Common use of Broker Certification Clause in Contracts

Broker Certification. i. Broker hereby certifies, and shall hereafter annually certify in writing, the following: “Broker has established and maintains a system of supervision for recommendations of sales transactions involving both new and in-force annuity and life insurance products issued by Principal Underwriter that are or were delivered or issued for delivery in the state of New York (“NY Products”), and such system of supervision includes, but is not limited to, standards and procedures for: (i) the collection of a consumer’s suitability information with respect to sales transactions involving NY Products; (ii) the documentation and disclosure Sales Agreement – 7-19 NY of the basis for any recommendation with respect to sales transactions involving NY Products; and (iii) the auditing and/or contemporaneous review of recommendations of sales transactions involving NY Products to monitor Representatives’ compliance with the obligation to act in the best interest of consumers.” It is understood and agreed by the parties that Principal Underwriter, at its election, may rely upon the written certification Broker provides pursuant to this section to satisfy Principal Underwriter’s supervision and audit obligations with respect to sales transactions that result from the exercise of contractual rights under NY Products. ii. Certifications provided pursuant to this Paragraph 4 shall be signed by an authorized senior officer or manager of Broker with responsibility for overseeing NY Product sales practices and who has a reasonable basis on which to make the certification on behalf of Broker.