Exhibit 1.(3)(c)
SCHEDULE B
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Compensation
This schedule is attached to and made a part of the most current executed
Broker-Dealer and General Agent Selling Agreement (the "Agreement") between and
among Liberty Life Assurance Company of Boston ("Liberty Life"), Liberty Life
Distributors LLC ("Distributor"), ____________________ ("Broker-Dealer") and
_______________ ("General Agent").
The compensation for the variable life insurance and annuity products (the
"Contracts") referred to in the Agreement is as follows:
FOR SINGLE PAYMENT VARIABLE UNIVERSAL LIFE INSURANCE CONTRACTS, written on Form
PSPV-9860 and PAA-9870, and any variations of these forms as may be required by
insurance regulatory authorities:
1. New Business Commission and Expense Reimbursement Allocation:
DISTRIBUTOR shall receive commissions of [7]% of the Initial
Payment and an expense reimbursement allowance of [0.15]%
annually of the unloaned Account Value for each Contract for
which Broker-Dealer is the broker-of-record.(1)
However, no compensation shall be paid on Payment received from a Contract owner
when an existing life insurance or annuity contract issued by Liberty Life on
the same life has lapsed, been terminated or surrendered, been continued on a
nonforfeiture option, or been changed, modified or converted in any manner
within six months of the date of the application for the new Contract or twelve
months after the issue date of the new Contract, except to the extent that the
first year's annualized premium for the new Contract exceeds the first year's
annualized premium from the existing contract.
2. Return of Compensation in Specified Circumstances
The following rules regarding "chargebacks" shall apply in connection
with the offer and sale of Contracts under this Agreement:
a. In the event that:
i. a Payment is returned because Liberty Life rejects
the application for the Contract under which such Payment has been paid
or because the Payment, or the related application, is not timely
received by Liberty Life as required herein, or a refund is made
because a purchaser exercises his or her free look right under a
Contract; or
ii. within the first twelve months after the date on
which a Contract was issued, the purchaser surrenders the Contract, or
otherwise rescinds the Contract, or the Contract lapses;
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(1) Distributor may negotiate other commission schedules with a lower
initial commission and a higher expense reimbursement allowance rate. Under
these schedules, the annual expense reimbursement allowance rate may be
increased by 0.15% of Account Value for each 1% by which the commission rate is
lowered. These rates are the maximum rates Distributor intends to pay.
Distributor may negotiate commission schedules containing lower commission rates
and/or expense reimbursement allowance rates than those described above.
Exhibit 1.(3)(c)
then, in any such event, Broker-Dealer shall not be entitled to any compensation
with respect to such Contract, and any and all compensation previously received
by Broker-Dealer based on all Payments paid into the Contract shall be repaid to
Distributor, and Broker-Dealer shall pay any loss incurred as a result of a
Payment being returned which was not timely received or for which an application
was not timely received by Liberty Life.
b. If and to the extent that any loans or partial withdrawals
are made with respect to any Contract during the first year after issuance, the
compensation due to Broker-Dealer shall be recomputed as though the amount of
the loan or partial withdrawal had never been paid as a Payment.
c. If and to the extent that a Contract is exchanged for
another contract during the first policy year of the Contract, the compensation
due to Broker-Dealer shall be recomputed as though the Contract had never been
issued.
Distributor shall have the right to collect from Broker-Dealer or to withhold
from future payments of compensation due to Broker-Dealer under this Agreement
an amount equal to any reduction in compensation effected by this Schedule C, to
the extent permitted by applicable law; provided, however, that this option on
the part of Distributor shall not prevent both Distributor and Broker-Dealer or
either of them from pursuing any other means or remedies available to them to
recover such compensation. For purposes of this Schedule C, the payment of a
death benefit pursuant to the terms of a Contract shall not be deemed a
surrender or rescission by a purchaser.
