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

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

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

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

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

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

32 Returned Mail Unknown Address Original returned mail item will be sent to the Agency, with a request to redirect mail to the client and provide the applicable service centre with the new address. Agent copies of future notices will continue to be sent, marked as unknown address, until a current address is provided to the Service Centre. Form(s) Required Available on Extranet N/A Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) N/A None Effective Date of Transaction N/A Acknowledgement of Transaction N/A Additional Information Memo sent by Service Centre requesting that a new address be provided for the policyowner and the attached returned mail be redirected to the policyowner. Last Revision Date MM-YYYY Individual Life Insurance Page 32 July 15, 2009

33 COVERAGE/POLICY CHANGES AND REQUESTS Addition of Coverage/Benefits Include a cheque covering one monthly premium for the new coverage requested if the client wishes to be covered on the date the request is signed, in accordance with the terms of the Interim Insurance Agreement. For Traditional products, the additional coverage will be based on the then current rates and the attained age. For UL products, the additional coverage will be based on the attained age and the then current rates for additions (which differ from new issue rates). During the file review, the same amount of PAC premiums continue to be withdrawn as before the change request. After acceptance, a special premium is withdrawn in the case of PAC payment or billed with other methods of payment, if applicable. Universal life policy: Enter the new Target Premium on the F4A, since it is not adjusted automatically. Attach proof of insurability for the Policyowner if the contract contains WPD, WPDis or CAD. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction The effective date of the addition is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). date to save age must be requested if the effective date is to be earlier than the signature date of the form. Individual Life Insurance Page 33 July 15, 2009

34 Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 34 July 15, 2009

35 Addition of Coverage - Home Protection Applies to a new mortgage/increase to existing mortgage/2nd mortgage. Does not apply to credit line. The amount of the increase in coverage corresponds to the difference between the new mortgage balance and the closing balance of the original mortgage. For the Home Protection 1 product, the additional coverage will be based on the original rates in effect at the time of issue, but at the attained age, otherwise it will be based on the then current rates and the attained age. The additional coverage will have the same expiry date as the original contract. No minimum face amount for an addition. If the existing contract has Disability coverage, the addition of coverage will include the Disability coverage. If the Disability coverage is refused or issued with an exclusion on all insureds, we will issue the addition coverage under a separate contract with a reduced policy fee of $ However, if the Disability coverage is accepted for at least one of the insureds, the addition will be added under the existing contract. 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. OR F4A - Request for Change OR for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. New Amortization Schedule & proof of closing/current balance of the original mortgage before the increase. (from Financial Institution). Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction The effective date of the addition is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). date to save age must be requested if the effective date is to be earlier than the signature date of the form. Individual Life Insurance Page 35 July 15, 2009

37 Addition/Increase of Disability Benefit Coverage - Home Protection If within the first year following the approval of the original policy contract, the underwriting requirements are based on twice the original face amount. Following that period, the underwriting requirements are according to the original face amount. For an increase in Disability Benefit Coverage, the existing disability coverage is removed and a new coverage added at the attained age. For the Home Protection 1 product, the additional coverage will be based on the original rates in effect at the time of issue, but at the attained age, otherwise it will be based on the then current rates and the attained age. Addition of a new Disability Benefit Coverage is added on all existing life coverages under the policy contract, established at the attained age and rate, and the face amount corresponds to the current balance of the mortgage at the effective date of the addition. Disability Benefit Coverage may be added for only one of the lives insured, however, each live coverage for that life insured, must include the Disability Benefit Coverage. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. New Amortization Schedule & proof of closing/current balance of the original mortgage before the increase. (from Financial Institution). Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction The effective date of the addition or increase is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). date to save age must be requested if the effective date is to be earlier than the signature date of the form. Individual Life Insurance Page 37 July 15, 2009

39 Addition of GPR A3 and A4 Modules (Guaranteed Premium Rider) If a client refuses the addition of the GPR, have the client sign the refusal letter to conserve a proof of the client s choice. A form letter is available in Interface. Please provide us with a copy of this letter to keep in the client s file. 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. OR F4A - Request for Change for each concerned contract. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction The effective date of the addition is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). date to save age must be requested if the effective date is to be earlier than the signature date of the form. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 39 July 15, 2009

40 Addition of Mortgage Guaranteed Insurability Benefit (MGI) Home Protection The face amount will be the lower of 50% of initial face amount or $100, Age requirements (applies to all lives insured for joint coverages): 18 to 40 years of age. Proof of the current mortgage balance is not required. The benefit is not available if there is an extra premium or one of the joint insureds has an extra premium. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction The effective date of the addition is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). date to save age must be requested if the effective date is to be earlier than the signature date of the form. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 40 July 15, 2009

41 Addition of a Child to an Existing Child Module or Rider It is preferred that the Company be informed if a child is born after a Child Module or rider has been issued. The child is covered according to the terms of the contract. A reminder is sent to the agent, two months prior to the conversion option of each child. Adopted children are admissible to the Child Module without underwriting unless the clause stipulates otherwise. 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 F4A - Request for Change for each concerned contract. A written request. Acceptable Means for Submitting the Request Signed request by policyowner and/or Agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature preferred but not mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Confirmation to the Agency by or memo. Last Revision Date July 2009 Individual Life Insurance Page 41 July 15, 2009

42 Association The policy contract(s) or individual coverages will be associated to the policy contract with the earliest effective date and will adopt the same policy fee structure. The policy contract(s) to be associated must be of the same family of products. It is possible to associate an individual life coverage to a policy with a joint coverage, but not the reverse. If each of the respective policies has a different owner, then a F30A Designation of Ownership will be required to associate the policy contracts, along with a F5A Beneficiary Change and F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations (applies to all Universal Life policies). If WPDis on the contract onto which we are associating, insurability declarations are required for the policyowner(s) since it results in an increase in risk. For each contract, the Property rights section of the F4A must be completed. If this results in a change of ownership onto the contract which we are associating, the F30A is also required. 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 F4A - Request for Change for each concerned contract. A change of Ownership will require: F30A Designation of Ownership F5A - It is recommended that the new policyowner designate a new beneficiary. F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations for Universal Life policies. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. Refer to Transaction Fees Individual Life Insurance Page 42 July 15, 2009

43 Effective Date of Transaction The monthly anniversary of the policy with the earliest effective date. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 43 July 15, 2009

44 Cancellation of Coverage/Benefits/Life Insured PAC will not be suspended while the request is in progress. Any excess amount withdrawn will be applied as a credit to future premiums due or reimbursed if there is more than 3 months in excess. All benefits attached to the coverage being cancelled will also be terminated, unless the benefits are transferrable on another of the life insured s coverage remaining on the contract. If the Coverage being cancelled is replaced with a new Coverage, then a Disclosure Statement is required. If traditional contract with surrender value attached to the insured being cancelled, the reimbursement of a loan and/or the payment of premiums in arrears, if applicable, will be processed before proceeding with the instalment of the surrender value. For a Universal Life policy: If prior to the request, the Target Premium and Minimum Premium are equal, the Target Premium will be adjusted to the new Minimum Premium, following the transaction. If prior to the request, the Target Premium is higher than the Minimum Premium, it is not adjusted following the transaction. If the Policyowner wishes to change the Target Premium, instruct us on the change request. If surrender charges are applicable, they will automatically be withheld from the capitalisation fund. Surrender charges will be automatically deducted from the Accumulation Fund, if applicable. The transaction fees are automatically deducted from the Accumulation Fund if the balance of the fund allows it; otherwise, they are billed if not submitted with the request. 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. OR F4A - Request for Change for each concerned contract. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. Refer to Transaction Fees Individual Life Insurance Page 44 July 15, 2009

45 Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 45 July 15, 2009

46 Decrease of Coverage Home Protection/Lump Sum Payment Proof of the lump sum payment from the financial institution will be required. No decrease of coverage will be processed for an amount less than $5, (cumulative within a one year period). The then current face amount is decreased as follows: New face amount = [Base face amount X (100 - %)] Or: % = (Lump sum payment Mortgage balance prior to lump sum payment The Disability Benefit Coverage and the benefits are adjusted accordingly. 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. OR F4A - Request for Change for each concerned contract. New Amortization Schedule & proof of closing/current balance of the original mortgage before the increase. (from Financial Institution). Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 46 July 15, 2009

47 Change from Joint Last to Die to Individual Life Restricted to certain products E.g. Genesis 4 and some version of the Flex Account (refer to the policy contract for details). Refer to the policy contract wording for detailed conditions. Form(s) Required Available on Extranet N/A Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) N/A Refer to Transaction Fees Effective Date of Transaction N/A Acknowledgement of Transaction N/A Last Revision Date MM-YYYY Individual Life Insurance Page 47 July 15, 2009

48 Change in Death Benefit Option Refer to the Policy Contract for the applicable provisions. 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 F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. Refer to Transaction Fees Effective Date of Transaction The effective date of the change is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 48 July 15, 2009

49 Change in Dividend Option: to Additional Insurance Refer to the contract stipulations for available options. 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 F4A - Request for Change for each concerned contract. F3A - Addition of Coverage - Signature required for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction The effective date of the change is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). Acknowledgement of Transaction Confirmation to the Agency by or memo. Last Revision Date July 2009 Individual Life Insurance Page 49 July 15, 2009

50 Change in Dividend Option: other than Additional Insurance Refer to the Policy Contract for the applicable provisions. 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 F4A - Request for Change for each concerned contract. A written request. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Confirmation to the Agency by or memo. Last Revision Date July 2009 Individual Life Insurance Page 50 July 15, 2009

51 Change in Mortality Costs (YRT to Level) Contractually available for most Universal Life policies (except for previous Seaboard Life and National Life products which do not contain this provision, contact your Service Centre). Meridia and Genesis: No change permitted prior to 36 months, unless within the first 13 months and proceeded with as a Change in Type of Plan. For certain versions of the Genesis product Joint Last to Die Coverage: No change permitted prior to 120 months. A change from Guaranteed Level Cost of Insurance to YRT cost of insurance is not available. The change is made without proof of insurability according to the same risk and smoking class as at issue. If the death benefit is Face amount only, the insurance amount is reduced by an amount equal to the accumulation fund and the death benefit is changed to face amount + fund. If the current face amount is to be maintained, satisfactory evidence will be required (unless otherwise specified in the policy contract). The level cost of insurance corresponds to the cost in effect at the time of the change according to the insured's attained age and based on the then current level rates, which differ from the new issue rates, unless they were guaranteed in the policy contract. If prior to the request, the Target Premium and Minimum Premium are equal, the Target Premium will be adjusted to the new Minimum Premium, following the transaction. If prior to the request, the Target Premium is lower than the Minimum Premium, it is not adjusted following the transaction. If the policyowner wishes to change the Target Premium, instruct us on the change request. Transaction fees will be automatically deducted from the Accumulation Fund or billed if not submitted with the request. For Non-Contractual requests for previous Seaboard Life Insurance Universal Life products, please refer to IAP Form 5042 available upon request. 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. OR F4A - Request for Change for each concerned contract. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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 the policy is assigned, require authorized signatures or a Release of assignment. Individual Life Insurance Page 51 July 15, 2009

52 Fee(s) Refer to Transaction Fees Effective Date of Transaction The effective date of the change is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). date to save age must be requested if the effective date is to be earlier than the signature date of the form. Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 52 July 15, 2009

