Common use of Modified Compensation Clause in Contracts

Modified Compensation. If premiums in excess of the commission limits described above are paid at issue or over their lifetime, commissions will be payable on a modified basis. Commission in excess of the commission limits will be spread out over a seven-year period on all plans on the premium in excess of the limits. The annual commission received on this basis will be one-sixth of the usual commission. These payments will stop upon the seventh annual payment for all annuities or the termination of the contract, if sooner. Chargebacks due to exercise of the confinement waiver benefit will be limited to those occurring within 60 days of the issue date. For Saver’s Index Annuity I and III, the commission paid will be reduced and paid according to the schedules found in the Additional Notes following the Schedule of Commissions. Please refer to the Schedule of Commissions for specific details. Additional policies and supplements, which may be developed by LBL from time to time, may be added to the Commission Rules and Schedule of Commissions by addendum and shall be subject to the same conditions as set forth herein. REPLACEMENT RULES These Replacement Rules address (1) whether any surrender charge may be assessed to the policyholder; and

Modified Compensation. If premiums in excess of the commission limits described above are paid at issue or over their lifetime, commissions will be payable on a modified basis. Commission in excess of the commission limits will be spread out over a seven-year period on all plans on the premium in excess of the limits. The annual commission received on this basis will be one-sixth of the usual commission. These payments will stop upon the seventh annual payment for all annuities or the termination of the contract, if sooner. Chargebacks due to exercise of the confinement waiver benefit will be limited to those occurring within 60 days of the issue date. For Saver’s Index Annuity I and III, the commission paid will be reduced and paid according to the schedules found in the Additional Notes following the Schedule of Commissions. Please refer to the Schedule of Commissions for specific details. Additional policies and supplements, which may be developed by LBL from time to time, may be added to the Commission Rules and Schedule of Commissions by addendum and shall be subject to the same conditions as set forth herein. REPLACEMENT RULES These Replacement Rules address (1) whether any surrender charge may be assessed to the policyholder; and