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Exhibit (A)(3)(b)(iv)
Manulife Logo BROKER/DEALER PRODUCER AGREEMENT
THIS AGREEMENT made this _____________ day of ____________19___________ BETWEEN:
THE MANUFACTURERS LIFE INSURANCE COMPANY OF AMERICA
(HEREINAFTER CALLED THE "COMPANY")
- AND -
________________________________________________________________________________
(hereinafter called the "Producer")
Witness that in consideration of the mutual covenants of the parties herein
contained, the parties hereto agree as follow:
1. STATUS
The Producer is hereby appointed an agent of the Company. It is understood
and agreed that there is no corporate affiliation between the Company and
the Producer and nothing contained herein shall be construed to create such
relationship.
In this Agreement, "Representative" refers to an individual who is a
shareholder, associate or employee of the Producer, and who acts in the
name of and on behalf of the Producer in soliciting, negotiating, or
accepting from the public applications for life insurance products offered
by the Company.
In order for the Producer to remain sponsored by the Company, the Producer
must have at least one (1) full-time Representative at all times. All
Representative(s) of the Producer must hold appropriate licenses and must
be appointed by the Company at all times.
If the Producer through any of its Representative(s) desires to sell any
variable life, annuity, or endowment products ("variable products")
produced currently or in the future by the Company or one of its
affiliates, it must also hold a valid dealer agreement with ManEquity, Inc.
2. RESPONSIBILITIES
(a) The Producer through its Representative(s) shall canvass for
applications for insurance and services offered by the Company and
collect, in exchange for receipts furnished by the Company, money due
or to become due to the Company in respect to applications and policies
obtained by or through the Producer.
(b) All applications for insurance products and services shall be signed by
a licensed Representative(s) of the Agency.
(c) The Producer shall ensure that its Representative(s) maintain a
standard of knowledge and competence in the sale of the Company's
products which is satisfactory to the Company.
(d) The Producer and its Representative(s) shall comply with all applicable
insurance laws and regulations. The Producer is required to obtain, and
from time to time renew, a license to sell insurance within the
state(s) in which the Producer intends to carry on business. The
Producer shall also be required to obtain, and from time to time renew,
a license for all of its Representative(s). If the Producer desires to
sell any variable products offered by the Company, additional licensing
is required under a ManEquity, Inc. dealer agreement.
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(e) When requested by the Company, the Producer and/or its
Representative(s) shall also purchase errors and omissions coverage in
an amount acceptable to the Company.
3. GENERAL CONDUCT AND REPRESENTATIVES
(a) The Producer and its Representative(s) shall not transact any business
for the Company unless duly licensed as required by law. The Producer
and its Representative(s) shall not transact any variable products
business for the Company unless contracted to do so by ManEquity, Inc.
(b) The Producer and its Representative(s) are not authorized to make
contracts on behalf of the Company, or to alter or amend any of the
provisions of the Company's contracts, or to waive forfeitures or bind
the Company in any way not specifically authorized in writing by the
Company. The Producer and its Representative(s) are not authorized to
pay any premium or premiums or other payments on behalf of an
applicant, policyholder, or beneficiary.
(c) Neither the Producer not its Representative(s) shall induce producers,
agents or brokers to leave the Company, or persuade policyholders to
discontinue their policies, or otherwise do anything prejudicial to the
Company's interest or that of its policyholders.
4. COMPENSATION
(a) Subject to Clause 5 "Regulations Governing Compensation and Credit"
and Clause 6 "Joint Business", compensation shall be determined and
shall be payable to the Producer while this Agreement is in force, in
accordance with (1) the Company's Schedule of Commissions in force
when an application for insurance is submitted to the Company and (2)
any Schedule of Supplemental Income which may be entered into by the
Producer and the Company and any amendments or supplements to those
schedules.
(b) The Producer's basic compensation shall be by commission which shall
be determined in accordance with the Schedule of Commissions. Other
forms of compensation above and beyond those set out in the Schedule
of Commissions and the Schedule of Supplemental Income, if any, may be
specifically provided for or allowed as an option by the Company at
its discretion. Commissions earned on the sale of variable products
are paid by or on the behalf of ManEquity, Inc.
(c) The Schedule of Commissions and the Schedule of Supplemental Income,
if any, and any amendments or supplements thereto, are subject to
change by the Company at any time. No change shall affect commissions
on Individual insurance products offered by the Company for which
applications were submitted to the Company prior to the effective date
of the change.
5. REGULATIONS GOVERNING COMPENSATION AND CREDIT
(a) When a policy is changed, the compensation, if any, shall be determined
by the Company.
(b) The Company shall determine the compensation on any new policy when:
i) A policy on the same life has been surrendered or; lapsed
within six (6) months of the application for the new policy; or
ii) The new policy appears to have replaced an existing policy or part
of a policy within six (6) months of the date of application.
The Producer shall immediately refund to the Company any excess
compensation received on the new policy.
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(c) If the Company returns any part of or all of premium(s) paid in respect
to an issued policy, the Producer shall lose all right to any
compensation on such premiums. The Producer shall also immediately
refund to the Company the amount of any compensation received on the
returned premium.
(d) Where a policy has lapsed and the premium remains unpaid sixty (60)
days beyond the expiration of the grace period, the Company shall have
the right to take such policy out of the Producer's account of
business. The Producer shall immediately refund any compensation paid
in relation to such premiums not received by the Company and no further
compensation shall be payable to the Producer thereon.
