In Good Order (IGO) Transaction Guidelines. Life Operations Administrative Guide WORK IN PROGRESS!

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1 WORK IN PROGRESS! We are updating the content in this guide along with the new look and feel of our ivari brand. Meanwhile you can still use the current content as valuable information to help with your business. Any questions, don't hesitate to contact us at Client Services at Life Operations Administrative Guide In Good Order (IGO) Transaction Guidelines FOR ADVISOR USE ONLY

2 Table of contents Transamerica Life Canada (TLC) Client Services 4 How to use this document 5 Life In-force transactions 6 Cut-off times... 6 Accepted forms of payment... 7 Additional deposits (Universal Life)... 8 Cancellations/Surrenders... 9 Full or partial surrenders/cancellations Withdrawal of dividends or surrender of paid-up additions Planned periodic premium change or sundry change Premium Holiday and Shortage Provisions Fund transfers T2033 direct transfer Loans or ILS loans Pre-Authorized Debit (PAD) Establishing Pre-Authorized Debit Non-Sufficient Funds (NSF) Resuming Pre-Authorized Debit (PAD) Stopping Pre-Authorized Debit (PAD) Bank change request Modal payment change request Policy Changes 23 Adding a child to an existing rider Date of birth change Gender correction Exercising the Non-Forfeiture Option Decrease of face amount or sum insured Cancellation of coverage/benefits or riders Joint coverage to single life option Policy splits Survivorship Switch from Joint First-to-Die (JFTD) to Joint Last-to-Die (JLTD) with deductions or premiums to last death Reduced Paid-Up (RPU) for whole life plans Optimizer (universal life only) Option to automatically decrease a face amount Termination of Optimizer Option

3 Table of contents Continued Underwriting changes 35 Replacements Non-smoker change Removal or reduction of rating/change in risk classification Addition/increase of coverage (existing insureds or new lives) Cost of insurance change Death Benefit change Reinstatements Substitution of Life Insured Exercise Purchase Option Rider (POR) Conversion Converting a Policy with a Critical Illness Protection Rider Term Exchange Titles 47 Duplicate policy Ownership changes, beneficiary changes and name changes Ownership change requirements Beneficiary change requirements Name change requirements Successor or contingent owner Assignments Release of Assignments General administration 53 Address change request Limited Power of Attorney (LPOA) General requirements Advisor instructions when an LPOA or Letter of (LOA) is on file with Transamerica Life Canada Allowable transactions under an LPOA Death of an owner 56 Sole owner Contingent owner Multiple owners Joint Tenants in common spousal Tenants in common non-spousal Claims processing Reporting of death claims Death claim requirements Express Claims Reporting of Disability and Waiver of Premium claims Reporting of Critical Illness (CI) claims Reporting of Critical Advantage TM claims

4 Table of contents Continued Appendix 59 Forms Allocation Form (PS425) Policy Service Application (PS339) Change of Beneficiary Form (PS367) Request for Pre-Authorized Debit (PS375) Policy Change Applications (LP386) Identity and Third Party Determination Form (IP-LP782) Universal Life Fund code chart (LP946) Conversion Application (LP1285) Insurance Application (LP257) Politically Exposed Foreign Person Form (IP-LP1165) Corporate/Non-Corporate Entity/Trust Ownership Form (IP-LP1166) Notice of Transfer of Ownership (PS371) Successor Owner Form (PS373) Limited Power of Attorney (LP183) Physician s Statement Proof of Death (CL990) Report of Claim Claimant s Statement Form (CL334) Disability Supplementary Report (CL335) International Tax Classification for an Entity Form (IP-LP1601)

5 Introduction Transamerica Life Canada (TLC) Client Services If you require assistance please phone, fax or Client Services: Toll-free number box for client service inquiries Operations facsimile number for financial and non-financial service requests Client services facsimile number for client service inquiries only* Advisor login for marketing, sales and other reference information** or in Toronto, please call (416) (416) or (416) or * Please do not use this number for financial transaction requests. ** You can easily register for the advisor login at Also, information about rates and marketing materials is available without your having to sign on to the system. 4

6 How to use this document In Good Order Guide Welcome to our Life Operations In Good Order (IGO) Guide. These guidelines are applicable to all Transamerica Life Canada combined life products. This document is for in-force business only. This document outlines the IGO guidelines that Transamerica Life Canada follows with respect to the processing of life policy transactions. These guidelines are in addition to any requirements outlined in the application and policy contract. For each transaction, an IGO guideline is provided, along with the action the In-force Life Operations Business Unit will take if a transaction does not meet the guideline. Note: Current applications and forms are required at all times. Outdated forms will be considered not in good order. As many of you work with large numbers of advisors who are regionally dispersed, the demand for immediate and accurate service is essential. This is the main reason we have taken the steps to develop these guidelines: to improve the quality of service to you and your clients. Transactions that are not in good order (NGO) will be rejected, as they cannot be processed. Similarly, the Transamerica Life Products Operations Team will abide by these guidelines, and any incomplete transactions will not be processed until the transactional information received is in good order. We recommend that distributors who receive transactions from their advisors for transmission to Transamerica screen each application and/or transaction prior to submitting the transaction to the Life Products Operations Business Unit. For advisors who choose to submit transactions directly to our office, please follow these guidelines, as they are applicable to you. Incomplete transactions will be returned to the advisor or advisor s distribution office by fax for follow-up concerning the required information. In the event that Transamerica Canada Life amends certain guidelines or processes, then each distributor office will be provided with a special bulletin outlining the changes and their respective implementation dates. This IGO guide does not form part of any contract. In the event of conflict between the contract and this IGO guide, the terms of the contract prevail. 5

7 Life In-force transactions Life In-force transactions Cut-off times Financial All financial transactions (deposits, withdrawals and transfers) are processed based on the market value as at the close of business on the valuation date provided we receive at our Head Office, the instructions or transactions in accordance with our administrative rules by the valuation date cut-off time that we determine If we receive your request in good order at our head office by 3 p.m. (Toronto time) on a valuation date, this is the effective date of your request. Otherwise, the effective date is the next valuation date.. If the instructions or transactions are received after the cut-off time, they will be considered to be received on the next valuation date. We reserve the right to change the valuation date cut-off time to be earlier or later. Non-Financial We strive to provide a five-business-day service standard when processing non-financial transactions from the day the request is received in good order at our Head Office. These transactions include: address changes title changes (including beneficiary and ownership changes) bank related changes (including Pre-authorized debit, deduction date changes, mode changes and stop pre-authorized debit) 6

8 In Good Order Guide Accepted forms of payment Cheque Bank drafts/money Orders Counter cheques Transamerica Life Canada will only accept the following forms of cheque payment: pre-printed personalized cheques from an authorized bank account with remitter s name and address pre-printed by the bank. The signature on the cheque must match the owner/payor signature we have on file. corporate cheques drawn on the corporation s Canadian bank account (subject to the other third-party determination requirements for corporate accounts). cheques from a client s Canadian investment account (issued on institutional cheque forms with client account and name references). Bank drafts will be accepted under the following conditions: For amounts up to and including $500. For an amount up to $10,000 if both of the following conditions are met: The name of the remitter is pre-printed on the draft by the bank at the time of issue. The font of the remitter s name matches the font throughout the rest of the bank draft. Any dollar amount where either of the following conditions are met: Both the remitter s name and account number is pre-printed at the time of issue, the font of the remitter s name matches the font throughout the rest of the bank draft and the draft is signed by a bank manager or bank employee. The draft is accompanied by a letter from the bank on bank letterhead including bank stamp, signed by a bank manager or bank employee verifying funds were purchased by the remitter from his or her bank account. The letter is to include the remitter s name and bank account number. Acceptable for an amount up to $10,000, providing the account number is pre-printed and the signature on the cheque matches the owner/payor signature on file. Over $10,000 a bank letter is required. 7

