Common use of Method of Distribution of the Contracts Clause in Contracts

Method of Distribution of the Contracts. The Company shall during the term of the provisions of this Article I take all action required to cause the Contracts to comply as an insurance product and a registered security with all applicable federal and state laws and regulations. The Distributor shall offer the Contracts for sale and distribution at premium rates set by the Company. Applications for the Contracts shall be solicited only by representatives duly and appropriately licensed or otherwise qualified for the sale of such Contracts in each state or other jurisdiction. The Company shall undertake to appoint the Distributor’s qualified representatives as life insurance agents of the Company. Completed applications for the Contracts shall be transmitted directly to the Company for acceptance or rejection in accordance with underwriting rules established by the Company. Initial premium payments under the Contracts shall be made by check payable to the Company and shall be held at all times by the Distributor or its representatives in a fiduciary capacity and remitted promptly to the Company. Nothing in this Agreement shall limit the Company’s ultimate right to control the sale of the Contracts and to appoint and discharge life insurance agents of the Company. The Distributor shall be held to the exercise of reasonable care in carrying out the provisions of this Article I.

Method of Distribution of the Contracts. The Company shall during the term of the provisions of this Article I take all action required to cause the Contracts to comply as an insurance product and a registered security with all applicable federal and state laws and regulations. The Distributor shall offer the Contracts for sale and distribution at premium rates set by the Company. Applications for the Contracts shall be solicited only by representatives duly and appropriately licensed or otherwise qualified for the sale of such Contracts in each state or other jurisdiction. The Company shall undertake to appoint the Distributor’s 's qualified representatives as life insurance agents of the Company. Completed applications for the Contracts shall be transmitted directly to the Company for acceptance or rejection in accordance with underwriting rules established by the Company. Initial premium payments under the Contracts shall be made by check payable to the Company and shall be held at all times by the Distributor or its representatives in a fiduciary capacity and remitted promptly to the Company. Nothing in this Agreement shall limit the Company’s 's ultimate right to control the sale of the Contracts and to appoint and discharge life insurance agents of the Company. The Distributor shall be held to the exercise of reasonable care in carrying out the provisions of this Article I.