53 Change to Non-Smoker Unless specified otherwise in the contract clauses, the following rules are applicable. Prior to the 5th anniversary of the coverage: the change is based on the age at issue and the premium is established according to the original rate. Following 5th anniversary of the coverage: the change is based on the attained age, unless specified within the policy contract. The premium is established according to the original rate. Protection on the life of a child issued (before age 15) at the regular rate and the insured is now currently 15 years of age or more, it is possible to change to the non-smoker rate at the attained age without any fees for all plans. If prior to the request, the Target Premium and Minimum Premium are equal, the Target Premium will be adjusted to the new Minimum Premium, following the transaction. If prior to the request, the Target Premium is higher than the Minimum Premium, it is not adjusted following the transaction. If the policyowner wishes to change the Target Premium, instruct us on the change request. Maxirance: If a child, between 15 and 20 years of age, with a permanent option issued at age 0-14, submits a non-smoker declaration and satisfactory proof of insurability, there is a 40% increase in the total insurance coverage (base face amount + value of insurance bonus at that time). Does not increase cash values, if applicable. AXIS: If a child, between 15 and 20 years of age, with a permanent option issued at age 0-14 submits a non-smoker declaration and satisfactory proof of insurability, there is a 40% increase in insurance coverage. Does not increase cash values, if applicable. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage - Signature required for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. Refer to Transaction Fees Individual Life Insurance Page 53 July 15, 2009

54 Effective Date of Transaction The effective date of the change is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 54 July 15, 2009

55 Change in Risk Class Change in Risk Class can be reviewed two years following the last approval date. This request can only be made on policy contracts issued if preferred underwriting was available at the issue date and is still available and subject to the minimum insurance coverage requirements. The age and premium rates at issue will be used, if the request is made within 5 years of the date of issue. If prior to the request, the Target Premium and Minimum Premium are equal, the Target Premium will be adjusted to the new Minimum Premium, following the transaction. If prior to the request, the Target Premium is higher than the Minimum Premium, it is not adjusted following the transaction. If the Policyowner wishes to change the Target Premium, instruct us on the change request. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage - Signature required for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. Refer to Transaction Fees Effective Date of Transaction The effective date of the change is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Individual Life Insurance Page 55 July 15, 2009

57 Conversion of a Term Life Coverage Total Conversion The request must be submitted, at the latest, up to 31 days following the expiry date of the conversion privilege. The servicing agent is generally informed via the Message Form, 60 days in advance of the conversion option expiry date. The convertible period differs from product to product refer to the policy contract provisions (e.g. policies on Waiver, must wait until the conversion option expiry in order to convert). Proof of insurability is not required if the face amount to be converted is equal to or less than the original policy and there is no change in risk class. If coverage is being converted and is to be added to an existing policy, then a F4A will be required for each policy involved. If the insurance is converted into a new policy with no change in risk or risk class, the F1A (no medical evidence required) must be signed by the new policyowner (the new beneficiary must be indicated). If the new policy is a Universal Life, include the F51-208A. Any conversion request accompanied by an increase in risk is subject to the usual underwriting requirements for the increased risk portion. If the Conversion clause specifies that existing additional benefits may be included without proof of insurability, you must indicate so on the F4A. Otherwise, these additional benefits will be cancelled automatically. For other additional benefits, provide satisfactory evidence. Since the conversion of term insurance coverage is deemed to be an extension of the original coverage, the ACB for the term coverage before the conversion is deferred to the ACB of the permanent coverage. The premiums are defined under Adjusted Cost Basis Insurance Principles. See point (ii) of section: ADJUSTED COST BASIS (ACB) in the Section of this guide. If adding or removing/decreasing coverages, refer to the applicable sections of the Policies and Procedures Guide for more details. Type of coverage permitted Only permanent types of insurance, unless otherwise indicated in the Policy Contract. If the amount to be converted is less than $10,000, the contract can only be converted to a nonparticipating whole life policy. If the conversion is done within the same policy, the desired coverage must be available for that type of policy. Coverage with preferred risk classes will be guaranteed unless the current face amount does not meet the current minimum requirements for such classes. Effective date Without an increase in risk, the coverage effective date is equal to the converted policy day following the date of receipt of the request, unless the request is signed and received within 5 days following the last monthly anniversary. If the conversion is partial and applies to a backdated conversion, the conversion will be effective as at the effective date of the new coverage and the balance of the risk is terminated as at current date. With an increase in risk, the coverage effective date is equal to the converted coverage day following the date of acceptance by the Underwriter. Individual Life Insurance Page 57 July 15, 2009

58 Child module: The conversion effective date is the policy day following the birth date of the insured (varies according to the contract). 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 F4A - Request for Change for each concerned contract. F1A - Life Application. Signed Illustration (Universal Life only). Disclosure Statement in the case of a cancellation of benefit or decrease in coverage. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. The insured s signature (if 15 yrs old or more) is required for the conversion of a Child Module. None Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Additional Information A change of Ownership will require: F30A Designation of Ownership F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations for Universal Life policies. Individual Life Insurance Page 58 July 15, 2009

60 Conversion of a Term Life Coverage Partial (Remaining Coverage Terminated) The request must be submitted, at the latest, up to 31 days following the expiry date of the conversion privilege. The servicing agent is generally informed via the Message Form, 60 days in advance of the conversion option expiry date. The convertible period differs from product to product refer to the policy contract provisions (e.g. policies on Waiver, must wait until the conversion option expiry in order to convert). Proof of insurability is not required if the face amount to be converted is equal to or less than the original policy and there is no change in risk class. If coverage is being converted and is to be added to an existing policy, then a F4A will be required for each policy involved. If the insurance is converted into a new policy with no change in risk or risk class, the F1A (no medical evidence required) must be signed by the new policyowner (the new beneficiary must be indicated). If the new policy is a Universal Life, include the F51-208A. Any conversion request accompanied by an increase in risk is subject to the usual underwriting requirements for the increased risk portion. If the Conversion clause specifies that existing additional benefits may be included without proof of insurability, you must indicate so on the F4A. Otherwise, these additional benefits will be cancelled automatically. For other additional benefits, provide satisfactory evidence. Since the conversion of term insurance coverage is deemed to be an extension of the original coverage, the ACB for the term coverage before the conversion is deferred to the ACB of the permanent coverage. The premiums are defined under Adjusted Cost Basis Insurance Principles. See point (ii) of section: ADJUSTED COST BASIS (ACB) in the Section of this guide. If adding or removing/decreasing coverages, refer to the applicable sections of the Policies and Procedures Guide for more details. Type of coverage permitted Only permanent types of insurance, unless otherwise indicated in the Policy Contract. If the amount to be converted is less than $10,000, the contract can only be converted to a nonparticipating whole life policy. If the conversion is done within the same policy, the desired coverage must be available for that type of policy. Coverage with preferred risk classes will be guaranteed unless the current face amount does not meet the current minimum requirements for such classes. Effective date Without an increase in risk, the coverage effective date is equal to the converted policy day following the date of receipt of the request, unless the request is signed and received within 5 days following the last monthly anniversary. If the conversion is partial and applies to a backdated conversion, the conversion will be effective as at the effective date of the new coverage and the balance of the risk is terminated as at current date. With an increase in risk, the coverage effective date is equal to the converted coverage day following the date of acceptance by the Underwriter. Individual Life Insurance Page 60 July 15, 2009

61 Child module: The conversion effective date is the policy day following the birth date of the insured (varies according to the contract). 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 F4A - Request for Change for each concerned contract. Signed Illustration (Universal Life only). Disclosure Statement. Disclosure Statement in the case of a cancellation of benefit or decrease in coverage. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. The insured s signature (if 15 yrs old or more) is required for the conversion of a Child Module. None Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Last Revision Date July 2009 Individual Life Insurance Page 61 July 15, 2009

62 Conversion of a Term Life Coverage Partial (Remaining Coverage Remains in Effect) The request must be submitted, at the latest, up to 31 days following the expiry date of the conversion privilege. The servicing agent is generally informed via the Message Form, 60 days in advance of the conversion option expiry date. The convertible period differs from product to product refer to the policy contract provisions (e.g. policies on Waiver, must wait until the conversion option expiry in order to convert). Proof of insurability is not required if the face amount to be converted is equal to or less than the original policy and there is no change in risk class. If coverage is being converted and is to be added to an existing policy, then a F4A will be required for each policy involved. If the insurance is converted into a new policy with no change in risk or risk class, the F1A (no medical evidence required) must be signed by the new policyowner (the new beneficiary must be indicated). If the new policy is a Universal Life, include the F51-208A. Any conversion request accompanied by an increase in risk is subject to the usual underwriting requirements for the increased risk portion. If the Conversion clause specifies that existing additional benefits may be included without proof of insurability, you must indicate so on the F4A. Otherwise, these additional benefits will be cancelled automatically. For other additional benefits, provide satisfactory evidence. Since the conversion of term insurance coverage is deemed to be an extension of the original coverage, the ACB for the term coverage before the conversion is deferred to the ACB of the permanent coverage. The premiums are defined under Adjusted Cost Basis Insurance Principles. See point (ii) of section: ADJUSTED COST BASIS (ACB) in the Section of this guide. If adding or removing/decreasing coverages, refer to the applicable sections of the Policies and Procedures Guide for more details. Type of coverage permitted Only permanent types of insurance, unless otherwise indicated in the Policy Contract. If the amount to be converted is less than $10,000, the contract can only be converted to a nonparticipating whole life policy. If the conversion is done within the same policy, the desired coverage must be available for that type of policy. Coverage with preferred risk classes will be guaranteed unless the current face amount does not meet the current minimum requirements for such classes. Effective date Without an increase in risk, the coverage effective date is equal to the converted policy day following the date of receipt of the request, unless the request is signed and received within 5 days following the last monthly anniversary. With an increase in risk, the coverage effective date is equal to the converted coverage day following the date of acceptance by the Underwriter. Individual Life Insurance Page 62 July 15, 2009

63 Child module: The conversion effective date is the policy day following the birth date of the insured (varies according to the contract). 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 F4A - Request for Change for each concerned contract. F1A - Life Application. Signed Illustration (Universal Life only). Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. The insured s signature (if 15 yrs old or more) is required for the conversion of a Child Module. None Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Last Revision Date July 2009 Individual Life Insurance Page 63 July 15, 2009

64 Date of Birth Correction with change of age If issue age decreases, the premium will be adjusted at time of correction and based on true age (no refund for difference paid since issue of coverage). However, if the client wishes to maintain the same premium, the capital insured is increased upon receipt of satisfactory insurability declarations. If issue age increases, we will request the difference in premiums (plus interest). However, the Policyowner may choose instead to reduce the coverage to an amount that would have been bought with the premiums paid, according to the true age and original premium rates. Satisfactory evidence will be required to maintain the original face amount. 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. OR F4A - Request for Change for each concerned contract. Original passport, Driver s license or other government issued identification. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Endorsement to be attached to the original contract. Last Revision Date July 2009 Individual Life Insurance Page 64 July 15, 2009

65 Date of Birth Correction without change of age If a change of birth date must be processed as a result of an error committed by your Service Centre (date of birth correctly indicated on application), the policyowner s signature and proof of age is not required. 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. OR F4A - Request for Change for each concerned contract. Original passport, Driver s license or other government issued identification. Acceptable Means for Submitting the Request Signed request by policyowner and/or agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is preferable but not mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Confirmation to the agency by or memo. Last Revision Date July 2009 Individual Life Insurance Page 65 July 15, 2009

66 Decrease of Coverage/Benefit PAC will not be suspended while the request is in progress. Any excess amount withdrawn will be applied as a credit to future premiums due or reimbursed if there is more than 3 months in excess. All benefits attached to the coverage being cancelled will also be terminated, unless the benefits are transferrable on another of the life insured s coverage remaining on the contract. If the Coverage being cancelled is replaced with a new Coverage, then a Disclosure Statement is required. If traditional contract with surrender value attached to the insured being cancelled, the reimbursement of a loan and/or the payment of premiums in arrears, if applicable, will be processed before proceeding with the instalment of the surrender value. For a Universal Life policy: If prior to the request, the Target Premium and Minimum Premium are equal, the Target Premium will be adjusted to the new Minimum Premium, following the transaction. If prior to the request, the Target Premium is higher than the Minimum Premium, it is not adjusted following the transaction. If the Policyowner wishes to change the Target Premium, instruct us on the change request. Surrender charges will be automatically deducted from the Accumulation Fund, if applicable. Transaction fees will be automatically deducted from the Accumulation Fund or billed if not submitted with the request. 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. OR F4A - Request for Change for each concerned contract. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. Refer to Transaction Fees Individual Life Insurance Page 66 July 15, 2009