9 Life In-force transactions Additional deposits (Universal Life) Universal life policies are eligible for additional deposits that are applied to the investment portion of the policy. The policies are tax sheltered, within specified government guidelines. It is recommended that the Life Customer Service Call Centre be contacted to determine the amount of tax shelter space available in a policy. Deposits will be allocated in accordance with instructions on the existing Allocation Form on file in Head Office. Any allocation changes require the completion of a new Allocation Form signed by the owner(s) or authorized designate. For deposit allocation(s), please see the Appendix for the Universal Life Fund Code Chart (LP946). Pre-Printed Cheque Allocation Form (PS425) Letter of direction policy number We discourage submitting investment allocations written on the cheque. Please use the Allocation Form (PS425) or provide a letter of direction. (Please refer to Accepted forms of payment on page 7.) policy number(s), policyowner and insured name(s) distributor and contracted advisor s name and code number request for an additional deposit and deposit instructions dated and signed by the policyowner(s) or authorized designate and a witness Must provide the signature of the policyowner(s) or authorized designate, including the same information as the above Allocation Form. 8

10 In Good Order Guide Cancellations/Surrenders policy number(s) plan type servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section indicating that the life insurance policy should be cancelled, or A letter of direction signed by the policyowner(s) clearly stating the request to cancel the term insurance policy. Include the signature of all policyowner(s) and the irrevocable beneficiary, assignee and trustee in bankruptcy, if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officer(s) is required. NOTE: The original or a faxed request is acceptable. A witness signature is required for each authorized signature. 9

11 Life In-force transactions Full or partial surrenders/cancellations Withdrawal instructions Redemption instructions (cheque) Redemption instructions for Electronic Fund Transfer (EFT) policy number SIN GA/SA required Complete Policy Service Application (PS339), Section 4 I request a surrender in accordance with the policy provisions, or A letter of direction from the policyowner(s) or authorized designate to include the following: Whether full surrender or maximum partial surrender, or enter the specific amount of surrender, and whether gross or net. Applicable to former NN universal life policies: Provide clear instructions as to which funds are to be surrendered. If the policy is registered-mix, the client must indicate if withdrawal should be from registered or non-registered funds, or both. All redemption cheques are forwarded to the policyowner on file, unless otherwise instructed. A separate letter of direction signed by the policyowner is required to forward to the distributor or advisor on file. If no instructions are provided, the cheque will be sent to the owner s address on record. In all cases, a letter confirming the surrender details will be sent directly to the owner. A personalized pre-printed void cheque from the policyowner is needed to process an EFT directly to a policyowner s bank account. An original form or letter of direction completed/stamped by the policyholder s receiving bank indicating the account holders name (which must match the policyowner) and the bank account details. A signed request from the poliyowner to EFT to the bank account previously on file used to pay premiums under the policy (a fax is acceptable). If a request is submitted directly from the policyowner to Transamerica, an original void cheque is required. If EFT is to an account not previously on file and the request is direct from the policyowner we may call the client to confirm the banking information before processing the transaction. signature of all policyowner(s) and life insured signature of irrevocable beneficiary, assignee and trustee in bankruptcy (if applicable) If the owner is a corporation, the signature, name and title of the authorized signing officer(s) are required. A faxed request is acceptable. 10

12 Full or partial surrenders/cancellations (continued) NOTES: 1. A witness signature is required for each authorized signature. 2. Advisors may not sign surrender requests under any circumstance. In Good Order Guide Transamerica's LPOA is not applicable to surrenders. Surrender requests signed by the advisor acting on an LPOA or otherwise will be rejected. 4. If the policy is assigned, authorization from the institution holding the assignment must be received, or a release of assignment is required. 5. Where additional units of a fund were bought through a PAD, a 30-day hold period will be enforced before they can be redeemed. 11

13 Life In-force transactions Withdrawal of dividends or surrender of paid-up additions The withdrawal of policy dividends or surrender of paid-up additions is requested when a policyowner requests some or all of the dividends taken out of the policy to pay a premium, reduce or repay a loan or to receive the funds. policy number(s) plan type servicing agent and agency codes Complete Policy Service Application (PS339), Section 3 I elect to, or A letter signed by the policyowner(s) or authorized designate stating where the withdrawal should be directed Signature of all policyowner(s), irrevocable beneficiary, assignee and bankruptcy trustee if applicable. If the policyowner is a corporation, the signature, name and title of the authorized signing officer(s) are required. 12

14 In Good Order Guide Planned periodic premium change or sundry change The planned periodic premium amount is the amount of premium the client has chosen to pay on his or her universal life policy. The total amount includes the Cost of Insurance (COI) and, if desired, an additional sum to be credited to the investment portion of the policy. Planned periodic premium changes may be made in the following manner. policy number(s) servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to indicate the request to change the Planned Periodic Premium/Sundry Amount, or A letter of direction signed by the policyowner(s) or authorized designate, e.g., the payor, clearly stating the new planned periodic premium amount being requested Signature of all policyowner(s). If the owner is a corporation, the signature, name and title of the authorized signing officer(s) is required. Request is acceptable by fax, correspondence or from the distributor or advisor or AGA. NOTES: 1. A request below the minimum required premium could put your policy into shortage. 2. Pre-authorized debit payments require five business days notice prior to the scheduled payment date to change planned periodic premium payment amounts. 13

15 Life In-force transactions Premium Holiday and Shortage Provisions A Premium Holiday or Premium Skip allows clients to stop premium payments on their universal life policies for a specified time and have the cost of insurance withdrawn from the policy values, provided that there is a sufficient account or fund value available, in accordance with the policy lapse provisions regarding premiums, shortage and lapse. policy number(s) effective date for the Premium Holiday or Skip to begin/and end if applicable servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application clearly stating the Holiday or Skip request, or A letter of direction signed by the policyowner(s) or authorized designate clearly stating the request for premium holiday or skip premium A phone or fax request from the Distributor, Advisor or policyowner Signature of all policyowner(s). If the owner is a corporation, the signature, name and title of the authorized signing officer(s) is required. from the distributor or advisor from a secure address. Request can be received by fax or correspondence from the distributor, advisor or AGA, owner or payor. NOTE: 1. Clients and distributors may stop a PAD over the telephone, but advisors cannot stop a PAD over the phone. 14

16 In Good Order Guide Fund transfers Fund transfers and switches are considered a single transaction in which funds are moved from one fund into a different fund within the same policy, i.e., registered, non-registered, shuttle-to-shuttle, dump-in fund, or laddering Guarantee Interest Certificate (GIC). Fund transfer instructions for fund-to fund transactions can be communicated as follows. Allocation type From To Amount to amount $5,000 from Fund A $5,000 allocated to Fund B Amount to percentage $5,000 from Fund A Allocated 50% to Fund B and 50% to Fund C Percentage to percentage 50% from Fund A Allocated 50% to Fund B and 50% to Fund C To process a fund transfer, the following information is required: Policy Originating fund information Destination fund information policy number We discourage submitting investment allocations written on the cheque. Please use the Allocation Form (PS425) or provide a letter of direction. Social Insurance Number (SIN) Provide details of proceeds to be transferred from originating fund(s), including fund code or fund name. Provide details of allocation to destination fund(s) including fund code or fund name. For some products, when depositing money to guaranteed investments, minimum deposits apply. Refer to the contract for details. If making a deposit to this coverage, complete the optional section on the Allocation Form (PS425). Allocation Form (PS425)*, or A letter of direction The signature of all the policyowner(s) or signature of the advisor, if an Limited Power of Attorney (LPOA) (LP183 LPOA) is on file. Witness signature If the policyowner is a corporation, the signature, name and title of the authorized signing officer(s) are required. * For an example of the Allocation Form PS425, please refer to the Appendix. NOTES: 1. Bulk trading is not permitted. 2. A transfer fee of $25 may be charged, depending on the product; please refer to the respective policy contract for details. 3. Allocations must total 100% if percentage allocation is provided, or if provided by dollar amount, the total must equal the deposit amount. 4. The policyowner must be contacted by the advisor and agree to the transaction before submitting the request. If advisor is signing under an LPOA, advisors should keep records of the policyowner's consent. 15

