INDIVIDUAL LIFE INSURANCE

Transcription

1 POLICIES AND PROCEDURES GUIDE INDIVIDUAL LIFE INSURANCE

2 REQUIRED SIGNATURES... 5 TRANSACTION FEES... 7 CLIENT TITLE CHANGES (Non-Financial)... 8 Address... 8 Assignment for Collateral... 9 Beneficiary Contingent Beneficiary, Trustee for Beneficiary Beneficiary for Critical Illness Beneficiary for Funds Contingent Policyowner Name Change/Name Correction Policyowner Release of Assignment Returned Mail Unknown Address COVERAGE/POLICY CHANGES AND REQUESTS Addition of Coverage/Benefits Addition of Coverage - Home Protection Addition/Increase of Disability Benefit Coverage - Home Protection Addition of GPR A3 and A4 Modules (Guaranteed Premium Rider) Addition of Mortgage Guaranteed Insurability Benefit (MGI) Home Protection Addition of a Child to an Existing Child Module or Rider Association Cancellation of Coverage/Benefits/Life Insured Decrease of Coverage Home Protection/Lump Sum Payment Change from Joint Last to Die to Individual Life Change in Death Benefit Option Change in Dividend Option: to Additional Insurance Change in Dividend Option: other than Additional Insurance Change in Mortality Costs (YRT to Level) Change to Non-Smoker Change in Risk Class Conversion of a Term Life Coverage Total Conversion Conversion of a Term Life Coverage Partial (Remaining Coverage Terminated) Conversion of a Term Life Coverage Partial (Remaining Coverage Remains in Effect) Date of Birth Correction with change of age Date of Birth Correction without change of age Decrease of Coverage/Benefit Dissociation of Multi Life Coverages Dissolution of a Joint First to Die Coverage Duplicate Policy Guaranteed Insurability Benefit (Exercise GIO) Plan Change (Within 13 Months) Policy Summary/Memorandum of Particulars Reduced Paid-Up Contract Reinstatement Reinstatement Non-Placed Policies Reinstatement By Redating Individual Life Insurance Page 2 July 15, 2009

3 Revision of Extra Premium Survivorship Option DISBURSEMENTS/CANCELLATIONS Loan Loan Investor Plus Loan IRIS Investment Partial Withdrawal Traditional Policy (Reduction of Coverage) Partial Withdrawal Universal Life Policy Surrender/Cancellation Traditional Policy Surrender/Cancellation Universal Life Policy Withdrawal of Coupons (Debentures Plan) Withdrawal of Dividends on Deposit Withdrawal of Future Premiums on Deposit (FPD) GENERAL INFORMATION Act Respecting the Protection of Personal Information in the Private Sector Client Complaint General Inquiries Signature Requirements Taxation Adjusted Cost Basis Index Account Management Process INVESTMENT TRANSACTIONS Additional Deposits Change in Automatic Investment Instructions (AII) Change in Designated Deduction Accounts (DDA) Investment Options Limited Trading Authorization (LTA) Rebalance Accounts Specific Deposit Instructions Transfer of Funds Policy Delivery (Placement & Non Placement) Receipt for Delivery of Contract Change in Insurability Contract Accepted Contract Accepted & Returned for Modification Contract Refusal (Not-Placed) Pre-Authorized Cheque Withdrawal (PAC) & Premiums Change of Banking Information Change PAC Draw Day Change Payor (Account Holder) Change or Stop Target Premium/Premium Holiday Delay PAC Future Premiums on Deposit (FDP) Group List Bill Loan Repayment Mode Change from PAC to Direct Billing Mode Change to PAC PAC Authorization Group/Regroup/Divide Individual Life Insurance Page 3 July 15, 2009

4 Premium Calculation Factors Modes of Payment and Billing Returned PAC 1st NSF Returned PAC 2nd NSF, Stop Payment, Account Closed, Payor Deceased, Misc Returned PAC Returned Item Within 2 Months of Policy Effective Date or Payor Deceased Returned PAC Payment Returned of Deposit with Application Individual Life Insurance Page 4 July 15, 2009

5 LTA 1 = Limited Trading Authorization Addition of Coverage/Benefits/Life Insured Addition of Coverage Home Protection Addition of Mortgage Guaranteed Insurability Benefit (MGI) Addition of a child to an existing Child Module or rider Additional Deposits Address Association Beneficiary, Contingent Beneficiary, Trustee for Beneficiary Beneficiary for Critical Illness Beneficiary for Funds Cancellation of Coverage/Benefits Cancellation/Decrease Coverage Home Protection Change in Automatic Investment Instructions (AII) Change of Banking Information (same payor/account holder with personalized cheque specimen) Change of Banking Information (new payor/account holder) Change in Death Benefit Option Change in Designated Deduction Accounts (DDA) Change in Dividend Option: to Additional Insurance Change in Dividend Option: other than Additional Insurance Change in Cost of Insurance (YRT to Level) Change to Non-smoker Change PAC Draw Day Change Payor Change in Risk Class Change Target Premium Contingent Owner Conversion of a Term Coverage Conversion Partial (the remaining insurance is cancelled) Conversion Partial (the remaining insurance remains in effect). Date of Birth Correction Decrease Coverage/Benefit (refer to Cancellation of Coverage/Benefits) Delay PAC REQUIRED SIGNATURES Client X X X X X X X X X X X X X X X X X X X X X X X Client or Agent + LTA 1 X X X Agent without LTA 1 Not Required X X X X X X Individual Life Insurance Page 5 July 15, 2009

