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FORM OF
SELLING AGREEMENT
THIS AGREEMENT is made among The Travelers Insurance Company ("TIC"), The
Travelers Life and Annuity Company ("TLAC") (collectively the "Insurance
Companies"), Tower Square Securities, Inc. ("Underwriter") and ___________
("Broker/Dealer"), together with its affiliated insurance agencies
(collectively the "Selling Entities") as are specified on the Selling Agreement
Schedule Pages attached to this agreement as Exhibit 1 (the "Schedule Pages").
In consideration of the mutual promises contained in this agreement, the
parties agree as follows:
1. Purpose and Background. The Underwriter, the Insurance Companies,
Broker/Dealer and Selling Entities enter into this agreement for the purpose of
authorizing Broker/Dealer and Selling Entities through certain of their
insurance licensed agents to solicit applications for such life insurance,
annuity contracts, long term care insurance contracts and such other insurance
products as shall be mutually agreed upon (collectively the "Insurance
Policies") as are listed on the Schedule Pages. The Schedules Pages may be
amended from time to time to add other Insurance Policies and to note any
additional insurance agency affiliates.
2. Licensing and Appointment. The Insurance Companies have each
respectively appointed Underwriter to serve as the distributor and principal
underwriter of the variable life or variable annuity Insurance Policies. The
Underwriter is registered with the SEC, the National Association of Securities
Dealers, Inc. ("NASD") and all appropriate state securities regulatory
authorities as a broker/dealer.
The Underwriter hereby appoints the Broker/Dealer to distribute the variable
Insurance Policies listed on the Schedule Pages through its validly insurance
licensed representatives ("Registered Representatives").
3. Securities Licensing/NASD Compliance. Broker/Dealer shall at all
times when performing its functions under this agreement, be registered as a
securities broker with the SEC and NASD and licensed or registered as a
securities broker/dealer in the states and other local jurisdictions that
require such licensing or registration in connection with sales of variable
products.
Broker/Dealer agrees to abide by all applicable state and federal rules and
regulations promulgated thereunder. For the purpose of compliance with any
such laws or regulations, Broker/Dealer acknowledges and agrees that in
performing Broker/Dealer services covered by this Agreement, it is acting in
the capacity of an independent broker and dealer, as defined by the By-Laws of
the NASD, and not as an agent or employee of either Underwriter or any
registered investment company.
4. Insurance Licensing. Broker/Dealer and Selling Entities represent
that at all times when performing their functions under this agreement, each of
them shall be validly licensed as an
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insurance agency in the states and other jurisdictions that require such
licensing or registration in connection with sales or solicitation of the
Insurance Policies. Broker/Dealer represents that the Selling Entities are
properly authorized as required under applicable state law to receive insurance
commissions generated from sales of the Insurance Policies.
5. Selling Entities; Sale and Solicitation of Variable Insurance Products
Broker/Dealer and Selling Entities each represent that they will engage in the
solicitation and sale of Insurance Policies in accordance with applicable
securities laws and regulations. In this regard, Broker/Dealer may have
established affiliation agreements with each of the Selling Entities pursuant
to which such agencies may receive commissions from the sale of variable
insurance products.
In this process, Broker/Dealer represents that each Selling Entity is an
associated person as that term is defined under Section 3(a)(18) of the
Securities Exchange Act of 1934, as amended. Broker/Dealer further represents
that it will maintain supervision and control over the activities of each
Registered Representative appointed by a Selling Entity engaged in the
solicitation and sales of Insurance Policies pursuant to this agreement.
Broker/Dealer will ensure that each Selling Entity designated to receive
commissions on behalf of Broker/Dealer will be licensed as required to receive
commissions for the sale of variable products in each applicable state.
Additionally, Broker/Dealer represents that individuals who are not properly
licensed under securities laws and regulations will not engage in any way in
the solicitation or sale of variable Insurance Policies.
Broker/Dealers agrees that it will maintain such books and records (including
but not limited to FOCUS reports) as are necessary to comply with the rules of
the NASD or other self-regulatory organizations.