17 Life In-force transactions T2033 direct transfer While Canada Revenue Agency (CRA) no longer mandates the use of the T2033, the form is strongly recommended when transferring registered funds to or from other institutions. To initiate an additional deposit due to a transfer, the following information is required. Relinquishing institution/ policy information Receiving institution information/policy information Cheque Investment instructions name of institution full mailing address amount of deposit policy number policyowner name and life insured address SIN fund allocation instructions The cheque from the transferring institution must be current-dated (between the current date and the previous six months) and payable to Transamerica Life Canada. If no fund instructions are provided with the T2033 Form, the cheque will be deposited according to the allocation instructions on file. If instructions are provided, the deposit will be allocated according to the instructions on the transfer form, with no default in effect. RRSP deposit information must indicate whether the deposit is spousal or non-spousal. T2033 or letter of direction providing the full details as outlined above signature of all policyowner(s) 16

18 Loans or ILS loans In Good Order Guide A policy loan is a method of accessing funds from an insurance policy. Policy loans are available on Universal life and certain Wholelife plans that accumulate a cash value. Redemption instructions (cheque) Redemption instructions for Electronic Fund Transfer (EFT) policy number(s) plan type servicing agent and agency codes All redemption cheques are forwarded to the policyowner on file, unless otherwise instructed by the policyowner. A separate letter of direction signed by the policyowner is required to forward to the distributor or advisor on file. If no instructions are provided, the cheque will be sent to the owner s address on record. In all cases, a letter confirming the loan details will be sent directly to the policyowner. A personalized pre-printed void cheque from the policyowner on file is required to process an EFT. If no void cheque is available TLC will accept a form or letter of direction completed/ stamped by the policyholder s receiving bank with the bank details. If EFT is to an account not previously on file and request is direct from the policyowner we may call the client to confirm the banking information before processing the transaction. Complete Policy Service Application (PS339) Section 5, or select loan type Provide a letter signed by the policyowner(s) or authorized designate Signature of all policyowner(s), irrevocable beneficiary, assignee and bankruptcy trustee if applicable. If the policyowner is a corporation, the signature, name and title of the authorized signing officer(s) are required. 17

19 Life In-force transactions Pre-Authorized Debit (PAD) Pre-Authorized Debit allows insurance premiums to be withdrawn from the client s bank account on pre-established dates. Establishing Pre-Authorized Debit (PAD) A request to establish a PAD may be made in the following manner. policy number plan type (optional) servicing agent and agency codes (optional) For new requests for PAD, complete the Request for Pre-Authorized Debit Form (PS375), including the owner and payor name (if different), and submit it with a void cheque. To re-establish or change PAD information, provide a letter signed by the policyowner(s) and/or payor, clearly stating the new PAD request, and the effective date of bank account change. Include the signature of payor and policyowner (if different than the payor). Submit the above information with a copy of a void cheque. For an example of the Request for Pre-Authorized Debit Form (PS375), please refer to the Appendix. Non-Sufficient Funds (NSF) If the payment is returned NSF by the bank, the payment is automatically re-presented five business days from the scheduled withdrawal date. If the second payment attempt is returned NSF by the bank, the policy is removed from PAD and placed on direct quarterly billing. A letter is then sent to the owner advising that the company requires either the quarterly premium as stated in the letter or written authorization to resume PAD by the date indicated. The signature(s) of the payor(s) and/ owner(s) (if different than the payor) is required to resume the PAD. Note for all PAD changes A confirmation notice is not sent to the policyowner. However, distributor offices may verify PAD information using the webcappow system. 18

20 In Good Order Guide Resuming Pre-Authorized Debit (PAD) A request to resume PAD may be made in the following manner. policy number(s) plan type (optional) servicing agent and agency codes (optional) Request for Pre-Authorized Debit Service Form (PS375), or Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on the application to clearly indicate the request to resume PAD, or A letter of direction signed by the policyowner(s) and/ payor or authorized designate, clearly stating the request to resume PAD Start date or effective date. Signature of payor and all policyowner(s) (if different than the payor). If banking information has changed, a new pre-printed void cheque is required. (Please refer to Accepted forms of payment on page 7.) Please note that if payor is changing a completed PAD form needs to be submitted. NOTES: 1. Written authorization must be received by the payment expiry date or the policy will lapse. After the 48 th day from the premium due date, evidence of insurability and the completion of the Policy Change Application (LP386) will be required to apply for reinstatement, or as outlined in the policy contract. 2. For term only: If resuming a PAD, all back premiums will be withdrawn as soon as authorization is received in the Head Office of Transamerica Life Canada A request to restart PAD is accepted from the distributor or the advisor or AGA by phone if all details remain unchanged. 19

21 Life In-force transactions Stopping Pre-Authorized Debit (PAD) A request to stop PAD may be made in the following manner. policy number(s) to which the stop PAD applies plan type (optional) servicing agent and agency codes (optional) Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on the application to clearly indicate the request to stop PAD, or A letter of direction signed by the policyowner(s) /or payor or authorized designate clearly stating the request to stop PAD Effective date that the request is to take effect. or fax correspondence from the distributor or the advisor or AGA. In these instances, a confirmation notice is sent to clients to notify them of the change. A phone call from the distributor or from the policyowner /or payor only. NOTE: Advisors cannot stop PAD over the phone. 20

22 Bank change request In Good Order Guide To effectively execute a bank account change for insurance premiums withdrawn we require five business days. Bank account change requests may be made by the owner or payor in the following manner. policyowner(s) name policy number plan type (optional) servicing agent and agency codes (optional) Provide a letter signed by the policyowner(s) and/or payor clearly stating the banking change request. If the named payor or owner for the banking account is different than before, please submit a PAD Form signed by the owner and the payor. Submit the above information with a copy of a pre-printed void cheque. (Please refer to Accepted forms of payment on page 7.) A request for a bank account change can be accepted from the distributor, the advisor or AGA and the policyowner/ or payor through fax, correspondence, and , provided that we receive a copy of the pre-printed void cheque, and the signature of the payor and policyowner on the PAD Form or financial agreement, if the payor is changing; or Easy switch: provide letters from the bank on appropriate letterhead, stamped with a bank stamp and signed by a bank officer and the client. NOTE: If the payor is someone in addition to the owner, the payor must sign in addition to the owner. 21

23 Life In-force transactions Modal payment change request Modal payment changes are made when clients wish to change the frequency of their premium payments, such as moving from quarterly direct billing to annual direct billing. Policy details policyowner name and life insured policy number(s) servicing agent and agency codes (optional) Complete Policy Service Application (PS339), Section 11 "change mode of premium payment", or A letter of direction from the policyowner or authorized designate clearly stating the requested change, Signature(s) of all policyowner(s) Phone call, or fax correspondence from the distributor or the advisor or AGA. In these instances, a confirmation notice is sent to clients to notify them of the change. A phone or fax request from the Distributor, Advisor or policyowner, or An request from the Distributor or Advisor Please note that requests will not be accepted from the policyowner as identity of sender cannot be verified. NOTES: 1. When changing modes, distributors should check with the Customer Service Call Centre to determine the premium amount required to bring payments to the new modal due date. 2. A request to change to monthly PAD from a direct billing mode will require a pre-printed void cheque and a Request for Pre-Authorized Debit Service Form (PS375) with applicable signatures. 22