6 LTA 1 = Limited Trading Authorization Client Client or Agent + LTA 1 Agent without LTA 1 Delivery Receipt X Delivery Receipt - Change in Insurability X Delivery Receipt - Contract Accepted X Delivery Receipt - Contract Accepted and X X Returned for Modification Delivery Receipt - Contract Refusal X X Dissociation of Multi Life Coverages X Dissolution of a Joint First to Die X Coverage Duplicate Policy X Future Premiums on Deposit (FPD) X GPR A3 & A4 Modules (Guaranteed X Premium Rider) Group List Bill X Guaranteed Insurability Rider X Investor Plus Loan X IRIS Investment Loan X Limited Trading Authorization (LTA) X Loan Repayment Mode Change from PAC to direct billing Mode Change to PAC X Name Change/Name Correction X PAC Authorization X Group/Regroup/Divide Partial Withdrawal Traditional policy X Partial Withdrawal Universal Life policy X Plan Change (within 13 months) X Policy Loan X Policyowner X Policy Summary/Memorandum of Particulars Rebalance Accounts X Release of Assignment Returned Mail Reduced Paid-Up Contract X Reinstatement X Reinstatement by Redating X Revision of Extra Premium X Specific Deposit Instructions X Surrender/Cancellation Traditional X policy Surrender/Cancellation Universal Life X policy Suspend PAC Terminate PAC Transfer Funds X Withdrawal of Coupons (Debentures Plan) X Withdrawal of Dividends X Not Required X X X X X X X Individual Life Insurance Page 6 July 15, 2009

7 TRANSACTION FEES In accordance with the General Conditions of the policy contract, the Transaction Fees which follow will take effect September 2, 2008, until further notice. In addition, there may be contractual fees for specific transactions within the policy contract that will continue to apply. Individual Life Insurance Fee Traditional Life Change in Risk Class or from Smoker to Non-smoker (1-5 years) $50 Change of Plan (no fee during the first 3 months following issue) $50 Dissociation, Dissolution or Association (other than children) $50 Duplicate Contract (Policy Summary/Memorandum of Particulars - no charge) $30 Loan/Premium/Dividend Histories (less than 7 yrs = $35 and more than 7 yrs = $35/hour $35/hour) Returned Cheque $15 Reinstatement with Redating $25 Universal Life Age Correction $25 Change from Individual Life to Joint Last to Die (where applicable, e.g. Genesis 4) $250 * *Plus $250 for each additional life insured. Change from Joint Last to Die to Individual Life (where applicable, e.g. Genesis 4) $250 Change from YRT to Level Cost of Insurance $25 Change in Death Benefit Option $25 Change in Risk Class or from Smoker to Non-smoker (1-5 years) $50 Change of Plan (no fee during the first 3 months following issue) $50 Deletion/Reduction/Modification $25 E.g.: deletion of benefits, remove a life, reduce or terminate a coverage Dissociation, Dissolution or Association (other than children) $50 Duplicate Contract (Annual Statement - no fee) $30 Loan $25 Loan/Premium/Dividend Histories (less than 7 yrs = $35 and more than 7 yrs = $35/hour $35/hour) Returned Cheque $15 Partial Withdrawal $25 Reinstatement $25 Revision of Extra Premium (I.E. medical rating) $25 Surrender in Full $25 Substitution of an Insured $250 Access to information For an access to information request under Bill 68, the Legal Department charges the following fees: $10 for a specific document $35 for a complete file Individual Life Insurance Page 7 July 15, 2009

8 CLIENT TITLE CHANGES (Non-Financial) Address Address changed for policy numbers stated (be sure to specify all applicable policy numbers). Any connected policies by way of client record, will automatically be updated, unless a policy number is specified to be excluded. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F10-305A Request for Change of Client Information Written request Acceptable Means for Submitting the Request , fax, written or verbal by policyowner and/or Agent. Signature(s) Required Fee(s) None None Effective Date of Transaction Upon receipt of the request at your Service Centre, unless otherwise specified. Acknowledgement of Transaction None Last Revision Date July 2009 Individual Life Insurance Page 8 July 15, 2009

