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The following is not meant to be legal advice.

According to NASD rules, asset allocation accounts are not fund specific products.  They are actually broker-dealer products.  There is not only one fund in the program. 

The distributor (underwriter) can sponsor sales contests as long as the contests are open to all selling group members, and there is disclosure in the prospectus.  According to NASD rules, there are rules on disclosures.  If contests and concessions are disclosed in a prospectus, then they are alright to do. 

Sometimes the representative may also deal with insurance at the same time.  In California, the filling out of an insurance license application for an individual involves an Action Notice, which is completed by the insurance carrier.  The application and Action Notice, after completed, is sent to the Department of Insurance.  After the Department of Insurance receives the application and Action Notice, the individual is sent an exam date.