Common use of Supervision and Oversight Clause in Contracts

Supervision and Oversight. Company is contracting with Broker-Dealer for performance of the supervision and oversight obligations detailed in the NAIC Model or any substantially similar equivalent in the states that have not adopted the NAIC Model and permit such delegation. Broker-Dealer shall ensure that its Registered Representatives shall make recommendations in compliance with SEC Reg BI, applicable state insurance laws, the suitability requirements of the 1934 Act, the FINRA Conduct Rules and the NAIC Model or any substantially similar equivalent in the states that have not adopted the NAIC Model. Broker-Dealer shall ensure that each application obtained by its Registered Representatives shall bear evidence of approval by one of its principals indicating that the application has been reviewed for compliance with all applicable rules and regulations. Pursuant to the requirements of the NAIC Model enacted in jurisdictions in which Broker-Dealer solicits or sells fixed and/or variable annuity products, Broker-Dealer represents and warrants that it has: (i) Developed, maintains and enforces written supervisory procedures reasonably designed to comply with Reg BI and FINRA Conduct Rules including, but not limited to, FINRA Rules 2090, 2111, and 2330; (ii) Developed, maintains and enforces written procedures reasonably designed to comply with section 6(C) of the NAIC Model or its equivalent in states that have not adopted the NAIC Model; (iii) Developed and maintains a training program instructing all producers to gather consumer profile information, including, at a minimum, the following: age, annual income, financial situation and needs including debts and other obligations, financial experience, insurance needs, financial objectives, intended use of annuity, financial time horizon, existing assets or financial products, including investment, annuity and insurance holdings, liquidity needs, liquid net worth, risk tolerance, including, but not limited to, willingness to accept non-guaranteed elements in the annuity, financial resources to fund the annuity; and tax status prior to recommending the purchase or exchange of an annuity contract; (iv) Developed a system to ensure all Registered Representatives have completed general annuity training and, where applicable under state law, product specific training with respect to any Company Products they sell in accordance with Company’s product training standard; (v) Received and made available to its Registered Representatives Forethought’s Guide to Fixed Annuity Suitability. Broker-Dealer will certify annually to Company that it has proper controls in place to ensure compliance with all applicable rules and regulations, including but not limited to Reg BI, DOL Rule, NAIC Model and applicable state requirements. Further, Company may from time to time review select transactions for compliance with suitability requirements.

Supervision and Oversight. Company is contracting with Broker-Dealer for performance of the supervision and oversight obligations detailed in the NAIC Model or any substantially similar equivalent in the states that have not adopted the NAIC Model and permit such delegation. Broker-Dealer shall ensure that its Registered Representatives shall make recommendations in compliance with SEC Reg BI, applicable state insurance laws, the suitability requirements of the 1934 Act, the FINRA Conduct Rules and the NAIC Model or any substantially similar equivalent in the states that have not adopted the NAIC Model. Broker-Dealer shall ensure that each application obtained by its Registered Representatives shall bear evidence of approval by one of its principals indicating that the application has been reviewed for compliance with all applicable rules and regulations. Pursuant to the requirements of the NAIC Model enacted in jurisdictions in which Broker-Dealer solicits or sells fixed and/or variable annuity products, Broker-Dealer represents and warrants that it has: (i) Developed, maintains and enforces written supervisory procedures reasonably designed to comply with Reg BI and FINRA Conduct Rules including, but not limited to, FINRA Rules 2090, 2111, and 2330; (ii) Developed, maintains and enforces written procedures reasonably designed to comply with section 6(C) of the NAIC Model or its equivalent in states that have not adopted the NAIC Model; (iii) Developed and maintains a training program instructing all producers to gather consumer profile information, including, at a minimum, the following: age, annual income, financial situation and needs including debts and other obligations, financial experience, insurance needs, financial objectives, intended use of annuity, financial time horizon, existing assets or financial products, including investment, annuity and insurance holdings, liquidity needs, liquid net worth, risk tolerance, including, but not limited to, willingness to accept non-guaranteed elements in the annuity, financial resources to fund November 17, 2021 Broker-Dealer Sales and Supervision Agreement 4 the annuity; and tax status prior to recommending the purchase or exchange of an annuity contract; (iv) Developed a system to ensure all Registered Representatives have completed general annuity training and, where applicable under state law, product specific training with respect to any Company Products they sell in accordance with Company’s product training standard; (v) Received and made available to its Registered Representatives Forethought’s Guide to Fixed Annuity Suitability. Broker-Dealer will certify annually to Company that it has proper controls in place to ensure compliance with all applicable rules and regulations, including but not limited to Reg BI, DOL Rule, NAIC Model and applicable state requirements. Further, Company may from time to time review select transactions for compliance with suitability requirements.