FARM BUREAU LIFE INSURANCE COMPANY
CAREER AGENT CONTRACT
THIS CONTRACT, made and entered into by and between _______ hereinafter
referred to as "Career Agent," and FARM BUREAU LIFE INSURANCE COMPANY, an
Iowa corporation with its principal place of business at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇ Des Moines, Polk County, Iowa, hereinafter referred to
as "Company."
NOW, THEREFORE, in consideration of the mutual obligations, covenants and
agreements contained herein, to be kept and performed by the parties hereto, it
is agreed as follows:
1. EFFECTIVE DATE OF CONTRACT. This Contract will become effective on the
first day of , and will remain in full force and effect
until canceled or terminated as provided herein.
2. AGENCY. The Agency will be comprised of the Agency Manager, an
Assistant Agency Manager and/or Associate Manager, if assigned, together with
all Career Agents for whom the Agency Manager has approved appointment as
evidenced by Agency Manager's endorsement on the Career Agent's Contracts.
3. CAREER AGENT'S AUTHORITY. Company hereby authorizes Career Agent to
solicit applications on behalf of Company for any and all insurance policies,
insurance contracts, and annuities, written or sold by or through Company,
provided that Career Agent is at all times properly licensed as required by any
federal or state law or governmental authority.
Career Agent shall not make, alter, or discharge any contracts for the
Company; waive any forfeitures; name special rates; guarantee dividends in
excess of those provided for in a policy; waive payment in cash; extend the time
of payment of any premium; accept payment of any past-due premium; extend any
credit; or approve evidence of good health.
All applications for insurance and annuities are subject to acceptance or
rejection by the Company. Career Agent shall not incur any indebtedness or
liability on behalf of the Company in any manner whatsoever.
Career Agent shall exercise the authority given him under this Contract
within the territory of the Agency designated in paragraph 18. This territory is
not assigned exclusively to Career Agent.
Applications for the purchase of flexible or fixed premium variable life
insurance policies or annuities shall be solicited only within the territory in
which such policies or annuities are qualified for sale and in which the Company
and the Career Agent are authorized to do business in accordance with licensing
requirements and other applicable laws and regulations. Applications for the
purchase of flexible or fixed premium variable life insurance policies or
annuities will be accepted only by the Company at its Home Office in West
Des Moines, Iowa.
4. INDEPENDENT CONTRACTOR. It is the intent of the parties hereto that
for all purposes and in all situations governed by the provisions of this
agreement, Career Agent will be, and is hereby declared to be, an independent
contractor and not an employee, and that the relationship between Career Agent
and Company created by this agreement, will be governed by those rules of law
governing the status of and relationships with independent contractors and not
those rules of law governing employer-employee relations. Accordingly, Career
Agent has the right to control the activities and means by which the provisions
of this agreement are carried out, the right to exercise independent judgment as
to the persons from whom applications for insurance policies will be solicited,
and the right to determine the time, place, and manner of soliciting and
servicing policyholders of the Company.
If training courses, sales methods and material or similar aids and
services are extended or made available to the Career Agent, it is agreed that
the purpose and effect thereof will not be to give the Company control over the
Career Agent's time or direction or control over the manner or means by which he
will conduct his business, but only to assist the Career Agent in his business.
5. EXCLUSIVE AGENT. Career Agent agrees not to solicit or to contract to
solicit applications for life, health, disability income insurance, long term
care, or annuities on behalf of any insurance company other than the Company,
its subsidiaries, its affiliates or other companies which have marketing
agreements with Company or its affiliates, without the express written consent
of the Company. Career Agent may solicit applications to be placed through FBL
Insurance Brokerage, Inc.
6. CAREER AGENT'S RESPONSIBILITIES. Career Agent agrees to comply with
the Company's rules and regulations pertaining to the policies and products
covered by this Contract, provided, however, that such rules and regulations
will not interfere with Career Agent's status as an independent contractor as
described in paragraph 4 above.
(a) SERVICE. Career Agent agrees to use Career Agent's best efforts
to provide service to Company's policyholders and Farm Bureau Members consistent
with Company's "Service to Members" philosophy and to maintain in force any
business placed with Company. Career Agent further agrees to become fully
informed as to the provisions and benefits of each product offered by Company
for which Career Agent is authorized to solicit applications and to represent
such products adequately and fairly to policyholders and prospective
policyholders.