67 Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 67 July 15, 2009

68 Dissociation of Multi Life Coverages The policy date is determined by the effective dates of the coverages being dissociated. If there is a transfer of ownership, the new policyowner must name a new beneficiary. If the dissociation involves a child who was 18 years of age and less when the original contract was issued, the transaction fees are waived. If the dissociation is on a newly issued contract, the transaction fees are waived within the first 3 months. The new contract is issued with the policy fee structure according to the issue date of the dissociated coverage. If the coverage being dissociated is to be added to another policy, the added coverage must be compatible with the same family of products as the policy in which it is being added to (see Association requirements). If the owner of the new contract is the same as the original contract, any additional benefits can be added to the new policy without insurability declarations providing that there is no increase in the risk. To add coverage at the same time as dissociating a policy, satisfactory declaration of insurability will be required for the addition. See the Addition of Coverage/Benefits section. If adding or removing/decreasing coverages, refer to the applicable sections of this document for further information. Universal life policy: if the dissociated coverage includes surrender charges, a portion of the accumulation fund up to the amount of surrender charges of the dissociated coverage will automatically be transferred to the new contract so that the surrender value of the two contracts equals the surrender value of the original contract before the dissociation took place. If the remaining funds are to be split, instructions must be given and signed by the actual policyowner(s). Universal life policy: if there is a Transfer of Ownership, the F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations is required to be completed for the new policyowner. Modular policies issued before November 14, 1988: if the additional insured has less than three A3s ($30,000), five A4s ($50,000), or 10 A5s ($10,000) when the policy is issued, policy fees are added to the annual premium of the dissociated insured, even if there is a subsequent addition of coverage. 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 F4A - Request for Change for each concerned contract. F1A - Life Application. F3A all sections must be completed except for the insurability declarations. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Individual Life Insurance Page 68 July 15, 2009

69 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. Refer to Transaction Fees Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Additional Information A change of Ownership will require: F30A Designation of Ownership F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations for Universal Life policies. Last Revision Date July 2009 Individual Life Insurance Page 69 July 15, 2009

70 Dissolution of a Joint First to Die Coverage Unless specified otherwise in the contract clauses, the following rules are applicable. Each insured is entitled to a proportionate amount of the sum insured, e.g. if 2 lives, then 50% each of the current coverage by dissociating. The original age and risk class for each insured is used, specifying male or female. Universal life policy: if there is a Transfer of Ownership, the F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations is required to be completed for the new policyowner. When the cash value or surplus of a joint coverage is more than the sum of the cash value or surplus of the individual lives at the time of the change, the difference will be paid to the Policyowner. When the cash value or surplus of a joint coverage is less than the sum of the cash value or surplus of the individual lives at the time of the change, the shortfall will be charged to the Policyowner and a payment will be required before proceeding with the change. If adding or removing/decreasing coverages, refer to the applicable sections of this document for further information. For Traditional policies, the surrender value or surplus follows the insured onto the new contract and if there are any policy loans on the original contract, the equity must be sufficient to cover the loan after the dissolution. If not, a portion of the loan will be transferred to the newly created policy. Dissolution is not available for Joint Last to Die policies. For IA Joint policies issued before June 21, 1991, each insured is contractually allowed to keep 100% of the coverage. This applies to previous North West Life policies issued between 1984 and 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 F4A - Request for Change for each concerned contract. F1A - Life Application. F3A all sections must be completed except for the insurability declarations. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. Refer to Transaction Fees Individual Life Insurance Page 70 July 15, 2009

71 Effective Date of Transaction Next monthly anniversary unless signed and received within 5 days of the past monthly anniversary. Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Additional Information A change of Ownership will require: F30A Designation of Ownership F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations for Universal Life policies. Last Revision Date July 2009 Individual Life Insurance Page 71 July 15, 2009

72 Duplicate Policy The policy must be active and in force. For previous IA policy contracts: A duplicate policy is available for Alliance contracts, La Solidarité contracts and issued after January 1, A duplicate policy is unavailable for contracts of L Union Canadienne. A duplicate policy is available for Industrial contracts with numbers higher than X. A duplicate policy is available for Industrial contracts, except for the plans listed below. Only a policy summary is available for these products. It is produced free of charge: Policy numbers lower than Rates books from 1952 or earlier. Participating Whole Life issued before October Special Non-Participating Whole Life issued before July Family Policy with Term Family Policy Insurance. Family Rider. Family Security issued before June years Family Annuity. Additional protection issued before Debenture paid up from 15 years CID issued before February For previous Seaboard Life Insurance policy contracts: A duplicate policy is available for most Universal Life policies. A duplicate policy is unavailable for traditional life policies. For previous National Life policy contracts: Refer to your Service Centre. In all cases we reserve the right to issue a policy summary at no charge, if for any reason we are unable to issue a duplicate contract. 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. OR F4A - Request for Change for each concerned contract. A written request. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Individual Life Insurance Page 72 July 15, 2009

73 Signature(s) Required Fee(s) Policyowner s signature is mandatory. Refer to Transaction Fees Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Policy Contract. Policy Summary or Memorandum of Particulars. Last Revision Date July 2009 Individual Life Insurance Page 73 July 15, 2009

74 Guaranteed Insurability Benefit (Exercise GIO) The documents required are determined according to the type of option exercised. If increase in risk and addition to existing contract include declaration of satisfactory insurability (F3A). If increase in risk and new contract to be issued include declaration of satisfactory insurability (F3A) and new life application (F1A). If no increase in risk and new contract to be issued include new life application (F1A). If the plan chosen is a Universal Life product, a life application (F1A) with the required information related to the Universal Life product is required (including the F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations, and a signed illustration. If adding or removing/decreasing coverages, refer to the applicable sections of this document for further information. Events permitting anticipation of an option Refer to the Policy Contract. The option must be exercised within 31 days of the option expiry or the event. Option dates Refer to the Policy Contract. 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 F4A - Request for Change for each concerned contract. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. The insured s signature (if 15 yrs old or more) is mandatory. None Effective Date of Transaction The effective date of the coverage is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). Individual Life Insurance Page 74 July 15, 2009

75 Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Additional Information A change of Ownership will require: F30A Designation of Ownership F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations for Universal Life policies. Last Revision Date July 2009 Individual Life Insurance Page 75 July 15, 2009

76 Plan Change (Within 13 Months) A plan change is permitted within 13 months of the effective date of a contract (if back-dated to save age, the approval date will be used to determine the 13 months). A plan change is not accepted if more than 13 months have passed since issue date of a policy contract. Please consider an internal replacement and submit a new life application (F1A), a surrender form for the original policy (F6A) and a completed Comparison Disclosure Statement duly completed and signed by the policyowner(s). Within 30 days of the issue date of the policy contract, the policyowner(s) signature is required on the Receipt for Delivery of Contract at the Contract Accepted and Returned for Modification section. If changing to a Universal Life product, a life application (F1A) with the required information related to the Universal Life product is required (including the F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations, and a signed illustration. Change of Bonus Option (guaranteed/variable/low fee) is allowed within the first 3 months only. The policy contract must be returned in order to proceed. The new plan must be available at the time of the original effective date. In addition to a plan change the following is also covered under this procedure: YRT to Level and vice versa (same plan). Change of Death Benefit (same plan). Addition of Option 10, 15, 20 from original effective date (interest charged on additional premium amount required). Standard Genesis to IRIS and vice versa as long as no IRIS loan has been granted. Wealth Maximizer to Face plus Fund with Wealth Maximizer and vice versa. If removing the Option 10, 15, 20 or changing from Level to YRT COI, the change will be done effective the original effective date. The fund is adjusted for the difference in the Cost of Insurance from the original effective date to the date of the request for a plan change. For a decrease in coverage, the decrease will take effect the next monthly anniversary unless signed and received within 5 days of the previous monthly anniversary. If adding or removing/decreasing coverages, refer to the applicable sections of this document for further information. Premiums: Premiums paid for the original coverage are credited to the new coverage. Any excess premiums will be refunded or credited to the new policy and any shortfalls will be collected. This applies when changing from a UL insurance to Traditional and vice versa, but does not apply when changing from a UL contract to another (all premiums/deposits paid will remain as originally applied). If there is no increase in risk proof of insurability is not required. If there is an increase in risk, the request will be reviewed by Underwriting and additional evidence may be required. If an increase in coverage is in conjunction with the plan change, the increase (separate coverage) will take effect currently, unless otherwise specified. Plan Changes must be between two types of plans with the same underwriting requirements, e.g. Not permitted for Critical Illness to Individual Life and vice versa to be treated as a replacement. Not permitted for Alternative and Perspective plans. If the policy contract was issued as a result of a conversion, it cannot be changed to term insurance. However, if the change is within the Universal Life coverage (i.e. death benefit, COI, options, etc.), then it will be accepted. Individual Life Insurance Page 76 July 15, 2009

77 When changing from a Universal Life product to a Traditional product, the Company reserves the right to charge the policyowner for any losses incurred on the investments made on their behalf according to their instructions during the period in which the Universal Life policy was in effect. An individual policy can be changed to a joint policy upon proof of insurability for the insured to be added. However, the change is retroactive to the effective date of the contract and the difference in premium must be paid. A Joint First-to-Die plan can be changed to Individual coverages or to a Joint-Last-to-Die. A Joint-Last-to-Die to an Individual coverage is not allowed, unless specified otherwise in the policy contract. If the Plan Change is from a Child Module to an individual plan and satisfactory insurability was not provided (child born after effective date), then satisfactory evidence will be required. The original writing agent will be charged back all the commissions and bonuses on the original plan and paid new commissions and bonuses based on the new plan (commission is not payable to the agent submitting the request unless he/she is the original writing agent). 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 F4A - Request for Change for each concerned contract. F1A - Life Application. Signed Illustration (Universal Life only). Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. Refer to Transaction Fees Effective Date of Transaction Effective date of original coverage. Individual Life Insurance Page 77 July 15, 2009

78 Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Additional Information A change of Ownership will require: F30A Designation of Ownership F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations for Universal Life policies. Last Revision Date July 2009 Individual Life Insurance Page 78 July 15, 2009

79 Policy Summary/Memorandum of Particulars The policy summary is a summary of the contract coverages and additional benefits. It does not contain any contract clauses. 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 F4A - Request for Change for each concerned contract. A written request. Acceptable Means for Submitting the Request Requested by policyowner and/or Agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature preferred but not mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Policy Summary or Memorandum of Particulars. Last Revision Date July 2009 Individual Life Insurance Page 79 July 15, 2009

80 Reduced Paid-Up Contract To obtain a quote, write or your Service Centre. Policies with loans are paid up for a reduced amount on a proportional basis. On the applicant's request, the policy may be paid up for the full amount available, subject to payment of the loan before the policy is paid-up. The minimum of each contract must be respected. For example, for a Modular contract, refer to the following table: Modular Minimum A1 issued before November 14, 1988 $ 500 A1 issued after November 14, 1988 $2,500 A2 $ 500 A3 $ 500 A4 $2,500 A5 $2,500 A6 $2,500 A20 $2,500 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 F4A - Request for Change for each concerned contract. Acceptable Means for Submitting the Request Signed request by policyowner and agent 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. None Effective Date of Transaction At the next monthly anniversary, unless the request is signed and received within 5 days following the last monthly anniversary. Individual Life Insurance Page 80 July 15, 2009