24 Policy Changes Adding a child to an existing rider In Good Order Guide A child may be added to an existing Children s Insurance Rider on an in-force policy under the provision outlined in the policy contract page. In order to add a new child, the following must apply: The policy must already have an existing Children s Rider coverage. The child to be added must be between 15 days old and 18 years old. The policy must not be in shortage. child(s) name, gender and Date of Birth (DOB) policy number(s) servicing agent and agency codes Complete Policy Service Application (PS339) in remarks section complete with child s name and DOB A letter of direction signed by the policyowner(s) or authorized designate indicating child s name and DOB 23

25 Policy changes Date of birth change Proof of age may be required when a life insurance application has been completed with the incorrect date of birth. all policy number(s) plan type servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to indicate the request to correct the date of birth, or A letter of direction signed by the policyowner(s) or authorized designate clearly stating the request to correct the date of birth Signature of all policyowner(s) Proof of age in the form of a government issued document such as a passport, birth certificate or driver s license 24

26 In Good Order Guide Gender correction To request a gender correction, the following is required. policy number(s) coverage number and name servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to indicate the request to correct the gender, or A letter of direction signed by the policyowner(s) or authorized designate clearly stating the request Signature of all policyowner(s), if applicable Proof of gender in the form of a government issued document such as a passport, birth certificate or driver s license 25

27 Policy changes Exercising the Non-Forfeiture Option A change in the Non-Forfeiture Option is made when the policyowner makes a request in accordance with the policy provisions, such as reduced paid-up insurance or extended term insurance. Exercising the Non-Forfeiture Option may be done in the following manner. policy number(s) plan type servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to indicate Change Policy in accordance with its non-forfeiture provisions on premium due date to Reduced Paid Up, or A letter of direction signed by the policyowner(s) or authorized designate clearly stating the non-forfeiture option that is required Signature of all policyowner(s) and of the irrevocable beneficiary, assignee and bankruptcy trustee, if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officer(s) are required. 26

28 Decrease of face amount or sum insured In Good Order Guide A decrease is requested when the policyowner would like to reduce the face amount or sum insured on their policy. To request a decrease of a face amount or sum insured of a life insurance policy, the following is required. policy number(s) plan type servicing agent and agency codes Complete Policy Service Application (PS339), Section 1 Decrease Sum Insured/ Face Amount, or A letter of direction signed by the policyowner(s) or authorized designate stating request to decrease the face amount Signature of all policyowner(s) and of the irrevocable beneficiary, assignee and bankruptcy trustee, if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officer(s) are required. NOTES: 1. Indicate which coverage is to be decreased and the new face amount required. 2. The minimum decrease amount is $25,000, and the face amount may not be reduced below the plan minimum. Refer to the policy contract for the minimum face amounts for each plan type. 3. Proportional surrender charges may apply to a decrease in the face amount. The policyowner must state their acceptance of the surrender charges prior to processing a decrease of the face amount or the sum insured. 4. When decreasing the face amount or sum insured on a universal life policy, indicate the new planned periodic premium requested. If at any time the new planned periodic premium amount being requested is insufficient to cover the monthly COI, Transamerica Life Canada will send a notification of shortage to the current mailing address on file, in accordance with administration rules. 27

29 Policy changes Cancellation of coverage/benefits or riders To cancel a coverage/benefits or riders from a policy, the following is required. policy number(s) coverage number and name servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to request the deletion of a specific coverage, or A letter of direction signed by the policyowner(s) or authorized designate clearly stating the coverage details to be deleted Signature of all policyowner(s) and of the irrevocable beneficiary, assignee and bankruptcy trustee, if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officer(s) are required. NOTE: 1. To ensure the whole policy is not cancelled, provide as much information as possible regarding the coverage/ benefit or rider to be cancelled. 28

30 Joint coverage to single life option In Good Order Guide This option is requested when one of the lives insured or an annuitant is to be removed from the policy. In order to delete one of the lives insured, the following is required. name of life insured to be removed policy number(s) servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to request the single life option providing full details, or A letter of direction signed by the policyowner(s) or authorized designate providing full details of the request for single life option Signatures of all policyowners and of the irrevocable beneficiary(s), assignee and bankruptcy trustee, if applicable. If the policyowner is a corporation, the signature, name and title of the authorized signing officer(s) are required. Notice of Transfer of Ownership Form (PS371) and Change of Beneficiary Form (PS367) to be used only when ownership and/or beneficiary(s) are changing. A pre-printed void cheque and a PAD form (PS375) if payor or banking is changing. NOTES: 1. For Transamerica term policies, this option is only available if the policy was issued in 2001 or later. 2. If the policy is assigned, signed authorization is required, or a request of release of assignment must be submitted. 29

31 Policy changes Policy splits Policy splits are requested when the policyowners would like to split a joint or multi-life policy into separate life insurance policies. Policy splits are only acceptable on the following policies: Both Transamerica and NN UL joint policies Both Transamerica and NN Term joint policies Multi-life Universal Life policies Multi-life Term policies or Term riders on UL policies Challenger policies with a Challenger Rider or Term rider Multi-life Protector Plus policies or a Term Rider on Protector Plus policies The following is required for a policy split: policyowner(s) and insured(s) name policy number(s) plan type servicing agent and agency codes Complete Policy Service Application (PS339), Section 12 indicating which life insured is to split from the original policy, or A letter of direction clearly stating the split request Signatures of policyowners, assignee(s) and of the irrevocable beneficiary(s), if applicable. If there is a new policyowner(s) on any of the split policies, complete and submit Notice of Transfer of Ownership Form (PS371) with the policy split request for each new or original policy. We require individual forms for multiple owners. Please note that all Transfer of Ownership Forms must be signed by both the current and new owners. If there is a new beneficiary on the split policy, complete and submit a Change of Beneficiary Form (PS367) signed by the new policyowner(s), with the policy split request for each new policy. If new banking information is required for pre-authorized premium payment on the split policy, a Request for Pre-Authorized Debit Service (PS375) is to be completed and submitted with a pre-printed void cheque. NOTES: 1. For Transamerica Life contract policies only, there is a $50.00 service fee per contract issued for splitting policies. 2. For Joint-Last- last to- Die policies, a certificate of divorce is required in the case of divorce. Articles of dissolution are required in the case of business dissolution. 3. Please refer to your policy contract. 30

32 Survivorship In Good Order Guide Upon the death of the first-to-die of the lives insured, insurance may be purchased on the surviving life insured without evidence of insurability. To be eligible for this option, the following conditions must be met: A written application is received at Head Office within 90 days of the date of death of the first joint insured. The surviving life insured has not reached the maximum attained age. Please refer to your policy contract. policy number(s) servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application to request the Survivorship Option and signed by the executor(s), or A letter of direction signed by the policyowner(s) or authorized designate providing full details of the request for the Survivorship Option. Notarized copy of the will, if both lives insured are the policyowners Notice of Transfer of Ownership Form (PS371) with original signatures of the executor(s) and policyowner(s) and new owner Change of Beneficiary Form (PS367) with the new owners signature Request for PAD (PS375) with void cheque, if banking is changing and if one of the owners is deceased NOTES: 1. COI will be based on the attained age and current rates of the survivor at the time the option is exercised. 2. Same class of risk is applicable to the joint insured at the date the original coverage was issued. 3. An annual policy fee will apply to the new policy. 4. Maximum purchase of insurance is the amount of insurance in force immediately prior to the date of death of the first-to-die of the lives insured. 31

33 Policy changes Switch from Joint First-to-Die (JFTD) to Joint Last-to-Die (JLTD) with deductions or premiums to last death To exercise this option, the following restrictions apply: Option is available for switches to JLTD with deductions or premiums to last death only. Must be exercised prior to age 69 of the oldest of the joint lives insured. Not available if there are more than two joint insureds under the applicable coverage. Available after the 5th or 10th policy anniversary (please refer to your JFTD policy endorsement). In order to process the transaction, the following is required. policy number(s) servicing agent and agency codes Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application providing full details of the switch option, or A letter of direction providing full details of the switch option Signatures of all policyowners. New in-force illustration signed by all owners and by the irrevocable beneficiary(s) and assignee(s) if applicable, and submitted by the advisor. If the owner is a corporation, the signature, name and title of the authorized signing officer(s) is required. 32