(e) Where a policy has lapsed, the Producer shall immediately refund to the
Company any compensation received on the lapsed policy pursuant to the
Bonus provisions of the Schedule of Supplemental Income, if any.
(f) The Company may adjust compensation so that compensation does not
exceed the sales and surrender charges permitted by federal and state
securities laws.
6. JOINT BUSINESS
(a) Any policy other than those policies issued by the Company that are
deemed to be securities subject to regulation by the Securities and
Exchange Commission, effected by the Producer in conjunction with any
other producer, agent or broker of the Company, shall be considered as
joint business and, unless otherwise agreed to, the amount of
compensation shall be apportioned equally to each producer, agent or
broker. The Company requires written notice from the agent of record of
any such joint business and of the existence of any Agreement providing
for unequal apportionment of compensation.
(b) Any policy issued by the Company that is deemed a security subject to
regulation by the Securities and Exchange Commission may not be sold
jointly with any individual or firm not registered with the National
Association of Securities Dealers and contracted with ManEquity, Inc.
Any joint cases must be specified as such at the time the application
is delivered to the company.
7. RIGHT OF OFFSET
The Company may set off against any claims by the Producer under this
Agreement, and/or any attachment thereto, any debt or obligation or
liability due at any time to the Company, or any of its affiliates,
from the Producer as agent or otherwise, including but not limited to,
compensation due the Company pursuant to Clause 5 of this Agreement.
The Producer and/or its Representative(s) will become personally liable
for the portion of any debit balance equal to advances on unearned
compensation which appears in the Producer's Advance Account. Said
portion of the debit balance shall be payable by the Producer upon
demand of the Company. At the option of the Company, interest at the
maximum rate permissible by state law will accrue on said portion of
the debit balance from the time a debit balance occurs in such an
account. The ledger account of the Company shall be competent and
conclusive evidence of the state of accounts between the parties
concerned. This right of offset shall be in addition to and shall not
limit the Company's use of any other remedy available to it.
8. COMPANY RECORDS
The Producer shall promptly deliver to the Company all applications
whether reported on favorably or unfavorably by the medical examiner
and shall keep regular and accurate accounts of
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all transactions with or for the Company. All books of account,
letters, documents, vouchers, status and service notices and other
books and papers connected with the business of the Company and
maintained by or in the possession of the Producer shall be open to the
Company or its representative for the purposes of examination.
9. COLLECTIONS AND REMITTANCES
The Producer shall immediately remit to the Company all monies received
or collected by the Producer on behalf of the Company. The Producer
shall not use any such monies for any other purpose.
10. LICENSED REPRESENTATIVE(S)
The Producer undertakes to notify the Company immediately in writing of
any new Representative(s) or of any change in the employment status of
any of the Producer's Representative(s). The Producer shall not add any
new Representative(s) without first notifying the Company.
Should the Company cease to sponsor the license of a Representative of
the Producer for any reason, the Company shall give the Producer and
the Representative fifteen (15) days notice in writing. Upon the
effective date of the notice, the Representative shall immediately
cease to act on behalf of, or in the name of, the Producer.
11. TERMINATION
Either party may terminate this Agreement at any time with or without
cause by giving the other party fifteen (15) days' notice in writing.
Termination shall not, however, release the Producer from any debt due
the Company and until such debt shall have been paid, the obligations
and covenants of the Producer as set out in this Agreement shall remain
in force and effect.
The Producer agrees that, in addition to the foregoing, the happening
of any of the following events will also cause termination of this
Agreement:
(a) the bankruptcy or insolvency of the Producer;
(b) the winding up or dissolution of the Producer;
(c) the Producer ceasing to have its license sponsored by the
Company;
(d) the Producer ceasing to hold a valid state license to sell
insurance products for the Company;
(e) the Producer ceasing to hold a valid dealer agreement with
ManEquity, Inc.
12. EFFECT OF TERMINATION OF COMPENSATION
To the extent permitted by federal or state security laws, upon
termination of this Agreement, the Company shall pay the Producer or
his/her successors and assigns, or his/her estate commissions on
premiums paid to the Company after the termination of this Agreement on
any policies put in force by the Producer under this Agreement.
13. ASSIGNMENT
No rights or interest of the Producer in or under or by virtue of this
Agreement shall be merged, or subject to sale or assignment without the
prior consent of the Company.
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14. MEDICAL EXAMINATION AND FEES
All medical examination shall be made by a duly appointed medical
examiner of the Company and the Company shall pay only such medical
fees as are authorized by it.
15. CURRENCY
All amounts payable under this Agreement shall be payable in the lawful
currency of the United States of America.
16. EFFECT
The Company shall have no responsibility for the effect this Agreement
may have on the federal, state or local taxes of the Producer. It is
further agreed that the Producer is not relying on the Company for any
advice relating to the effect of this Agreement on such taxes.
17. EXISTING AGREEMENTS
In consideration of this Agreement, all existing agreements between the
Company and the Producer shall terminate from the effective date of
this Agreement, except as to compensation payable in accordance with
such agreements.
18. APPLICABLE LAW
This Agreement shall be governed by and construed according to the laws
of the state of CT .
19. EFFECTIVE DATE
This Agreement becomes effective the _________ day of _________ 19____
IN WITNESS WHEREOF the parties to this Agreement have set their hands as of the
day and year first written above.
WITNESS:____________________________ ________________________________________
Authorized Signature
THE MANUFACTURERS LIFE INSURANCE COMPANY
OF AMERICA
WITNESS:____________________________ ________________________________________
Producer Signature
By: ____________________________________
Name/Title
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