6. Appointment of Broker/Dealer and Selling Agencies. The Insurance
Companies (and with respect to any variable life insurance or annuity product,
Underwriter) hereby authorize the Broker/Dealer and the Selling Entities to
sell those Insurance Policies listed on the Schedule Pages, as such pages may
be amended from time to time, including the variable Insurance Policies through
its validly appointed and licensed Registered Representatives. Broker/Dealer
is also appointed to perform certain administrative services necessary to
facilitate the solicitation and sales of the variable Insurance Policies.
Selling Entities are each appointed general agencies of Insurance Companies and
each is authorized to sell the Insurance Policies listed on the Schedule Pages.
Pursuant to the appointments described in this Section 6, Broker/Dealer and
Selling Entities must comply with the following requirements:
(a) All securities services provided in connection with the sale
of variable Insurance Policies will be through Broker/Dealer and its Registered
Representatives;
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(b) All individuals soliciting sales of Insurance Policies will be
properly licensed and appointed to the Insurance Companies as required in
accordance with the state insurance laws of those jurisdictions in which the
Insurance Policies are distributed;
(c) Unregistered employees will not engage in any securities
activities, nor receive any compensation based on transactions in insurance
securities or the provision of securities advice;
(d) Broker/Dealer will maintain books and records relating to
transactions in insurance securities at its home office;
(e) Customers purchasing variable Insurance Policies will make
their checks payable to Insurance Companies unless a netting agreement has been
entered into;
For the purpose of compliance with any applicable state insurance laws or
regulations promulgated under them, Broker/Dealer and the Selling Entities
acknowledge and agrees that solely in performing the insurance-selling
functions reflected by this Agreement, they or the Registered Representative
are acting as the agent of the Insurance Companies, and in that capacity is
authorized only to solicit applications from the public for the Insurance
Policies.
7. Responsibility for Registered Representatives Activities.
Broker/Dealer and Selling Entities. will select and supervise persons whom it
will train to solicit applications for the Insurance Policies in conformance
with applicable state and federal laws and regulations. Persons engaged in the
sale of variable Insurance Policies will be registered representatives of
Broker/Dealer in accordance with the rules of the NASD. All individuals
soliciting sales of Insurance Policies will be properly licensed and appointed
to the Insurance Companies in accordance with the state insurance laws of those
jurisdictions in which the Insurance Policies may lawfully be distributed.
The Insurance Companies shall have authority to determine whether to appoint or
terminate a particular registered representative of the Broker Dealer as an
insurance agent of the Insurance Companies. Broker/Dealer agrees to cooperate
in supplying information or making recommendations necessary to complete such
insurance agent appointments.
Additionally, Broker/Dealer represents and warrants that it has reviewed the
"General Recommendation Letter" set forth as Exhibit 1 to this Agreement and
that all of the information contained in the General Recommendation Letter is
true for each of its agents for whom it seeks appointment. Should
Broker/Dealer become aware of any information which would contradict the
representations contained in the General Letter of Recommendation for any of
its Registered Representatives who the Insurance Companies have appointed, it
will promptly provide such information to the Insurance Companies.
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Broker/Dealer further represents and warrants that each of its Registered
Representatives who have been appointed by the Insurance Companies will
continue to meet the requirements set forth in the General Letter of
Recommendation.
In jurisdictions which require that Insurance Companies perform background
information prior to appointment, Broker/Dealer agrees to provide such
information as may be necessary to perform such review, including but not
limited to obtaining permission from each Registered Representative who seeks
such appointment.
Upon request by Underwriter, Broker/Dealer and/or any such Selling Entities
shall furnish such appropriate records as may be necessary to establish
supervision of its Registered Representatives in connection with sales of the
Insurance Policies. Upon Underwriter s review of such supervisory materials,
Broker/Dealer shall make such changes to its registered representatives rules
of conduct as Underwriter may reasonably request but only to the extent that
such requests relate to sales of the Insurance Policies.
