First Year Commissions definition

First Year Commissions means all Net Commissions (for the specified time period as determined as of the end date of the specified period) on first year premiums from all Company insurance policies, annuities, and proprietary Mutual Funds. Commissions on all annuity renewal premiums that are credited to original writing agents will be treated as First Year Commissions. For the purpose of calculating RCs, the General Office First Year Commission Report is deemed to reflect the current reporting of commissions entered into the ledger account of an Agent during the Qualifying Period. All net First Year Commissions generated by Asset Preserver cases and by single premium variable universal life cases will be treated as if the net First Year Commissions under each had been generated under Option 1. All net First Year Commissions generated by variable universal life cases will be treated as if the net First Year Commissions under each had been generated under Option 3, with no net First Year Commissions generated after the first policy year. First Year Commissions will not include commissions generated under or from Sponsored Marketing Agreements, nonproprietary registered products, Specialty Products or BOLI 2. In addition, First Year Commissions shall not include any additional Long-Term Care credits that are applied in certain states to equalize council credits. Company-approved year-end First Year Commission adjustments will not be included.

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Examples of First Year Commissions in a sentence

• If the Agreement is terminated other than for cause, Investors will pay the Dealer First Year Commissions and Renewal Commission to which the Dealer would have been entitled had this Agreement remained in effect and the rights to all other compensation will terminate.

• On Flexible Premium Adjustable Life Insurance Series II, III, IV and Juvenile-Issue and Flexible Premium Variable Life contracts which terminate during the first contract year, First Year Commissions based on premiums up to target will be the product of the First Year Commission rate and the lesser of (1) premiums paid and credited on the contract, and (2) one-twelfth of the Target Premium times the number of full months the contract remained in force.

• VARI-VEST II For Vari-Vest II policies issued up to and including age 65, First Year Commissions shall be paid equal to 90% of the premiums received by ONLAC during the policy's first contract year up to the MCP.

• Issue Ages Rates ------ ----- 66 - 70 80% 71 - 75 55% 76 - 80 28% First Year Commissions shall also be paid for Vari-Vest II policies at the rate of 12% of the premiums received by ONLAC during the policy's first contract year to the extent such premiums are in excess of the MCP but not in excess of the SECGP plus 6% of such premiums in excess of the SECGP.

• The amount of First Year Commission the advisor is entitled to retain on the converted portion of the original insurance is: (Annualized First Year Commissions x Number of Months in Effect) / 12 Any adjustment will be the difference between the amount of the First Year Commissions previously paid on the converted portion of the original insurance and the amount calculated by the above formula.

• For Vari-Vest IV policies issued up to and including age 65, and for Vari-Vest V policies at all issue ages, First Year Commissions shall be paid equal to 92.5% of the premiums received by ONLAC during the policy's first contract year up to the MCP.

• For issue ages after age 65, the rates of First Year Commissions on such premiums up to the MCP shall be a follows.

• Achieve combined First Year Commissions and Eligible Council Credits credited to the Mentee from the effective date of the Agent’s Contract to the end of any Qualifying Period that are equal to or exceed the minimum amount established and announced as the Cumulative First Year Commissions Requirement by the Company.

• First Year Commissions are payable on the original issue date and at each re- entry ("reentry" shall mean the ability of an insured to exchange, with such evidence of insurability as United may require, an existing Select policy to a new Select policy as provided in such policy form.).

• Note: STM reapplies will count as First Year Commissions for Employee.