34 Reduced Paid-Up (RPU) for whole life plans In Good Order Guide A client may elect to have a paid-up policy for a proportionate amount of insurance under the same policy number for which no more premium payments are required. All riders on the policy will lapse once the policy is RPU. To request a RPU, the following is required. policy number(s) Complete Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application providing full details of the request for Reduced Paid-Up, or A letter of direction signed by the policyowner(s) or authorized designate Signatures of all policyowners Irrevocable beneficiary signature, assignee and bankruptcy trustee, if applicable. Original contract must be submitted. 33

35 Policy changes Optimizer (universal life only) Option to automatically decrease a face amount The Optimizer Option is designed to minimize the COI over time to maximize tax sheltering. To be eligible for the Optimizer Option, the following must be in place: The starting face amount of the policy must be at least $250,000. (Please refer to your policy contract.) The COI type is Annual Renewable Term (ART). The minimum face amount may be no lower than the plan minimum. (Please refer to your policy contract.) The start date must be no earlier than either the end of the fifth or sixth policy year, as stated in the specific policy. (Please refer to your policy contract.) NOTE: All requests must be received by a letter of direction at least 30 days prior to the date the Optimization Option is scheduled to begin (or end). Termination of Optimizer Option The Optimizer Option will terminate when one of the following occurs: The COI period has ended for the coverage being optimized. The COI is changed from ART to level. The policy lapses. A written request is submitted by the owner. NOTE: Once optimization has been terminated, it may not be reactivated. 34

36 Underwriting Changes Replacements An Internal Replacement is a contractual change in the type of plan. It can be requested as a new policy or within the same policy. original policy number(s) servicing agent and agency codes Complete Policy Change Application (LP386) or current Insurance Application (LP257) Complete Insured and owner information. Complete Replacement Section 21 of the Policy Change Application (original plan, new plan type and face amount). Questions 29 through 46 must be completed as well. Current full age and amount requirements (LP1416) for each insured, including all children insured under the children s insurance rider coverage. Signature of the owner(s) and the life insured Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required Any additional underwriting requirements will be ordered at the Underwriter's discretion. Provide Disclosure forms (LIRD and written explanation or Disclosure form as applicable per province). Illustration and Supplementary Application if replacing to UL policies. 35

37 Underwriting changes Replacements (continued) NOTES: 1. Assured Life, T-Plan and Transaver policies can be replaced without evidence of insurability to any of the new death benefits available under Estate or Wealth Advantage Life provided the Net Amount at Risk remains the same and there is no change in the class of risk. 2. The original policy or coverage being replaced is terminated and a new policy or coverage is issued upon underwriting approval, using current date, age and rates for the new plan specified. 3. If a new business application was completed, check to ensure that question 16 b) ii is answered YES. If not, an amendment must be issued as the answer to this question is our authorization to terminate or reduce the original policy 4. The effective date of the new policy will be a current date a Term policy replacing to a new Term policy may be dated to save age, but not more than 6 months in the past. If replacing a UL policy, or term rider under a UL policy to a new Term policy, the effective date will be the nearest monthly anniversary date and cannot backdate to save age. 5. Any riders and benefits will be dated the same as the new policy date upon underwriting approval of the replacement and rider/benefit coverage. 6. The replacement policy will be dated no later than the paid-to date of the original policy. The replacement policy will take effect the same day the original policy is terminated, with no break in coverage. 7. Future or back dating is allowed up to 30 days, however, again the original policy will need to be paid to that same future date, with no break in coverage from one policy to the next. 8. The new policy cannot be backdated more than 30 days, even if the original policy has since renewed. 36

38 Non-smoker change In Good Order Guide A change from smoker to non-smoker rates may be available to clients who have not used tobacco or nicotine products for the last 12 months. All applicable inforce policy number(s) servicing agent and agency codes Complete Policy Change Application (LP386) Complete insured and owner information. Complete Section 22 Change to non-smoker Complete Questions 29 through 46. Order a urine/hiv specimen. If the case is joint last to die, evidence of insurability is required on all lives, even if only one life is changing to non-smoker. If the case is joint first to die, evidence of insurability required only on the life that the smoker change is requested. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. Any additional underwriting requirements will be ordered at the Underwriter's discretion. If the owner is a corporation, the signature, name and title of the authorized signing officers are required Any additional underwriting requirements will be ordered at the Underwriter's discretion. NOTES: 1. The effective date of the change will be the closest monthly anniversary date to the approval date provided there is no gain/loss incurred. 2. Original issue age and rates apply 3. If policy has renewed then renewal age and rates apply 4. For Joint policies, a new illustration is used to determine the new Single Equivalent Age by using the same software version, which was used at issue. 5. All children s coverage on NN policies were issued at smoker rates. To change to nonsmoker the same rules above will apply. 37

39 Underwriting changes Removal or reduction of rating/change in risk classification This section is to identify how Insureds change a rating risk class. In order to change the rating or risk class on a policy the following is required: All applicable inforce policy number(s) servicing agent and agency codes Complete Policy Change Application (LP386) Complete Insured and owner information. Complete Section 23 Reduce or Remove rating or Change in risk Classification. Complete Questions 29 through 46. If the case is joint last to die, and one life is rated and would like the rating to be reviewed, evidence of insurability is required on all lives, even if only one life is requesting a change in the class of risk. If the case is a joint first to die, only requirements will be needed on the Insured changing the risk class. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required Any additional underwriting requirements will be ordered at the Underwriter's discretion. NOTES: 1. The effective date of the change will be the closest monthly anniversary date to the approval date provided there is no gain/loss incurred. 2. Original issue age and rates apply. 3. If term coverage has renewed then renewal age and rates apply. 4. For Joint policies, a new illustration is used to determine the new Single Equivalent Age by using the same software version, which was used at issue. 38

40 In Good Order Guide Addition/increase of coverage (new lives/existing insureds) When adding applicable multiple life coverage/ or rider onto an in force policy, the following is required: policy number(s) servicing agent and agency codes Complete Policy Change Application (LP386) for existing life or addition of new life Complete Insured and owner information. Complete Section 27. Addition of Rider/Coverage. Existing life insureds or New proposed insured(s). Complete Questions 29 through 46. For child riders complete Section on Children's Insurance Rider for each child to be insured. Complete Questions 29 through 46 for the main insured. Complete Questions 64 through 72 for each child to be covered under the child rider. If joint life coverage is requested evidence of insurability is required on all lives. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. Any additional underwriting requirements will be ordered at the Underwriter's discretion. NOTES: 1. The effective date will be the closest monthly anniversary date to the approval date provided there is no gain/ loss incurred. 2. Term 30 riders can only be added on a Term 30 base policy. 3. Current Estate/Wealth coverages cannot be added to old UL policies. 4. New insureds can only be added to current offered UL products. 5. Term Select can be added to any existing plan however, the current Term Select is not available on the NN Block of Business. 6. For Challenger and term NN policies the most recent Term Product that was available for the base plan can be added. 7. For TA products prior to 2001 if the base policy has waiver of premium, when adding a term rider, the client must also request waiver of premium on the new rider. 8. The waiver of premium rates will match the original waiver of premium rates. Note: This is the only time that Waiver of Premium can be added after issue. If waiver of premium is not requested, a separate policy will be issued. 39

