INDEPENDENT AGENT CONTRACT
1. APPOINTMENT AND RELATIONSHIP
A. JMH hereby appoints the Agent to act on its behalf and represent it only to the extent authorized herein.
B. The Agent is an independent contractor with respect to JMH, and nothing contained herein shall create or be construed to create the relationship of employer and employee between JMH and the Agent or between JMH and any employee of the Agent.
2. AGENT AUTHORITY
A. The Agent is 000hereby authorized on behalf of JMH, but only in those states where JMH is authorized to do business and provided that the Agent is in compliance with all applicable regulatory licensing requirements at the time of solicitation, to solicit applications for the approved products offered by JMH, which are listed in the Agent Contract Commission Schedule found in the Agent's back office under commissions.
B. The Agent is authorized to collect the initial payment only for any policy or any contract issued upon applications solicited by the Agent and to deliver and service policies, contracts, and certificates of coverage so issued, provided:
· All checks should be made payable to the Insurance Company that the application is submitted to.
· No cash payments are allowed.
C. The Agent is ONLY authorized to publish advertising materials referencing JMH’s name, or any products or services marketed by JMH, PRIOR WRITTEN APPROVAL FROM JMH HAS FIRST BEEN OBTAINED.
3. LIMITATIONS ON AUTHORITY
A. The Agent shall have no authority to make, alter, modify, or discharge any policy or contract; incur any debts or expenses for which JMH may be liable; withhold or convert to his own use or for the benefit of others any monies, securities, policies, or receipts belonging to JMH; fail to submit promptly to JMH or Insurance Companies the agent is appointed with, any application for policies.
B. The Agent shall have no authority to endorse or present for collection any check, draft, or other instrument made payable to an Insurance Company.
4. AGENT COMPENSATION
A. As full compensation for services performed hereunder, JMH will pay to the Agent commissions pursuant to the Commission Schedules posted in the Agent's back office and Advanced Commission Addendum attached. Some commissions may be paid directly from the Insurance Company based on the same commission schedule.
B. Provisions relating to all commissions:
1. Any commissions to which the Agent or the Agent’s hierarchy may be entitled hereunder shall be payable to the Agent or their downline Agent, only after the due date of the commissions payable from Insurance Companies of issued business.
2. No commission will be payable
No commission will be payable on account of waived payments/premiums or payments/premiums refunded or not honored by bank for any reason. Any commissions received on account of any waived or refunded payments/premiums shall be promptly returned in full to JMH by the Agent and shall constitute indebtedness to JMH until returned. There shall be no additional compensation or reimbursement to the Agent for expenses incurred in performing services hereunder. Commissions payable with respect to the same policy or contract may be divided between the Agent and other Agents contracted with JMH; in such case, earned payments for such policy or contract shall be allocated among Agents proportionately by JMH for commission payment purposes only.
3. This is a conditionally vested Contract subject to the following provisions:
a. If the Agent is a natural person or agency, this Contract shall terminate immediately upon the death or termination of the Agent and any commission due and payable to the Agent at the time of death or thereafter under this Contract shall be paid to the executor or administrator of the Agent’s estate or to the assignors of the Agent as applicable.
b. If the total compensation from all lines to the Agent from JMH in any calendar year is less than $10,000.00, this Contract may be terminated by notice from JMH and no further commission shall be payable after the termination date.
c. Commissions shall be payable for so long as the Agent is designated as “Agent of Record” by participating Insurance Company or by the policyholder when commissions are received by JMH, and the Agent is servicing the business in a manner satisfactory to JMH. No Commissions shall be paid if Agent is terminated “For Cause”.
4. Commissions payable
Commissions payable may be amended by notice in writing from JMH and such amendment shall take effect at the time specified in the notice, but in no event prior to thirty (30) days from the time such notice is received. The notice shall be mailed to the Agent’s last known address or Email address as reflected in JMH’s records. No such amendment shall affect commissions payable with respect to any policy or contract issued upon application taken prior to the effective date of such amendment.
5. GENERAL PROVISION
A. Agent Conduct. The Agent shall be free to exercise personal judgment as to the time and manner of performing services authorized under this Contract but shall be guided by such rules as may be adopted by JMH concerning general business conduct. In all cases, the business of the Agent shall be conducted in accordance with the laws and regulations of the jurisdictions in which the Agent is authorized to represent JMH.
B. Records and Supplies. All records maintained by the Agent hereunder and all books, rate manuals, forms and other supplies furnished to the Agent by JMH shall be and remain the property of JMH and shall be returned to JMH promptly following termination thereof.