9 Assignment for Collateral Multiple collateral assignments for specified amounts may be permitted as long as the total assigned amount does not exceed the death benefit. An assignment may not be made on a registered contract. The policyowner and the current beneficiary retain their rights to any benefits beyond the debt owed. Contract may not be collaterally assigned if the policy is under seizure or bankruptcy. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F5A - Beneficiary, Trustee, Assignment for Collateral, Name Correction Collateral Assignment Legal Agreement or Financial Institution form (with applicable signatures) Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. If the Beneficiary is irrevocable/preferred, obtain his/her signature; if he/she is deceased then death certificate. If we have a notice of bankruptcy, provide the necessary documents to release the bankruptcy. If we have a notice of seizure, provide the necessary documents to release the seizure. None Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Acknowledgement of Transaction Legal Designation (policyowner copy). Registered & Recorded copy of Assignment to Assignee (other than when submitted using a F5A). Individual Life Insurance Page 9 July 15, 2009

10 Last Revision Date July 2009 Individual Life Insurance Page 10 July 15, 2009

11 Beneficiary If an insured has more than one life insurance coverage on the same contract, only one Change of Beneficiary form is required for each coverage. A Trustee can be designated for a beneficiary, but the name of the individual for whom he/she is trustee must be indicated, e.g. Eric Brown in Trust for Audrey Brown. (Applies to all provinces except Quebec.) The Beneficiary may not be changed if the policy is under bankruptcy. Appointment of an irrevocable beneficiary revokes any existing Limited Trading Authorization (LTA). Percentage and Share It is important to indicate each beneficiary s percentage and ensure that the sum of the shares total 100%. If no percentage indicated, then the designation is deemed to be Joint Beneficiary. There are no rights of survivorship for multiple beneficiaries (the deceased beneficiary s share reverts to the insured s Estate), unless designated as Joint Beneficiaries. Example of a Multiple Beneficiary : Paul is a 50% beneficiary and Henry is beneficiary of the other 50%. If Henry predeceases the insured, Paul will receive 50% and the other 50% will go to the insured s Estate. Example of a Joint Beneficiary : John and Julian are named as Joint Beneficiaries. If at the insured s death, Julian is deceased, John will receive 100% of the amount payable at death. Beneficiary Class A beneficiary may be designated as revocable or irrevocable. Revocable: The beneficiary can be changed at any time. Irrevocable: An irrevocable beneficiary cannot be changed without the beneficiary s consent (or proof of death if deceased). The beneficiary s consent is also required to perform several transactions, such as surrender, assignment or payment of an early death benefit. Ordinary: The beneficiary may be changed at any time. Preferred: The beneficiary can be changed to another preferred beneficiary without the beneficiary s consent (except in Quebec as of October 20, 1977 since the preferred beneficiaries have automatically been changed to irrevocable), but it cannot be changed to an ordinary beneficiary (proof of death required if deceased). The preferred beneficiary s consent is also required to perform several transactions, such as disbursements, reduction in coverage, assignment or payment of an early death benefit. Individual Life Insurance Page 11 July 15, 2009

12 PROVINCE DATE RELATIONSHIP RULE CLASS QC < Policyowner s wife, children and Considered to be irrevocable Preferred finacee. on QC < Others Considered to be revocable Ordinary on QC All If stated Irrevocable QC All If stated Revocable QC Husband - Wife Automatic if not stated Irrevocable QC Others Automatic if not stated Revocable Other Provinces < Husband - wife, children, Preferred Preferred grandchildren, father and mother of the life insured. Other provinces < Other than husband - wife, Ordinary Ordinary children, grandchildren, father and mother of the life insured. Other provinces > All If stated Irrevocable Other provinces > All If stated Revocable Other provinces > All Automatic if not stated Revocable Legal Heirs or Estate When the above designations are used, the death benefit will be included in the deceased insured s Estate. Such a designation is always revocable. On a third-party contract, "Legal Heirs" means the Legal Heirs of the insured, in all cases. An insured whose beneficiary is Legal Heirs or Estate should have testamentary provisions regarding his/her insurance contracts. If there is no will, according to the law, a common-law spouse is not considered a legal heir. The provisions provided in a will are always revocable. Minor (beneficiary) In Trust If a policy is issued with an irrevocable minor beneficiary, it is frozen, which means that no change in beneficiary can be made and no cash disbursements or deletion/reduction of coverage/benefits can be accepted until the beneficiary reaches age of majority, in their respective province (varies from province to province), even if a Trustee has been appointed. According to the Civil Code in Quebec, the surviving parent is automatically designated as the guardian for minor children. This provision does not apply in the other provinces. However, this still does not give the guardian the right to proceed with such transactions. A Trustee should be named in all provinces, except Quebec, e.g. John Smith in Trust for Michael Brown. A change of beneficiary cancels the trustee who had been appointed earlier. If the designated beneficiary is the guardian, the guardianship papers are required. This designation is legally acceptable, in all provinces except Quebec. Divorce Since December 1, 1982, in Quebec, an irrevocable divorce judgement or a marriage annulment cancels any designation of the spouse as beneficiary or contingent policyowner. In order for the spouse to remain the beneficiary after a divorce, a new beneficiary designation must be made. Individual Life Insurance Page 12 July 15, 2009

