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EXHIBIT 3(c)
LIFE MARKETING GENERAL AGENT CONTRACT
BETWEEN
THE TRAVELERS INSURANCE COMPANY, Hartford, Connecticut (we, us, our), and
of (you, your)
For the considerations hereinafter expressed, it is mutually agreed that your
authority to act as our General Agent is granted by us and accepted by you upon
the following limitations, terms, provisions and conditions:
1. This contract shall become effective on ________________, covering
those non-variable life insurance and annuity policies issued by our
Financial Services Department and shown on the attached schedules.
2. You are authorized to solicit applications covering such classes of
risks as we may from time to time authorize to be solicited. You are
authorized, subject to our instructions, to collect first or single
premiums with an application and any other premiums we may ask you to
collect. You shall submit completed application and remit premiums
promptly as instructed by our procedures.
3. In our sole discretion, we will select and price each policy form that
you may sell and we may reject any application.
4. In our sole discretion, we will appoint agents and brokers nominated by
you. Contracts may be made directly between such agents and brokers and
us on forms we supply. All commissions provided for in such contracts
shall be your obligation and deductible from the commissions we pay to
you under this contract.
5. You have no authority for or on behalf of us: to accept risks of any
kind; to make, alter, vary or discharge any policy; to extend the time
for payment of premiums; to waive or extend any policy obligation or
condition; to take payment of premiums other than in current funds; to
incur any liability or expense in our behalf; to deliver any policy
unless the applicant therefor is at the time of delivery in good health
and insurable condition; or to receive any money due or to become due
to us except as set forth in paragraph 2.
6. We will pay you as full compensation on premiums paid to us on policies
issued on applications obtained by or through you while this contract
is in effect, the commissions and allowances described in Parts 1, 2, 3
and 4. Your right to
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compensation shall be subject to the limitations of this contract, its
written amendments and the Schedules issued by us from time to time for
attachment to it.
If there is more than one contract between you and us that quotes
commissions on the same policy form we will pay commission under only
one such contract. We, as a condition precedent to any obligation for
payment hereunder, have a right to reduce or set-off any compensation
payable under this contract because of any indebtedness to us.
PART 1
COMMISSIONS ON PREMIUMS FOR THE FIRST YEAR OF INSURANCE:
See Schedule A.
PART 2
COMMISSIONS ON RENEWAL PREMIUMS:
See Schedule B.
PART 3
RENEWAL COMPENSATION (OVERRIDE) IN EVENT OF TERMINATION OF CONTRACT:
At termination, the renewal override, as shown in Schedule B, shall be payable
to you, your executors, administrators or assigns. But in no event will such
override be paid beyond the tenth year of insurance.
PART 4
ALLOWANCES DURING CONTINUANCE OF THIS CONTRACT:
See Schedule C.
7. At any time, by written notice to you, we may change the allowances
under this contract, and may change the compensation allowed as to
policies effective on and after the effective date of such change.
8. We will pay commissions and allowances on premiums paid for additional
benefits or increases in benefits of any kind at the same rate as is
being allowed at the time of addition, or increase for the premiums of
the policies to which they are added. We will not pay compensation: on
premiums for a policy which is a conversion of Employee Special
Protection Plan, Employee Life Insurance-Plan 1 or group life
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insurance; on extra premiums for a policy which are charged due to
temporary flat substandard rating because of physical impairments; or
on premiums of a policy which are waived under any provision of such
policy.
On policies issued with Table 7 or above rates we will pay a modified
commission for the first year of insurance in accordance with our
rules.
9. If you convert one of our term policies to a different form, we will
pay compensation in accordance with our rules applying to such policies
at the time of conversion.
10. Where, in our judgment, a policy replaces a policy previously issued by
us on the same policyholder (other than as a term conversion), the
commission payable for the first year of insurance on the new policy
will be adjusted in accordance with our procedures in effect at the
time of such replacement.
11. Compensation on all universal life policies which would otherwise be
payable, will not be paid on remittances received for policies
following a partial withdrawal until the sum of such remittances equals
the amount of the withdrawal at which time we will pay compensation on
subsequent remittances.
12. While recognizing the opportunity for flexibility in policyholder
service options inherent to universal life forms of insurance, evidence
of manipulation by you of universal life policies, contributions,
loans, surrenders or replacements, not deemed by us to be in the best
interest of the policyholder or us shall cause divestiture of your
right to continuing compensation and termination of this contract.
13. If we return the premiums on a policy or any portion of such premiums
for any cause, you will refund to us on demand, the amount of
compensation you received on such returned premiums.
14. No assignment of compensation payable under this contract shall be
binding upon us without our written consent.
15. You shall not pay or allow, or offer to pay or allow, as an inducement
to any person to insure, any rebate of premium or any inducement
whatever not specified in the policy, nor will you make any
misrepresentation or incomplete comparison for the purpose of inducing
a policyholder in any other company to lapse, forfeit, or surrender
insurance therein, nor will you cause any advertisement respecting us
to be published or broadcast in any form whatever without first
obtaining our written consent.