C. Prior Contracts Superseded. This Contract shall supersede any and all prior contracts, including “Single Case Agreements” for commissions on groups and/or individual policies or contracts between the parties hereto, whether written or oral, regarding the services of the Agent performed for JMH with respect to such products.
D. Indebtedness.
1.Any advance, loan, or extension of credit which the Agent or their downline Agent at any time and in any manner may secure from JMH shall constitute indebtedness to JMH. If any check or draft of the Agent used to transfer monies to JMH is dishonored upon presentment for payment, this amount shall constitute an indebtedness of the Agent to JMH.
2.Provisions relating to Indebtedness:
a. The entire indebtedness to JMH of the Agent as recorded in the records of JMH may be deemed and payable in full to JMH at any time.
b. The Agent shall be responsible for any costs, including reasonable attorney fees and other collection expenses, incurred by JMH in connection with the recovery from the Agent of any indebtedness of the Agent to JMH.
c. The Agent hereby grants to JMH a first security interest in all commissions becoming due hereunder to secure any indebtedness of the Agent to JMH, and JMH may at any time apply commissions payable to the Agent hereunder or any other monies payable to the Agent by JMH or by any Insurance Company contracted by or under common contract with JMH to reduce any such outstanding indebtedness.
d. Agent will be responsible for chargebacks in their downline hierarchy. Debit balances of downline Agents may roll up to Agent if downline debt remains unpaid.
e. Any indebtedness by Agent or Agents’ Sub-Agent(s)(downline) to Insurers will be a first lien on any commissions due or to become due under this agreement or, any previous Agreement with JMH or other Insurers. Such commissions will continue to be forfeited to JMH or Insurers until Agent’s or any Sub-Agent Producers’ (downline) debt is repaid. Upon written notice, Agent must pay to JMH or Insurers any indebtedness owed even though there may be future commissions payable under this Agreement. If the debt has been satisfied, all commissions due Producer thereafter will be paid in accordance with this agreement.
f. Failure to repay any indebtedness may result in termination of your JMH Agent Contract, for cause. This may mean Agent can lose vested commissions. This ‘for cause’ termination may be reported to the Department of Insurance in Agents’ resident state. Agents carrying long-term debit balances may also be reported to Vector One.
g. In the event JMH needs to engage a collection agency, or court to recover any outstanding costs, Agent agrees to pay all additional costs and reasonable attorney fees.
E. Advance Commissions and Chargebacks Liability. In the event that JMH provides the Agent with commissions in advance of being earned, the Agent agrees and acknowledges that these Advance Commissions are loans to be repaid in full. JMH has the right to recoup any such advance from future commissions. If the commissions earned are not sufficient to cover the outstanding balance, the Agent remains personally liable for the repayment, and no formal demand is required for the debt to be due. Any such debt will be collected even after termination, and may be reported to collections or recovery databases such as Vector One.
F. Non-Solicitation and Recruiting Restriction. The Agent agrees that for a period of twenty-four (24) months following termination of this Agreement—whether voluntary or involuntary—they will not, directly or indirectly:
a. Recruit, solicit, or attempt to induce any active JMH Agent or downline to terminate their relationship with JMH;
b. Encourage any Agent to join a competing organization;
c. Make use of JMH’s confidential agent lists, hierarchy information, or downline structures for the purpose of recruiting.
Violation of this clause constitutes immediate grounds for legal action, forfeiture of vested commissions, and potential injunctive relief.
G. Confidential Information and Trade Secrets. During and after the term of this Agreement, the Agent shall not disclose, use, or retain any confidential information belonging to JMH, including but not limited to: client lists, policyholder data, commission structures, software systems, scripts, or marketing materials. The Agent acknowledges that such information is proprietary and agrees to return all such materials upon termination of this Agreement.
The use of JMH’s logos, branding, or name in marketing or advertising must be pre-approved in writing. Upon termination, any license to use JMH’s trademarks is immediately revoked.
H. Inner Transfer Rules.
1. During the first 6 months of obtaining a JMH Agent code if an Agent wishes to work with someone other than their recruiter, a release or Co-Leader Agreement MUST BE SIGNED by the entire upline of Agent.
2. If an Agent, after a 6-month rolling period, has received no income or submitted business from any efforts through JMH approved carriers, Agent is free to transfer under another Agent with no signed release. (If an inactive Agent wishes to transfer under these rules, there can be NO increase in commission or rank. No downline Agents are allowed to transfer with the transferring Agent.)
3. If any income is earned, whether through direct sales or overrides within a 6-month period, a fully signed transfer is the only company approved transfer available.
