EXHIBIT (3)(b)(ii)
SCHEDULE A - PLATINUM INVESTOR SURVIVOR VARIABLE LIFE
CONTROL DATE - FEBRUARY 1, 2000
AMERICAN GENERAL LIFE INSURANCE COMPANY
CONTRACTS COVERED BY THIS AGREEMENT
POLICY REGISTRATION FORMS SEPARATE
CONTRACT NAME FORM NOS. AND NUMBERS ACCOUNT
- ----------------------------- --------- ------------------ ---------
FLEXIBLE PAYMENT VARIABLE
LIFE INSURANCE POLICIES:
Platinum Investor Survivor 99206 Form S-6 VL-R
Nos. 811-08561
333-90787
SCHEDULE B - PLATINUM INVESTOR SURVIVOR VARIABLE LIFE
CONTROL DATE - FEBRUARY 1, 2000
AMERICAN GENERAL SECURITIES INCORPORATED
AND AMERICAN GENERAL LIFE INSURANCE COMPANY ("AGL")
This Schedule B is made a part of the Selling Group Agreement ("Agreement") to
which it is attached. It is subject to the terms and conditions of the
Agreement. In no event shall AGL be liable for the payment of any commission
with respect to any solicitation made, in whole or in part, by any person not
appropriately licensed and appointed prior to the commencement of such
solicitation.
1. COMMISSIONS TO BE PAID TO ASSOCIATED AGENCY
. 90% of premiums paid in the first Policy year up to the Target
Premium;
. 3% of premiums which are not in excess of the Target Premium, paid
in any of Policy years 2 through 10;
. 3% of premiums which are in excess of the Target Premium, paid in
any of Policy years 1 through 10; and
. 1.5% of all premiums paid in Policy years 11+
. a trail commission of .20% annual beginning with the 2nd Policy
year, of each Policy's accumulation value (reduced by any
outstanding loans), in the variable investment options.
2. TARGET PREMIUM
The Target Premium is the maximum amount of premium to which the first year
commission rate applies. Commissions paid on premiums received in excess
of the Target Premium are paid at the excess rate. The Target Premium is
an amount calculated in accordance with the method of calculation and rates
from the American General Life Target Premium schedules. American General
Life may change the Target Premium schedules from time to time. The Target
Premium applicable to a particular coverage shall be determined from the
schedule in force when the first premium for such coverage is entered as
paid in accounting records of AGL.
3. TRAIL COMMISSIONS; WHEN PAID
The 0.20% annual trail is calculated on a quarterly basis as 0.05%, and is
applied to the entire unloaned accumulation value on each quarterly Policy
anniversary. Payment will be made at the end of the calendar quarter
immediately following the corresponding quarterly Policy anniversary. For
example, for Policies issued February 1, the trail is based on the unloaned
accumulation value as of February 1, but is not payable until the calendar
quarter ended March 31.
4. COMMISSIONS ON INCREASES IN SPECIFIED AMOUNT
First year commissions will be paid on a portion of the premiums received
during the first year following the increase.
(a) A portion of the premium received is allocated to the increase segment
by multiplying the premium received by the ratio of:
1) the Target Premium for the increase segment, to
2) the total Target Premium.
(b) First year commissions are paid on the premium allocated to the
increase segment up to the Target Premium for the increase.
(c) Renewal commissions are paid on the portion of the premium allocated
to the increase segment in excess of the Target Premium for the
increased segment.
(d) Renewal commissions are paid on the premium received that is not
allocated to the increase segment (unless the Policy is still in its
first Policy year and the Target Premium for the original Specified
Amount has not yet been received).
5. COMMISSIONS ON DEATH BENEFIT OPTION SWITCHES
No commissions are paid on changes in Death Benefit Options, either from
increasing to level, or from level to increasing.
6. COMMISSIONS ON RIDERS
Commissions paid on Riders are:
. 90% of premiums paid in the first Policy year up to the Target
Premium;
. 3% of premiums which are not in excess of the Target Premium, paid
in any of Policy years 2 through 10;
. 3% of premiums which are in excess of the Target Premium, paid in
any of Policy years 1 through 10; and
. 1.5% of all premiums paid in Policy years 11+
7. COMMISSIONS ON SUBSTANDARD RATINGS
The Substandard Target Premium is equal to the Minimum Annual Premium (MAP)
for substandard ratings up to Table 6 plus permanent and temporary flat
extra premiums of more than seven years. Aviation extra premiums are
excluded from the Substandard Target Premium. Commissions paid on
substandard rating are:
. 90% of premiums paid in the first Policy year up to the Target
Premium;
. 3% of premiums which are not in excess of the Target Premium, paid
in any of Policy years 2 through 10;
. 3% of premiums which are in excess of the Target Premium, paid in
any of Policy years 1 through 10; and
. 1.5% of all premiums paid in Policy years 11+
8. GUIDELINES AND COMMISSIONS ON INTERNAL EXCHANGES
(a) AGL INTEREST-SENSITIVE PRODUCTS TO AGL VARIABLE UNIVERSAL LIFE
PRODUCTS
AGL Interest-Sensitive products may be exchanged for AGL Variable
Universal Life products under the following guidelines:
(1) No exchanges are allowed during the first 5 Policy years of the
AGL Interest-Sensitive product proposed for exchange;
(2) Surrender charges will be waived for exchanges to a new Platinum
Investor Survivor policy as long as the new policy's surrender
charges are equal to or greater than the existing policy's
surrender charges;
(3) No commission will be earned on the initial exchange of any AGL
Interest-Sensitive policy for an AGL VUL policy; however, the
cash value may be applied against first year premiums up to the
Target Premium on a no commission basis; and
(4) All subsequent premiums will receive commissions calculated as
described in Sections 1, 4, 5, and 6 of this Schedule B.
(b) AGL TRADITIONAL PRODUCTS TO AGL VARIABLE UNIVERSAL LIFE PRODUCTS
No exchanges are allowed between Traditional products and Variable
Universal Life products unless specifically stated in the traditional
product policy form.
(c) AGL TERM INSURANCE PRODUCTS TO AGL VARIABLE UNIVERSAL LIFE PRODUCTS
AGL Term Insurance products may be exchanged for AGL Variable
Universal Life products under the following guidelines:
(1) If the current AGL Term Insurance policy contains a conversion
option, the policy may be exchanged for a Platinum Investor
Survivor policy without evidence of insurability;
(2) If the current Term Insurance policy is exchanged for a Platinum
Investor Survivor policy, the policy owner will receive a
conversion credit on the base policy only by multiplying the
premium paid in year 1, up to the Target Premium, by .333. No
commission is earned on the conversion;
All subsequent premiums will receive commissions calculated as described in
Sections 1, 4, 5, and 6 of this Schedule B.