41 Underwriting changes Cost of insurance change This section outlines the options to change the Cost of Insurance: Change options. Annual Renewable Term (ART), Level Cost of Insurance and Level Cost of Insurance with guaranteed Surrender Values. An insured may change from an ART cost of insurance to Level cost of insurance as per their contract at current rates on an attained age basis to age 80. An insured may change from a Level Cost of Insurance to an ART Cost of Insurance at original age and rates to age 80. policy number(s) plan type change must be requested prior to age 80 (see policy contract) servicing agent and agency codes If no underwriting is required, complete the Policy Service Application (PS339), use the Remarks regarding request # / or Other changes not requiring underwriting section on this application providing full details of the request to change the Cost of Insurance, or A letter of direction clearly stating the request to change the Cost of Insurance may be submitted. If underwriting is required due to a change in the Net Amount at Risk, then the Policy Change Application (LP386) should be completed Complete Insured and owner information. Complete Section 25 "Change cost of Insurance". Complete Questions 29 through 46. If the cost of insurance is lower, underwriting will be required due to anti-selection. EAV, WAV and Prosperity state the following with respect to the Option to Change Coverage Types: Such changes in coverage type will not require evidence of good health or insurability. Refer to the contract provisions. Unless the switch in cost permitted under these contracts will always we higher, we cannot say that underwriting will be required. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. An administrative fee of $ is required to be submitted with the application. Any additional underwriting requirements will be ordered at the Underwriter's discretion. NOTES: 1. Switching from Increasing Death Benefit with Level Cost to Increasing Death Benefit with 20 Plus COI is NOT permitted. 2. The effective date of the change will be the closest monthly anniversary date to the approval date provided there is no gain/loss incurred. 3. The administrative fee cannot be withdrawn from the cash value. 4. For Joint policies, a new illustration is used to determine the new Single Equivalent Age by using the same software version, which was used at issue. 40

42 In Good Order Guide Death Benefit change The following information is required when changing the death benefit. policy number(s) servicing agent and agency codes Complete Policy Change Application (LP386) Complete Insured and owner information. Complete Section 26 "Change of Death benefit option". Complete Questions 29 through 46. If the net amount of risk increases as the result of the death benefit option change, underwriting will be required and an administrative fee of $150 is required to be submitted with the application. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. Any additional underwriting requirements will be ordered at the Underwriter's discretion. NOTES: 1. Switching from Increasing Death Benefit with Level Cost to Increasing Death Benefit as the result of the death benefit option with 20 Plus COI is NOT permitted. 2. The effective date of the change will be the closest monthly anniversary date to the approval date provided there is no gain/loss incurred. 3. The administrative fee cannot be withdrawn from the cash value. 4. For Joint policies, a new illustration is used to determine the new Single Equivalent Age by using the same software version, which was used at issue. 41

43 Underwriting changes Reinstatements Owner(s) may reinstate a policy from a lapsed status within the time period specified in the contract. Reinstatements on surrendered policies are not allowed. policyowner(s) name and all life insureds original policy number(s) servicing agent and agency codes Complete Policy Change Application (LP386). Complete Insured(s) and owner(s) section. Complete Section 24 "Reinstatement". All Questions from 29 through 46 must be completed for all insureds and all children covered under the childrens rider at time of application, that were in force prior to lapse. All current and back premiums required at time of submission. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. Any additional underwriting requirements will be ordered at the Underwriter's discretion. NOTES: 1. Reinstatements cannot be approved with a Delivery (i.e. amendment) 2. A cheque is required for the outstanding premiums at time of submission. Note, we do not withdraw premiums through special PAD. 42

44 Substitution of Life Insured In Good Order Guide Clients can modify an existing policy by substituting one primary life insured for another primary life insured. Please refer to the policy contract. The new primary insured must be less than 70 years old. The following is required: policy number(s) servicing agent and agency codes New business application on the new life. Select the Insured Exchange Option on page 1. Full age and amount requirements. The substitution of the Life Insured must be requested for all coverage s relating to that individual under the same policy. An administrative fee of $150 is required to be submitted with the application. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. any additional underwriting requirements will be ordered at the Underwriter's discretion NOTE: The effective date of the change will be the closest monthly anniversary date to the approval date provided there is no gain/loss incurred. 43

45 Underwriting changes Exercise Purchase Option Rider (POR) Clients with a Purchase Option Rider are eligible to purchase additional disability coverage without proof of health. Proof of income is required in addition to the following: original policy number(s) servicing agent and agency codes Application to Exercise Purchase Option rider and Financial Evidence is required (PC385). Copy of latest tax return. Signature of the owner(s) and the life insured. Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required NOTE: The effective date of the change will be the closest monthly anniversary date to the approval date provided there is no gain/loss incurred. 44

46 Conversion In Good Order Guide A conversion is a contractual provision in the policy enabling the policyowner to convert the current term or permanent insurance coverage to another type of universal life insurance coverage for the same or less face amount without having to provide evidence of insurability. The following is required: Convertible Original Policy number. servicing agent and agency codes Conversion with no underwriting: Provide a completed current Conversion Application (LP1285). Conversion with underwriting: If applying for a conversion with Change of Risk Class or an Increase in face amount, please complete Policy Change Application (LP386): Complete Section 20, Questions 29 through 46. For all conversions, please also include: Signature of the owner(s) and the life insured(s). Include the date signed, location, signatures of witness(es), preferred/irrevocable beneficiary and assignee if applicable. If the owner is a corporation, the signature, name and title of the authorized signing officers are required. Provide signed and dated Illustration and Supplement to the Life Insurance Application. NOTES: 1. The effective date of the conversion will be the closest monthly anniversary date of original policy. 2. Conversions can be backdated up to 6 months to save age on a conversion of term policy only if the term policy being converted is attached to a UL policy then backdating is not allowed. 3. The original policy being converted must be in force and paid to a current date in order to qualify for the conversion. Converting a Policy with a Critical Illness Protection Rider If the Term life insurance coverage is converted to an eligible product, the CI rider must also convert to a CI T100 rider (currently the eligible plan) or terminated. 1. The CI (10/20/65) Protection Rider can be converted to the CI Term to 100 Protection Rider. 2. Conversion ages for CIT10 and CIT20 and CIT65 is to age The T100 rider must have the same number of conditions as the original rider being converted i.e., converted condition rider converts to a T100 4 condition rider and a 25 condition rider converts to a T condition rider. 4. Conversions with a CI rider attached to it cannot be back dated to save age beyond the original effective date of the original policy. 45

47 Underwriting changes Term Exchange The Term 10 Exchange program provides the opportunity for current Term 10 clients to exchange their Term 10 coverage for either a Term 20 or Term 30 coverage without having to repeat the application process and without having to provide any further evidence of insurability. This is applicable to 10 year term coverages on or after the 1st coverage anniversary and up to and including the 5th coverage anniversary. policy number(s) coverage number(s) Complete Section 7 of the Policy Service Application with signature(s) of policyowner or, Letter of direction signed by the policyowner. NOTES: 1. The amount requested for the exchange must be equal to the sum insured/face amount under the existing coverage. 2. A partial exchange is not available 3. Term Exchange is done at attained age. 4. Back dating to save age is not available under the program 5. Term Exchange is available on eligible coverages on or after the 1st coverage anniversary and up to and including the 5th coverage anniversary 6. A policy fee will apply for all riders that are exchanged to a stand-alone coverage. 7. The Term Exchange program may not be combined with any other policy change requests 8. The program is not available if the policy is on waiver. 9. Addition of new riders or optional benefits is not available at time of exchange. 10. Exclusions, rating and or policy assignments will be continued under the new Term 20 or Term 30 coverage. 11. Critical Illness Protection Riders are not part of the Term Exchange program If a Term 10 policy with a Critical Illness Protection Rider is exchanged, the associated CI Rider will be terminated. 46

