Common use of Compensation Disclosures Clause in Contracts

Compensation Disclosures. Broker-Dealer and Agency shall comply, and shall require its Representatives to comply, with all Applicable Law, including federal and state securities and insurance laws, rules and regulations, governing the disclosure of compensation with respect to insurance products, including insurance products considered to be securities under any such laws, rules, or regulations. At a minimum, Broker-Dealer will require, of itself and its Representatives, that the following be disclosed: (i) that the Broker-Dealer and Representative receive commissions based on a percentage of the premiums paid by the customer or a fee based on the amount of the assets managed under the investment products sold by them and (ii) if the Broker-Dealer, Agency, or any Representative receives any contingent compensation, that they may be paid additional compensation based on such factors as the total volume of their product sales, the length of time that customers continue to pay premiums or keep assets invested in the products sold by them and/or the profitability of those products.