13 Since June 1, 1986, in Quebec, a divorce takes effect on the 31st day following the divorce. After that time, a decree of divorce is remitted to any individual who requests one, and this document and the accessory (legal document) are required for changing the irrevocable spouse beneficiary or for any transaction involving the signature of the irrevocable spouse beneficiary. If no contingent beneficiary is named in cases where the primary beneficiary loses his/her rights (death, divorce), these rights revert to the applicant or, if deceased, to the applicant s estate. In the other provinces, a divorce that occurs after July 1, 1962 cancels the preferred class of a beneficiary designation, which becomes revocable, but it does not result in the cancellation of a spouse s status as beneficiary or contingent policyowner. A divorce judgment pronounced after December 1, 1982, cancels the designation of the spouse as contingent policyowner (Quebec only). Legal separation Quebec only - Article 2459 C.C.Q.: Separation from bed and board does not affect the rights of the spouse, whether a beneficiary or a subrogated policyholder, but the court may declare them revocable or lapsed when granting a separation. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F5A - Beneficiary, Trustee, Assignment for Collateral, Name Correction A LTA signed by the new irrevocable beneficiary is required, if applicable. Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Policyowner s signature is mandatory. If the Beneficiary is irrevocable/preferred, obtain his/her signature; if he/she is deceased then death certificate. If we have a notice of bankruptcy, provide the necessary documents to release the bankruptcy. If we have a notice of seizure, provide the necessary documents to release the seizure. Fee(s) None Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Acknowledgement of Transaction Legal Designation (policyowner copy). Individual Life Insurance Page 13 July 15, 2009

14 Last Revision Date July 2009 Individual Life Insurance Page 14 July 15, 2009

15 Contingent Beneficiary, Trustee for Beneficiary If an insured has more than one life insurance coverage on the same contract, only one Change of Beneficiary form is required for each coverage. A Trustee can be designated for a beneficiary, but the name of the individual for whom he/she is trustee must be indicated, e.g. Eric Brown in Trust for Audrey Brown. (Applies to all provinces except Quebec.) The Beneficiary may not be changed if the policy is under bankruptcy. Appointment of an irrevocable beneficiary revokes any existing Limited Trading Authorization (LTA). Percentage and Share It is important to indicate each beneficiary s percentage and ensure that the sum of the shares total 100%. If no percentage indicated, then the designation is deemed to be Joint Beneficiary. There are no rights of survivorship for multiple beneficiaries (the deceased beneficiary s share reverts to the insured s Estate), unless designated as Joint Beneficiaries. Example of a Multiple Beneficiary : Paul is a 50% beneficiary and Henry is beneficiary of the other 50%. If Henry predeceases the insured, Paul will receive 50% and the other 50% will go to the insured s Estate. Example of a Joint Beneficiary : John and Julian are named as Joint Beneficiaries. If at the insured s death, Julian is deceased, John will receive 100% of the amount payable at death. Beneficiary Class A beneficiary may be designated as revocable or irrevocable. Revocable: The beneficiary can be changed at any time. Irrevocable: An irrevocable beneficiary cannot be changed without the beneficiary s consent (or proof of death if deceased). The beneficiary s consent is also required to perform several transactions, such as surrender, assignment or payment of an early death benefit. Ordinary: The beneficiary may be changed at any time. Preferred: The beneficiary can be changed to another preferred beneficiary without the beneficiary s consent (except in Quebec as of October 20, 1977 since the preferred beneficiaries have automatically been changed to irrevocable), but it cannot be changed to an ordinary beneficiary (proof of death required if deceased). The preferred beneficiary s consent is also required to perform several transactions, such as disbursements, reduction in coverage, assignment or payment of an early death benefit. Individual Life Insurance Page 15 July 15, 2009

16 PROVINCE DATE RELATIONSHIP RULE CLASS QC < Policyowner s wife, children and Considered to be irrevocable Preferred finacee. on QC < Others Considered to be revocable Ordinary on QC All If stated Irrevocable QC All If stated Revocable QC Husband - Wife Automatic if not stated Irrevocable QC Others Automatic if not stated Revocable Other Provinces < Husband - wife, children, Preferred Preferred grandchildren, father and mother of the life insured. Other provinces < Other than husband - wife, Ordinary Ordinary children, grandchildren, father and mother of the life insured. Other provinces > All If stated Irrevocable Other provinces > All If stated Revocable Other provinces > All Automatic if not stated Revocable Legal Heirs or Estate When the above designations are used, the death benefit will be included in the deceased insured s Estate. Such a designation is always revocable. On a third-party contract, "Legal Heirs" means the Legal Heirs of the insured, in all cases. An insured whose beneficiary is Legal Heirs or Estate should have testamentary provisions regarding his/her insurance contracts. If there is no will, according to the law, a common-law spouse is not considered a legal heir. The provisions provided in a will are always revocable. Minor (beneficiary) In Trust If a policy is issued with an irrevocable minor beneficiary, it is frozen, which means that no change in beneficiary can be made and no cash disbursements or deletion/reduction of coverage/benefits can be accepted until the beneficiary reaches age of majority, in their respective province (varies from province to province), even if a Trustee has been appointed. According to the Civil Code in Quebec, the surviving parent is automatically designated as the guardian for minor children. This provision does not apply in the other provinces. However, this still does not give the guardian the right to proceed with such transactions. A Trustee should be named in all provinces, except Quebec, e.g. John Smith in Trust for Michael Brown. A change of beneficiary cancels the trustee who had been appointed earlier. If the designated beneficiary is the guardian, the guardianship papers are required. This designation is legally acceptable, in all provinces except Quebec. Divorce Since December 1, 1982, in Quebec, an irrevocable divorce judgement or a marriage annulment cancels any designation of the spouse as beneficiary or contingent policyowner. In order for the spouse to remain the beneficiary after a divorce, a new beneficiary designation must be made. Individual Life Insurance Page 16 July 15, 2009

