Exhibit A(3)(c)
STANDARD FULL-TIME SPECIAL AND SOLICITING AGENTS'
COMMISSION AND FEE SCHEDULE
VARIABLE EXECUTIVE LIFE
1. For purposes of this Subsection:
(a) "Writing Agent" means the Agent whose name appears on the
application as Agent of Record or the Agent who has been given credit
by the written consent of the original Agent of Record.
(b) "Servicing Agent" means the Writing Agent unless his contract has
terminated or he is no longer servicing the business, or the Agent who
has been appointed to service the business in the event the Writing
Agent has terminated or is no longer able to service the business.
(c) "Band 1 Contract" means Variable Executive Life contracts where
the anticipated first-year premium is less than $25 million.
(d) "Band 2 Contract" means Variable Executive Life contracts where
the anticipated first-year premium is $25 million or more.
(e) "Internal 1035 Exchange" means a Variable Executive Life contract
issued in lieu of another NML life insurance policy on the same
insured.
(f) "Cash Value Rollover" means the cash value on an inforce NML
contract that is deposited into a Variable Executive Life contract at
time of issue, pursuant to a 1035 exchange.
(g) "Target premium" means the premium level over which the
compensation rates vary in the first policy year for Band 1 contracts.
2. First-year commissions
(a) Band 1 Contracts - Writing Agent shall be entitled to
receivecommissions equal to 15% of first-year premium up to the Target
Premium plus 2.75% of first-year premium in excess of the Target
Premium on Variable Executive Life policies and contracts issued upon
applications procured by him pursuant to his Agent's contract.
(b) Band 2 Contracts - Writing Agent shall be entitled to receive
commissions equal to 0.75% of first-year premium on Variable Executive
Life policies and contracts issued upon applications procured by him
pursuant to his Agent's contract.
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3. Service Fees
(a) Band 1 Contracts - Servicing Agent shall be entitled to receive
service fees equal to 2.75% of second and subsequent policy year
premiums paid on Band 1 Variable Executive Life policies and
contracts.
(b) Band 2 Contracts - Servicing Agent shall be entitled to receive
service fees equal to 0.75% of second and subsequent policy year
premiums paid on Band 2 Variable Executive Life policies and
contracts.
4. Trail Compensation
Commencing at the end of policy year six and in each subsequent policy
year, Servicing Agent shall be entitled to receive service fees equal
to 0.2% of the cash value at the end of the policy year on Band 1 and
Band 2 Variable Executive Life policies and contracts.
5. Internal 1035 Exchanges
(a) Cash Value Rollovers - No compensation will be paid on Cash Value
Rollovers.
(b) Band 1 Contracts - On premium other than cash value rollovers,
Writing Agent shall be entitled to receive commissions equal to 2.75%
of first-year premium on Band 1 Variable Executive Life policies and
contracts issued upon applications procured by him pursuant to his
Agent's contract. In addition, Servicing Agent shall be entitled to
receive service fees equal to 2.75% of second and subsequent policy
year premiums on Band 1 Variable Executive Life policies and
contracts.
(c) Band 2 Contracts - On premium other than cash value rollovers,
Writing Agent shall be entitled to receive commissions equal to 0.75%
of first-year premium on Band 2 Variable Executive Life policies and
contracts issued upon applications procured by him pursuant to his
Agent's contract. In addition, Servicing Agent shall be entitled to
receive service fees equal to 0.75% of second and subsequent policy
year premiums on Band 2 Variable Executive Life policies and
contracts.
(d) Trail compensation - Servicing Agent shall also be entitled to
receive service fees on Internal 1035 Exchanges, as described in
Subsection 4 above.
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6. Commission Chargebacks
Commissions and service fees will be charged back for full surrenders in
policy years one and two, according to the following schedule:
Full Surrender In Chargeback
Policy Month Percentage
------------ ----------
1-12 100.00%
13 92.31%
14 84.62%
15 76.92%
16 69.23%
17 61.54%
18 53.85%
19 46.15%
20 38.46%
21 30.77%
22 23.08%
23 15.38%
24 7.69%
25+ 0.00%
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