Broker/Dealer shall notify Underwriter if any Registered Representative ceases
to be a registered representative of Broker/Dealer or ceases to maintain the
proper licensing required for the sale of the Insurance Policies or fails to
meet material rules and standards imposed by either Broker/Dealer or the
Selling Entities.
8. Suitability of Sales of Contract. Broker/Dealer will review all
contract and policy applications for suitability, completeness, and correctness
as to form. Broker/Dealer shall also be responsible for ensuring compliance
with NASD suitability rules and standards applicable to purchases of the
Insurance Policies and that all sales are in compliance with applicable laws
and regulations.
Broker/Dealer will promptly, but in no case later than the end of the business
day that Broker/Dealer receives applications and payment, forward to the
applicable Insurance Company, at addresses provided, all such applications
found suitable and in good form, together with any payments received with such
applications. Broker/Dealer will immediately return to the applicant all
applications deemed by Broker/Dealer to be unsuitable together with any
payments received therewith. The Insurance Companies reserve the right to
reject any Insurance Product application and return any payment made in
connection with an application which is rejected. Insurance Policies issued
will be forwarded to Broker/Dealer, or at the direction of Broker/Dealer, to
the Registered Representative for delivery to the Contract Owner.
Broker/Dealer shall obtain and retain a written receipt for each Insurance
Policy which it or its Registered Representative delivers.
The parties acknowledge that sales and solicitations may, where consistent with
state insurance laws and regulations, be conducted either without an
application, or on a basis where an application is submitted subsequent to a
sale. If such sales procedures are permitted, Broker/Dealer agrees that it
will continue to be responsible for compliance with applicable laws concerning,
among other things, suitability and policy delivery requirements.
Broker/Dealer agrees to hold Underwriter harmless for any failure to follow
such rules or regulations.
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9. Solicitation/Representatives Concerning the Contracts. Broker/Dealer
will perform the selling functions required by this Agreement in accordance
with the terms and conditions of any applicable prospectus(es). Broker/Dealer
will make only representations included in the prospectus or in any authorized
supplemental material. No sales solicitations, including the delivery of
supplemental sales literature or other such materials, shall occur, be
delivered to, or used with a prospective purchaser unless accompanied or
preceded by appropriate and then-current prospectus(es).
Any material prepared or used by Broker/Dealer or its Registered
Representative, which describes in whole or in part or refers by name or form
to any of the Insurance Policies or underlying funds or uses the name of the
Insurance Companies, Underwriter or the logos or service marks of any of them,
or the name, logos or service marks of any "Affiliated Company" of any of them,
as that term is defined in Section 2(a)(2) of the Investment Company Act of
1940, must be approved by Underwriter in writing prior to any such use.
Broker/Dealer and Selling Entities acknowledge that information pertaining to
Underwriter and Insurance Companies is proprietary in nature. Selling Entities
agree that they will not disclose any information concerning Insurance
Companies or Underwriter s products, services or programs to any person for
consideration or otherwise unless Broker/Dealer and/or Selling Entities consent
to such use in writing. Broker/Dealer and Selling Entities agree that,
following the termination of this Agreement for any reason, they will not enter
into any plan, program scheme or course of action which would systematically
attempt to induce any Contract owner(s) away from Insurance Companies, except
that Broker/Dealer may always recommend a move to another company s product if
such move would be more suitable than Insurance Companies product for a
particular client or clients or in the event of a detrimental change in the
financial stability of Insurance Companies which Broker/Dealer believes would
jeopardize their clients.
10 Client Information/Confidential Information: During the term of this
Agreement Insurance Companies and Underwriter will have access to confidential
information ("Confidential Information"). Confidential Information includes,
but is not limited to, the names, addresses, telephone numbers and social
security numbers of Registered Representatives and of applicants for and
purchasers of Insurance Policies. Neither Underwriter nor either Insurance
Company shall use, copy or disclose such Confidential Information in any
systematic manner, except as required to perform services under this Agreement.