82 Reinstatement Reinstatement is possible on contracts that have lapsed up to a maximum of two years, unless specified otherwise within the policy contract. Include a cheque for the outstanding premiums and the interest: Add the surrender value and interest to the cheque for a contract terminated as a result of surrender. Add the total or partial loan repayment and interest to the cheque for a contract that terminated with a deficit (terminated because the loan exceeded the surrender value). Declarations of Insurability Within the grace period: no declaration required. Within 15 days of the grace period expiry date: we reserve the right to request satisfactory evidence of insurability. Coverage terminated for more than 45 days but less than 120 days: Answer the questions on the Termination Notice or the Request for Change form (F4A). If the contract includes a Critical Illness coverage, the Q4 questionnaire is required in all cases. If it includes a Supplementary Income, the Q6 questionnaire is required in all cases. If there is an affirmative response to any of the questions, satisfactory evidence of insurability (F3A) will be required. Coverage terminated for 120 days or more: Submit the required change form (F4A) along with satisfactory evidence of insurability (F3A). If the contract includes a Critical Illness coverage, the Q4 questionnaire is required in all cases. If it includes a Supplementary Income, the Q6 questionnaire is required in all cases. Modular Plu$ During the extended insurance period, no insurability declarations are required for the modules subject to the extended insurance. The extended coverage does not apply to modules removed from the contract. The extended coverage does not apply to additional benefits. Modules issued before May 25, 1993: Are eligible for an extended coverage of insurance equal to the number of months the policy was in effect, up to a maximum extension of 12 months. Modules issued from May 25, 1993 to October 25, 1999: Are eligible for an extension of insurance if: No policy was issued at Industrial Alliance on the life of the insured or of any other persons insured in the six-month period preceding or in the 12 months following the termination/surrender of the contract. The policy has been in force for at least 12 months. Individual Life Insurance Page 82 July 15, 2009

83 Modules issued beginning October 25, 1999: All the products that can be added T100, P20, T10 (R and C) and T20 (R and C) are not eligible for extension; proof of insurability is required for these products. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Termination Notice (reinstatements less than 120 days). Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. Refer to Transaction Fees Effective Date of Transaction Upon approval and the date of termination. Acknowledgement of Transaction Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 83 July 15, 2009

84 Reinstatement Non-Placed Policies A modal premium plus the applicable fees must provided with the request. Return the contract if you would like to reinstate and current date the contract and/or if there is a plan change to the contract. All outstanding premiums must be paid. The Delivery Receipt is not acceptable for insurability declarations. Declarations of Insurability are required according to when the application was approved: 120 days or less from the approval date of the application Request for Change form (F4) required.. If there is an affirmative response to any of the questions, insurability declarations (F3A) will be required. Signed Amendment Page if included with Policy Contract. Over 120 days from the approval date of the application - submit a new application (F1) (based on products available at time of request). In order to reinstate and current date a non-placed policy, there must have been no deposit made with the application, because if the application was submitted with a deposit, the insured is considered to be covered under the Interim Insurance Agreement. Please note that the Underwriting Department reserves the right to request additional documents. 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. OR F4A - Request for Change (depending on answers, a F3A may be required) and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Amendment (any change in health) if applicable. If terminated more than 120 days, new Application F1A. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. None Effective Date of Transaction Upon approval and the date of termination. Individual Life Insurance Page 84 July 15, 2009

85 Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Last Revision Date July 2009 Individual Life Insurance Page 85 July 15, 2009

86 Reinstatement By Redating Traditional Life Policy A modal premium plus the required transaction fees must be provided with the request. The policy must have been in effect for at least three months. The policy has never been re-dated. The policy must have no surrender value or surplus. The premiums are four months or more in arrears. The initial plan must still be offered on the date the new contract is established (current rates at the new policy date). The automatic premium loan privilege is not available. Universal Life Policy Reinstatement by re-dating is unavailable. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. Refer to Transaction Fees Effective Date of Transaction Upon approval and the date of termination. Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Individual Life Insurance Page 86 July 15, 2009

88 Revision of Extra Premium To have an occupational extra premium reconsidered: Six months must have passed since the date of change to a less hazardous occupation. The insured must have worked at this occupation for six consecutive months. 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. OR F4A - Request for Change for each concerned contract. F3A - Addition of Coverage and Q4A if Critical Illness or Q6A if Supplementary Income require signature for all life insureds over the age of 14. Acceptable Means for Submitting the Request Signed request by policyowner and agent via , fax or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory. Refer to Transaction Fees Effective Date of Transaction The effective date of the change is the closest monthly anniversary following the approval date, as long as it is not prior to the signature date of the form(s). Acknowledgement of Transaction Endorsement to be attached to the original contract. Confirmation of Transaction. Last Revision Date July 2009 Individual Life Insurance Page 88 July 15, 2009

89 Survivorship Option The Survivorship Option is available for the Joint First to Die coverages and is limited to a specified period of time with age restrictions. Refer to the policy contract for details of this option. The new coverage will be at attained age, based on the original risk class and for a sum insured not to exceed the original coverage. The process will be completed following the settlement of the death claim. 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 F55-21A Death Claim Claimant s Statement, plus all or a combination of: F4A (special instructions section), F1A & signed illustration (if applicable). Acceptable Means for Submitting the Request Signed request by the insured and agent via , fax or written. Signature(s) Required Fee(s) Insured s signature is mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Dependent on the scenario and will be a combination of any of the following: Endorsement to be attached to the original contract. Confirmation of Transaction Policy Contract Confirmation of Issue Policy Delivery Receipt Last Revision Date July 2009 Individual Life Insurance Page 89 July 15, 2009

90 DISBURSEMENTS/CANCELLATIONS Loan Refer to contract provisions with regards to the maximums available and the applicable interest rates. Interest is billed annually. For Universal Life the interest is capitalized monthly. The granting of a loan is a disposition according to the Income Tax Act and can result into a taxable gain. This situation occurs when the balance of the loan, including the new loan, exceeds the ACB. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Written request including policy number, date & signature(s). Acceptable Means for Submitting the Request Signed request by policyowner(s) 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. Refer to Transaction Fees Effective Date of Transaction Upon receipt of the request at your Service Centre (plus 2 business days for UL). Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Individual Life Insurance Page 90 July 15, 2009

91 Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Additional Information For Flex Account products, it may be necessary to also complete a F10A form to transfer funds to either the DIA or GIA accounts. Last Revision Date July 2009 Individual Life Insurance Page 91 July 15, 2009

92 Loan Investor Plus Refer to contract provisions with regards to the maximums available and the applicable interest rates. Interest billed annually. The granting of a loan is a disposition according to the Income Tax Act and can result into a taxable gain. This situation occurs when the balance of the loan, including the new loan, exceeds the ACB. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Acceptable Means for Submitting the Request Signed request by policyowner(s) 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. Refer to Transaction Fees Effective Date of Transaction Upon receipt of the request at your Service Centre plus 2 business days. A minimum of 10 days from receipt of deposit (unless certified cheque or bank draft). Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Individual Life Insurance Page 92 July 15, 2009

93 Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Additional Information For Flex Account products use Form Last Revision Date July 2009 Individual Life Insurance Page 93 July 15, 2009

94 Loan IRIS Investment Refer to the guidelines on the Extranet. Interest billed annually. 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 F13-674A - Application for Investment Loan and Loan Agreement (Initial Investment Loan). Instructions for a request to increase an investment loan & Loan Agreement Rider (Subsequent Investment Loan). Acceptable Means for Submitting the Request Signed request by policyowner(s) via , fax or written. Signature(s) Required Fee(s) Policy must be assigned to IA/IAP and no Irrevocable Beneficiary designation accepted (refer to IRIS Guide for required signature(s)). Refer to Transaction Fees Effective Date of Transaction Once all requirements are received, the investment loan is approved and a minimum of 10 days from receipt of deposit (unless certified cheque or bank draft). Acknowledgement of Transaction Copy of Agreement, Application, Cheque or Direct Deposit, Duplicate Contract (Initial Investment Loan). Copy of Agreement Rider, Application, Cheque or Direct Deposit (Subsequent Investment Loan). Individual Life Insurance Page 94 July 15, 2009

95 Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Last Revision Date July 2009 Individual Life Insurance Page 95 July 15, 2009

96 Partial Withdrawal Traditional Policy (Reduction of Coverage) A specified amount less than the total cash value which results in a reduction of coverage, while maintaining the minimum sum insured for the applicable product. If non-resident, non-resident tax withholding will apply on any taxable gain according to CRA. 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 F4A - Request for Change. Acceptable Means for Submitting the Request Signed request by policyowner(s) 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 Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Endorsement/Specification Pages for decrease of sum insured only. Notice of Taxable Gain if applicable (for full surrender/cancellation, the notice includes the opportunity to Reinstate surrender/cancellation cheque is returned uncashed). Individual Life Insurance Page 96 July 15, 2009

97 Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Conditional Surrender Upon the Issuing/Change of Another Contract Submit the F6A along with the Life Application; Investment Application; Request for Change. All or part of the surrender value of a contract may be transferred if it is used to: Make deposits in the accumulation fund of a universal life policy. Make deposits in an annuity contract. Make deposits on future premiums in a life insurance contract. Pay premiums in advance. The deposit must satisfy the conditions of the contract to which it is transferred. For a conditional surrender, part of the surrender value can be used to directly pay the first premium of the new policy and a cheque is generated to the policyowner for the remaining amount. The Interim Insurance Agreement of the proposed application is null and must be striped if the surrender value of the old contract is used to pay the first premium of the new application. The surrender of a policy that is conditional upon the issuing of a new insurance policy or an addition to an existing contract is effective in the acceptance month of the new policy but at the anniversary day of the old policy, to avoid an overlap or gap in premium payment during this month. However, should the risk on the existing coverage be greater than the risk of the new policy, the effective date of the surrender/cancellation will be effective as of the month in which the new coverage takes effect (i.e. backdated effective date), we will partially terminate an amount equivalent to the risk assumed under the new policy. The balance of the existing coverage will be terminated currently. E.g.: Policy X was issued on July 1, Under this policy, John is insured for $750,000 and Mary for $500,000. A new application (Policy Y), for $500,000 on John s life, is submitted to replace policy X above. Policy Y is approved on January 17, 2009 and backdated to September 1, 2008, at the client s request to conserve age. Policy X will be terminated in two steps: - John s coverage will be reduced by $500,000 effective September, 2008, leaving $250,000 in force until January 1, 2009, when it is subsequently terminated. Mary s coverage will be terminated effective January 1, This process ensures that the clients pay for the protection they have received. Individual Life Insurance Page 97 July 15, 2009

98 Disclosure Statement Required if a new policy has been issued in the past 3 months (applies to both internal and external replacements and partial withdrawals resulting in a reduction in coverage). Last Revision Date July 2009 Individual Life Insurance Page 98 July 15, 2009

99 Partial Withdrawal Universal Life Policy Shuttle fund is always withdrawn before the accumulation fund. Transactions fees are deducted from the accumulation fund. If non-resident, non-resident tax withholding will apply on any taxable gain according to CRA. Surrender charges may be applicable (refer to the Policy Contract wording). For Face amount only option, a reduction in the sum insured will apply once the cumulative partials exceed $999 on a cumulative basis. A F3A & satisfactory evidence will be required to maintain the original sum insured (refer to contract stipulations). If a Limited Trading Authorization (LTA) exists, the current irrevocable beneficiary must match the irrevocable beneficiary on the LTA. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. F10A - Universal Life Transaction Request. Acceptable Means for Submitting the Request Signed request by policyowner(s) or Agent with valid Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Policyowner s signature is mandatory Policyowner s signature or Agent with valid Limited Trading Authorization (LTA). 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. Refer to Transaction Fees Effective Date of Transaction Upon receipt of the complete and duly signed request at your Service Centre plus 2 business days. Individual Life Insurance Page 99 July 15, 2009

100 Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Confirmation of Transaction for Universal Life policies. Endorsement/Specification Pages for decrease of sum insured only. Notice of Taxable Gain if applicable (for full surrender/cancellation, the notice includes the opportunity to Reinstate surrender/cancellation cheque is returned uncashed). Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Last Revision Date July 2009 Individual Life Insurance Page 100 July 15, 2009