(b) ACCOUNTS AND RECORDS. Career Agent shall keep accurate accounts
and records of all business transactions including, without limitation, account
service records, which will be open at all times to inspection and examination
by authorized representatives of Company. Career Agent agrees (1) that he shall
be considered a bailee as to all accounts, account records, policyholder files,
policyholder lists, rate books or manuals, applications and other forms, and all
other records in Career Agent's possession pertaining to Company's business, (2)
that these materials are the property of Company and (3) that these materials
will be returned to Company upon demand.
(c) PREMIUM TRANSMITTAL. Career Agent agrees that all cash, checks,
or funds in any form, received by Career Agent for or on behalf of Company, will
be held in trust for Company, and Career Agent shall transmit to Company
immediately upon receipt all applications solicited and all money received in
connection therewith.
(d) EXPENSES. Career Agent agrees to pay all expenses incurred by
Career Agent in the performance of this Contract including, but not limited to,
expenses for office space, secretarial help, and telephone facilities.
(e) ASSIGNMENT OF COMMISSIONS. Career Agent agrees not to assign
this Contract or any commission or other compensation payable under it without
the prior written consent of Company, and no such assignment will be effective
without such consent.
(f) BOND. Career Agent shall apply for and be accepted as a
participant in the Blanket Position Bond furnished by the Company.
(g) ERROR AND OMISSION INSURANCE. Career Agent shall apply for and
maintain error and omission insurance coverage with limits satisfactory to
Company while this contract is in effect.
7. LIFE AND ANNUITY COMMISSIONS.
(a) LIFE AND ANNUITY, FIRST-YEAR COMMISSIONS. First-year commissions
will be paid to Career Agent on all first-year life insurance and annuity
premium received and retained by the Company on issued and paid-for business
produced personally by the Career Agent in accordance with the Career Agent Life
and Annuity Commission Schedule in effect on the effective date of the policies
to which they relate.
(b) MINIMUM POLICY. No first-year commissions will be paid or premium
credit allowed on any new life insurance policy with a face amount of less than
$10,000 with the exception of Guaranteed Purchase Option riders.
(c) SERVICE FEES. Service fees on life insurance and annuity premium
(other than first-year premium) received and retained by the Company will be
paid according to the rules and at the rates set forth on the Career Agent Life
and Annuity Commission Schedule in effect on the effective date of the policies
to which they relate. Service fees will be paid to the Career Agent who
personally produced the policy until (1) that Career Agent's contract with the
Company is terminated, or (2) the policy on which the service fee is payable is
assigned to another Career Agent, whichever occurs first.
(d) PRODUCTIVITY/PERSISTENCY COMMISSION BONUS. A monthly commission
bonus will be paid to qualifying Career Agents in accordance with the terms of
the Life Production and Persistency Bonus Schedule in effect from time to time
hereafter.
(e) DEVELOPMENTAL BONUS. Based on the number of months under contract
with the Company, Company may enter into an agreement with Career Agent pursuant
to which Career Agent may earn a monthly Developmental Bonus. The amount of the
monthly Developmental Bonus, if any, which Career Agent may earn will be based
on the Career Agent Developmental Bonus Supplement in effect in the month for
which the bonus is payable. A Developmental Bonus may only be earned if Career
Agent is a party to a signed Developmental Bonus Supplement.
(f) VARIABLE PRODUCT COMMISSIONS. While the contract is in force,
commissions and service fees on flexible or fixed premium variable life
insurance policies or annuities can only be paid or credited to a Career Agent
who is supervised by, and a registered representative of, a broker/dealer
affiliated with Company or a registered representative of a broker/dealer who
has a sales agreement with a broker/dealer affiliated with Company, and who
holds any required state licenses when the sale is made and when each premium is
paid. If Career Agent fails or ceases to satisfy qualification requirements
established by the National Association of Securities Dealers (NASD), or if such
person is, or becomes subject to, a disqualification under the guidelines as
defined by the NASD, Career Agent will not be entitled to any subsequent
commission payments on any variable products during the time of any suspension
or disqualification period(s). Any Career Agent who is suspended or disqualified
is not eliglible to service or be assigned to, accounts which contain one or
more variable products for the term of any disqualification period. After
termination of this contract, commissions will terminate if Career Agent becomes
a registered representative of a broker/dealer not affiliated with Company.
(g) OTHER COMMISSIONS. Commissions and service fees on products of
other companies which have marketing agreements with the Company or its
affiliates will be paid in accordance with the Career Agent Miscellaneous
Products Commission Schedule in effect on the effective date of this contract or
as amended by the Company from time to time thereafter.
(h) LIFE PREMIUMS. For the purpose of all commission payments,
"Premiums" shall not include premiums collected for Temporary Flat Extra
Premiums.