17 Since June 1, 1986, in Quebec, a divorce takes effect on the 31st day following the divorce. After that time, a decree of divorce is remitted to any individual who requests one, and this document and the accessory (legal document) are required for changing the irrevocable spouse beneficiary or for any transaction involving the signature of the irrevocable spouse beneficiary. If no contingent beneficiary is named in cases where the primary beneficiary loses his/her rights (death, divorce), these rights revert to the applicant or, if deceased, to the applicant s estate. In the other provinces, a divorce that occurs after July 1, 1962 cancels the preferred class of a beneficiary designation, which becomes revocable, but it does not result in the cancellation of a spouse s status as beneficiary or contingent policyowner. A divorce judgment pronounced after December 1, 1982, cancels the designation of the spouse as contingent policyowner (Quebec only). Legal separation Quebec only - Article 2459 C.C.Q.: Separation from bed and board does not affect the rights of the spouse, whether a beneficiary or a subrogated policyholder, but the court may declare them revocable or lapsed when granting a separation. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F5A - Beneficiary, Trustee, Assignment for Collateral, Name Correction Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Policyowner s signature is mandatory. Fee(s) None Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Acknowledgement of Transaction Legal Designation (policyowner copy). Last Revision Date July 2009 Individual Life Insurance Page 17 July 15, 2009

18 Beneficiary for Critical Illness If an insured has more than one life insurance coverage on the same contract, only one Change of Beneficiary form is required for each coverage. A Trustee can be designated for a beneficiary, but the name of the individual for whom he/she is trustee must be indicated, e.g. Eric Brown in Trust for Audrey Brown. (Applies to all provinces except Quebec.) The Beneficiary may not be changed if the policy is under bankruptcy. Appointment of an irrevocable beneficiary revokes any existing Limited Trading Authorization (LTA). Percentage and Share It is important to indicate each beneficiary s percentage and ensure that the sum of the shares total 100%. If no percentage indicated, then the designation is deemed to be Joint Beneficiary. There are no rights of survivorship for multiple beneficiaries (the deceased beneficiary s share reverts to the insured s Estate), unless designated as Joint Beneficiaries. Example of a Multiple Beneficiary : Paul is a 50% beneficiary and Henry is beneficiary of the other 50%. If Henry predeceases the insured, Paul will receive 50% and the other 50% will go to the insured s Estate. Example of a Joint Beneficiary : John and Julian are named as Joint Beneficiaries. If at the insured s death, Julian is deceased, John will receive 100% of the amount payable at death. Beneficiary Class A beneficiary may be designated as revocable or irrevocable. Revocable: The beneficiary can be changed at any time. Irrevocable: An irrevocable beneficiary cannot be changed without the beneficiary s consent (or proof of death if deceased). The beneficiary s consent is also required to perform several transactions, such as surrender, assignment or payment of an early death benefit. Ordinary: The beneficiary may be changed at any time. Preferred: The beneficiary can be changed to another preferred beneficiary without the beneficiary s consent (except in Quebec as of October 20, 1977 since the preferred beneficiaries have automatically been changed to irrevocable), but it cannot be changed to an ordinary beneficiary (proof of death required if deceased). The preferred beneficiary s consent is also required to perform several transactions, such as disbursements, reduction in coverage, assignment or payment of an early death benefit. Individual Life Insurance Page 18 July 15, 2009

