EXHIBIT 1.a(3)(b)
AMENDMENT TO THE
BROKER-DEALER SUPERVISORY AND SELLING AGREEMENT
FOR VARIABLE CONTRACTS
This Amendment is made by and among ING Security Life of Denver Insurance
Company ("ING Security Life"), ING America Equities, Inc. ("INGAE") and Selling
Broker-Dealer and Agency, collectively known as the Parties.
WHEREAS, the Parties have executed a Broker-Dealer Supervisory and Selling
Agreement for Variable Contracts ("the Agreement") which provides that Selling
Broker-Dealer and Agency will enable and supervise its registered
representatives to solicit and sell the Contracts issued by ING Security Life
and distributed by INGAE.
WHEREAS, the Agreement also provides for certain compensation to be paid to
Selling Broker-Dealer or Agency for the sales of such Contracts, the Agreement
is modified as follows:
1. The Schedule I, "Compensation Schedule to Selling Agreement
for ING Security Life Corporate Benefits Variable Universal
Life" is hereby added.
This Amendment is effective ________________, and shall be deemed to be
accepted by Broker-Dealer and Agency by ING Security Life and INGAE by
submission of an application for the Corporate Benefits Variable Universal Life
product by Selling Broker-Dealer or Agency on or after that date.
SCHEDULE I
COMPENSATION SCHEDULE
TO SELLING AGREEMENT FOR SECURITY LIFE
CORPORATE BENEFITS VARIABLE UNIVERSAL LIFE
This Schedule is an attachment to the ING America Equities, Inc. ("ING America
Equities") Selling Agreement by and among the parties pursuant to paragraph 17
of that Selling Agreement, effective as of ________, 2000, or the date that
Selling Broker-Dealer submits an application for this product, whichever is
later. The provisions of this Schedule shall apply only to ING Security Life
Corporate Benefits Variable Universal Life policies solicited and issued while
this Schedule is in effect. All compensation payable under this Schedule shall
be subject to the terms and conditions contained herein at the time of issue of
the policy by ING Security Life of Denver Insurance Company ("ING Security
Life").
1. Commission Structure:
Commissions are payable on premiums paid up to the target premium only.
No commissions are paid on premium in excess of the target premium. Any
time a new coverage segment is created, premiums allocated to that
segment will be commissionable up to that segment's target premium. The
commission rates as a percent of premium are given in a table below.
POLICY YEAR OF COVERAGE COMMISSION RATE
SEGMENT
1 12%
2 - 4 10%
5 - 10 2%
11+ 0
Any premiums paid within 15 days prior to policy anniversary will
result in the agent receiving commissions at the same rate as if the
premium was paid on the anniversary date.
2. Trail Commissions as a percent of the net account value are paid. The
trail commission is calculated monthly based on the net account value
at the end of the prior month. It is paid at the end of the policy
year, provided the policy remains in force at that time and is not
subject to the grace period provisions. The trail commissions will
continue when the insured lives past age 100 and the continuation of
coverage feature is in force. The annual trail commission rates are
given below.
Annual trail commission rates as a percent of the net account value:
POLICY YEAR TRAIL COMMISSION RATE
1 - 20 0.20%
21+ 0.10%
3. Riders: The Adjustable Term Insurance Rider has no target premium associated
with it.
4. Commission Calculation: Commissions shall be calculated only on premium
actually received and accepted by ING Security Life. Commissions shall
be paid only on an earned basis. Outstanding loan amounts carried over
are not considered commissionable premium.
5. Premium Allocation: If the Stated Death Benefit has been increased
since the policy date, premiums received are allocated to the coverage
segments in the same proportion that the commission target premium for
each segment bears to the total commission target premium of the
policy.
6. Compensation Payments: Compensation on initial premium shall be due to
the Selling Broker-Dealer at the time of the issuance of the policy and
for all other premium payments at the time of the receipt and
acceptance of premium by ING Security Life, except that the amount, if
any, and the time of payment of compensation on replacements, reissues,
changes, conversions, exchanges, term renewals, term conversions,
premiums paid in advance, policies issued on a "guaranteed issue"
basis, policies requiring facultative reinsurance arrangements, and
other special cases and programs shall be governed by ING Security
Life's underwriting and administrative rules then in effect. The
Compensation shall be payable to the Selling Broker-Dealer in
accordance with the Schedule I in effect at the time of issue of the
policy.
7. Commission Chargeback: In the event that a policy for which a
commission has been paid is lapsed or surrendered by the Policy Owner
or has a reduction of stated death benefit during the first three
policy years, or is returned to ING Security Life for refund of premium
during the Free Look Period as described in the policy, ING Security
Life and ING America Equities shall require reimbursement from Selling
Broker-Dealer as shown below.
POLICY YEAR COMMISSION CHARGEBACK
1 100% of first year commission
2 50% of first year commission
3 25% of first year commission
4+ 0%
If a premium payment for which a commission has been paid is refunded
by ING Security Life, a reimbursement of the commission paid on the
amount refunded will be due from the Selling Broker-Dealer. The
reimbursement may be deducted by ING America Equities from the next, or
any subsequent, commission payment to Selling Broker-Dealer.
If the amount to be reimbursed exceeds compensation otherwise due,
Selling Broker-Dealer shall promptly reimburse ING America Equities
before the next commission cycle.
8. Internal Exchanges: Commissions on the exchange of any ING Security
Life policy for Corporate Benefits Variable Universal Life, if any,
will be paid in accordance with the exchange procedures in effect at
ING Security Life on the date the exchange is completed. The commission
rates and/or target premiums may be adjusted in accordance with the
rules in effect at the time of the exchange. If the Representative
responsible for the exchange is not the producer of the original
policy, and the original producer is still active with ING Security
Life, no commission will be payable to the Representative or the
Selling Broker-Dealer.