Fortis Investors, Inc.
X.X. Xxx 00000
Xx. Xxxx, XX 00000
Telephone (000) 000-0000
Toll Free 0-(000) 000-0000
DEALER SALES AGREEMENT
________________________________________, a Dealer sales organization
("the Dealer") currently registered in good standing with the Securities and
Exchange Commission, the National Association of Securities Dealers, Inc.
("NASD"), and all necessary state regulators, with principal offices at
________________________________________, hereby accepts membership in a selling
group to distribute the following products ("products") (check applicable boxes)
available through Fortis INVESTORS, INC. ("Investors"):
| | Mutual Funds Contracts issued by Fortis Benefits Insurance Company
("Fortis Benefits"):
| | Variable Universal Life Insurance
| | Variable Annuity
| | Fixed Annuity
Upon execution of this Agreement, the Dealer may participate in the distribution
of these products, subject to the following terms and to those contained in the
applicable product supplement(s) to this Agreement.
1. COMPENSATION - The compensation payable shall be that described in the
attached product supplement(s); or in subsequent supplements which may
be sent to the Dealer.
2. DEALER ACTS FOR OWN ACCOUNT - In all sales of these products to the
public, the Dealer shall act as Dealer for its own account and not as
agent for Investors, the issuers of the products underwritten by
Investors, or any other Dealer.
3. SUITABILITY - The Dealer is responsible for determining suitability.
4. ORDERS - Orders to purchase or redeem interests in Investors' products:
1) must be placed as described in the product's current Prospectus;
2) must be unconditional; 3) are subject to acceptance by Investors or
Fortis Benefits or both, as the case may be, and 4) become effective
as described in the current Prospectus.
Investors and Fortis Benefits have the right in their sole discretion
to reject for any reason any order or insurance or annuity
application. In addition, with respect to insurance products, many
state insurance departments require that owners be given a right of
withdrawal. In the event that such a right of withdrawal is exercised,
or such a refund is made, the Dealer agrees to promptly repay any
compensation received as a result of such sale, and that if such
repayment is not
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made promptly, any such unrepaid compensation may be deducted from any
other sums owed the Dealer by Investors or Fortis Benefits.
5. PAYMENT - All purchases shall be paid for as described in the product's
current Prospectus. Otherwise, Investors reserves the right, without
notice, to immediately cancel the sale and, at its option, to hold the
Dealer responsible for any resulting loss suffered by Investors, Fortis
Benefits, or the issuer of the product.
6. REPRESENTATIONS - (a) The Dealer is not authorized to make any
representations concerning these products except those contained in the
then current Prospectus, Statement of Additional Information, or in
current material furnished by Investors which is officially designated
as approved advertising or sales literature.
(b) The Dealer agrees not to sell, or offer for sale, any product
available hereunder unless it has met all necessary federal, NASD, and
state regulatory licensing and other requirements for doing so,
including any Prospectus and Statement of Additional Information
delivery requirements and Section 26 of Article III of the NASD Rules of
Fair Practice (which pertains to the sale of investment company
securities); and agrees to be solely responsible for the proper
licensing, conduct, and supervision of its representatives. Expulsion of
either party from the NASD will automatically terminate this Agreement
without notice.
7. INDEBTEDNESS - Compensation payable under this Agreement or any other
agreement with Investors or an affiliated company will be subject to
offsets to repay any indebtedness or claims now due, or which may become
due at any time from the Dealer to Investors or such affiliate.
Investors or such affiliate will have a lien on all such compensation,
as security for the payment of any and all such debts or claims, and
Investors will have the right to deduct any monies due from such
compensation, together with legal interest, without any requirement that
it first obtain the Dealer's consent or give the Dealer notice.
This lien and assignment will not be distinguished by the termination of
this Agreement and will be binding upon the Dealer's successors,
executors, administrators and assigns. Upon termination of this
Agreement, all monies and indebtedness due Investors will be payable
immediately upon demand, together with interest payable at the legal
rate from the date of such termination.