The parties acknowledge that the Insurance Companies may continue to service
the Insurance Policies sold pursuant to this agreement, including, as
appropriate, to accept additional contributions and premium for and to modify,
add, or exchange coverage to the Insurance Policy of a policyowner who
purchased from an agent of the Selling Entities.
The parties also understand that Insurance Companies and/or Underwriter may
respond to policyowners inquiries concerning other Insurance Company products
and services. The parties also agree that this Section 10 shall not apply to
individuals with whom the Underwriter or Insurance Companies have a
pre-existing relationship. Similarly, the parties understand that
Broker/Dealer and Selling Entities may have access to trade secrets belonging
to the Insurance
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Companies and the Underwriter. Broker/Dealer agrees that it will not use or
disclose such trade secrets without the written permission of the Insurance
Companies and/or the Underwriter as the case may be.
11. Compensation. Compensation payable to Broker/Dealer on sales of the
Insurance Policies sold by Registered Representatives will be paid to the
Selling Entity Broker/Dealer designates, in accordance with the compensation
schedule(s) set forth on the Schedule Pages. Such Schedule Pages may be
amended from time to time and compensation will be paid in accordance with the
compensation schedule in effect at the time the premium payments are received
by the applicable Insurance Company (in the case of annuities) or at the time
the applications are received (in the case of life insurance). The Insurance
Companies and Underwriter reserve the privilege of revising the compensation
schedules set forth in the Schedule Pages at any time with reasonable prior
written notice to Broker/Dealer.
12. Assignment of Agreement. This Agreement may not be assigned except by
mutual consent and will continue, subject to the termination by any party on
written notice to the other party, except that in the event Broker/Dealer
ceases to be a registered Broker/Dealer or a member of the NASD, this Agreement
will immediately terminate. Underwriter reserves the right to designate, at
its sole discretion, an alternative Principal Underwriter for the distribution
of the Contracts covered by this Agreement with thirty (30) days prior written
notice to Broker/Dealer, except in the event that TIC replaces Underwriter as
discussed below.
The parties understand that if TIC replaces Underwriter any such substituted
party will automatically assume all of Underwriter s rights and duties under
this agreement. TIC may assume such functions itself, or assign these to
affiliated, properly licensed broker-dealers. TIC will notify Broker/Dealer if
any such substitution occurs.
13. Indemnification. No party to this Agreement will be liable for any
obligation, act or omission of the other. Each party to this Agreement will
hold harmless and indemnify the (1) Registered Investment Companies which are
used to fund the Contracts, (2) Insurance Companies, (3) Underwriter, (4)
Broker/Dealer, and (5) Selling Entities, as appropriate, for any loss or
expense suffered as a result of the violation or noncompliance by any party to
this agreement of any of the terms of this agreement or of any applicable law
or regulation. No party nor any of its employees or agents will be liable to
the other party for any direct, special or consequential damages arising out of
or in connection with the performance of any services pursuant to the
Agreement. Each party to this agreement agrees to indemnify and hold harmless
any other affected party for any losses, claims, damages or liabilities (or
actions in respect thereof) which arise out of or are based on any untrue
statement or alleged untrue statement of a material fact required to be stated
or necessary to make the statements made not misleading in the connection with
the solicitation, sale, or administration of the of the Insurance Policies.
14. Notices. All notices to the Insurance Companies or Underwriter
relating to this Agreement should be sent to the attention of :
Travelers Life & Annuity
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▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: General Counsel
All notices to Broker/Dealer will be duly given if mailed or faxed to
the address provided to Insurance Companies by Broker/Dealer from time to time.
15. Independent Contractors. Underwriter and Insurance Companies are
independent contractors with respect to Broker/Dealer, Selling Entities, and to
Registered Representatives.
16. Governing Law. This Agreement shall be construed in accordance with
and governed by the laws of the state of Connecticut.
17. Amendment of Agreement. Except as provided in this section, the terms
of this agreement may not be amended except by the written agreement of all
parties hereto. Notwithstanding the requirement that any amendment to this
agreement be in writing, the parties agree that Underwriter reserves the right
to amend this Agreement at any time, and the submission of an application by
Broker/Dealer after notice of any such amendment has been sent to the other
parties shall constitute the other parties agreement to any such amendment.