19 PROVINCE DATE RELATIONSHIP RULE CLASS QC < Policyowner s wife, children and Considered to be irrevocable Preferred finacee. on QC < Others Considered to be revocable Ordinary on QC All If stated Irrevocable QC All If stated Revocable QC Husband - Wife Automatic if not stated Irrevocable QC Others Automatic if not stated Revocable Other Provinces < Husband - wife, children, Preferred Preferred grandchildren, father and mother of the life insured. Other provinces < Other than husband - wife, Ordinary Ordinary children, grandchildren, father and mother of the life insured. Other provinces > All If stated Irrevocable Other provinces > All If stated Revocable Other provinces > All Automatic if not stated Revocable Legal Heirs or Estate When the above designations are used, the death benefit will be included in the deceased insured s Estate. Such a designation is always revocable. On a third-party contract, "Legal Heirs" means the Legal Heirs of the insured, in all cases. An insured whose beneficiary is Legal Heirs or Estate should have testamentary provisions regarding his/her insurance contracts. If there is no will, according to the law, a common-law spouse is not considered a legal heir. The provisions provided in a will are always revocable. Minor (beneficiary) In Trust If a policy is issued with an irrevocable minor beneficiary, it is frozen, which means that no change in beneficiary can be made and no cash disbursements or deletion/reduction of coverage/benefits can be accepted until the beneficiary reaches age of majority, in their respective province (varies from province to province), even if a Trustee has been appointed. According to the Civil Code in Quebec, the surviving parent is automatically designated as the guardian for minor children. This provision does not apply in the other provinces. However, this still does not give the guardian the right to proceed with such transactions. A Trustee should be named in all provinces, except Quebec, e.g. John Smith in Trust for Michael Brown. A change of beneficiary cancels the trustee who had been appointed earlier. If the designated beneficiary is the guardian, the guardianship papers are required. This designation is legally acceptable, in all provinces except Quebec. Divorce Since December 1, 1982, in Quebec, an irrevocable divorce judgement or a marriage annulment cancels any designation of the spouse as beneficiary or contingent policyowner. In order for the spouse to remain the beneficiary after a divorce, a new beneficiary designation must be made. Individual Life Insurance Page 19 July 15, 2009

20 Since June 1, 1986, in Quebec, a divorce takes effect on the 31st day following the divorce. After that time, a decree of divorce is remitted to any individual who requests one, and this document and the accessory (legal document) are required for changing the irrevocable spouse beneficiary or for any transaction involving the signature of the irrevocable spouse beneficiary. If no contingent beneficiary is named in cases where the primary beneficiary loses his/her rights (death, divorce), these rights revert to the applicant or, if deceased, to the applicant s estate. In the other provinces, a divorce that occurs after July 1, 1962 cancels the preferred class of a beneficiary designation, which becomes revocable, but it does not result in the cancellation of a spouse s status as beneficiary or contingent policyowner. A divorce judgment pronounced after December 1, 1982, cancels the designation of the spouse as contingent policyowner (Quebec only). Legal separation Quebec only - Article 2459 C.C.Q.: Separation from bed and board does not affect the rights of the spouse, whether a beneficiary or a subrogated policyholder, but the court may declare them revocable or lapsed when granting a separation. Beneficiary for Critical Illness In addition to the beneficiary designation for the Critical Illness coverage, be sure to indicate a beneficiary in the case of premium refund at death for the life insured and if applicable, the flexible refund during the insured s lifetime. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F5A - Beneficiary, Trustee, Assignment for Collateral, Name Correction A LTA signed by the new irrevocable beneficiary is required, if applicable. Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Policyowner s signature is mandatory. If the Beneficiary is irrevocable/preferred, obtain his/her signature; if he/she is deceased then death certificate. If we have a notice of bankruptcy, provide the necessary documents to release the bankruptcy. If we have a notice of seizure, provide the necessary documents to release the seizure. Fee(s) None Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Individual Life Insurance Page 20 July 15, 2009

21 Acknowledgement of Transaction Legal Designation (policyowner copy). Additional Information This information is not applicable to former NL Critical Illness products. Last Revision Date July 2009 Individual Life Insurance Page 21 July 15, 2009

22 Beneficiary for Funds If an insured has more than one life insurance coverage on the same contract, only one Change of Beneficiary form is required for each coverage. A Trustee can be designated for a beneficiary, but the name of the individual for whom he/she is trustee must be indicated, e.g. Eric Brown in Trust for Audrey Brown. (Applies to all provinces except Quebec.) The Beneficiary may not be changed if the policy is under bankruptcy. Appointment of an irrevocable beneficiary revokes any existing Limited Trading Authorization (LTA). Percentage and Share It is important to indicate each beneficiary s percentage and ensure that the sum of the shares total 100%. If no percentage indicated, then the designation is deemed to be Joint Beneficiary. There are no rights of survivorship for multiple beneficiaries (the deceased beneficiary s share reverts to the insured s Estate), unless designated as Joint Beneficiaries. Example of a Multiple Beneficiary : Paul is a 50% beneficiary and Henry is beneficiary of the other 50%. If Henry predeceases the insured, Paul will receive 50% and the other 50% will go to the insured s Estate. Example of a Joint Beneficiary : John and Julian are named as Joint Beneficiaries. If at the insured s death, Julian is deceased, John will receive 100% of the amount payable at death. Beneficiary Class A beneficiary may be designated as revocable or irrevocable. Revocable: The beneficiary can be changed at any time. Irrevocable: An irrevocable beneficiary cannot be changed without the beneficiary s consent (or proof of death if deceased). The beneficiary s consent is also required to perform several transactions, such as surrender, assignment or payment of an early death benefit. Ordinary: The beneficiary may be changed at any time. Preferred: The beneficiary can be changed to another preferred beneficiary without the beneficiary s consent (except in Quebec as of October 20, 1977 since the preferred beneficiaries have automatically been changed to irrevocable), but it cannot be changed to an ordinary beneficiary (proof of death required if deceased). The preferred beneficiary s consent is also required to perform several transactions, such as disbursements, reduction in coverage, assignment or payment of an early death benefit. Individual Life Insurance Page 22 July 15, 2009

