Exhibit 1.(3)(c)
MONY [GRAPHIC]
MONY Life Insurance Company SCHEDULE B -
P.O. Box 4869 Compensation Schedule
Syracuse, New York 13221 Corporate-Sponsored
Variable Universal Life
Form 35536NY (11/02)
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COMPENSATION SCHEDULE TO SELLING AGREEMENT
FOR CORPORATE-SPONSORED VARIABLE UNIVERSAL LIFE
POLICY FORM C1-96
This Schedule to the Selling Agreement by and between the undersigned and MONY
Securities Corporation "MSC", a wholly owned subsidiary of the MONY Life
Insurance Company "MONY", is entered into on the date appearing above the
signatures below. The provisions of this schedule apply only to MONY's
Corporate-Sponsored Variable Universal Life policies issued by MONY Life
Insurance Company ("MONY") 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.
Policies Issued by MONY Solicited by
Broker/Dealer And Issued in Accordance With: Commission On Premium Payment in:
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Year Years Years
1 2 - 4 5 - 10
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Standard Compensation Schedule (See Note 2):
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Commission on Premium Payments
.. Up to Target Premium 20% 8.2% 7.4%
.. In Excess of Target Premium 3% 3% 3%
Trail Commissions at 0.10% annual rate (See Note 7)
MEC Compensation Schedule (See Note 2):
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Commission on Premium Payments
.. Up to Target Premium 20% 8.2% 7.4%
.. In Excess of Target Premium 2% 2% 2%
No Trail Commissions
NOTES
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1. Commission Structure: All premium amounts paid in a policy year allocated
to a coverage segment will be credited to the target premium until that
year's full target premium has been paid. Premiums paid in a policy year
which exceed the full target premium are considered excess premiums.
Premium amounts paid in a policy year will be credited to the target
premium for that year only.
2. Compensation Schedules: The Standard Compensation Schedule shall apply to
all policies solicited and issued under this agreement other than those to
which the MEC Compensation Schedule applies. The MEC Compensation Schedule
applies to any policy which is determined to be a Modified Endowment
Contract at the date of issue.
3. Target Premium: The target premium is an amount determined by MONY with
respect to a policy or rider upon which commissions are based. Target
premiums shall be calculated in accordance with the rates and method of
calculations described in the Corporate-Sponsored Variable Universal Life
product specifications memorandum then in use by MONY. With respect to any
policy, the target premium is equal to the premium amount used in
determining sales charges as stated in the policy specification pages. The
target premium applicable to a particular coverage segment shall be the
amount shown on the endorsement associated with a coverage increase. As it
applies to future business, the target premium may be changed from time to
time by MONY.
4. Commission Calculations: Commissions shall only be calculated on premiums
actually received and accepted by MONY. Commissions shall only be paid on
an earned basis. Commissions paid in respect of this policy are not
eligible for MONY's CIP3 and CIP4 financing plans.
5. Commission Rates on Increases in Specified Amount: After a policy has had
an increase in Specified Amount, premiums paid shall be allocated to the
initial Specified Amount and to each increase in proportion to the
respective guideline annual premiums defined by the Federal income tax
laws.
6. Riders and Flat Extra Premiums: The costs of the Term insurance and
Guaranteed Death Benefit Riders are deducted from the policy account value
and therefore have no premium attributable to them. Flat extra premiums are
non-commissionable.
7. Standard Trail Commission: A trail commission equal to the amount shown in
the Standard Compensation Schedule shall be paid on an annualized basis
beginning in the eleventh policy year. Such trail commission shall be
computed monthly as of the end of each policy month following the tenth
policy anniversary based on the policy's account value less policy debt.
The sum of the trail commission earned during a policy year shall be
payable on the following policy anniversary. Trail commissions earned
during a policy year shall be paid only if the policy is in force on the
date the trail commission becomes payable.
8. Compensation Payments: Compensation on the initial premium shall be due to
the Producer and/or Selling Broker/Dealer at the time of the issuance of
the policy on premiums received and accepted by MONY. Compensation for
premium payments other than the initial premium shall be due at the time of
receipt and acceptance of the premium by MONY. After a change of
Compensation Schedule or a change of Broker/Dealer, compensation due on
existing policies shall be payable to the Producer and/or Selling
Broker/Dealer in accordance with the Compensation Schedule in effect at the
time of issuance of the policy. Moreover, when a Policy Owner terminates a
Broker/Dealer, no further commissions or compensation due on existing
policies after termination shall be payable to the Producer and/or Selling
Broker/Dealer after the notice of termination is received and accepted by
MONY.
The amount, if any, and the time of payment of compensation on
replacements, changes, conversions, exchanges, term renewals, premiums paid
in advance, policies in excess of MONY's retention or policies requiring
reinsurance, and other special cases and programs shall be governed by
MONY's underwriting and administrative rules then in effect.
9. Commission Chargeback: In the event a policy for which commissions has been
paid is lapsed or surrendered by the policy owner during the first three
policy years (or in the three years following an increase in specified
amount) or is returned to MONY for refund within the free-look period, or a
premium for which commission has been paid is refunded by MONY, or a
trailer commission for which was calculated and paid after the date of an
insured's death, MONY Securities Corporation shall require reimbursement
from Producer and/or Selling Broker/Dealer as follows.
. 100% of all compensation paid to date if a return occurs during the
free-look period, or if a premium is refunded, or if a lapse or
surrender occurs after the free-look period but within twelve months
of the policy date (or the effective date of any increase in specified
amount);
. 50% of all compensation paid to date if a lapse or surrender occurs
during the thirteenth through twenty-fourth months after the policy
date (or the effective date of any increase in specified amount);
. 25% of all compensation paid to date if a lapse or surrender occurs
during the twenty-fifth through thirty-sixth months after the policy
date (or the effective date of any increase in specified amount);
. 100% of trail commissions computed and paid after the date of death of
an insured;
If the amount to be deducted exceeds compensation otherwise due, Producer
and/or Selling Broker/Dealer shall reimburse MONY Securities Corporation
before the next commission cycle or within 10 business days from the date
of the mailing of a written demand for reimbursement, whichever is later.
10. Broker/Dealer Transfer: In the event that a Representative terminates from
the Selling Broker/Dealer of record, no further compensation payments shall
be remitted for credit to the Representative unless there exists a valid
Selling Agreement between MONY, MONY Securities Corporation and the Selling
Broker/Dealer that Representative is joining, an insurance solicitor's
agreement between MONY and the selling Broker/Dealer (or an insurance
licensed affiliated of the Selling Broker/Dealer), and (1) the policy
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owner(s) requests in writing that the Representative remains as the
Representative of record, or (2) both the former and future broker/dealers
direct MONY and MONY Securities Corporation in a joint writing to transfer
all policies and future compensation to the new Selling Broker/Dealer of
record, or (3) the NASD approves and effects a bulk transfer of all
Representative to a new Selling Broker/Dealer.
11. No Production Credit: Representatives receive no Honors Club or top
Producer Support production credits for premiums paid.
MONY and MONY Securities Corporation reserve the right to terminate or
amend this schedule by providing written notification to the other parties
in accordance with Section IV.C. of the Selling Agreement.
This Schedule shall be effective as of ____________________
MONY Securities Corporation
____________________________________
(Selling Broker/Dealer)
By: ______________________________ By:__________________________________
(Signature) (Signature)
Title: ___________________________ Title:_______________________________
Date: ____________________________ Date:________________________________
MONY Life Insurance Company
By:_______________________________
(Signature)
Title:____________________________
Date:_____________________________