Common use of Commission Chargebacks Clause in Contracts

Commission Chargebacks. In the event a Contract for which a commission has been paid is returned to Pacific Mutual or Distributor pursuant to a "free look" right in the Contract, Selling Entities shall reimburse Distributor 100% of commissions paid. In the event a Contract for which a commission has been paid is deemed to be distributed or surrendered by the Contract owner or a premium refunded by Pacific Mutual, Selling Entities shall reimburse Distributor 100% of commissions paid if the distribution, surrender or premium refund occurs within the first six months of the Contract and 50% of commissions paid if the distribution, surrender or premium refund occurs within the second six months of the Contract. In the event a Contract for which a commission has been paid is rescinded by Pacific Mutual, decided by Pacific Mutual in its sole discretion, Selling Entities shall reimburse Distributor 100% of the commissions paid. In the event Pacific Mutual determines that any Subagent/Registered Representative or Selling Entities engage in any sales practice which is detrimental to Pacific Mutual (as determined by Pacific Mutual), Pacific Mutual may elect to charge back commissions associated with the sale of Contracts associated with such practice or activity.