The parties also agree that Insurance Companies may amend the Compensation
Schedules attached to Exhibit 1 of this agreement at any time upon reasonable
notice in writing to the Broker/Dealer and Selling Entities. Following
provision of notice of a change in compensation schedules, submission of
additional business shall operate to ratify acceptance of such schedules.
18. Termination. This Agreement may be terminated, without cause, by any
party upon thirty (30) days prior written notice, and may be terminated, for
failure to perform satisfactorily or other cause, by any party immediately; and
shall be terminated if Broker/Dealer shall cease to be a registered
Broker/Dealer under the Securities Exchange Act of 1934, as amended, or a
member of the NASD. Notwithstanding, the following sections shall survive any
such termination: Sections 7, 9, 10 11, 13, 16, 19, 20, and 21.
19. Waiver Upon Termination. Failure of any party to terminate this
Agreement for any of the causes set forth in this agreement will not constitute
a waiver of the right to terminate this Agreement at a later time for any of
these causes.
20. Books and Records. Broker/Dealer shall maintain all books and records
required by applicable laws and regulations in connection with the offer and
sale of the Insurance Policies. The books, accounts and records of
Broker/Dealer relating to the sale of the Insurance Policies shall be
maintained so as to clearly and accurately disclose the nature and details of
all transactions. Underwriter and Insurance Companies reserve the right to
request reasonable periodic inspection of such books and records as relate to
the sale and solicitation of the Insurance Products.
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21. Cooperation with Regulatory Investigations. Broker/Dealer, Selling
Entities and Underwriter and Insurance Companies agree to cooperate fully in
any insurance, securities or other regulatory investigation, inquiry,
inspection, or proceeding or in any judicial proceeding arising in connection
with the Insurance Policies. Broker/Dealer and Underwriter shall cooperate
with each other to resolve any customer complaint, and each agrees to promptly
notify the other upon receipt of notice of any investigation, claim, or
proceeding involving the Insurance Policies or any situation which would
materially affect the respective party s ability to perform its obligations
hereunder. Each of the parties to this agreement agrees that it will promptly
notify the other parties of any material claim of which it becomes aware
involving the sale or solicitation of the Insurance Policies.
22. Fidelity Bond. Broker/Dealer represents that all of its directors,
officers, employees and Registered Representatives are and shall be
continuously covered by a blanket fidelity bond, covering for larceny and
embezzlement, issued by a reputable bonding company. This bond shall be
maintained at Broker/Dealer's expense and shall be, at least, of the form, type
and amount required under the NASD Rules of Fair Practice.
23. Counterparts. This Agreement may be executed in one or more
counterpart, each of which shall be deemed in all respects an original.
24. Arbitration. Broker/Dealer, Selling Entities and Underwriter and
Insurance Companies agree that any dispute or claim arising out of the terms of
this Agreement shall be submitted and settled in accordance with the Code of
Arbitration Procedure of the NASD.
In reliance on the representations set forth and in consideration of the
undertakings described herein, the parties represented below do hereby contract
and agree. This agreement is effective ____________, 199_.
