[AETNA LOGO] EXHIBIT 99(3)(iii)
[PART 1]
BROKER AGREEMENT
BETWEEN
AETNA LIFE INSURANCE COMPANY, HARTFORD, CONNECTICUT
AETNA LIFE INSURANCE AND ANNUITY COMPANY, HARTFORD, CONNECTICUT
(HEREINAFTER COLLECTIVELY REFERRED TO AS "THE COMPANY")
AND
______________ of ____________________
Who is Hereby Appointed Broker of the Company
The Broker is authorized to solicit and submit to the Company applications for
Life Insurance, Variable and Fixed Annuities, Accident, Sickness, and
Hospitalization Insurance, Group Insurance and Group Annuities; to deliver the
policies, collect first premiums thereon, and service the business.
In full compensation for his services, the Company will pay the Broker, or his
executors or administrators, the commissions specified on the appropriate
Schedules of Commissions on premiums paid to the Company on policies credited to
him under this Agreement.
Life Insurance and Variable and Fixed Annuities (Other than Group)
The Commission on each premium paid during the continuance of this Agreement, on
each life insurance or annuity policy, shall be as specified in the Company's
Standard Schedule of Commissions for the Broker Agreement in force on the date
of issue of the policy.
Accident, Sickness and Hospitalization Insurance.
Commissions on this business will be in accordance with the Standard Schedule of
Commissions for Accident, Sickness and Hospitalization Insurance in force on the
date of issue of the policy for Non-Cancelable or Guaranteed Renewable policies;
or in force on the date the premium was due for Commercial policies.
Group Insurance and Group Annuities
Commissions on premiums for all Group Policies shall be as specified in the
Company's Standard Commission Schedule applicable to the particular type of
Group Policy or Policies, and in accordance with the Company's Group commission
rules in force when the new business premium is written.
The "Standard Practices" listed in following pages constitute a part of this
Agreement the same as though fully set forth over the signatures of the parties
hereto.
Signed at _______________________________ on __________________________
Effective: ______________________________
__________________________ __________________________
Broker Life Sales Manager
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Life Code No. __________________________ Social Security No.________________
Aetna Life Insurance and Annuity or
Code No. __________________________ IRS Account No. ___________________
(in triplicate)
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EXHIBIT 99(3)(iii)
[PART 2]
STANDARD PRACTICES
1. EXTENT OF AUTHORITY
The Broker will obligate the Company only to the extent authorized by the
rules and regulations set forth by the Company from time to time, or as may
be authorized in writing by an officer of the Company. Specifically, the
Broker is NOT AUTHORIZED and is expressly forbidden on behalf of the
Company to make, alter or discharge contracts or waive forfeitures, quote
extra rates, extend the time of payment of any premium, extend credit,
guarantee dividends or estimate future dividends except through the use of
authorized projections of the Company. Further, the Broker is not
authorized to receive any money due or to become due the Company except the
initial premiums. All funds collected for the Company must be immediately
delivered to the Company. The Broker has no exclusive territory, and has
no exclusive rights in any salary budget, group, pension or other multiple-
life case, or term conversions.
2. POLICIES CREDITED
The Broker will be credited with all insurance and Variable and Fixed
Annuity policies issued by the Company upon application bearing his name as
Broker.
3. COMPENSATION
For all services rendered under this Agreement by the Broker, the Broker
shall be compensated solely in accordance with the appropriate Schedule of
Commissions for the amount of premium he or she was responsible for
producing.
The Company reserves the right to revise the Commission Schedules but the
revision of Commission Schedules shall apply only to policies, contracts
and securities thereafter issued. The publication of revisions of
Commission Schedules shall constitute notification of the Broker, and
revisions and Revised Schedules shall become a part of this Agreement on
the effective date of these Schedules.
4. COMMISSIONS - REFUND OF
Should the Company for any reason refund any premium, the Broker will
promptly, on demand, refund to the Company all commissions received on such
premium. Commission adjustments will be made on decreases in premium on
which first year commissions have previously been paid.
5. COMMISSIONS ON SPECIAL CASES
Commissions payable on the following cases, irrespective of any other
provisions of this Agreement, will be at the rates allowed under the
Company's rules and practices at the time the premium is due: (a) Premiums
on back-dated conversions of Term Life Insurance
Policies; (b) Premiums on reinstatement of lapsed policies; (c) Premiums on
insurance or annuities which, in the judgment of the Company is to take the
place of insurance previously issued by the Company on the same life; (d)
Premiums on special plans not shown in the Company's rate books, or on
cases having special rate quotations.
6. GROUP CONVERSIONS AND WAIVED PREMIUMS
Commissions will not be payable on (1) premiums on conversions of Group and
Employee Insurance, or (2) premiums waived on account of disability.
7. SERVICE FEES
Service fees are in payment for all services rendered by the Broker in
providing customer service after the initial sale. Therefore, it is agreed
that transferable service fees will be paid so long as the Broker, in the
judgment of the Company, continues to service the customer or until the
Broker's license or his Broker's Agreement to represent the Company is
terminated.
8. LICENSES
Where consistent with state law, the Broker will be responsible for
securing and keeping in effect any required licenses to represent the
Company. The Broker agrees not to solicit any Company products unless he
is properly licensed and, as necessary, registered with the National
Association of Securities Dealers to do so. No person whether licensed or
unlicensed may solicit any Company products on behalf of such licensed
Broker unless approval in writing has been granted from an office of the
Company.