101 Surrender/Cancellation Traditional Policy No pro-rated premium refund for monthly. If PAC withdrawn before the receipt of the request, and due in the future, it will be refunded (if clears account). If policyowner is a non-resident, non-resident tax withholding will apply on any taxable gain according to CRA. If a registered life policy, tax withholding will apply according to CRA, unless the funds are transferred to another registered contract. The surrender of a policy is a disposition according to the Income Tax Act and can result into a taxable gain. This situation occurs when the surrender value exceeds the ACB. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Written request including policy number, date & signature(s). Acceptable Means for Submitting the Request Signed request by policyowner(s) 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 Upon receipt of the request at your Service Centre. Individual Life Insurance Page 101 July 15, 2009

102 Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Notice of Taxable Gain if applicable (for full surrender/cancellation, the notice includes the opportunity to Reinstate surrender/cancellation cheque is returned uncashed). Confirmation of Disbursement Agent only (VCHRP004) applies to Traditional with Cash Surrender Value or premium refund OR Universal Life with Cash Surrender Value. Termination Notice. Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Conditional Surrender Upon the Issuing/Change of Another Contract Submit the F6A along with the Life Application; Investment Application; Request for Change. All or part of the surrender value of a contract may be transferred if it is used to: Make deposits in the accumulation fund of a universal life policy. Make deposits in an annuity contract. Make deposits on future premiums in a life insurance contract. Pay premiums in advance. The deposit must satisfy the conditions of the contract to which it is transferred. For a conditional surrender, part of the surrender value can be used to directly pay the first premium of the new policy and a cheque is generated to the policyowner for the remaining amount. The Interim Insurance Agreement of the proposed application is null and must be striped if the surrender value of the old contract is used to pay the first premium of the new application. The surrender of a policy that is conditional upon the issuing of a new insurance policy or an addition to an existing contract is effective in the acceptance month of the new policy but at the anniversary day of the old policy, to avoid an overlap or gap in premium payment during this month. However, should the risk on the existing coverage be greater than the risk of the new policy, the effective date of the surrender/cancellation will be effective as of the month in which the new coverage takes effect (i.e. backdated effective date), we will partially terminate an amount equivalent to the risk assumed under the new policy. The balance of the existing coverage will be terminated currently. Individual Life Insurance Page 102 July 15, 2009

103 E.g.: Policy X was issued on July 1, Under this policy, John is insured for $750,000 and Mary for $500,000. A new application (Policy Y), for $500,000 on John s life, is submitted to replace policy X above. Policy Y is approved on January 17, 2009 and backdated to September 1, 2008, at the client s request to conserve age. Policy X will be terminated in two steps: - John s coverage will be reduced by $500,000 effective September, 2008, leaving $250,000 in force until January 1, 2009, when it is subsequently terminated. Mary s coverage will be terminated effective January 1, This process ensures that the clients pay for the protection they have received. Disclosure Statement Required if a new policy has been issued in the past 3 months (applies to both internal and external replacements and partial withdrawals resulting in a reduction in coverage). Last Revision Date July 2009 Individual Life Insurance Page 103 July 15, 2009

104 Surrender/Cancellation Universal Life Policy If a PAC is withdrawn after the reception date of the request, it will be refunded (if clears account). The monthly cost of insurance (COI) is reversed if the monthly anniversary is processed after the reception date of the request. If non-resident, non-resident tax withholding will apply on any taxable gain according to CRA. If registered life policy, tax withholding will apply according to CRA, unless the funds are transferred to another registered contract. The surrender of a policy is a disposition according to the Income Tax Act and can result into a taxable gain. This situation occurs when the surrender value exceeds the ACB. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Written request including policy number, date & signature(s). Acceptable Means for Submitting the Request Signed request by policyowner(s) 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. Refer to Transaction Fees Effective Date of Transaction Upon receipt of the request at your Service Centre plus 2 business days. Individual Life Insurance Page 104 July 15, 2009

105 Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Notice of Taxable Gain if applicable (for full surrender/cancellation, the notice includes the opportunity to Reinstate surrender/cancellation cheque is returned uncashed). Confirmation of Disbursement Agent only (VCHRP004) applies to Traditional with Cash Surrender Value or premium refund OR Universal Life with Cash Surrender Value. Termination Notice. Direct Deposit Is available to the policyowner or the Borrower of an Investment Loan. The policyowner or Borrower if applicable must complete and sign the F35-275A, submitting it with the transaction request. A personalized cheque specimen (VOID cheque) for the policyowner or Borrower must be attached. The policyowner or Borrower in the case of an Investment Loan, must be the bank account holder and only payee, otherwise the direct deposit will not be proceeded with and a cheque will be mailed. The disbursement will generally be deposited within 24 hours (1 business day) of completing the transaction (this is not guaranteed, due to possible delays from the receiving financial institution). We assume no liability in the case of errors for the instructions provided. Conditional Surrender Upon the Issuing/Change of Another Contract Submit the F6A along with the Life Application; Investment Application; Request for Change. All or part of the surrender value of a contract may be transferred if it is used to: Make deposits in the accumulation fund of a universal life policy. Make deposits in an annuity contract. Make deposits on future premiums in a life insurance contract. Pay premiums in advance. The deposit must satisfy the conditions of the contract to which it is transferred. For a conditional surrender, part of the surrender value can be used to directly pay the first premium of the new policy and a cheque is generated to the policyowner for the remaining amount. The Interim Insurance Agreement of the proposed application is null and must be striped if the surrender value of the old contract is used to pay the first premium of the new application. The surrender of a policy that is conditional upon the issuing of a new insurance policy or an addition to an existing contract is effective in the acceptance month of the new policy but at the anniversary day of the old policy, to avoid an overlap or gap in premium payment during this month. However, should the risk on the existing coverage be greater than the risk of the new policy, the effective date of the surrender/cancellation will be effective as of the month in which the new coverage takes effect (i.e. backdated effective date), we will partially terminate an amount equivalent to the risk assumed under the new policy. The balance of the existing coverage will be terminated currently. Individual Life Insurance Page 105 July 15, 2009

106 E.g.: Policy X was issued on July 1, Under this policy, John is insured for $750,000 and Mary for $500,000. A new application (Policy Y), for $500,000 on John s life, is submitted to replace policy X above. Policy Y is approved on January 17, 2009 and backdated to September 1, 2008, at the client s request to conserve age. Policy X will be terminated in two steps: - John s coverage will be reduced by $500,000 effective September, 2008, leaving $250,000 in force until January 1, 2009, when it is subsequently terminated. Mary s coverage will be terminated effective January 1, This process ensures that the clients pay for the protection they have received. Disclosure Statement Required if a new policy has been issued in the past 3 months (applies to both internal and external replacements and partial withdrawals resulting in a reduction in coverage). Last Revision Date July 2009 Individual Life Insurance Page 106 July 15, 2009

107 Withdrawal of Coupons (Debentures Plan) The policyowner may withdraw or use the coupons to pay up the contract for the full insurance amount after 15 years. The coupons do not have to be provided (if the policyowner no longer has them). 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Written request including policy number, date & signature(s). Acceptable Means for Submitting the Request Signed request by policyowner(s) 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 Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Confirmation of Disbursement Agent only (VCHRP004) Individual Life Insurance Page 107 July 15, 2009

109 Withdrawal of Dividends on Deposit If dividends on deposit are requested to be paid out in full, please advise if the option is to be changed to CASH for future dividends. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Written request including policy number, date & signature(s). Acceptable Means for Submitting the Request Signed request by policyowner(s) 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 Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Confirmation of Disbursement Agent only (VCHRP004) Individual Life Insurance Page 109 July 15, 2009

111 Withdrawal of Future Premiums on Deposit (FPD) A total withdrawal of the FPD can be processed at any time. A partial withdrawal of the FPD can only be processed at the quinquennial anniversary of the FPD, while conserving the minimum required of $ There is no market value adjustment (MVA) for a withdrawal processed within 30 days following the quinquennial anniversary of the FPD. 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 F6A - Surrender, Loan, Dividends, Partial Withdrawal. Written request including policy number, date & signature(s). Acceptable Means for Submitting the Request Signed request by policyowner(s) 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 Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Cheque - sent to the policyowner Direct Deposit Individual Life Insurance Page 111 July 15, 2009

113 GENERAL INFORMATION Act Respecting the Protection of Personal Information in the Private Sector Please refer to the Company Website: For IA see Policy Concerning the Protection of Personal Information on the Home Page. For IAP see Our Company/About this Site/Privacy. Last Revision Date MM-YYYY Individual Life Insurance Page 113 July 15, 2009

114 Client Complaint Please refer to the Industrial Alliance WebSite Our Company/To File a Complaint and follow the instructions provided. Last Revision Date MM-YYYY Individual Life Insurance Page 114 July 15, 2009

115 General Inquiries Information may only be provided to the Policyowner(s), and/or the current Agent/Agency/Managing General Agency (MGA) of record (as well as the appropriate administrative staff). In order to release information to anyone other than the above, a signed and dated Letter of Authorization (LOA) from the Policyowner(s) is required. Release of medical information is communicated via the Underwriter, to the Life Insured s Doctor, upon a written, signed and dated request from the life insured. Both verbal and written (mail, fax & ) inquiries for policy information are accepted. However, if the information being requested is available on the Extranet, the agent/agency will be referred to the Extranet or their MGA for assistance, while Policyowners will be referred to the Agent or CyberClient. Last Revision Date MM-YYYY Individual Life Insurance Page 115 July 15, 2009

116 Signature Requirements Policyowner (Individual basis) as appears on proof of signature document(s) I.E. Drivers Licence, Passport, etc. Policyowner (Joint basis) must include signatures in full for all joint owners as appears on proof of signature document(s) I.E. Drivers Licence, Passport, etc. Policyowner (Company basis) must include at minimum, two signing officers or one and the Company Seal, except for Alberta, where only one signature is required. Preference is to include the Company name and Title(s) below the signature(s). Proof of signatories will be required, and include Company minutes or shareholders resolution. Last Revision Date MM-YYYY Individual Life Insurance Page 116 July 15, 2009

117 Taxation Traditional Policies The death benefit is not taxable. Interest income from amounts left on deposit must be declared annually. Refer to Adjusted Cost Basis (ACB) section. The surrender of a life insurance policy and the granting of a loan on a policy are dispositions according to the Income Tax Act and can result into a taxable gain. Refer to the concerned sections. Universal Life Policies The death benefit is not taxable. Interest income from amounts left in the Shuttle Fund must be declared annually. Refer to Adjusted Cost Basis (ACB) section. The surrender of a life insurance policy and the granting of a loan on a policy are dispositions according to the Income Tax Act and can result into a taxable gain. Refer to the concerned sections. Last Revision Date July 2009 Individual Life Insurance Page 117 July 15, 2009

118 Adjusted Cost Basis Insurance Principles Adjusted Cost Basis: At any given time, the Adjusted Cost Basis (ACB) of a policy is defined as: i) The acquisition cost, excluding premiums and amounts repaid as part of a policy loan. This paragraph normally applies to an assignment to a third party or a deemed new acquisition. ii) The premiums paid by or for a policyowner, in particular: iii) The interest from a policy loan paid or capitalized after 1977, as long as it was not deductible from the policyowner's income. Locked-in premiums paid in advance. As regards to premiums paid after May 31, 1985 for policies acquired for the last time after December 1, 1982, only the premium on the basic policy, the term insurance riders and paid-up insurance bonuses should be taken into account. The premiums for accidental death benefits, disability benefits, serious risks, the cost of converting a term insurance policy to another type of policy, settlement options, guaranteed insurability and any other incidental benefits purchased are excluded. At the time of this writing, there were no incidental benefits prescribed in the Regulations of the Income Tax Act. As regards policies acquired before December 2, 1982, the total premiums are included in the ACB, including premiums from riders. For policies acquired after December 1, 1982, the total premiums paid until May 31, 1985 are subject to the new rules. * Excluded amounts Premiums paid from the proceeds of the disposition of the following sources are excluded from the total premiums paid in the calculation of the ACB: iii) iii.1) a) Dividends used to pay additional insurance premiums (e.g. paid-up insurance bonuses); b) Dividends used to pay premiums; c) Policy loans used to pay premiums (e.g. an automatic premium loan); and d) The surrender value used to pay the premiums (e.g. surrender of paid-up insurance bonuses). Note: The surrender of paid-up insurance bonuses for the purpose of repaying a policy loan constitutes a disposition. The amounts that policyowners previously had to include in their income with respect to a policy, due to prior partial dispositions. These amounts include, among other things, taxable gains from policy loans and dividends. The total of all income that policyowners have already included in the calculation of their taxable income. The amounts repaid on a policy loan after March 31, 1978, excluding interest and the repaid amounts that policyowners could deduct from their income. These amounts to be included in the ACB cannot exceed the total of: Individual Life Insurance Page 118 July 15, 2009