I. Recruiting Protocol.
1. If two (2) contracted JMH Agents are attempting to recruit the same new potential JMH recruit, the new recruit will be assigned to the one who completes the JMH enrollment process with the new Agent. (The new Agent must input their own personal information into the JMH system and sign the agreement electronically and/or by physical signature. Inputting information for anyone other than oneself is grounds for immediate termination, for cause. The recruiting Agent has 30 days to assist the new Agent in obtaining a JMH code number.)
Exception: Cross-recruiting at or from a JMH event or office is strictly prohibited. This action is grounds for immediate termination, for cause.
2. JMHA gents, Managers, & Founders are not to recruit non-direct Agents or crossline Agents into any other business opportunity. Such actions may lead to immediate termination of JMH contract, for Cause.
J. Co-Leadership. Should any agent of JMH become inactive for more than 180 days, JMH may choose to place inactive agent within JMH’s co-leadership program. This program will partner inactive agent with a JMH approved Managing Vice President. This program is intended to assist inactive agents to become active within JMH, thus ensuring success for all parties involved.
H. Assignment. No Assignment or other transfer of any rights, title or interest here, or of any benefits accruing hereunder, in whole or in part, shall be valid, and any such attempted assignment or transfer shall be void unless the written consent of JMH thereto has first been given. Any assignee of rights or benefits hereunder shall be subject to all the terms and provisions hereof.
K. Amendment.
1. This Contract may be amended at any time and from time to time by written notice from a duly authorized officer of JMH to the Agent provided, however, no such amendment shall affect commissions payable with respect to any policy or contract issued upon application taken prior to the effective date of the amendment.
2. The Contract may be amended at any time by mutual agreement of the parties hereto.
L. Hold Harmless.
1. The Agent agrees to indemnify and hold JMH harmless from any losses, expenses, costs, and damages resulting from acts or omissions of the Agent constituting a breach of any of the terms of this Contract.
M. Compensation After Termination – If this Contract is terminated by your death or by your total and permanent disability, you or your beneficiary shall receive compensation as provided in the Compensation Section of this Agreement on business written prior to termination. Unless otherwise designated in writing, your beneficiary shall be your spouse, if then living, otherwise, your estate. If you have materially violated any of the provisions of this Agreement or acted to prejudice materially the interests of the Company or its affiliates, at, before, or after termination of this Agreement, you shall forfeit all commissions and all other compensation due or to accrue under this or any previous Agreement between you and the Company or any of its affiliates or subsidiaries. In the event your total compensation after termination of this Agreement totals less than $300.00 during any year after termination no further compensation shall be paid to you or to your beneficiary. All compensation payable after termination of this Agreement shall be subject to the right of recoupment lien established in the Indebtedness Section of this Agreement.
N. Beneficiary – You may name a beneficiary to receive any commissions payable after your death. The Company reserves the right to require evidence that there are no conflicting claims before making payment to the named beneficiary.
6. TERMINATION
A. This Contract may be terminated without cause by either party upon notice at least thirty (30) days after the mailing of written notice thereof, or on the date specified in such notice if later.
B. This Contract may be terminated by JMH without notice for “cause”, which term shall include the following:
1. Commission of a fraudulent, illegal or dishonest act adversely affecting JMH; and/or
2. Violation of the laws, regulations, or rules of any jurisdiction in which the Agent operates, or
of any governmental authority exercising jurisdiction over the Agent.
3. Termination by “cause” at the option of JMH, may result in forfeiture of all commissions which may be due under this Contract as of the termination date or which may become due thereafter. This provision governs if there is a conflict with any other provision.
C. Should an Agent be terminated or choose to leave, Agent cannot recruit any JMH Agent into another similar, insurance/recruiting/multi-level organization for a period of 24 months.
D. Cross-recruiting of a JMH Agent to another Agents downline, or to any other business opportunity is grounds for immediate termination.
E. JMH reserves the right to terminate Agent should the persistency of business written falls below 60% over a rolling 13-month period of time.
Agent agrees to the following statements
• My becoming contractually affiliated with JMH, I will not violate the terms of or interfere with any contract, agreement or business relationship that I have or have had with any third party.
• Upon becoming contractually affiliated with JMH, I will not engage in any business practice or behavior, nor will I take any action, which will result in any violation of any restrictions or covenants to which I am subject pursuant to any agreement to which I was previously a party.
• JMH, its officers, directors, shareholders and employees have not induced me in any way whatsoever to terminate any contract, agreement or business relationship that I presently have or have had with any third party.
• I understand that these acknowledgments constitute a part of my Producer Agreement to which I am bound and are material representations upon which JMH shall rely in its acceptance of my Producer
I have read the contract and agree to all provisions.