23 PROVINCE DATE RELATIONSHIP RULE CLASS QC < Policyowner s wife, children and Considered to be irrevocable Preferred finacee. on QC < Others Considered to be revocable Ordinary on QC All If stated Irrevocable QC All If stated Revocable QC Husband - Wife Automatic if not stated Irrevocable QC Others Automatic if not stated Revocable Other Provinces < Husband - wife, children, Preferred Preferred grandchildren, father and mother of the life insured. Other provinces < Other than husband - wife, Ordinary Ordinary children, grandchildren, father and mother of the life insured. Other provinces > All If stated Irrevocable Other provinces > All If stated Revocable Other provinces > All Automatic if not stated Revocable Legal Heirs or Estate When the above designations are used, the death benefit will be included in the deceased insured s Estate. Such a designation is always revocable. On a third-party contract, "Legal Heirs" means the Legal Heirs of the insured, in all cases. An insured whose beneficiary is Legal Heirs or Estate should have testamentary provisions regarding his/her insurance contracts. If there is no will, according to the law, a common-law spouse is not considered a legal heir. The provisions provided in a will are always revocable. Minor (beneficiary) In Trust If a policy is issued with an irrevocable minor beneficiary, it is frozen, which means that no change in beneficiary can be made and no cash disbursements or deletion/reduction of coverage/benefits can be accepted until the beneficiary reaches age of majority, in their respective province (varies from province to province), even if a Trustee has been appointed. According to the Civil Code in Quebec, the surviving parent is automatically designated as the guardian for minor children. This provision does not apply in the other provinces. However, this still does not give the guardian the right to proceed with such transactions. A Trustee should be named in all provinces, except Quebec, e.g. John Smith in Trust for Michael Brown. A change of beneficiary cancels the trustee who had been appointed earlier. If the designated beneficiary is the guardian, the guardianship papers are required. This designation is legally acceptable, in all provinces except Quebec. Divorce Since December 1, 1982, in Quebec, an irrevocable divorce judgement or a marriage annulment cancels any designation of the spouse as beneficiary or contingent policyowner. In order for the spouse to remain the beneficiary after a divorce, a new beneficiary designation must be made. Individual Life Insurance Page 23 July 15, 2009

24 Since June 1, 1986, in Quebec, a divorce takes effect on the 31st day following the divorce. After that time, a decree of divorce is remitted to any individual who requests one, and this document and the accessory (legal document) are required for changing the irrevocable spouse beneficiary or for any transaction involving the signature of the irrevocable spouse beneficiary. If no contingent beneficiary is named in cases where the primary beneficiary loses his/her rights (death, divorce), these rights revert to the applicant or, if deceased, to the applicant s estate. In the other provinces, a divorce that occurs after July 1, 1962 cancels the preferred class of a beneficiary designation, which becomes revocable, but it does not result in the cancellation of a spouse s status as beneficiary or contingent policyowner. A divorce judgment pronounced after December 1, 1982, cancels the designation of the spouse as contingent policyowner (Quebec only). Legal separation Quebec only - Article 2459 C.C.Q.: Separation from bed and board does not affect the rights of the spouse, whether a beneficiary or a subrogated policyholder, but the court may declare them revocable or lapsed when granting a separation. Beneficiary for funds For contracts in which it can be designated, the beneficiary of the accumulation fund and shuttle fund must be: the Beneficiaries of Insured 1 or; the policyowner or; other(s). If not designated, a revocable designation in favour of the beneficiary or beneficiaries of the insured 1 will apply. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F5A - Beneficiary, Trustee, Assignment for Collateral, Name Correction A LTA signed by the new irrevocable beneficiary is required, if applicable. Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Policyowner s signature is mandatory. If the Beneficiary is irrevocable/preferred, obtain his/her signature; if he/she is deceased then death certificate. If we have a notice of bankruptcy, provide the necessary documents to release the bankruptcy. If we have a notice of seizure, provide the necessary documents to release the seizure. Fee(s) None Individual Life Insurance Page 24 July 15, 2009

25 Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Acknowledgement of Transaction Legal Designation (policyowner copy). Last Revision Date July 2009 Individual Life Insurance Page 25 July 15, 2009

26 Contingent Policyowner The designation of the contingent policyowner is always revocable. If the newly designated contingent policyowner is a minor, when the policyowner dies, no transaction may be made until the new policyowner is of legal age. A new contingent policyowner should be named in the following situations: A Designation of Ownership (absolute assignment) cancels the contingent policyowner. A divorce judgement, pronounced after December 1, 1982, cancels the designation of the spouse as contingent policyowner (Quebec only). Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F30A - Designation of Ownership, Contingent Owner Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction Upon the death of the current policyowner. Acknowledgement of Transaction Legal Designation (policyowner copy). Last Revision Date September 2008 Individual Life Insurance Page 26 July 15, 2009