119 A. The proceeds of the disposition, and B. The unpaid balances as at March 31, 1978 with respect to policy loans. Proceeds of a disposition means the lesser of (1) the loan itself and (2) the surrender value less the balance of previous loans on the policy that remain unpaid. (For income tax purposes, this disposition means that the loan cannot be higher than the surrender value and, for a loan on dividends left on deposit, these dividends are not taxed a second time.) * Amounts excluded All dividends used to repay a policy loan granted after March 31, 1978 must be excluded from loan repayments when the ACB is calculated. v) The amount of any accumulated gain, which is the surrender value less the ACB, with respect to the policy on its first anniversary date after March 31, v.1) vi) (Applies to annuities) Less the total of the following amounts: The proceeds of previous dispositions: (dividends, policy loans after March 31, 1978 and partial surrenders). * Amounts excluded Policy loans and dividends used to pay premiums or repay policy loans are excluded from the proceeds of the disposition for all useful purposes. Partial surrenders (e.g. surrendered paid-up insurance bonuses) are not excluded if they are used to repay a policy loan. vi.1) vii) viii) ix) (Applies to annuities) The unpaid balance of a policy loan, in particular, the capitalized interest, as at March 31, (Applies to annuities) As for policies acquired after December 1, 1982, the net cost of pure insurance (NCPI) calculated immediately before the end of each calendar year that ends during a tax year beginning after May 31, For individuals, the effective date for the exclusion of the ACB's net cost of pure insurance was the calendar year that started January 1, For companies, the date was the same if the year ended December 31. We understand that, for all practical purposes, some life insurance companies were using January 1, 1986 as the effective date for all policyowners. (The net cost of pure insurance is explained later on and defined in Article 308 of the Regulations.) x) (Applies to annuities) xi) (Applies to annuities) Information on the taxation of life insurance proceeds Bill C-139, which came into effect on December 2, 1982, modifies the taxation of insurance policies. Contracts issued before December 2, 1982 remain subject to the old rules, which means they are taxed on disposition only, that is upon a surrender, assignment or loan. Contracts issued after December 2, 1982 are subject to the new rules; they are taxable every year or every three years, according to the client's wishes. However, contracts issued after 1989 are taxable every year. NOTE: The death benefit is not taxable. A change in applicant (if there is no rollover) or a policy loan automatically leads to the application of the new rules, which means the contract may be taxed before it is surrendered. Individual Life Insurance Page 119 July 15, 2009

120 The adjusted cost basis (ACB) is equal to the sum of the following elements: The premiums paid (and future premiums on deposit); plus The interest from the capitalized loan; plus The amounts taxed from previous years; less Declared dividends; less The mortality costs for contracts issued after December 1, 1982, but calculated beginning in 1986; less Current loans. In the Modular plan, each insured has an ACB, but the policy fees are divided between the first two insureds, while the loan and interest are separated by insured in proportion to the surpluses in the policy. End of year processing On December 31 of each year the following adjustments are made: The net cost of pure insurance is calculated and subtracted from the ACB. The dividends declared during the year are subtracted from the ACB. If the option is additional insurance or additional coverage, there is no impact on the ACB. They will have to be subtracted from the ACB and also added to the ACB, since they constitute a premium paid to purchase insurance. A policy loan must be deducted from the ACB. The capitalized interest increases the ACB. Future premiums on deposit (FPD) increase the ACB (always for insured #1); Annual withdrawals reduce the ACB; Interest repayments from a loan increase the ACB. The ACB is adjusted on December 31 of each year. Basic principles for calculating ACB and policy gain The method used by a company to calculate the ACB and gains on a policy depends on the company's accounting system and the data it has to gather. Some companies may keep a detailed statement of each element of the ACB, while others only take into account the total ACB, without specifically identifying additions and subtractions. Whichever method is used, the amount of the gain resulting from a policy loan must be taken into account so that the loan repayments, up to the amount of the gain, are not added to the ACB, and the policyowner must be informed of the amount of the repaid gain that entitles him to an income tax deduction. Some companies calculate and declare a gain from each operation when the proceeds of the disposition exceed the ACB. To reduce paperwork, in 1978 Revenue Canada agreed to let companies examine the policy statements at the end of every year and declare a gain when the proceeds exceed the ACB. This procedure minimizes the need to make a declaration, since the ACB could exceed the proceeds at that time due to the subsequent payment of a premium, repayment of a policy loan, etc. Individual Life Insurance Page 120 July 15, 2009

121 Negative ACB It is probable that, when a policy has been in effect for a certain number of years, particularly a policy acquired after December 1, 1982, the total dividends or the net cost of pure insurance, or both, not including other dispositions such as partial surrenders or policy loans, will exceed the total premiums paid, thus producing a "negative" ACB. The ACB, at any given time, is based on the total premiums, other acquisition costs, etc., less the total dispositions, etc. When the total dispositions exceed the total premiums, etc., the ACB will have a negative value. However, in reality, when we are determining if a policy has a gain, the ACB never has a negative value, due to the statement "if there is a fraction" in the introduction to paragraph 148(9)a), which defines the ACB. Even though the ACB is not returned to zero in the calculations (for example, the policy gain), it is considered to be equal to zero even if its net value is negative. The following cases will lead to a taxable disposition if the policy's ACB is equal to zero or is negative: If cash dividends are paid to the policyowner, the dividends are considered to be the proceeds of a disposition and, since there is no ACB to deduct the dividends from, the dividends will be declared as a gain at the time of disposition and will have to be included in the policyowner's income. Note that the fact of reducing the ACB's net cost of pure insurance at the end of each year does not create a taxable gain if the ACB is equal to zero or if it has a negative value, since this deduction does not constitute a disposition of the interest in a life insurance policy. Conversion of a term insurance policy ACB of the new policy Since the conversion of a term insurance policy is deemed to be an extension of the original policy, the ACB before the conversion should be deferred to the ACB of the permanent life insurance policy. The premiums are defined under "Adjusted Cost Basis Insurance principles." See point (ii). Last Revision Date MM-YYYY Individual Life Insurance Page 121 July 15, 2009

122 Index Account Management Process General principle The general principle is that investments/divestments resulting from an external transaction (deposit, transfer request, partial withdrawal ) will now take effect 2 business days after the reception date of the deposit or transaction request, as the case may be. Every evening, we will compile all the investments/divestments to be made for each of the index accounts. The next day, transactions for securities, financial instruments and other underlying index account assets will be carried out. Since we don t get the indexes for the previous day s closing until the following day, the transactions will take effect at that time. In brief, whether a transaction is planned in advance or not determines whether it is deferred for 2 business days or not. All unforeseeable transactions having a direct or indirect impact on investments are deferred for 2 business days: investment or reinvestment requests, investments resulting from a deposit, investment surrender requests, partial withdrawals, contract surrenders, policy loans, changes to the investment instructions (AII), deposits other than PACs. Internal transactions that are by nature foreseeable will not be deferred 2 business days: automatic investments in accordance with the AII (other than on reception of a deposit), guaranteed interest account maturity that is reinvested in accordance with the AII, automatic investment surrender to cover monthly fees, automatic transfer from the accumulation fund to the shuttle fund or vice versa. Processing transactions The following table illustrates how transactions having an impact on index accounts will be processed. This is how we will process transactions until further notice. This management method may change over time. Deposit - cheque from the client: If the deposit is lower than $5,000, it is applied to the contract on the date it is received at Head Office and the resulting investments are made the same day, thus avoiding the matching control. Change of investment instructions (AII): The request to change automatic investment instructions will be dated manually 2 business days after the request is received. Request to invest or transfer investment accounts (surrender of accounts to be reinvested in other accounts): These requests will be dated manually 2 business days after the date Head Office receives the request. Individual Life Insurance Page 122 July 15, 2009

123 Not placed: The premiums received are reimbursed at their market value according to the terms of the contract. Gains and losses under $50 are not charged or paid. This amount is subject to change without notice. Surrenders and partial withdrawals: These requests will be dated manually 2 business days after the date Head Office receives the request. Contract modifications: When there is a plan change request (in the 13 months that follow the effective date of the contract), all losses on investments are charged to the client and the residual premiums are applied to the new plan. New business: The deposit submitted with the application is only invested in the index accounts when the contract is accepted and issued. PAC deposit: The deposit is applied to the contract on the normal retirement date and the resulting investments are made on the field. Returned cheques: The deposits are cancelled retroactively to their reception date and the Company generally assumes the gains and losses but reserves the right to charge any losses to the client. Automatic investments according to the AII: Automatic investments according to the AII take effect immediately unless they result from a new deposit or another external transaction. They will be taken into account in the parallel cycle and will not escape the matching control. Automatic transfers from the accumulation fund to the shuttle fund or vice versa: These transfers can be foreseen and consequently, are not subject to the 2-business day waiting period. They take effect on the same day. They will be taken into account in the parallel cycle and will not escape the matching control. Monthly deductions to pay the costs of insurance and fees: Deductions from the investment accounts to cover the monthly costs of insurance and fees can be foreseen and are not subject to the 2-business day waiting period. They take effect on the same day. They will be taken into account in the parallel cycle and will not escape the matching control previewed. Individual Life Insurance Page 123 July 15, 2009

125 Additional Deposits INVESTMENT TRANSACTIONS Deposits received without instructions, as well as PAC and internet payments, are invested according to the Automatic Investment Instructions (AII). For commission purposes: If the deposit has an effective date within 20 days of the next policy anniversary, it will first be used to complete the minimum annual premium for the current policy year, then to cover the minimum annual premium of the next policy year. Any excess amounts will be applied to the current policy year. For deposit of $100,000 and over - require F51-208A Information Required under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations. 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 F10A Universal Life Transaction Request. Written request including policy number, date, signature and clear investment instructions. Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Request signed by policyowner or Agent with Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Not required if deposit submitted without instructions. None Effective Date of Transaction Two business days after the date received at your Service Centre. Individual Life Insurance Page 125 July 15, 2009

126 Acknowledgement of Transaction Confirmation of UL Transaction Deposit (minimum $500). Investment Surrender. Investment Maturity. Investment (minimum amount of $500). Automatic transfer from Shuttle Fund to Accumulation Fund. Automatic premium loan. Last Revision Date July 2009 Individual Life Insurance Page 126 July 15, 2009

127 Change in Automatic Investment Instructions (AII) Fill out the percentages in the investment instructions, with a maximum of 10 different accounts. The total must equal 100%. The instructions apply only to future investments and do not change the present investments in the contract. 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 F10A Universal Life Transaction Request. Written request including policy number, date, signature and clear investment instructions. Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Request signed by policyowner or Agent with Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Policyowner s signature or Agent with valid Limited Trading Authorization (LTA). None Effective Date of Transaction Two business days after the date received at your Service Centre. Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Last Revision Date July 2009 Individual Life Insurance Page 127 July 15, 2009

