Common use of Compensation Conditions Clause in Contracts

Compensation Conditions. Except as provided below, Compensation will be paid only on premiums paid to and retained by an Insurance Company on either applications that were submitted by Distribution Entity under its Agreement, or Products for which Distribution Entity has been designated the servicing agent by a Product purchaser and Insurance Companies unless such Compensation has been vested with another firm, in which case Compensation will be paid only on new premium deposits after such vesting period expires. Distribution Entity’s rights to such Compensation will terminate if a Product owner requests in writing that someone other than Distribution Entity service his/her Product, or upon the termination of its Agreement. The Insurance Companies may provide that Compensation will be paid to Distribution Entity after its Agreement has been terminated by specifying a vesting provision in the compensation schedule for a particular Product. No Compensation will be due and payable for any surrendered, lapsed or canceled Products that are subsequently reinstated or rewritten through efforts of persons not affiliated with Distribution Entity. Distribution Entity will comply with all applicable federal or state laws and regulations related to the disclosure of contingent or non-standard compensation.