Security Benefit Life Insurance Company
Security Benefit Life Insurance Company |
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A Member of The Security Benefit Group of Companies |
One Security Benefit Xxxxx Xxxxxx, Xxxxxx 00000-0000 (000) 000-0000 |
MARKETING ORGANIZATION AGREEMENT
COMMISSION SCHEDULE
ClassicStrategiesSM Variable Annuity (the "Contract")
Marketing Organization:
(Broker/Dealer)
EFFECTIVE DATE OF COMMISSION SCHEDULE:
COMMISSIONS - This Commission Schedule is hereby made a part of and amends your selling agreement including, but not limited to, the SBL Variable Products Sales Agreement and/or Marketing Organization Agreement, as applicable (hereinafter called the "Agreement"), with Security Benefit Life Insurance Company and Security Distributors, Inc. (hereinafter jointly called "SBL"), and commissions payable hereunder are subject to the provisions contained in the Agreement and this Commission Schedule. Minimum Purchase Payments are as set forth in the applicable prospectus and Contract. Commissions to a Marketing Organization are equal to a percentage of each Purchase Payment written by Marketing Organization, as follows:
- UP FRONT COMMISSIONS: The rate of commissions paid on Purchase
Payments made with respect to each particular Contract is based on the issue
age of the Owner (or of the Annuitant if the Contract is owned by a
non-natural person) as set forth in the tables below. You may select one of
Commission Options A through E as shown in the table below at the time of
application for each Contract. If no selection is made on the application,
SBL will pay you pursuant to Option A. You may select a different option
for each Contract but may not change the Option in effect after the Contract
is issued. Advancing of commissions on 1035 exchanges and annualizing of
commissions for recurring deposits are not available with regard to sales of
this Contract.
Commission Option OPTION A OPTION B OPTION C OPTION D OPTION E Owner Issue Age 0 - 75 0 - 75 0 - 75 0 - 75 0 - 75 8.00% 6.00% 4.00% 2.00% 0.00%
*No Commission will be paid on Purchase Payments made that are less than the minimum specified in the applicable prospectus and Contract, or for Purchase Payments made on a Contract for which the issue age of the Owner and/or Annuitant is older than age 75. - ASSET-BASED COMMISSIONS: Under Commission Options B, C and D, SBL
will pay an asset-based commission as of the end of each calendar month. The
amount of the asset-based commission under each Option is equal to 1/12 of the
applicable percentage set forth in the table below times the aggregate
Contract Value of those Contracts sold under the applicable Commission Option
for which Marketing Organization is the broker of record and for which the
initial Purchase Payment is more than 12 months old. For Option E only, the
asset-based commission will be paid as of the end of the first calendar month
of the contract date. On an annual basis, the asset-based commission is equal
to the amount set forth in the Table below. No asset-based commission will be
paid on Contracts that have annuitized under a life contingent annuity option.
An Annuitization Fee may be available as discussed in paragraph 4.
Commission Option OPTION A OPTION B OPTION C OPTION D OPTION E Owner Issue Age 0 - 75 0 - 75 0 - 75 0 - 75 0 - 75 00 bps 25 bps 50 bps 75 bps 100 bps - DEATH BENEFIT APPLIED TO ANNUITY OPTION: In the event that a
beneficiary of a Contract under this Commission Schedule applies the death
benefit to one of the annuity options under the Contract, no commission will
be payable upon such application. An Annuitization Fee may be available as
discussed in paragraph 4.
- ANNUITIZATION: An Annuitization Fee will be paid to a Marketing
Organization who secures from the Contract Owner (or his or her beneficiary)
the proper forms and information to commence an immediate life contingent
annuity option under the Contract and significantly assists the client and SBL
in such settlement. The Annuitization Fee will be equal to 4% of the amount
applied to a fixed life contingent annuity option and 2% of the amount applied
to a variable life contingent annuity option.
- COMMISSION CHARGEBACK PROVISIONS: No Commission charge backs are
applicable to any partial withdrawals, full surrenders or death claims except
in the event of a free look surrender. SBL will charge back 100% of
commissions in the event of a free look surrender.
- CHANGE OF COMMISSION SCHEDULE: Notwithstanding any other provision
of the Agreement to the contrary, the following provisions shall apply. SBL
reserves the right at any time, with or without notice, to change, modify or
discontinue the commissions, asset-based commissions or any other compensation
payable under this Commission Schedule.
- CHANGE OF DEALER: A Contract Owner shall have the right to
designate a new marketing organization, or terminate a marketing organization
without designating a replacement, by sending written notice of such
designation or termination to SBL. Upon written notice to SBL by the Contract
Owner of the designation of a new marketing organization, all the commissions
and asset-based commissions shall be payable to the new marketing
organization. Upon written notice to SBL by the Contract Owner of termination
of Marketing Organization, without designating a new marketing organization,
SBL shall cease paying commissions and asset based commissions to Marketing
Organization.
- TERMINATION OF THE AGREEMENT/VESTING: In the event of termination of the Agreement for any reason, all rights to receive commissions, asset-based commissions or other compensation under this Commission Schedule shall be terminated, unless each of the following requirements is met: (i) the Agreement has been in force for at least one year; (ii) Marketing Organization is at the time such commissions are payable properly licensed to receive such commissions; (iii) Marketing Organization is providing service to the Contract Owner and performing its duties in a manner satisfactory to SBL; (iv) commissions paid to Marketing Organization in the previous calendar year amounted to at least $500; and (v) Marketing Organization has not been terminated, nor a new marketing organization designated, by the Contract Owner as set forth in paragraph 7 above.
THIS COMMISSION SCHEDULE replaces any previous Commission Schedule for the Variable Annuity Contract listed above as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC. | SECURITY BENEFIT LIFE INSURANCE COMPANY | ||
By |
XXXXXXX X. XXXXXX |
By |
XXXXXXX X. XXXXXX |
Title: |
President |
Title: |
Vice President |
8859 (R3-31-04)