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EXHIBIT 3(f)
AMENDMENT TO SELLING AGREEMENT
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TRILLIUM SCHEDULE I
CANADA LIFE INSURANCE COMPANY OF NEW YORK
PAYMENT SCHEDULE AS OF JUNE 9, 1997
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
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 associated trail, calculated as in Option A1.
premium, .0625% first payable at end of 5th quarter Option B2: 3% of premium, no trail.
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 full or partial withdrawals from the
Contract other than those made pursuant to a systematic and/or free withdrawal
privilege: 100% of all B/D Concessions paid to Selling Firms on amount(s)
withdrawn within 6 months of such amount(s) being paid to CLNY and 50% of all
B/D Concessions paid to Selling Firm on amount(s) withdrawn from 7-12 months of
such amount(s) being paid to CLNY shall be returned or repaid. (vi) 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.
Note: If there is more than one owner of a policy, the age of the oldest owner
determines the level of payment.
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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 contracts,
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.