The Travelers Insurance Company The Travelers Life & Annuity Company
By: By:
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Title: Title:
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Date: Date:
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Tower Square Securities, Inc. -------------------------------------------
(Broker/Dealer)
By: By:
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Title: Title:
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Date:
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(Insurance Agency) (Insurance Agency)
By: By:
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Title: Title:
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Date: Date:
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(Insurance Agency) (Insurance Agency)
By: By:
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Title: Title:
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Date: Date:
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(Insurance Agency) (Insurance Agency)
By: By:
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Title: Title:
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Date: Date:
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Exhibit 1
Selling Agreement Schedule Page
Broker/Dealer and Selling Entities are authorized to solicit applications for
the life insurance policies, annuity contracts, long term care contracts, and
the other insurance products listed below:
I. Life Insurance
Portfolio Architect Variable Life
Market Life Variable Life
MVP Universal Life
Special T Term Life
Travelers Survivorship Life
Travelers Survivorship Life 2
II. Annuity
Travelers Portfolio Architect Variable Annuity
Travelers Universal Annuity
Single Premium Immediate Annuity (SPIA)
T-▇▇▇▇
Travelers Target Maturity Annuity
Travelers Index Annuity
Travelers Vintage
Travelers Portfolio Architect Access
Travelers Marquis
III. Long Term Care
Travelers LTC3
Travelers LTC4
All products described herein are subject to state availability. Compensation
Schedules and additional terms for each product described above are listed on
the following pages. Consistent with the terms of this Agreement, Compensation
Schedules may be changed at any time.
Payment of compensation for any product is subject to the following conditions
and limitations, in addition to any applicable provision of the Selling
Agreement.
1. Chargebacks of Commissions. If the Insurance Companies return all or
a portion of a premium paid with respect to an Insurance Product, Broker/Dealer
shall be obligated to refund to Underwriter applicable commissions on the
amount of such premium only where:
(a) consistent with the Selling Agreement, the Insurance Product
solicited is returned as not taken under the policy "free look" provisions;
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(b) premiums are refunded due to overpayments, errors in billing
or in the timing of automatic premium collection deductions, or errors
resulting in policy reissue;
(c) the check delivered in payment of any contract premium does
not clear and the premium collection deductions, or errors resulting in policy
reissue;
(d) the Insurance policy on which commission payments were made is
terminated or premium is refunded because the Registered Representative(s) or
Broker-Dealer who sold the Insurance Policy committed an act, error or omission
which materially contributed to the termination of the Insurance Policy or the
need to return premium;
(e) the issuing Insurance Company rejects the application;
(f) a judicial or regulatory authority directs the issuing
Insurance Company to return premium payments without assessment of a surrender
charge;
(g) the applicant s initial premium on a 1035 exchange is returned
because the expected rollover amount from another policy or contract is not
transferred due to the exchange not meeting the legal requirements to qualify
for a tax-free exchange;
(h) the issuing Insurance Company returns unearned premium on a
life insurance contract as required by the provisions of the policy;
(i) the issuing Insurance Company determines that it has a legal
liability to return premiums on a life insurance contract within the first year
after the Insurance Product is issued; or
(j) the issuing Insurance Company and Broker/Dealer mutually agree
to return all or a portion of a premium with respect to a particular contract
or policy.
2. Free Look Provision. If any Contract or Policy is redeemed at any
time or if within forth-five (45) days after confirmation by the Insurance
Companies of any premium payments credited to a Contract or Policy, that
Contract is tendered for full or partial surrender, or the life at risk
thereunder dies, then, at the option of the Insurance Companies or Underwriter,
no commission will be payable with respect to such premium payments and any
commission previously paid for said premium payments must be refunded to the
applicable Insurance Company or Underwriter as directed by Underwriter.
Underwriter agrees to notify Broker/Dealer with ten (10) business days after
the request for repurchase or redemption, or notification of death of the life
at risk is received by the applicable Insurance Company.
3. Rebating. If Broker/Dealer or any Registered Representative of
Broker/Dealer rebates or offers to rebate all or any part of a premium on an
Insurance Policy issued by the Insurance Companies in violation of applicable
state insurance laws or regulations, or if Broker/Dealer or any Registered
Representative of Broker/Dealer shall withhold any premium on an Insurance
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Policy issued by the Insurance Companies, the same may be grounds for
termination of this Agreement by Underwriter. If Broker/Dealer induces or
attempts to induce any Policy or Contract Owner to relinquish an Insurance
Policy except under circumstances where there is reasonable grounds for
believing the policy, contract or certificate is not suitable for such person,
Broker-Dealers right to receive any compensation under this agreement shall
cease and terminate.
