
co-operate with any regulatory authority having jurisdiction with respect
thereto.
22. Notices. All notices or communications shall be sent in writing and to
the addresses shown below or to such other address as the party may request by
giving written notice to the other parties. Notices shall be effective
immediately upon date of postmark in the mail, if received, or upon receipt if
delivered by any other means, unless otherwise specifically provided.
The Lincoln National Life Insurance Company
Xxxxxxxx, XX 00000-0000
Attn: Xxxx Xxxxxxxxx
23. Governing Law. This Agreement shall be construed in accordance with
and governed by the laws of the State of Indiana.
24. Amendment of Agreement. The Company reserves the right to amend this
Agreement at any time, and the submission of an application to purchase a policy
by Broker-Dealer after notice of any such amendment shall constitute agreement
to any such amendment.
25. Termination.
(a) This Agreement may be terminated immediately by any party upon
written notice or if the Company or Broker-Dealer shall cease to be a registered
Broker-Dealer under the Securities Exchange Act of 1934 or a member of the NASD.
In the event of such termination, commissions, fees and allowances for the first
contract year and for renewal years shall be payable, based upon the
compensation schedule set forth in Schedule A-1.
(b) This Agreement will automatically terminate:
(i) Upon the death or total and permanent physical or mental
disability of Broker-Dealer, if an individual.
(ii) Upon dissolution of Broker-Dealer, if a corporation or a
partnership, including LLC and LLP.
(iii) At the end of any calendar year during which
Broker-Dealer has not maintained the minimum life premium and persistency
requirements, if any, as set forth in Schedule A-1.
(c) Termination of this Agreement will result in the termination of all
agreements with Representatives of Broker-Dealer.
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(d) Payment of broker compensation at a level that is higher than the
level of broker compensation set forth in Schedule A-1 will, at the option of
the Company, result in the termination of this Agreement.
26. Effective Date. This Agreement shall be effective on the
day of 19
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By:________________________________________
Print Name: Xxxxxxx X. Xxxxxxxx
Title: Vice President, Lincoln Corporate Specialty Markets
Date: ________________________________
[BROKER-DEALER NAME]
By: ___________________________________
Print Name: ____________________________
Title: _________________________________
Date: ________________________________
By: ___________________________________
Print Name: ____________________________
Title: _________________________________
Date: ________________________________
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EXHIBIT A
"SAMPLE" SECURITIES SUPERVISION AGREEMENT
This Agreement is effective _______________, 199__ by and between
__________________ ("Broker-Dealer"), and _________________ (Agency) is made in
consideration of the mutual benefit to be derived.
RECITALS
Broker-Dealer is a broker and dealer in securities which is licensed and
qualified to transact business pursuant to rules and regulations promulgated by
the Securities and Exchange Commission ("SEC"), the National Association of
Securities Dealers, Inc. ("NASD"), and other governmental agencies.
Agency is licensed pursuant to state insurance law as an insurance agency
with authority to sell certain variable contracts which are also subject to
regulation by the SEC and/or NASD.
Agency has contracted and will contract with various individuals to sell
life insurance and annuity contracts. Those contracted individuals who are also
licensed by the NASD as registered representatives, have variable contract
authority under their insurance agent or broker license, and who wish to sell
variable insurance products through Agency, must also enter into a Sales
Representative Agreement with Broker-Dealer. (Such dually-licensed individuals
are hereinafter referred to as "registered agents.")
In order to avoid the necessity of duplicate licensing, the employment of
additional personnel, and providing related office facilities, Agency wishes to
engage Broker-Dealer to provide management and administrative services to Agency
for the operation of Agency with regard to all matters subject to regulation by
the SEC and/or NASD.
In order to meet its obligations under the Securities Exchange Act of
1934, satisfy the requirements of its license with the NASD, and exercise its
rights and responsibilities under the Sales Representative Agreements,
Broker-Dealer wishes to undertake such services of behalf of the Agency.
AGREEMENT
1. Term. This Agreement commences as of the effective date and shall continue
throughout the calendar 1998 and year to year thereafter, unless sooner
terminated. This Agreement may be terminated after December 31, 1998 by either
party upon at least ninety (90) days notice, or at
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any time by the consent of both parties.
2. Performance of Services by Broker-Dealer. During the term of this Agreement,
Broker-Dealer will furnish the following services (hereinafter referred to as
the "Services") to the Agency.