16. Nothing in this contract will be construed to imply that an employment
relationship exists between you and us. Acceptance of compensation
under this contract will constitute ratification by you of your status
as an independent contractor. You will
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not be treated as an employee for federal tax purposes and you are
responsible for paying your own estimated income and self-employment
tax.
17. This contract cancels all previous contracts or agreements whether oral
or written between you and us covering the lines of insurance referred
to in this contract and may be terminated by either party at any time
by giving to the other party seven days notice in writing to that
effect.
IN WITNESS WHEREOF, the parties hereto have signed this contract in duplicate.
THE TRAVELERS INSURANCE COMPANY
Senior Vice President
Financial Services Department
________________________________
General Agent (Firm Name)
By______________________________
Title_____________________________
Date_____________________________
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THE TRAVELERS INSURANCE COMPANY
LIFE MARKETING GENERAL AGENT CONTRACT (LGA)
SCHEDULE A
Commissions on Premiums Payable for the First Year of Insurance:
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COMMISSIONS AS A OVERRIDE AS A
FORM OF POLICY PERCENT OF PREMIUM PERCENT OF PREMIUM TOTAL
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UNIVERSAL LIFE-NEW PREMIUM
VIP Classic (CLASUL/CLASU2) 50 5 55
* Travelers Universal Life (TUL91) 50 5 55
Travelers Pension Universal Life '88 (ULQP88) 50 5 55
* Travelers Survivorship Life II (TSL II) 50 5 55
* Travelers First Life Contract (TFTD) 50 5 55
For VIP Classic New premium is equal to the lesser of the Selected Annual
Premium minus riders and benefits or the maximum amount quoted in the table of
commissionable premiums.
* Annual Renewable Term Riders/Insured Term Insurance Riders will pay new
commissions equal to 40% of first year premium for the rider.
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UNIVERSAL LIFE-INCREASES IN STATED AMOUNT
Commissions on increases in stated amount are based on the additional premium
amount for the increase in coverage at the original issue age of the insured as
of the date of the increase.
For Travelers Pension Universal Life '88 increases in stated amount generate
commissions based on the table of commissionable premiums. The Company will pay
new commissions on increases in stated amount when new money is paid into the
policy. If the Company determines that the increase is prefunded, new
commissions will be paid even if no further premium is paid.
Commissions on Excess Premiums Payable for the First Year of Insurance:
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COMMISSIONS AS A OVERRIDE AS A
FORM OF POLICY PERCENT OF PREMIUM PERCENT OF PREMIUM TOTAL
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UNIVERSAL LIFE-EXCESS PREMIUMS
VIP Classic (CLASUL/CLASU2) 5 4.0 9.0
All Other Forms 4 2.5 6.5
Excess premium for Travelers Universal Life is the premium credited during the
first policy year which is in excess of the New premium and includes premium
required in the low band ($25,000-599,999) for the flat load.
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COMMISSIONS AS A OVERRIDE AS A
FORM OF POLICY PERCENT OF PREMIUM PERCENT OF PREMIUM TOTAL
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PERMANENT INSURANCE
Presidential Whole Life (PWL88) 50 5 55
Travelers Interest Sensitive Whole Life (CAWL) 50 5 55
Life Pay 50 5 55
40 Pay 50 5 55
30 Pay 50 5 55
20 Pay 45 5 50
15 Pay 40 5 45
10 Pay 35 5 40
TERM INSURANCE
* Annual Renewable Term to 75 (YRT75) 40 5 45
Yearly Renewable Term for 10 Years 40 5 45
* 10 Year level Term (10LT) 40 5 45
* Special T Term (APT) 40 5 45
* APT, YRT75 and 10LT policy fees are not commissionable
On all other forms as quoted by the Company.
Under the provisions of this Contract, the first-year premiums on policies
written by Agents and Brokers of the General Agent, who are beneficial owners of
the General Agency, are eligible for the first-year overriding commission
provided the total combined production of the beneficial owners of the General
Agency does not exceed 50% of the total General Agency production according to
the Company's records for such calendar year. In the event the production of
such beneficial owners exceeds 50% of the total General Agency production,
first-year overriding commissions will be reduced by one percentum for each
one-tenth or a fraction thereof of such total business by which such business
obtained personally by such principals exceeds one-half of such total business.
This schedule of first-year commissions and overrides applies to policies
effective on or after and should be filed with the Life Marketing General Agent
Contract, of which it forms a part. This schedule may be amended by the Company
at any time.