1. It is my responsibility to read and understand the contents of the Agent Contract that is published by JMH on its secure website. I understand that I must comply in full with the sales and conduct guidelines contained within the Agent Contract and any Insurance Carrier guidelines.
2. I understand that I am not an employee of JMH and my relationship with JMH is that of an independent contractor. Even though I may sometimes be given special titles or incorrectly referenced to as an employee by third parties, this will not change the fact that, by definition and by practice, I am an independent contractor. As an independent contractor, I understand that I will be responsible for paying for my own expenses as well as any and all federal, state, city or other taxes that may become payable with respect to any compensation I may receive from JMH.
3. I will not solicit sales of insurance or annuity policies, directly or indirectly, nor will I oversee other agents’ solicitations, until I am licensed in the appropriate jurisdiction(s), properly appointed with the insurance carriers whose products I am soliciting and covered by errors and omissions insurance.
4. I will not encourage or knowingly allow individuals to solicit or sell insurance or annuity policies without an insurance license. I understand that discussing specific companies, products, and features of products with potential clients or running insurance company illustration software for potential clients is considered solicitation.
5. I understand that I will not be paid or compensated for recruiting other agents. My sole compensation shall be commissions paid by, or caused to be paid by, JMH pursuant to my agreement(s) with JMH, subject to the terms and conditions contained in the compensation guidelines, which are published by JMH on its secure website. I also understand that there is no guarantee that I will be financially rewarded solely by virtue of working with JMH.
6. I understand that, when recruiting agents, I should not say or imply to potential recruits that they will be paid or compensated for recruiting additional agents. In addition, I should not post “job offers” or imply that I am recruiting for salaried employee positions (unless this is true). In addition, I should not make any statements about my income or lifestyle that is likely to be interpreted as a promise about the level of income or success one may attain by working with JMH.
7. I understand that any advertisements, sales literature, or presentation materials containing the JMH trademark must be approved by JMH prior to each use, even if I created the material or if similar uses have been approved in the past. "Advertisements, sales literature, or presentation materials" includes and is not limited to training materials, newspaper ads, websites, radio ads, sales scripts, handouts, interest calculators, business cards, brochures, and flyers.
8. I understand that I may not use the offices, facilities, supplies, or any other property or resources of JMH for purposes unrelated to promoting the sales of products and services offered by JMH and its partner companies. This includes, but is not limited to, selling or soliciting products or services offered by an entity that is not in a business relationship with JMH, recruiting individuals to other unrelated business ventures, and any other unapproved activities which are competitive with the commercial and business interests of JMH.
9. I understand that JMH will publish guidelines and commission schedules from time to time on its secure website which relate to sales position designations, performance standards, commission rates, and other matters affecting the terms of my compensation. JMH may, from time to time, in the exercise of its sole discretion, and without notice, increase or decrease the rates and amounts of commissions or the requirements for certain sales position designations; provided, however, that any such changes will only be prospective and affect any new business and any commissions earned thereafter.
10. I understand that my commissions are a share of JMH commissions and that my commissions are not earned and payable to me until after: (1) the application is accepted and approved by JMH and/or the applicable insurance company at its principal office; (2) actual payment for the same has been made by and received from the client; (3) JMH has actually received payment from the applicable insurance company; and (4) I am duly licensed and appointed in order to receive commissions.
11. JMH chargeback of commissions will be deemed as a negative commission reducing commissions earned by Agent in the contract year in which such offset and/or chargeback occurs.
12. I understand that advanced commission amounts are considered loans and that JMH reserves the right to hold any unearned commissions for a period of up to one year if; (1) I have not submitted business to COMPANY for a period of six months or more; (2) I am on administrative probation; (3) I have been terminated due to a violation of a statute or regulation, a breach of the Independent Agent Contract, or the conduct guidelines contained in the Agent Contract; or (4) I have resigned voluntarily and do not have enough earned commissions to offset potential chargebacks to advances.
13. It is my professional responsibility and obligation to understand the features, advantages, and disadvantages of different products that insurance carriers offer to my clients. I further understand that the carriers will provide brochures and answer my telephone inquiries about their products and that I should utilize these resources when needed.
14. I should not represent to a client, or train other Agents to represent to a client, that a Life Insurance policy and/or an Annuity are a type of securities or a bank savings plan. In addition, I should not state that Indexed products participate directly in the stock market.
15. I will not use or provide any policy illustrations except those expressly authorized by the applicable insurance carrier and JMH.
16. I understand that illustrations of an indexed policy are based on hypothetical rates, and illustrations for indexed products are hypothetical, which do not represent past or future results. Therefore, I will not state or imply to clients that illustrations for indexed products reflect guaranteed results.