2.01 Standards of Conduct. Broker-Dealer will establish, maintain, and
enforce standards of conduct for registered agents of the Agency, which
standards shall meet or exceed the conduct requirements for registered
representatives set forth in the Conduct Rules promulgated by the NASD.
2.02. Supervisory Procedures. Broker-Dealer will establish and implement
supervisory procedures for the securities sales activity of the Agency which
meet or exceed the requirements set forth in the NASD Conduct Rules.
2.03 Suitability. Broker-Dealer will establish standards and guidelines
for reasonably determining whether a variable contract is "suitable" for the
customer to whom it is recommended, based upon the facts, if any, disclosed by
such customer as to his/her other security holdings and as to his/her financial
situations and needs.
2.04. Advertising & Sales Literature. Broker-Dealer will develop and
implement procedures for reviewing and approving all advertising and sales
promotional material relating to variable products developed and used by the
Agency or its registered agents.
2.05 Recordkeeping Requirements. Broker-Dealer will be responsible for
recording all securities transactions of the Agency, and maintaining books and
records with respect to such transactions in such manner as will meet
requirements of Section 17(a) of the Securities Exchange Act of 1934 and the
rules promulgated thereunder.
2.06 Audits. Broker-Dealer will oversee all audits of the Agency's
securities transactions by the NASD or other securities regulatory authorities.
Broker-Dealer shall have full and complete access to all books and records of
the Agency for this purpose. Broker-Dealer will also conduct field audits of the
agents and associated persons as necessary or appropriate to assure ongoing
compliance with the requirements of the SEC and/or NASD.
2.07 Training. Broker-Dealer will be responsible for training the
registered agents of the Agency in the uses and operation of variable contracts
and standards of conduct for securities salesmen. Broker-Dealer will undertake
this activity in such a manner as will assure a proper level of competence among
such agents.
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2.08. Miscellaneous. Broker-Dealer agrees to undertake all other actions
as are necessary and proper to assure that the Agency and its registered agents
are in compliance with all rules and regulations pertaining to the sale of
securities promulgated by the SEC, NASD, and state securities regulators.
3. Representation by Broker-Dealer. Broker-Dealer represents to the Agency that
it and its personnel have substantial experience in the conduct of the type of
services required by this Agreement. Broker-Dealer agrees to cause its personnel
to use their best efforts in pursuit of the services.
4. Parties Bound. This Agreement shall be binding upon and inure to the benefit
of each of the parties hereto and their respective successors and assigns;
provided, that no party may, without the prior written consent of the other
party hereto, assign or transfer any duties or obligations here under or any
interest herein.
5. Governing Law. This Agreement is being executed and delivered and is intended
to be performed in the State of __________ and elsewhere, and the substantive
laws of such state and the applicable laws of the United States of America shall
govern the validity, construction, enforcement and interpretation of this
Agreement, unless otherwise specified herein.
This Agreement has been executed and is effective as of the date first
above written.
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Schedule C-1
General Letter of Recommendation
Broker-Dealer hereby certifies to The Lincoln National Life Insurance
Company (the "Company") that all the following requirements will be fulfilled in
conjunction with the submission of appointment papers for all applicants as
agents of the Company submitted by Broker-Dealer. Broker-Dealer will, upon
request, forward proof of compliance with same to the Company in a timely
manner.
1. We have made a thorough and diligent inquiry and investigation relative to
each applicant's identity, residence, business reputation, and experience
and declare that each applicant is personally known to us, has been
examined by us, is known to be of good moral character, has a good
business reputation, is reliable, is financially responsible and is worthy
of appointment as a variable annuity agent of the Company. This inquiry
and background investigation has included a credit and criminal check on
each applicant. Based upon our investigation, we vouch for each applicant
and certify that each individual is trustworthy, competent and qualified
to act as an agent for the Company to hold himself out in good faith to
the general public.
2. We have on file a X-000, X-000, or U-4 form which was completed by each
applicant. 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 indicates no fact or condition which
would disqualify the applicant from receiving a license or appointment and
all the findings of all investigative information is favorable.
3. We certify that all educational requirements have been met for the
specific state each applicant is licensed in, and that, all such persons
have fulfilled the appropriate examination, education and training
requirements.
4. 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.
5. We will not permit any applicant to transact insurance as an agent until
duly licensed and appointed by the Company. No applicants have been given
a contract or furnished supplies, nor have any applicants been permitted
to write, solicit business, or act as an agent in any capacity, and they
will not be so permitted until the certificate of authority applied for is
received.
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