27 Name Change/Name Correction Supporting legal documents are required for a name change and in order to verify the correct spelling of the name. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F5A - Beneficiary, Trustee, Assignment for Collateral, Name Correction Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Acknowledgement of Transaction Legal Designation (policyowner copy). Additional Information If it is a legal name change, a birth certificate, citizenship card, adoption certificate, marriage certificate, health care card (if picture included) or passport is required (the legal document in the case of an individual or a corporate name change). Last Revision Date July 2009 Individual Life Insurance Page 27 July 15, 2009

28 Policyowner It is recommended that the new policyowner designate a new beneficiary. If there is no beneficiary designation requested, the default will take effect, meaning that the benefit is payable to the policyowner or the Estate of the policyowner. Upon transfer of ownership the new owner assumes all the rights under the policy contract. Single ownership upon death, the rights under the contract will be transferred to the contingent owner (also called subrogated or successor owner) if one was designated. If not, the rights of ownership of the contract will be transferred to the estate of the deceased owner. Joint ownership If the contract was signed in a province or territory other than Quebec, should one joint owner die, his/her ownership share passes automatically to his/her contingent owner. If there is no contingent owner, it passes to the surviving joint owner(s). If there is more than one surviving joint owners, each such owner shall take an equal share in the deceased joint owner s share in the contract. This type of ownership is called Joint ownership with a right of survivorship and automatically applies unless the Policyowners or Applicants specify that the owners are Tenants in Common as described below. If specified that the joint owners are Tenants in Common, then upon the death of one joint owner, his/her share passes to his/her contingent owner. If there is no contingent owner, then his/her share of ownership passes to his/her estate. If this contract was signed in Quebec, upon the death of a joint owner, his/her ownership share in the contract passes automatically to the contingent owner. If there is no contingent owner, it passes automatically to his/her estate. Death of the policyowner In all cases: Proof of death will be required if change of policyowner is due to death. If there is no contingent policyowner, complete the back of form F55-21A and follow the instructions shown on the form. The death of the policyowner does not affect the rights of the current beneficiary, until a new policyowner is appointed. For PAC mode of payment, provide PAC Authorization and cheque specimen (VOID) of new payor. For Multi-life or Joint Last to Die policies, it is recommended to name a contingent policyowner. A Designation of Ownership (absolute assignment) cancels the rights of a contingent policyowner already named in the contract. If the contract contains a waiver of premium in the event of the applicant s disability or death (e.g. WPDis, CAD, WPD), it will automatically be cancelled. If additional benefits are required for the new policyowner, a Request for Change and Addition of Coverage are required. However, for a universal life policy, if the previous policyowner is also an insured on the contract, the CAD is automatically replaced by the CID. Individual Life Insurance Page 28 July 15, 2009

29 Transfer of Ownership revokes the LTA. Since December 1, 1982, in Quebec, an irrevocable divorce judgement or a marriage annulment cancels any designation of the spouse as beneficiary or contingent policyowner. In order for the spouse to remain the beneficiary after a divorce, a new beneficiary designation must be made. Since June 1, 1986, in Quebec, a divorce takes effect on the 31st day following the divorce. After that time, a decree of divorce is remitted to any individual who requests one, and this document and the accessory (legal document) are required for changing the irrevocable spouse beneficiary or for any transaction involving the signature of the irrevocable spouse beneficiary. Form(s) Required Available on Extranet Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR F30A - Designation of Ownership, Contingent Owner F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations. (Applies to all Universal Life Policies.) F5A - It is recommended that the new policyowner designate a new beneficiary. Acceptable Means for Submitting the Request Signed request by policyowner via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. If the Beneficiary is irrevocable/preferred, obtain his/her signature; if he/she is deceased then death certificate. If the policy is assigned, require authorized signatures or a Release of assignment. If we have a notice of bankruptcy, provide the necessary documents to release the bankruptcy. If we have a notice of seizure, provide the necessary documents to release the seizure. None Effective Date of Transaction Date signed (the Company is not responsible for the validity of any other transactions processed between the date signed and the date received). Acknowledgement of Transaction Legal Designation (policyowner copy). Individual Life Insurance Page 29 July 15, 2009

30 Last Revision Date July 2009 Individual Life Insurance Page 30 July 15, 2009

31 Release of Assignment Official release document required from Assignee(s), with applicable signature(s). Form(s) Required Electronic Changes: submit the request via the Electronic Changes software and send us the duly signed F1EA form when required. Will be available at the launch of the Interface Suite in Fall OR Release of Assignment (with applicable signature(s)) Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) Applicable Assignee(s) signature(s). None Effective Date of Transaction Signature date. Acknowledgement of Transaction Legal Designation (policyowner copy). Last Revision Date July 2009 Individual Life Insurance Page 31 July 15, 2009