8. OTHER - (a) The dealer agrees to comply with the terms of this Agreement
and all of Investors' or Fortis Benefits' procedures for the sale of
these products, and agrees that no failure, neglect or forbearance by
Investors or Fortis Benefits to require strict performance of any such
requirements shall be construed as a waiver of their rights or
privileges hereunder.
(b) This Agreement may be terminated by either party upon seven days'
written notice.
(c) All written communications to Investors or Fortis Benefits shall be
sent to the address on the product's current Prospectus. Any notice to
the Dealer shall be duly given if mailed or telegraphed to the address
shown in the Agreement or the last known address of record.
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(d) This Agreement becomes effective only when accepted and signed by
Investors, and shall be construed in accordance with Minnesota Law.
(e) There is a corresponding product supplement to this Agreement for
each of the boxes checked in the first paragraph of this Agreement
(mutual fund, variable universal life insurance, variable annuity, or
fixed annuity), which contains additional information. Such supplements
may be amended by Investors from time to time and the amendments shall
become effective automatically the first time the Dealer places an order
for the product following its receipt of the amended supplement.
____________________________________ ____________________________________
(Dealer Name) (Tax Identification Number)
____________________________________ ____________________________________
(By: Signature) Street Address
____________________________________ ____________________________________
(Please Print Name)
____________________________________ ____________________________________
Title City, State, Zip
for Fortis Investors, Inc.
accepted by:
____________________________________
____________________________________
Date Accepted
NOTE: Please sign and return both copies of this Dealer Sales Agreement to
Fortis Investors, Inc. Upon acceptance, one countersigned copy will be
returned for your files.
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EXHIBIT 3c
Fortis Investors, Inc.
X.X. Xxx 00000
Xx. Xxxx, XX 00000
Telephone (000) 000-0000
Toll Free 0-(000) 000-0000
NEW YORK SUPPLEMENT TO
DEALER SALES AGREEMENT
The Dealer indicated below (the "Dealer") and Fortis Investors, Inc.
("Investors") do hereby enter into this supplementary agreement as an amendment
to the Dealer Sales Agreement previously entered into between the Dealer and
Investors (the "Agreement"). The purpose of this amendment is to enable the
Dealer to sell the variable annuity products issued by First Fortis Life
Insurance Company ("First Fortis Products") in the State of New York in addition
to the variable annuity products of Fortis Benefits Insurance Company ("Fortis
Benefits Products") in other states. For this purpose, it is agreed as follows:
1. PRODUCT DISTRIBUTION AUTHORIZATION
The Dealer is hereby authorized to participate in the distribution of First
Fortis Products in the State of New York, subject to the following terms
and conditions.
2. DUTIES AND OBLIGATIONS
The duties, rights, and obligations of Investors and Dealers associated
with the distribution of First Fortis Products, and the limitations
associated therewith, shall be the same as those set forth in the Agreement
relating to the distribution of Fortis Benefits Products.
3. COMPENSATION
The Dealer shall be entitled to compensation for the sale of First Fortis
Products as follows. The Dealer sales commission is 6% of the purchase
amount (3.5% if the owner is 80-84 years old, 1.75% if 85-90). Commissions
will be paid twice monthly. There is no commission on sales accomplished
through exchange of products. Investors reserves the right to revise the
compensation payable herein from time to time, but any such revision will
apply only to purchase payments received after the effective date of such
revision.
4. ORDERS
Applications to purchase First Fortis Products, together with a remittance
for the full amount of the order (made payable to "First Fortis Life
Insurance Company") should be sent to X.X. Xxx 0000, Xxxxxxxx, XX 00000.
____________________________________ ____________________________________
Dealer Tax Identification Number
By: ________________________________ ____________________________________
Street Address
Title: _____________________________ ____________________________________
City State Zip
for FORTIS INVESTORS, INC.
accepted by:
____________________________________ ____________________________________
Date Accepted
NOTE: Please sign and return both copies of this Dealer Sales Agreement to
Fortis Investors, Inc. Upon acceptance, one countersigned copy will be returned
for your files.
DAP404