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COMMISSION SCHEDULE FOR
ANNUITY CONTRACTS
A1
This Schedule is attached to and is made a part of the Agreement. In no event
will either TIC or TLAC be liable for the payment of any compensation with
respect to any solicitation made, in whole or in part, by any person not
appropriately licensed to conduct such activities.
The compensation arrangements described below shall govern commission payouts.
Commission will be paid in accordance with instructions received from
Broker/Dealer.
1. Commissions based on premium payments will be based only on premium
actually received and accepted by the Insurance Companies.
2. No commission will be earned on the initial exchange of any TIC or
TLAC contract. Subsequent premium payments will, as permitted by law
be eligible for commission payments.
3. The Insurance Companies reserve the right to reduce first year
commissions and renewal commissions if necessary, on any annuity
contracts sold to residents of any jurisdiction which imposes new,
and/or additional premium or similar taxes or charge. In such event,
the Insurance Companies will notify Broker/Dealer.
4. If, within forty-five (45) days (one year for Tax Sheltered Annuities)
after confirmation of any premium credited to any Annuity Contract by
either of the Insurance Companies, the Annuity contract is canceled or
surrendered, or if the Annuitant shall die, then, at the option of the
Company, no commissions will be payable with respect to that premium
and any commission previously paid on that premium must be refunded to
the Company.
Compensation is listed by annuity product as follows:
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EXHIBIT 2
GENERAL LETTER OF RECOMMENDATION
Broker/Dealer("we") hereby represent and warrants to The Travelers Insurance
Company and The Travelers Life and Annuity Company (collectively "Travelers
Insurance Companies") that all the following requirements will be fulfilled in
conjunction with the submission of licensing/appointment papers for all
applicants as sub-agents submitted by Broker/Dealer. Broker/Dealer will, upon
request, forward proof of compliance with same to Travelers Insurance
Companies.
1. We have made a thorough and diligent inquiry and investigation
relative to each applicant s identity, residence and business reputation and
declare that each applicant is personally known to us, has been examined by us,
is known to be of good moral character, has a good business reputation, is
reliable, is financially responsible and is worthy of appointment by Insurance
Companies. Each individual is trustworthy, competent and qualified to act as
an agent for Travelers Insurance Companies to hold himself out in good faith to
the general public. Broker/Dealer will notify Travelers Insurance companies of
any applicant who has been discharged from bankruptcy within three years
preceding the date of application.
2. We have on file a ▇-▇▇▇, ▇-▇▇▇, or U-4 form which was
completed by each applicant. We have fulfilled all the necessary investigative
requirements for the registration of each applicant as a registered
representative through our NASD member firm, and each applicant is presently
registered as an NASD registered representative.
The above information in our files indicates no fact or
condition which would disqualify the applicant from receiving a license and all
the findings of all investigative information is favorable.
3. We certify that all education requirements have been met for
the specific state each applicant is requesting a license in, and that, all
such persons have fulfilled the appropriate examination, education and training
requirements.
4. If the applicant is required to submit his picture, his
signature, and securities registration in the state in which he is applying for
a license, we certify that those items forwarded to Travelers Insurance
Companies are those of the applicant and the securities registration is a true
copy of the original.
5. We hereby warrant that the applicant is not applying for a
license with Travelers Insurance Companies in order to place insurance chiefly
and solely on his life or property, lives or property of his relatives, or
property or liability of his associates.
6. We certify that each applicant will receive close and adequate
supervision, and that we will make inspection when needed or any or all risks
written by these applicants, to the end that the insurance interest of the
public will be properly protected.
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7. We will be responsible for all acts and omissions of each
applicant within the scope of his agency appointment during any period of a
temporary license and a permanent license. This responsibility is full and
complete without regard to any technical distinction between this relationship
and that which exists in law between principal and agent.
8. We will not permit any applicant to transact insurance as an
agent until duly licensed therefore. No applicants have been given a contract
or furnished supplies, nor have any applicants been permitted to write, solicit
business, or act as an agent in any capacity, and they will not be so permitted
until the certificate of authority or license applied for is received.
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