128 Change in Designated Deduction Accounts (DDA) Available to all Universal Life products (except APPL, APPL1, APEX). The Designated Deduction Accounts (DDA) enables the costs of insurance and the policy fees to be deducted from certain investment accounts when these costs cannot be covered by the Portfolio Account (where applicable). No more than 10 investment accounts can be designated as DDA. Deductions are made according to the percentages indicated on the application for insurance, or when any subsequent changes were made. The deduction percentages under the DDA may be different from those specified for the AII. If no DDA was specified on the application for insurance, by default, it will be the same as the current AII (for previous Seaboard Life and National Life products, pro-rata from all active investment accounts). If the accounts selected for the DDA do not have sufficient funds to cover the deductions, we will withdraw the deductions proportionately from all the investment accounts in the Accumulation Fund. 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 F10A Universal Life Transaction Request. Written request including policy number, date, signature and clear investment instructions. Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Request signed by policyowner or Agent with Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Policyowner s signature or Agent with valid Limited Trading Authorization (LTA). None Effective Date of Transaction Two business days after the date received at your Service Centre. Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Individual Life Insurance Page 128 July 15, 2009

130 Investment Options This information is available on Extranet/CyberClient under the tab titled Surrender Value / Funds, Investment Options. This tab contains a complete list of the investment options applicable to each policy. Please refer to the Company(s) WebSite for the related Investment Fund Options according to the Product type. Additional Information Frequent Transactions The Company reserves the right to charge transaction fees, at any time, representing 2% of the amount of the transaction if surrenders or transfers between investment accounts are requested more than once a year, or within 60 days following the date of investment. The Company also reserves the right to modify the transaction fees at any time. Last Revision Date September 2008 Individual Life Insurance Page 130 July 15, 2009

131 Limited Trading Authorization (LTA) By signing the LTA, the Agent acknowledges that he/she has reviewed the terms with the Policyowner and consents to abide by and act in compliance with the terms of the LTA. According to the terms of the LTA, the agent is prohibited from conducting discretionary trading on behalf of the policyowner that is, providing the Company any such instructions without in each case obtaining the policyowner s prior specific authorization. The Agent should be prepared to provide supporting documentation for each request. The Limited Trading Authorization allows the agent to submit the following transactions in the client s name without having to get his/her signature (within the policies covered by the Limited Trading Authorization (LTA)): new premiums/deposits; renewals guaranteed interest term investments; fund transfers within the same policy/allocating & transferring monies between accounts; partial withdrawals. This form does not allow agents to carry out discretionary transactions. They must complete the transaction only after receiving complete and precise instructions on the client s part in accordance with operations that they are allowed to perform in the client s name. It is the agent s responsibility to keep all the client s instructions and to provide them if required. Form(s) Required Available on Extranet F51-201A Limited Trading Authorization (LTA). Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Signature(s) Required Fee(s) Policyowner s signature. Agent s signature. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction N/A Individual Life Insurance Page 131 July 15, 2009

133 Rebalance Accounts Complete only the TO section. Rebalancing means that all the Investment Accounts are surrendered and reallocated according to the new instructions given in the TO section. If some accounts are to be excluded, please check the Investment Transfer box instead and specify the Investment Accounts to be surrendered in the FROM section and reallocated according to the TO section. 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 F10A Universal Life Transaction Request. Written request including policy number, date, signature and clear investment instructions. Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Request signed by policyowner or Agent with Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Policyowner s signature or Agent with valid Limited Trading Authorization (LTA). None Effective Date of Transaction Two business days after the date received at your Service Centre. Acknowledgement of Transaction Confirmation of UL Transaction Deposit (minimum $500). Investment Surrender. Investment Maturity. Investment (minimum amount of $500). Automatic transfer from Shuttle Fund to Accumulation Fund. Automatic premium loan. Individual Life Insurance Page 133 July 15, 2009

134 Additional Information Frequent Transactions The Company reserves the right to charge transaction fees, at any time, representing 2% of the amount of the transaction if surrenders or transfers between investment accounts are requested more than once a year, or within 60 days following the date of investment. The Company also reserves the right to modify the transaction fees at any time. Last Revision Date July 2009 Individual Life Insurance Page 134 July 15, 2009

135 Specific Deposit Instructions Applies to this deposit only (not to future deposits or current investment accounts). 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 F10A Universal Life Transaction Request. Written request including policy number, date, signature and clear investment instructions. Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Request signed by policyowner or Agent with Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Policyowner s signature or Agent with valid Limited Trading Authorization (LTA). None Effective Date of Transaction Two business days after the date received at your Service Centre. Acknowledgement of Transaction Confirmation of UL Transaction Deposit (minimum $500). Investment Surrender. Investment Maturity. Investment (minimum amount of $500). Automatic transfer from Shuttle Fund to Accumulation Fund. Automatic premium loan. Last Revision Date July 2009 Individual Life Insurance Page 135 July 15, 2009

136 Transfer of Funds Complete the FROM section to specify which accounts are being surrendered and the TO section to specify where the funds are being reinvested. 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 F10A Universal Life Transaction Request. Written request including policy number, date, signature and clear investment instructions. Acceptable Means for Submitting the Request Request or document signed by policyowner via , fax or written. Request signed by policyowner or Agent with Limited Trading Authorization (LTA) via , fax, or written. Signature(s) Required Fee(s) Policyowner s signature or Agent with valid Limited Trading Authorization (LTA). None Effective Date of Transaction Two business days after the date received at your Service Centre. Acknowledgement of Transaction Confirmation of UL Transaction Deposit (minimum $500). Investment Surrender. Investment Maturity. Investment (minimum amount of $500). Automatic transfer from Shuttle Fund to Accumulation Fund. Automatic premium loan. Individual Life Insurance Page 136 July 15, 2009

137 Additional Information Frequent Transactions The Company reserves the right to charge transaction fees, at any time, representing 2% of the amount of the transaction if surrenders or transfers between investment accounts are requested more than once a year, or within 60 days following the date of investment. The Company also reserves the right to modify the transaction fees at any time. Last Revision Date July 2009 Individual Life Insurance Page 137 July 15, 2009

138 Policy Delivery (Placement & Non Placement) Receipt for Delivery of Contract A "Receipt for Delivery of Contract" form is included with each policy contract issued. The Receipt for Delivery of Contract must be signed by the Applicant(s). The Receipt for Delivery of Contract must be returned, along with any other requirements, such as signed amendment, signed insurability declaration, signed illustration, initial premium, etc. If a Universal Life policy contract is issued with any change in coverage or risk class, a new illustration reflecting the revisions must be prepared and delivered to the Policyowner with the policy contract. A signed copy of the new illustration must be returned with the Receipt for Delivery of Contract. The section Agent s instructions will specify if a signed illustration is required and the Confirmation of Issue will specify any other outstanding requirements, such as amendments, insurability declaration, premiums, etc. These should all be secured and returned with the Receipt for Delivery of Contract. In the case of optional policies, all the Receipt for Delivery of Contracts must be returned both those for accepted policies and those for policies not to be placed. In addition to the Receipt for Delivery of Contracts, amendments for both policies must be completed, signed, dated and returned, as well as the policy contract that is not being placed. Form(s) Required Receipt for Delivery of Contract and all other requirements, such as signed amendment, signed insurability declaration, signed illustration, initial premium, etc. Acceptable Means for Submitting the Request By policyowner(s) and/or agent via attachment, fax or mail. Signature(s) Required Fee(s) Policyowner signature is mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Individual Life Insurance Page 138 July 15, 2009

139 Additional Information Delivery Deadline The policy must be delivered in person (not by mail). The delivery deadline (21 days from printing of the Receipt for Delivery of Contract ) is indicated at the bottom of the Receipt for Delivery of Contract. If the Receipt for Delivery of Contract and/or complete illustration signed by the Policyowner(s) are not received within six weeks of the policy contract being issued, the commissions, bonuses and credits of any kind will be recovered at all levels (agent and management). They will be re-credited upon receipt of the said documents. The policy will remain in force, if all other outstanding requirements have been met, such as signed amendments, signed insurability declaration and premium payments, as requested on the Confirmation of Issue. Delivery Follow-up Consult the Extranet for Contracts to be Delivered pending report to review policies where the Receipt for Delivery of Contract and/or signed illustration requirements have not been received and accepted. This report is updated daily. The column entitled notes identifies the contracts which have reached or exceeded the delivery period. Delivery Premium Requirements for Placement of Policy For Universal Life policies, the annual Minimum Premium or minimum monthly pre-authorized cheque (PAC) is required to settle the policy (providing all other requirements have been met). If on an annual mode, we will accept on an exception basis, no less than 3 months minimum premiums to settle the policy. For Traditional Life policies, the applicable direct bill modal premium or monthly PAC is required to settle the policy (providing all other requirements have been met. Future Dated Contract The agent must wait for the effective date to deliver the policy. Last Revision Date July 2009 Individual Life Insurance Page 139 July 15, 2009

140 Change in Insurability Verify that the proposed insured s health status has not changed since the application was signed and check the appropriate box. A change in health condition before the contract is delivered could mean that the insurance is invalid, for both insurance coverage and additional benefits, even if the initial premium has already been paid. If the insurability of the proposed insured has changed since the application was signed, return the policy contract with all the pertinent details for re-evaluation. There may be additional requirements based on the re-evaluation, such as declaration of health, etc. Form(s) Required Receipt for Delivery of Contract and all other requirements, such as signed amendment, signed insurability declaration, signed illustration, initial premium, etc. Acceptable Means for Submitting the Request By policyowner(s) and/or agent via attachment, fax or mail. Signature(s) Required Fee(s) Policyowner signature is mandatory. None Effective Date of Transaction N/A Acknowledgement of Transaction Confirmation of underwriting decision. Last Revision Date MM-YYYY Individual Life Insurance Page 140 July 15, 2009

141 Contract Accepted Coverage: Review each coverage and the expiry date with the Policyowner(s). Beneficiary: Explain the implications of the revocable and irrevocable designations and the designation of a minor child, if applicable. Death benefit: Establish the benefits payable for each insured in the case of death. Provide the Policyowner(s) with your and your agency s contact information. Policyowner's rights: Cover such items as change of beneficiary and policy loans. General contract provisions: Review the main clauses such as premiums, lapse and reinstatement, automatic loans, surrender value, cash withdrawals (and accompanying coverage reduction, applicable surrender charges), excess funds, etc. Policy fees: Inform the Policyowner(s) of the annual policy fees and transaction fees (contract changes, returned bank items, duplicate contracts). Specific provisions: Review the clauses on suicide, incontestability and contract amendments. Form(s) Required Receipt for Delivery of Contract and all other requirements, such as signed amendment, signed insurability declaration, signed illustration, initial premium, etc. Acceptable Means for Submitting the Request By policyowner(s) and/or agent via attachment, fax or mail. Signature(s) Required Fee(s) Policyowner signature is mandatory. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Last Revision Date July 2009 Individual Life Insurance Page 141 July 15, 2009

142 Contract Accepted & Returned for Modification This section is used when the client wishes to make changes to the contract at the time of delivery. If the changes are requested within 30 days after the contract is issued, the signature of the policyowner(s) will be required on the Receipt of Delivery of Contract at the Contract Accepted and Returned for Modification section and the policy contract must be returned. A new Receipt for Delivery of the modified policy contract will be produced along with the revised policy contract. The new Receipt for Delivery of the revised policy contract must be signed and returned to avoid reversal of compensation. If applicable, a new illustration must be prepared and signed by the policyowner(s) upon delivery. In such a case, a note to this effect will appear at the bottom of the Delivery Receipt. If the policy contract is returned for changes due to an error committed by your Service Centre, send a memo and the policy contract to your Service Centre (completion and signing of this section is not required). Current dating is only permitted when an initial deposit has not already been received by your Service Centre. If the changes are requested more than 30 days after the contract is issued, the request is no longer considered as a modification at issue. Therefore, the appropriate section of the F4A Request for Change form must be completed and signed by the policyowner(s) and the policy contract must be returned. Form(s) Required Receipt for Delivery of Contract and all other requirements, such as signed amendment, signed insurability declaration, signed illustration, initial premium, etc. Acceptable Means for Submitting the Request By policyowner(s) and/or agent via attachment, fax or mail. Signature(s) Required Fee(s) Policyowner signature is mandatory. Refer to Transaction Fees Effective Date of Transaction Upon approval Acknowledgement of Transaction New Policy Contract and Receipt for Delivery of Contract (may require signed amendment, signed insurability declaration and signed illustration, as well as additional premium amounts. Individual Life Insurance Page 142 July 15, 2009