48 Titles Duplicate policy In Good Order Guide To make a request for a duplicate policy, the policy must be in force. A payment of a $50 duplicate policy fee per request is required. In order to process this request, the following is required: policy number(s) servicing agent and agency codes Complete the Policy Service Application (PS339), Section 10, Lost Policy Declaration and Indemnification Request For Duplicate Policy, or A letter of direction signed by the policyowner(s) or authorized designate Signature of all policyowner(s). If the owner is a corporation, the signature, name, and title of the authorized signing officer(s) are required. NOTE: The $50 duplicate policy fee must be received with each request. 47

49 Titles Ownership changes, beneficiary changes and name changes Ownership change requirements Policy details New owner information current owner(s) name(s) policy number new owner(s) name(s) SIN complete Canadian address DOB relationship to current owner government-issued identification Notice of Transfer of Ownership Form (PS371) Questions 2 and 3 must be completed. All questions must be answered including "main purpose of insurance" for UL policies. If required, Identity and Third Party Determination Form (IP-LP782) and Corporate/ Non-Corporate Entity/Trust Ownership Form (IP-LP1166) and the International Tax Classification for an Entity Form (IP-LP1601) must be completed for all UL policies. Signature(s) of current owner(s) Signature(s) of new owner(s) Irrevocable beneficiary, or assignee signature, if applicable Witness signature Advisor verification section NOTES: 1. Policy must be in force. 2. Only non-registered policies qualify for ownership changes. 3. If changing a corporately owned policy, the new corporate owner s articles of incorporation or other legal documents by which the corporate entity is incorporated (legally created or continued) are required. Follow the AML guidelines for all required documents. 4. The irrevocable beneficiary s signature is not required in Quebec for the transfer of ownership. However, the new owner takes ownership subject to the interests of the irrevocable beneficiary. 48

50 In Good Order Guide Ownership change requirements (continued) Type of Account Corporation (Complete section 1, 2 and sign Certification section) Non-Corporate Entity (Complete section 1, 3 and sign Certification section) What information must be submitted Name and address of the corporation Names of all directors of the corporation Names and addresses of all individuals who directly or indirectly own or control 25% or more of the shares of the corporation. (If this information cannot be obtained, we must keep a record explaining why beneficial ownership could not be determined). Certificate of Incumbency International Tax Classification for an Entity Form (IP-LP1601) Name and address of the entity Name and address of all individuals who directly or indirectly own or control 25% or more of the entity. (If this information cannot be obtained, we must keep a record explaining why beneficial ownership could not be determined). Certificate of Incumbency International Tax Classification for an Entity Form (IP-LP1601) And include one of the following: Partnership agreement Articles of association Other similar record that confirms the entity s existence Trust (Complete section 1, 4 and sign Certification section) Name and address of all trustees Name and address of all known beneficiaries Name and address of all known settlers of the trust Certificate of Incumbency International Tax Classification for an Entity Form (IP-LP1601) And include one of the following: Trust Agreement Trust Deed Declaration of Trust Other similar record that confirms the entity s existence 49

51 Titles Beneficiary change requirements New beneficiary information owner(s) name(s) policy number Name and DOB of the new beneficiary. Relationship to the owner. Type of beneficiary (revocable or irrevocable). Indication of primary or contingent. Percentage (%) to be divided (cannot be expressed in dollar amount) if multiple beneficiaries are indicated, for both primary and contingent multiple beneficiaries. Critical Illness Benefit and Early Detection Benefit: if not completed, the beneficiary will be the Life Insured. If the Life Insured is a minor, the beneficiary is the Owner, if living, of the Owner's estate if deceased. If the beneficiary is a minor, the DOB (or proof of age) and the name of the trustee for the minor is required, except in Quebec, where the death benefit will be paid to the tutor of the minor. Change of Beneficiary Form (PS367), or A letter of direction by the client Signature(s) of current owner(s) Witness signature Irrevocable beneficiary signature, if applicable. NOTES: 1. Policy must be in force. 2. Policy Service Application (PS339) Section 9, "Change Name of Life Insured, Owner, Beneficiary" can only be used to change the beneficiary s name, and it may not to be used to change the beneficiary. 3. Where a minor is designated as an Irrevocable beneficiary, consent to any policy or beneficiary changes will only be permitted if Transamerica is provided with a court order, satisfactory to it, authorizing the specific change being requested. 50

52 In Good Order Guide Name change requirements Policy details New name information current owner(s) name(s) policy number Complete Policy Service Application (PS339), Section 9, "Change Name of Life Insured, Owner, Beneficiary or letter of direction". new name(s) reason in writing new and old signature(s) witness signature NOTES: 1. A copy of the name change documentation must be submitted, such as a marriage certificate or court order. 2. A corporate name change requires a certified copy of the official document used by the federal or provincial authority. Successor or contingent owner A Successor Contingent Owner Form is completed when policyowners would like to assign another individual to succeed them should they predecease the life insured. Policy details Successor owner information current owner(s) name(s) policy number successor owner(s) name(s) SIN address and DOB relationship to owner Successor Owner Form (PS373)* signature(s) of owner(s) signature(s) of successor owner(s) irrevocable beneficiary signature, if applicable witness signature *For an example of the Successor Owner Form PS373, please refer to the Appendix NOTE: If a corporation, the Identity and Third Party Determination Form (IP-LP782) and Corporate/Non-Corporate Entity /Trust Ownership Form (IP-LP1166) are required. 51

53 Titles Assignments A life insurance policy can be assigned as collateral against a loan that a policy holder may have secured at a financial institution. policy number(s) Complete Collateral Assignment Form (PS391) page 1, or Bank assignment form Signature of all policyowner(s) Signature of Assignee Signature of Irrevocable Beneficiary(s) (if applicable) If the owner is a corporation, the signature, name, and title of the authorized signing officer(s) are required. Release of Assignments Once the assignment has been released from the financial institution the normal contractual rights return to the policyowner. policy number(s) Complete in full Collateral Assignment Form (PS391) page 2, or Bank release form Signature of Assignee 52

54 General administration Address change request To make an address change, the following information is required: Phone, , or webcappow authorization Policy Service Application (PS339)*, Section 8 new address, or A letter of direction Policy number(s), owner name and life insured Signature of the policyowner(s) or authorized designate *For an example of the Policy Service Application (PS339), please refer to the Appendix. Address change instructions can be received over the phone by either the client or the MGA, dealer or distributor office. The MGA, dealer or distributor may send an to [email protected]. Address changes can be updated on webcappow, provided the distributor or dealer has the appropriate agreements with Transamerica Life Canada. NOTES: 1. Agents cannot submit an address change under an LPOA, nor are they permitted to call in an address change on behalf of the client. 2. Requests submitted by the agent must have the client s signature. 53

55 General Administration Limited Power of Attorney (LPOA) The Transamerica Life Canada LPOA (LP183) allows clients to grant their advisors the authority, verbally or otherwise, to act on their behalf to request fund transfers, premium allocation changes and reinvestments and to provide allocation instructions for new additional deposits. Surrenders are not included. See the Appendix for an example of LP183. General requirements LPOA restrictions Required information Only a Transamerica Life Canada LPOA Form (LP183) will be accepted. Third-party LPOAs will not be accepted. All sections of the Transamerica Life Canada LPOA Form must be completed in full. Name of all policyowner(s) and life insured Name of advisor GA or SA codes Policy number(s) NOTES: 1. Do not send LPOAs to Transamerica Life Canada without the policy number. 2. It is preferred that a LPOA Form be completed for each individual policy number. Owner authorization Date Owner(s) full name(s) address and signature Witness full name, address and signature Signature of Irrevocable Beneficiary(s) (if applicable) NOTES: 1. The advisor can witness the signature(s). 2. The signature must be that of the contract owner. Advisor s indemnity Date Advisor s full name, address and signature Witness full name, address and signature NOTES: 1. The advisor must be the advisor on record, as only this advisor can submit instructions under the LPOA. 2. Joint advisor LPOAs are not acceptable. 3. The owner can witness the signature. 54