THE TRAVELERS INSURANCE COMPANY
Senior Vice President
Financial Services Department
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THE TRAVELERS INSURANCE COMPANY
LIFE MARKETING GENERAL AGENT CONTRACT (LGA)
SCHEDULE B
Commissions on Premiums Payable After the First Year of Insurance:
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COMMISSIONS AS A OVERRIDE AS A
FORM OF POLICY INSURANCE YEAR PERCENT OF PREMIUM PERCENT OF PREMIUM
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Universal Life
VIP Classic (CLASUL/CLASU2) 2-10 5 4.0
11-15 - 2.0
All Other Forms 2-10 4 2.5
11-15 - 2.0
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Whole Life
Presidential Whole Life (PWL88) 2-10 4 2.5
11-15 - 2.0
Travelers Interest Sensitive Whole 2-10 4 2.5
Life (CAWL) 11-15 - 2.0
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Term Life
Annual Renewable Term to 75 (YRT75) 2-10 4 2.5
11-15 - 2.0
10 Year Level Term (10 LT) 2-10 4 2.5
11-15 - 2.0
Special T (APT) 2-10 2 2.0
11-15 - 2.0
Yearly Renewable Term for 10 Years 2-10 4 2.5
(YRT10)
On all other forms as quoted by the Company
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This schedule applies to policies effective on or after and should be
filed with the Life Marketing General Agent Contract, of which it forms a part.
This schedule may be amended by the Company at any time.
THE TRAVELERS INSURANCE COMPANY
Vice President
Financial Services Department
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THE TRAVELERS INSURANCE COMPANY
LIFE MARKETING GENERAL AGENT CONTRACT (LGA)
ALLOWANCES
SCHEDULE C
LIFE ALLOWANCES
UL PRODUCT: Universal Life policy forms as noted in Schedule A of this Life
Marketing General Agent Contract.
TERM PRODUCTS: Term policy forms as noted in Schedule A of this Life Marketing
General Agent Contract.
TIC NEW PREMIUM: New premium as defined by Addendum I of this Contract produced
by the Life Marketing General Agent in The Travelers Insurance Company (TIC).
LIFE NEW PREMIUM: The sum of all New premium credited for the Life Marketing
General Agent within a calendar year. New premium is defined by Addendum I of
this Contract produced by the Life Marketing General Agent for all products
noted in Schedule A of contracts for both The Travelers Insurance Company and
The Travelers Life and Annuity Company.
GENERAL AGENT ALLOWANCE: A percentage of Life New Premium earned by the Life
Marketing General Agent. This percentage may vary by form of policy and is
applied to TIC New premium. The amount paid will be in accordance with the
thresholds established in the schedule below.
Percent of TIC New Premium
Total Compensation on New TIC
Life New Premium General Agent Allowance Premium (Schedules A + C)
Threshold UL Products Term Products UL Term
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$0-124,999 31 25 86 70
$125,000-249,999 41 30 96 75
$250,000-699,999 41 35 96 80
$700,000-999,999 41 40 96 85
$1,000,000 + 41 45 96 90
ANNUITY ALLOWANCES
In addition to the commissions paid under the Life Producer Contract, an
allowance equal to 1% of single premiums on the T-Flex, Group Choice and Single
Premium Immediate Annuities will be paid to the Life Marketing General Agent.
The Company in its sole discretion and only during the continuance of your
contract as Life Marketing General Agent, will subject to the maximums imposed
by law or regulation, pay the allowances indicated in this schedule.
This schedule is effective on or after and should be filed with the Life
Marketing General Agent Contract, of which it forms a part. This schedule may be
amended by the Company at any time.
THE TRAVELERS INSURANCE COMPANY
Senior Vice President
Financial Services Department
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Travelers Life Contract
Addendum I
As used in all Travelers Agent Life Contracts:
1. "FLEXIBLE PREMIUM" policy means a policy under which the
policyholder can unilaterally vary the amount or timing of
premium.
2. "NEW" premium is the premium paid in the first year of the
Flexible Premium policy that is commissioned at the first year
rate. Increases in coverage after policy issue may also
generate New premium. For Term contracts, New premium is the
premium required to be paid in the first year. Certain Term
contracts may have non-commissionable policy fees in the first
year.
3. "EXCESS" premium is the premium credited to a Flexible Premium
policy in the first year that is greater than New premium.
4. "RENEWAL" premium is the premium credited to a Flexible
Premium policy in all years following the first year with the
exception of that portion of Renewal premium designated by the
Company, in its sole discretion, as an increase.
If, in the opinion of the Company, any payment, or credit or the
acceptance of premium would cause or contribute to the Company's
violation or the exceeding of limits of state or federal law applicable
to insurance companies or life insurance contracts including, but not
limited to the Internal Revenue Code of 1986 as amended, the Company
reserves the right, in its sole discretion, to reduce, postpone, cancel
or otherwise fail to pay or credit any commission, benefit,
consideration or right created hereunder, all without further liability
to the agent or the agent's heirs, assigns, successors or
administrators.
Senior Vice President
Financial Services Department
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