17. I understand that I should not provide recommendations to refinance or take equity from a client’s home for the purpose of purchasing insurance or annuity products. I also understand that this is very different from a general recommendation to clients to free up discretionary income to help meet their financial goals.
18. I acknowledge that, if I am not a licensed securities representative, I should not provide investment advice or make statements about securities products that could be considered investment advice.
Specifically, I should not recommend that a client should purchase, sell, liquidate, surrender, replace, or withdraw from a particular mutual fund, variable insurance product, stock, bond, or any other security to fund an indexed universal life policy and/or fixed annuity.
19. I acknowledge that I must disclose to clients there may be tax consequences or early withdrawal penalties associated with selling or cashing in stocks, bonds, IRAs, certificates of deposit, current annuities, or other assets to be used to purchase a new annuity. However, I will not provide or offer tax advice in regard to such tax consequences to the client at any time.
20. I understand that rollovers of 401Ks, IRAs, and other qualified accounts may have current or future tax consequences for the client that I may not be able to predict. Therefore, before encouraging a client to transfer money from a qualified account, I should strongly urge the client to consult a tax professional. Also, I should receive a written acknowledgment from the client that they understand that there may be possible tax consequences resulting from the transfer. However, I will not provide or offer tax advice to the client at any time.
21. I acknowledge that the following statements are specifically prohibited by insurance carriers and/or state laws during sales presentations: (1) Annuities are 100% safe; (2) No one has lost money on an Annuity; (3) Annuities always have higher interest rates than CDs or other bank deposits; (4) Annuities are insured by the FDIC; (5) Annuities are insured by the federal government; and (6) No commission is paid on the sale of an Annuity.
22. I understand that any life insurance policy and/or annuity sold must be accompanied by JMH’s internal disclosures for Life Policies or Annuities in addition to any disclosures required by the issuing insurance carrier.
23. I understand that, if appointed, my obligation is to be a representative for the insurance carriers looking out for the best interest of the insurance carriers. Therefore, I will truthfully and fully complete the information called for on a life insurance or annuity application. I will not encourage a client to hide medical conditions, misrepresent medical conditions, or make false statements on an application.
24. I understand that, according to state insurance laws in most states, I am not a fee-based broker or advisor. Therefore, I will not make statements that may lead potential clients to believe that the products I sell are the “lowest cost” or that my services are “free”, as such statements can be misleading due to my role as an appointed representative for specific insurance companies.
25. I will obtain copies of the applicable replacement procedures and forms required under the insurance laws of the state(s) in which I have an insurance agent license and fully comply with disclosure requirements during the sales process. I understand that under state insurance laws, a "replacement" generally may include the purchase of a new policy where it is known or should be known to the proposing agent that, by reason of the new policy, an existing policy has been or is to be lapsed, forfeited, surrendered, terminated, reduced, or borrowed against.
26. I will not make false or misleading statements or fail to state material facts in connection with a sale. Specifically, I will clearly disclose all applicable fees, surrender periods, and any other information that is required to be disclosed to the client prior to completing a sale.
27. I will only use medical examiners that are ethical and certified by the applicable insurance carriers.
28. I will promptly deliver all policies and promptly remit all premiums according to each insurance carrier's guidelines. I understand that commingling premiums or borrowing premium funds is absolutely prohibited and may subject me to loss of license and criminal prosecution.
29. I will not falsify or forge a client's signatures or initials on an insurance application, even with the client’s permission. I understand that I could be subject to both criminal and civil sanctions.
30. I cannot, and will not, borrow or lend money to, or from, a client, agent, or any other person with whom I have a business relationship because of the inherent conflict of interest and the high potential of a dispute over unpaid loans.
31. If using calculators in a presentation to show the power of compound interest, I agree that I should not: (1) use an exaggerated interest rate; (2) state or imply that insurance policies are an “investment product” or “savings plan”; (3) state or imply that past performance is a guarantee of future results; or (4) state or imply to the client that calculators can be used in place of carrier illustrations, which account for fees and the cost of insurance.
32. I understand that it is my professional and legal obligation to safeguard any sensitive private information of clients that I have in my possession. Therefore, I will secure sensitive private information by taking measures such as shredding any unneeded documents, keeping printed client information locked away, and password protecting my computer equipment.
33. Finally, I understand that failure to adhere to standards of conduct in the foregoing acknowledgements, the Agent Contract can lead to: (1) administrative probation; (2) suspension and/or termination of my commission advances; (3) termination of my agreement(s) with COMPANY; and (4) if necessary, civil and/or criminal legal proceedings.