9. ADVANCES AND INDEBTEDNESS
The Company is authorized to deduct either before or after the termination
of the Agreement, the entire amount of any funds due to the Company or its
affiliates, associates, parents or subsidiaries, but only to the extent of
the actual amount owed by the Broker, including advances to the Broker,
from any compensation due from the Company to the Broker. The Company
shall have a first lien on all compensation payable under this Agreement
for any of the funds, advances or debts described herein. To the extent
that compensation due the Broker from the Company is insufficient to cover
advances, the difference shall become a debt due to the Company.
Interest at the rate of 6% per annum shall be charged on any indebtedness
due the Company.
Any compensation paid to a Broker for premiums or considerations later
returned or credited to the customer or any overpayment of compensation
shall be a debt due to the Company from the Broker. In addition to all
other rights available to the Company as a creditor, they shall have the
right to deduct such overpayment from any future compensation due.
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10. ACCEPTANCE OF APPLICATIONS
The Company reserves the right to refuse to accept or approve any
application obtained by the Broker.
11. ASSIGNMENT
An assignment of commissions hereunder shall not be binding upon the
Company until a copy thereof has been received and approved at the
Company's Home Office. With respect to Variable Annuities, the Broker
shall not assign any sum due hereunder without the prior written consent of
an officer of Aetna Life Insurance and Annuity Company. The Company does
not assume any responsibility for the validity or sufficiency of any
assignment.
12. LIABILITIES OF BROKER
The Broker will be liable to the Company for all expenses, loss or damages
suffered by the Company because of a violation of, or refusal or failure to
comply with the terms of this Agreement or with any Federal or State laws,
rules or regulations. The rights and remedies reserved by the Company
hereunder shall be construed and held to be in addition to and not
exclusive of any other right or remedy available to the Company.
13. SECURITY PLANS
Subject to their terms and conditions, the Broker shall be eligible for the
Group Insurance, Deferred Compensation and Stock Purchase Plans for Brokers
of the Company.
14. GENERAL CONDUCT, REBATES, TWISTING
The Broker will comply with all rules of the Company and with applicable
Federal, state or other laws and regulations governing the sale of the
Company's products. The Broker shall not rebate or offer all or any part
of a premium on a policy issued or to be issued by the Company, or withhold
any money or property of the Company. The Broker shall not at any time
induce or endeavor to induce any customers of the Company to discontinue
the payment of premiums or to relinquish any policy, contract or
certificate or induce any Broker of the Company to leave its service. The
Broker shall not directly or indirectly engage in selling practices
involving "twisting", "switching", or "stripping" of contracts of the
Company or of other companies offering mutual funds, securities, other
investment contracts, annuities or insurance contracts.
15. COMPANY FUNDS
All funds coming into the Broker's possession from customers as premiums
are funds of the Company and shall not be commingled with the Broker's
personal funds but shall be immediately remitted to the Company. If any
such funds are not remitted to the Company,
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the Company shall have a first lien on all compensation due or which may
become due the Broker to the extend of such funds.
16. ADVERTISING
The Broker agrees that he or she will not, directly or indirectly, use or
disseminate any advertising matter, prospectuses, circulars, letters,
booklets, schedules, stationery, broadcasting, or sales material of any
kind concerning the Company or its products until approved by an office of
the Company in writing.
17. OWNERSHIP OF RECORDS
All records, literature, authorization cards, sales aids, sales and rate
manuals, and supplies of every kind and nature furnished to the Broker by
the Company, shall be and remain the property of the Company.
The Broker shall safely keep and preserve said property and shall replace
at the Broker's expense any part thereof which may be lost, destroyed or
defaced while the same are in the Broker's possession or control. On
termination, the Broker shall deliver to the Company or such person as it
may designate, all property in the Broker's possession or control. Pending
return of these items the Company may withhold any and all compensation
which may be due to the Broker.
18. TERMINATION
This Agreement may be terminated at any time by the Broker or by the
Company by written notice to the other party. This Agreement shall
terminate automatically (1) if the Broker dies or becomes totally and
permanently disabled, either physically or mentally, (2) if the Broker
fails to comply with any of the obligations of this Agreement or (3) upon
termination of the Broker's license to represent the Company.
19. REVOCATION OF PRIOR AGREEMENTS
The execution of this Agreement by the parties hereto terminate and
supersedes all previous contracts or agreements made between said parties
except as to renewal commissions, first year commissions and the service
fees provided for in such contracts, if any, that may now be due or shall
become due the Broker on business heretofore written, PROVIDED, that
nothing herein shall be construed to affect or waive any claim of any kind,
whether for money or otherwise, of the Company against the Broker or any
obligations or vested right under any prior contract or agreement.
This Agreement shall be effective to cover all applications taken by the
Broker on or after the date of this Agreement. Prior or subsequent verbal
agreements to the contrary, this Agreement and the appropriate Schedules of
Commission shall constitute the entire agreement between the parties.
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The following provision shall govern commission assignments made with
regard to Fixed or Variable Annuities, guaranteed cost, participating or
group life or health products. If this Agreement replaces any Agreements
with Aetna Life Insurance Company, Aetna variable Annuity Life Insurance
Company or Aetna Financial Services, Inc. which were in effect on
December 31, 1979, payments will continue to be made in the manner
designated under such prior Agreements. Beneficiary designations in effect
on December 31, 1979 will also remain in full force and effect under the
January 1, 1980 Agreement.
20. This contract shall be governed by the laws of the State of Connecticut.
21. The Company shall have the right to amend unilaterally the standard
practices described herein.
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