(i) MATCHING/SAVINGS PROGRAM. Career Agent shall be entitled to
participate in the Matching/Savings Program after two years of service with
Company. If Career Agent elects to participate in this program, Company will pay
Career Agent an additional commission each month. The amount of the additional
commission shall be selected by Career Agent and shall be a percentage of Career
Agent's first-year life, and annuity commissions. The maximum percentage Company
will pay Career Agent as an additional commission is seven percent (7%). Career
Agent must deposit this commission, plus an equal amount, into a Company
sponsored mutual fund, variable annuity, flexible premium deferred annuity or
utilize this commission to purchase FBL Financial Group Inc. stock, if
available, through procedures established by the Company. Funds deposited in
this account may be withdrawn by Career Agent at any time, however, the
withdrawal of any amount deposited pursuant to the Matching/Savings Program by
Career Agent, or the withdrawal of earnings on such deposits, will terminate
Career Agents right to further participation in the Matching/Savings Program.
Career Agents right to further participation in the Matching/Savings Program
will end upon the termination of this contract.
8. ASSIGNMENT OF ACCOUNTS. Upon cancellation of this Contract, or
termination or transfer of Career Agent to another agency, or in any case to
better serve an account, credit for service fees and the responsibility for
servicing the account may be assigned to another agent. It will be the
responsibility of Career Agent to maintain service records as required by the
Company on each of Career Agent's assigned accounts. The Company reserves the
right to review at least annually the account service records maintained by
Career Agent. If the Company in its sole discretion determines that satisfactory
service has not been given to an account, Company reserves the right to withdraw
the account from Career Agent for purposes of service fees and service
responsibility.
9. REFUNDS AND CREDITS. Commissions will be earned and production credit
given when premium is received and retained by the Company and when credited on
Company's books. Commissions will be recovered and production credit reversed
should Company for any reason fail to retain any premium or consideration on any
policy or contract.
10. RESERVED RIGHT. Company reserves the right to amend existing rules and
procedures and to adopt new rules and procedures relating to the solicitation
and sale by Career Agent of any of Company's existing or future products or
policies and to change the production credit given and the commissions, bonuses,
and other compensation payable to Career Agent with respect to any or all such
products or policies.
11. TERMINATION. This Contract may be terminated by Company or Career
Agent at any time, with or without cause, by giving notice of termination, in
writing, to the other party. Notice of Termination need not include the reason
or reasons, if any, for such termination.
Career Agent acknowledges that Company has not, either expressly or
otherwise, agreed to continue the term of this Contract for any definite period
of time.
This Contract will terminate automatically, without Notice of
Termination, upon Career Agent's death.
12. LIEN PROVISION. Company will be entitled to a first lien on any
payment due or hereafter becoming due Career Agent under this Contract in an
amount equal to any current or future indebtedness of Career Agent to company,
its subsidiaries or affiliates. Career Agent authorizes Company to deduct the
amount of any such indebtedness from any payment otherwise due Career Agent and
to pay such amount on behalf of Career Agent to the Company entitled thereto.
13. SOLE AGREEMENT. This Contract constitutes the sole agreement and
supersedes all prior contracts between the parties hereto, but this Contract
will not impair the Career Agent's right to commissions or fees, if any, earned
under a prior contract or contracts with the Company.
14. MODIFICATION OR AMENDMENT. Any modification or amendment of
this Contract must be in writing and duly executed by the parties hereto;
provided, however, that the Company may by written notice unilaterally amend any
Schedule or Supplement referred to in this Contract to affect policies to be
issued or commissions earned after the date of the amendment.
15. WAIVERS. No act of forbearance on the part of the Company to enforce
any of the provisions of this Contract will be construed as a modification of
this Contract, nor will the failure of either party to exercise any right or
privilege herein granted be considered as a waiver of such right or privilege.
16. GENDER AND NUMBER. Any reference in this Contract to the masculine
gender will include the feminine gender as applicable. References to the
singular will include the plural where appropriate, and vice versa.
17. FEDERAL VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT. The Federal
Violent Crime Control and Law Enforcement Act prohibits an insurance company
from allowing individuals convicted of certain felonies to participate in the
business of insurance. Career Agent certifies he or she has not been convicted
of or plead guilty to a felony, and agrees to advise Company of any future
conviction or guilty plea within 30 days of the occurrence of any such event.
18. AGENCY WILL BE DESIGNATED as
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IN WITNESS WHEREOF, the parties hereto have affixed their signatures on the date
set opposite their signatures.
Date of Signing
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Signature of Career Agent Agent No.
Date of Signing
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Agency Manager
Date of Signing By
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Authorized Representative of
Farm Bureau Life Insurance Company