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EXHIBIT 3(h)
AMENDMENT TO SELLING AGREEMENT
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TRILLIUM SCHEDULE I
CANADA LIFE INSURANCE COMPANY OF NEW YORK
PAYMENT SCHEDULE AS OF FEBRUARY 6, 1998
Subject to the terms and conditions of this Agreement, CLAFS will make payments
of commission and expense allowance to Selling Firms based upon the premiums and
purchase payments received from such Selling Firms, in accordance with
applicable law, in the percentages shown below:
BROKER DEALER CONCESSION
OWNER'S ISSUE AGE 0-80 OWNER'S ISSUE AGE 81-85
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Option A1: 5% of premium plus .25%, on an Option A2: 2.25% of premium plus .25% annual
annual basis, based on account value of trail, calculated as in Option A1.
associated premium, .0625% first payable at Option B2: 3% of premium, no trail.
end of 5th quarter of the associated premium,
end of following quarters thereafter.
Option B1: 6.5% of premium, no trail.
Option C: 2% of premium plus .75% annual
trail, calculated as in Option A1.
NOTE: ALL ASSET BASED PAYMENTS START BEING PAID IN THE FIFTH QUARTER AFTER THE
POLICY IS ISSUED, ARE PAYABLE QUARTERLY THEREAFTER, AND ARE BASED ON POLICY
VALUE AT THE TIME OF ASSET BASED PAYMENT CALCULATION.
ALL PAYMENTS IN THIS SCHEDULE, INCLUDING TRAIL PAYMENTS, ARE 50% COMMISSION AND
50% EXPENSE ALLOWANCE.
Chargebacks: (i) In the event a Contract is returned to CLNY pursuant to a "Free
Look" provision, the full B/D concession paid thereon or retained by Selling
Firm pursuant to net submission of premium or purchased payments shall be
charged back to Selling Firm. (ii) Should any premium or purchase payment on
any Contract issued by CLNY be refunded for any reason, Selling Firm shall
repay or return B/D Concession received by it with respect to such premium or
purchase payment. (iii) If a Contract was not issued as a result of failure by
Selling Firm to submit to CLNY an application sufficient to satisfy state
insurance laws or CLNY eligibility requirements then amounts paid to Selling
Firm shall be returned or repaid. (iv) If a Contract was tendered to CLNY for
redemption within ten business days of the date of activity then amounts paid
to Selling Firm shall be returned or repaid. (v) For annuitizations within 6
months of issue, 100% of all B/D Concession paid to Selling Firm will be
returned or repaid, offset by an amount from 1.25% to 3%, depending on the
amount and duration of payout; and for annuitizations from months 7-12 after
issue, 50% of all B/D Concession paid to Selling Firm shall be returned or
repaid, offset by an amount from 1.25% to 3%, depending on the amount and
duration of payout. For any premium or purchase payment that has been in the
Contract for more than 12 months, there shall be no charge back on B/D
Concession. To the extent permitted by law, the amount so charged back may, at
the option of CLNY, be set off against B/D Concession otherwise due to
Selling Firm. In addition, such other compensation will be payable as are from
time to time agreed by the parties to the foregoing Agreement and which is in
accordance with applicable law, and will be added to this Schedule.
OVER
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ADJUSTMENTS FOR ADVANCE BROKER DEALER CONCESSIONS ON 1035 EXCHANGES &/OR OTHER
TRANSFERS: CLNY will advance broker dealer concessions on 1035 exchanges &/or
other transfers (the "Advance"), subject to our administrative procedures, for
amounts of $50,000 or greater. (Amount subject to change without notice) When
the actual premiums are received, there will be an adjustment, either positive
or negative, to the actual broker dealer concession previously paid. If dollar
amounts are consistently over-estimated, this privilege will be discontinued.
CLNY reserves the right to discontinue this practice at any time. Such
Advance(s) must be repaid upon CLNY's demand. All advances are secured and
collateralized against any future commissions or compensation payable to the
broker dealer, and CLNY may offset any indebtedness of the broker dealer from
such commissions or compensation.
Note: If there is more than one owner of a policy, the age of the oldest owner
determines the level of payment.
EXPENSE ALLOWANCE
Total payments may consist of agent commissions, override and/or expense
allowance.
If expense allowances are payable, they are subject to the following conditions
and limitations:
1. Lapses and surrenders in the first year, and any returns of first year
premium made by CLNY, will result in proportionate chargebacks of any
expense allowances paid for said premiums.
2. No expense allowance will be used to effect compensation in excess of
the limits of Section 4228 of the Insurance Law of New York.
3. No expense allowance will be due or payable after the termination of
this Contract except for first year expense allowances for policies
written prior to such termination.
4. Notwithstanding any of the other terms and conditions governing payment
of expense allowances in this Contract, and to conform with the
requirements of Section 4228 of the Insurance Law and the applicable
regulations resulting therefrom and other governing sections of the
law, the following will apply:
a. The maximum expense allowance payments shall be such that when
added to first year commissions, exclusive of overriding
commissions not exceeding 5% of first year premiums, the total
shall not exceed 91% of first year premiums for ordinary life
and annuity policies and contracts other than single premium
policies and contracts.
b. The maximum expense allowance shall not exceed 100% of the
commissions payable on single premium policies and contacts,
or the overall 7% of premium limit.
In monitoring the maximum allowances rules in this paragraph 4, CLNY will apply
those in a. and b., above, on a "per-policy" basis.