Acceptable Modes of Payment— Axonic Insurance

Individual Ownership

Personal Check Acceptance Policy

To ensure secure and compliant payment processing, Axonic Insurance has established the following guidelines for accepting personal checks:

1. Name and Address Verification

Axonic will accept personal checks that:

• Clearly displays the owner’s name,
• Include a physical address that matches the application mailing address and is signed by the owner.

2. Address Discrepancies

If the physical address on the check differs from the address on the application, Axonic will accept the check provided:

• The check bears the owner’s name and is signed by the owner and/or spouse on the account.
• The alternate address can be verified through LexisNexis Risk Solutions.
• If verification fails, Axonic will return the check and require a new payment instrument.

3. Trust Ownership Restriction

Axonic will not accept checks issued from a Trust account.

4. No Altered Checks

Axonic will not accept any check that has been altered in any way, including but not limited to:

• Crossed-out names or addresses,
• Handwritten edits or corrections,
• Initials or markings that modify pre-printed information.

5. Checks Signed by an Authorized Spouse or Joint Account Holder

If the check is signed by someone other than the named owner (e.g., a spouse), Axonic will accept it only if written confirmation is provided by the client confirming that the signer is an authorized account holder.

6. Checks with Added Names

If a name has been added to the check manually (not pre-printed by the bank), Axonic will accept the check only if written authorization is provided by the client confirming that the added individual is an authorized signer.

7. Business Account Restriction

Axonic will not accept funds from a business or entity-owned bank account to fund a naturally owned (individual) policy.

8. Starter Checks

Axonic Insurance does not accept starter checks under any circumstances.

We encourage clients not to send cashier’s checks because they carry a higher risk of fraud. If a cashier’s check is submitted and later returned, the client assumes the risk and any delays in processing the premium. All checks must be pre-printed by the bank/financial institution with the account holder’s name and address.

9. Axonic Insurance does not accept third-party checks under any circumstances.

All checks must be made payable directly by the account owner.

Joint Ownership

To ensure accuracy, security, and compliance, Axonic Insurance adheres to the following standards when accepting personal checks from joint owners:

1. Checks with Matching Address

Axonic will accept a personal check from either owner when:

• The owner’s name appears on the check,
• The physical address printed on the check matches the mailing address provided on the application, and
• The check is signed by either owner listed on the account.

2. Checks with Differing Address

Axonic will also accept a personal check from either owner when:

• The owner’s name is printed on the check,
• The physical address on the check differs from the address on the application, and
• The check is signed by either owner, provided that the address can be successfully verified through LexisNexis Risk Solutions.

• If the address cannot be verified, Axonic will scan the check and send a letter to the client stating that Axonic requires a new, verifiable payment.

3. Trust Ownership Restriction

Axonic will not accept checks issued from a Trust account.

4. Altered Checks Not Accepted

Axonic will not accept any check that has been altered in any way, including but not limited to:

• Crossed out or overwritten names or addresses,
• Handwritten edits to pre-printed information,
• Initials or other markings that modify the original check details.

5. Business Account Restriction

Axonic will not accept funds from a business or entity-owned bank account to fund a policy owned by an individual (natural person).

6. Starter Checks

Axonic Insurance does not accept starter checks under any circumstances.

7. Axonic Insurance does not accept third-party checks under any circumstances.

All checks must be made payable directly by the account owner.

Trust Ownership

Revocable/Living Trust Payment Acceptance Policy

To ensure compliance and proper documentation when accepting payments for policies owned by or involving a Trust, Axonic Insurance follows the guidelines below:

1. Accepted Trust Payment Methods

Axonic will accept:

• A check issued directly from the Trust account, and/or
• Funds originating from a carrier via a 1035 Exchange, provided the transfer is completed through Electronic Funds Transfer (EFT).

2. Checks from Trustee Accounts

If the payment is made from a Trustee’s personal checking account (rather than the Trust account itself), Axonic requires the following supporting documentation before the payment can be processed:

• A completed Trust Certification Form, and
• A copy of the Trust Agreement verifying the Trustee’s authority to act on behalf of the Trust.