56 In Good Order Guide General requirements (continued) NOTES: 1. LPOAs cannot be used for surrenders. 2. If the LPOA is altered, it will be rejected. 3. An LPOA is non-transferable. 4. Transamerica Life Canada must receive the original copy with the original signature(s). 5. Incomplete requests will be rejected and the documentation will be returned to the distributor. Advisor instructions when an LPOA or Letter of (LOA) is on file with Transamerica Life Canada In the event that an advisor is acting under an LPOA, the advisor must sign the request of a transaction. A document stating that the advisor has an LPOA or an LOA is not acceptable without the advisor s signature. The signing of these requests will ensure that each request has been authorized and endorsed by the advisor acting under the LPOA or LOA. A separate form is required for each policy. When an advisor uses an LPOA for a transaction, Transamerica Life Canada is relying on the advisor s representation that the client was consulted on, and has agreed to, the transaction. NOTE: If a request is received indicating that an LPOA or LOA is on file, but we do not have one on file, we will return the request NGO and request the LPOA be submitted to complete the transaction. The transaction requested will processed on the date we receive the LPOA or LOA. Allowable transactions under an LPOA The only transactions allowed with an LPOA are: future premium allocation changes fund transfers PAD and additional deposit allocation changes reinvestments of maturing GIO terms Monthly Deduction Interest Option (MDIO) or pick one deduction instructions 55

57 Death of an owner Sole owner An ownership change occurs when satisfactory proof of the owner s death is received by Transamerica Life Canada. Satisfactory proof of death is a notarized copy or original copy of the death certificate. If no contingent owner is named, the ownership will change to The estate of the deceased. Contingent owner If there is a contingent owner on record, then the ownership is automatically changed to the contingent owner s name. Multiple owners When a policy has two or more owners and one of those owners dies, you must first determine whether the policy is joint or tenants in common. This will determine the proper requirements needed to change the ownership. Joint When a policy has joint ownership the rights of the deceased automatically go to the survivor. The only requirement needed to proceed is a certified copy of the death certificate. Owner change forms are not required for policies that are designated as joint ownership. Tenants in common spousal For policies that are tenants in common, and the owners are spouses, note that we will administer the ownership change in accordance with what is set out in the will. The only requirements needed to proceed are a certified copy of the death certificate and copy of the deceased s will. Owner change forms are not required for policies where the deceased is a spouse. Tenants in common non-spousal For policies that are tenants in common, and the owners are not spouses, the executor of the estate must act on behalf of the deceased, and must, along with the other owner(s), provide the following items: notarized copy of the deceased s will certified copy of the death certificate owner change form, completed in full the signature of the executor of the deceased in place of the signature of the deceased owner 56

58 In Good Order Guide Claims processing Reporting of death claims The first report of a claim should be sent to the Claims Department immediately by fax at (416) or by to [email protected], providing the following information and noting whether the claim forms have been forwarded to the beneficiary: deceased policyholder s name policy number(s) date and place of death (Canada or overseas) cause of death (if known) If the policy is in force, the beneficiary should complete the Claimant s Statement (CL213). However, if the policy has an absolute assignment, the assignee should complete the Claimant s Statement. On collateral assignments, both the beneficiary and the assignee should complete the Claimant s Statement, if benefits are to be paid to both parties. If the beneficiary is a company, the Claimant's Statement must be signed by 2 signing officers of the company or by 1 signing officer with the company seal. The Physician s Statement Proof of Death (CL990) is to be completed by the physician in attendance during the last illness; alternatively forward the official death certificate issued by the provincial government, or a notarized copy, to the Claims Department. Important: Only originals or notarized copies will be accepted. Originals will only be returned upon request. The policy contract and any newspaper reports should also be sent to the Claims Department. Upon approval, benefits payable can be mailed either directly to the claimant from Head Office, or to the distributor office for delivery. Death claim requirements Contestable claims Policies less than two years old: For all contestable claims, requirements include a Claimant s Statement, a Physician s Statement, Proof of Death and a copy of the insured s birth certificate, or similar proof of age. We also request the return of the original policy, if available. We will investigate the insured s medical history for the five-year period prior to the date of issue. Policy age two to five years: For amounts $50,000 and up, the requirements are as stated above. In addition, the Physician s Statement is required to determine the cause of death and whether or not further investigation into the insured s medical history should be pursued. Policy age five or more years: For amounts below $250,001, we require a Claimant s Statement, an original or notarized copy of the death certificate (provincial or funeral directors) or a Physician s Statement and proof of age. For amounts of $250,001 and over, the requirements are as stated above, except that a funeral director s Statement of Death is not acceptable without a Physician s Statement. NOTES: 1. For Quebec claims where the spouse is the beneficiary, we also require the completion of Form 19BEN to confirm spousal status. 2. For any claim where the beneficiary is the estate, we require a notarized copy of the will. The executor should complete the Claimant s Statement. 57

59 Death of an owner Express Claims Always check with claims personnel first Where a policy is more than 10 years old with a living named Beneficiary, the claim may be eligible for Express handling. The total Face Amount payable must be $50,000 or less. There must be no registered funds and no significant changes on the policy during the last 10 years. If the policy meets these criteria, all we need is an obituary as proof of death or the name of the Funeral Home and confirmation of the Beneficiary s mailing address in order to proceed with payment. Reporting of Disability and Waiver of Premium claims Disability claims should be reported to the Claims Department immediately. The Report of Claim Claimant s Statement Form (CL334) should be completed by the Insured and his/her treating physician and forwarded to the Claims Department, along with any correspondence exchanged with your office and the claimant. The eligibility period (EP) varies. It is recommended that the advisor review the client s policy to advise on the EP. Upon approval, monthly benefits payable under disability income plans or premium refunds under Waiver of Premium Riders can be mailed directly to the claimant from Head Office. For ongoing waiver of premium or disability insurance claims, the Claims Department conducts periodic reviews of the claimant s medical and/or financial status as appropriate. Reporting of Critical Illness (CI) claims Critical Illness claims should be reported to the Claims Department immediately. The Critical Illness Claim Claimant s Statement (CL1477) and Attending Physician s Statement (CL1476) should be completed by the Insured and his physician and forwarded to Claims Department, along with all relevant medical reports. The eligibility period varies. It is recommended that the advisor review the client s policy to advise on the eligibility periods. Upon approval, benefits payable can be mailed either directly to the claimant from Head Office, or to the distributor office for delivery. Reporting of Critical Advantage TM claims Critical Advantage claims should be reported to the Claims Department immediately. The Critical Advantage Claimant s Statement (CL1007) should be completed by the Insured and forwarded to Claims Department, along with all relevant medical reports. A copy of all the documents are forwarded to Best Doctors to open a file and contact the Insured to initiate the interconsultation process. 58

60 Transamerica Life Canada is a leader in the Canadian marketplace, providing a broad range of individual life insurance and protection products and services, all designed to help Canadians protect against financial risk and transform their tomorrows. Distribution is through a number of channels, resulting in a national network of thousands of independent advisors. For over 100 years, Transamerica Life Canada has been delivering on its promises and intends to continue that strength and stability to be able to keep making the things that make tomorrow better. Transamerica Life Canada is an Aegon company. As an international insurance, pensions and asset management company based in The Hague, Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon companies employ over 23,000 people and have millions of customers across the globe. Giving back to the community in different ways is a part of who we are at Transamerica Life Canada. Each year, we allocate funds to our in the spirit of hope charitable giving program which donates to numerous non-profit organizations that serve health, community and well-being causes across the country Yonge Street Toronto, Ontario M2N 7J8 For more information, please visit our website at and go to the advisor login section. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value. TM Trademarks of Aegon Canada ULC and/or its affiliated companies. Aegon and the Aegon logo are registered trademarks of Aegon N.V. Aegon Canada ULC and its affiliated companies are licensed to use such marks. Transamerica and the pyramid design are registered trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use such marks. LP1352 4/14