3. Revocable / Living Trust Flexibility

For policies owned by a revocable or living trust, Axonic may accept.

• A personal check from the owner, or
• A check issued directly from the Trust account.

4. Starter Checks

Axonic Insurance does not accept starter checks under any circumstances.

5. Axonic Insurance does not accept third-party checks under any circumstances.

All checks must be made payable directly by the account owner.

Irrevocable Trust Payment Acceptance Policy

To maintain proper documentation and ensure compliance with regulatory and underwriting requirements, Axonic Insurance has established the following guidelines for accepting payments related to irrevocable trusts:

1. Accepted Trust Payment Methods

Axonic will accept payments in the following forms:

• A check issued directly from the Trust account,
• A check issued and signed by the authorized Trustee of the Trust, and/or
• Funds received through Electronic Funds Transfer (EFT) from a carrier as part of a 1035 Exchange transaction.

All payments must clearly identify the Trust as the source of funds and align with the ownership structure of the policy.

2. Checks from Trustee Personal Accounts

If the payment is issued from a Trustee’s personal checking account, Axonic requires the following documentation before accepting the funds:

• A completed Trust Certification Form, and
• A copy of the Trust Agreement that explicitly grants the Trustee authority to purchase an annuity on behalf of the Trust.

This documentation must clearly outline the Trustee’s powers to act for the Trust to ensure the payment is valid and properly authorized.

3. Starter Checks

Axonic Insurance does not accept starter checks under any circumstances.

4. Axonic Insurance does not accept third-party checks under any circumstances.

All checks must be made payable directly by the account owner.

Power of Attorney

To ensure proper authorization and compliance with regulatory standards, Axonic Insurance has implemented the following procedures for all payments associated with Power of Attorney (POA) applications:

1. Compliance Review and Approval

All POA applications must be submitted together with the corresponding payment. Upon receipt, both the application and the payment will undergo a formal compliance review to verify:

No payment will be applied or processed until the compliance team has completed its review and issued formal approval.

• The validity of the POA documentation,
• The authority of the designated attorney-in-fact to act on behalf of the applicant, and
• Alignment between the payment source and the POA authorization.

2. Required Documentation

In addition to the POA documents, Axonic requires a completed Power of Attorney Certification Form to accompany the payment.

• This certification confirms the scope of authority granted to the attorney-in-fact, including the ability to make financial transactions related to the annuity contract.
• Incomplete or missing documentation will result in the return of the payment and delay in policy processing.

Important Reminder:

Ensuring payment compliance helps avoid processing delays and protects both the client and Axonic Insurance from fraudulent or non-compliant transactions. This information is for informational purposes only and is subject to change without notice.

Note:

Personal checks and EFT funds must come from a U.S. bank or financial institution. Funds from foreign accounts (banks outside the U.S., including Canadian banks), written in foreign currencies, or entities other than financial institutions will not be accepted.

Additional Payment Policy Guidelines

1. EFT Funds (Electronic Funds Transfer)

• Must originate from the annuity owner’s account or authorized trust/business account.
• Third-party or unrelated account transfers are strictly prohibited.

2. Money Orders

• Not accepted under any circumstances.

3. Personal Checks

• Must have the owner’s or authorized entity name printed.
• The physical address must match the application address or be verifiable through LexisNexis.
• Trust checks are only acceptable for trust-owned policies.
• No altered, third-party, or incomplete checks will be processed.
• Must be payable to Axonic Insurance or AmFirst Axonic Annuity.

4. Not Acceptable Payments

If the payment does not meet these standards, the check will be securely disposed of in accordance with our internal procedure. The check can be returned upon request, and an acceptable replacement check must be submitted before the policy can be issued.

If a check is submitted and later returned, the client assumes the risk and any delays in processing the premium.

5. Credit Union Checks

• Axonic will accept a check from a credit union as long as it is a standard U.S. financial institution check.