144 Contract Refusal (Not-Placed) Have the Policyowner(s) sign the back of the Receipt for Delivery of the Policy Contract and return it to your Service Centre. If you cannot obtain the signature of the Policyowner(s), complete and sign the refusal section of the Receipt for Delivery of the Policy Contract, indicating the reasons for the refusal and return the Receipt for Delivery with the Policy Contract. It is important to note that some contracts may have been placed by automatic PAC and non return of the Receipt for Delivery of the Policy Contract means that the coverage will continue, with a charge back of commission. Any deposit already received will be reimbursed if the contract is cancelled within 45 days of the policy contract being issued (printed date) and the completion of the refusal section of the Receipt for Delivery of the Policy Contract. Policy contracts delivered and refused after 45 days of the policy contract being issued, will be treated as current surrender/cancellation, with no refund of premium(s) back to the effective date. If, to satisfy the client, we must reimburse the premiums after the 45-day deadline, these premiums will be charged to the agent. Universal life policy: The Company reserves the right to charge clients for losses suffered on the investments from the date the risk is accepted to the date the notice of contract refusal is received. Agents are asked to inform their clients of this when they make a sale, particularly those clients who deposit large amounts or amounts in excess of the minimum premium with their application. Form(s) Required Receipt for Delivery of Contract and all other requirements, such as signed amendment, signed insurability declaration, signed illustration, initial premium, etc. Acceptable Means for Submitting the Request By policyowner(s) and/or agent via attachment, fax or mail. Signature(s) Required Fee(s) Strongly encourage the policyowner(s) signature, however, the Agent of Record signature is acceptable with a written explanation. None Effective Date of Transaction Upon receipt of the request at your Service Centre. Acknowledgement of Transaction Refund of initial premium if contract returned within rescission period. Individual Life Insurance Page 144 July 15, 2009

146 Pre-Authorized Cheque Withdrawal (PAC) & Premiums Change of Banking Information A personalized cheque specimen (void cheque) is required. If the cheque specimen does not include personal information, the bank account holder s signature must be included on the request. If a cheque specimen is not provided, the document containing the (written) banking information must include the bank account holder s signature. Unless otherwise indicated, the PAC withdrawal day in force remains the same. PACs can only be withdrawn from Canadian financial institutions. Particular attention must be paid to cases involving several policies grouped under a same PAC authorization; any changes to banking information will impact all of the policies under a same PAC authorization. Hence, if a request to group together contracts on a same PAC authorization involves a new payor and/or a change of banking information, the bank account holder s signature is required. 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 F4A Request for Change OR Form 3127 (unavailable on Extranet) Request for Pre-Authorized Cheque Plan (IAP only). F35-136A Changes to an Existing PAC. Written request. Acceptable Means for Submitting the Request , fax, written by Policyowner and/or Agent. Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Individual Life Insurance Page 146 July 15, 2009

147 Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Last Revision Date July 2009 Individual Life Insurance Page 147 July 15, 2009

148 Change PAC Draw Day The client can choose a withdrawal date anywhere between the 1st and 28th of the month, regardless of the premium due date. The policy grace period starts on the date on which the premium is due, and not on the PAC withdrawal day. If the new withdrawal day requested is currently past and the monthly premium is not yet withdrawn, the current month s premium must be withdrawn upon receipt of the request. 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 F4A Request for Change OR Form 3127 (unavailable on Extranet) Request for Pre-Authorized Cheque Plan (IAP only). F35-136A Changes to an Existing PAC. Written request. Acceptable Means for Submitting the Request , fax, written by Policyowner and/or Agent. Signature(s) Required Fee(s) None None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Last Revision Date July 2009 Individual Life Insurance Page 148 July 15, 2009

149 Change Payor (Account Holder) A personalized cheque specimen or banking information including a PAC authorization signed by the payor is required. If the new payor is a company: No signature is required if the company is also the policyowner; If the company is not the policyowner, you must consult CIDREQ (if company based in Quebec) or obtain a copy of the company s minutes to verify who is authorized to sign on behalf of the company. Unless otherwise indicated, the PAC withdrawal day in force remains the same. 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 F4A Request for Change OR Form 3127 (unavailable on Extranet) Request for Pre-Authorized Cheque Plan (IAP only). F35-136A Changes to an Existing PAC. Written request. Acceptable Means for Submitting the Request Policyowner and Account Holder (Payor) Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Individual Life Insurance Page 149 July 15, 2009

151 Change or Stop Target Premium/Premium Holiday If the new target premium requested is lower than the minimum premium or the cost of insurance, be sure that the accumulation fund and/or premiums are sufficient to maintain the policy in-force, refer to the policy contract wording. The PAC will be suspended for a premium holiday of 6 months or less, and the PAC will resume at the end of the specified premium holiday, without notice. If the premium holiday request is for a period of more than 6 months, the mode of payment will be changed to direct annual billing according to the current target premium (12 X the current target premium). If the client wishes to return to a PAC mode of payment, a new request must be submitted. Be sure that the accumulation fund and/or premiums paid to date are sufficient to maintain the policy in-force and that any other contractual obligations will be met (refer to the policy contract wording for specific details). 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 F4A Request for Change. Written request. Acceptable Means for Submitting the Request , fax, written by Policyowner and/or Agent. Signature(s) Required Fee(s) None None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Individual Life Insurance Page 151 July 15, 2009

153 Delay PAC All requests to delay a PAC must be submitted at least three workable days prior to the withdrawal day (any fees incurred due to the untimely submission of a request to delay PAC will not be reimbursed). The request can be refused if we have already delayed the premium 3 times during the past 12 months. If there are several policies under the same authorization number and draw day, the delay shall not exceed the end of the first grace period. It is possible to delay only one policy of a PAC grouping; this must be clearly specified in the request. It is not possible to delay the first withdrawal of a newly issued contract. To guarantee the client s coverage, the withdrawal must be made within the grace period (with respect to the policy s premium due date, and not the PAC date). When a policy has surrender value, the PAC may be delayed a maximum of seven days after the end of the grace period. The delay of a PAC is intended for a brief period of time and the delayed PAC should be withdrawn within the same month the premium is due. 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 Written request. Acceptable Means for Submitting the Request Request by , fax or written. Signature(s) Required Fee(s) None None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Individual Life Insurance Page 153 July 15, 2009

155 Future Premiums on Deposit (FDP) A deposit for future premiums is a cash amount deposited by the client that will be used to pay future premiums or a portion of future premiums. The money may also come from a surrendered contract. Applicable to traditional policies only. Available for Traditional life policies only (the required form for completion is available upon request). Interest is credited on each deposit on the annual policy anniversary. The accepted methods of payment are annual and PAC (Special Withdrawal). For PAC payments, the full amount of the annual debit is withdrawn at the beginning of the year to reduce the premiums in the first year. The amount to be placed must be greater than $500. If the amount to be placed is greater than $50,000, 1/8 of 1% is added to the current rate. A deposit is considered to have been received on the anniversary if it is received in the 30-day period before or after the anniversary. The annual premium due is paid and the remainder may be applied to the FPD. When the cash amount comes from the surrender of another contract, the interest rate granted equals the rate in effect when form F6A is received at your Service Centre. Taxation: Interest income from an FPD is taxable every year. A tax slip will be issued for an amount equal to or higher than $ Withdrawal or surrender of a FPD: A market value adjustment may apply according to the difference between the guaranteed interest rate for the term and the current rate that would be granted to a new deposit + 0.5%. 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 Written request. Acceptable Means for Submitting the Request Signed request by Policyowner via , fax or written. Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction Upon receipt of the request at your Service Centre (unless otherwise specified). Individual Life Insurance Page 155 July 15, 2009

156 Acknowledgement of Transaction None Last Revision Date July 2009 Individual Life Insurance Page 156 July 15, 2009

157 Group List Bill Insurance premiums are remitted by an employer on behalf of the employees for which individual insurance has been issued. We bill the employer who deducts the insurance premiums from the employee s pay and the employer provides us with a cheque for the payment of the premiums. Available for both Traditional and Universal Life policies. Available at time of application for coverage or anytime throughout the premium paying period of the policy. At time of application, or Request for Change under Special Instructions it must be indicated that the individual is to be billed as part of a Group List Bill, along with the payor name and address. Be sure to indicate if an existing Group List Bill has been set up, providing the Group List Bill number. Each policy within the Group List Bill will have its own policy effective date. The Group List Bill is produced at the beginning of each month for the premium(s) due within that month. Payment is required within the same month as the premiums are due. The grace period of each policy within the Group List Bill, starts with the premium due date of the policy, not with the Group List Bill Notice date. A follow-up/reminder notice is not sent on a group level; however, a Termination Notice will be produced for each applicable individual contract, if required. The employer must accept to pay the premiums on behalf of the employees. An employee cannot decide to engage the employer in such a process. 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 F4A Request for Change. Written request. F1A Application. Acceptable Means for Submitting the Request Signed request by Policyowner via , fax or written. Signature(s) Required Fee(s) The employer s signature is required. None Effective Date of Transaction The month following the request. Individual Life Insurance Page 157 July 15, 2009

158 Acknowledgement of Transaction Group List Bill Notice. Last Revision Date July 2009 Individual Life Insurance Page 158 July 15, 2009

159 Loan Repayment Loan repayments may be made on a monthly basis by adding an amount to the regular monthly PAC withdrawals. This option is available for both Traditional and Universal Life policies (also available for contracts on direct billing). 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. OR F4A Request for Change OR Form 3127 (unavailable on Extranet) Request for Pre-Authorized Cheque Plan (IAP only). Acceptable Means for Submitting the Request , fax, written by Policyowner and/or Agent. Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Last Revision Date July 2009 Individual Life Insurance Page 159 July 15, 2009

160 Mode Change from PAC to Direct Billing Traditional Policies Direct Quarterly, Semi-annual and Annual Billing available. Universal Life, Transition, Alternative and Perspective Policies Direct Annual Billing only. Balance of annual premium required for Universal Life policies, unless there is sufficient funds available in the contract. Balance of direct billed premium frequency is required for traditional contracts. For universal life contracts only, the annual billing can be stopped upon request. An overdue payment notice will be produced once the policy enters its grace period, if applicable. It is highly recommended that the agent revise the extended premium projection on a regular basis. 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. OR F4A Request for Change. Acceptable Means for Submitting the Request Request by , fax or written. Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction Upon receipt of the request at your Service Centre (unless otherwise specified). Acknowledgement of Transaction Confirmation of Transaction for traditional only Agent copy only. Traditional If the selected draw day is within the next 10 days, then PAC is delayed 13 days. If the selected draw day is greater than 10 days, then PAC draw will take place on selected draw day. If the selected draw day is in the past, then PAC is delayed 13 days. Individual Life Insurance Page 160 July 15, 2009

161 Universal Life If settling/placing a policy and the draw day is within the next 10 days, then the PAC is delayed 13 days. If settling/placing a policy and the draw day is greater than 10 days, then the PAC draw will take place on selected draw day. For policies already in force, if the selected draw day is in the past, a withdrawal will be processed without delay. For policies already in force, if the selected draw day is greater than 10 days, then PAC draw will take place on selected draw day. Special Premium Collection if premium is due following the change. Last Revision Date July 2009 Individual Life Insurance Page 161 July 15, 2009

162 Mode Change to PAC PAC is available for both Traditional and Universal Life policies. The PAC deductions must be withdrawn in the same month that the premium is due and are only available according to the monthly frequency. PACs are prepared with a minimum of 2 business days prior to the withdrawal day. A withdrawal day of 1 through to 28 may be selected, regardless of the premium due date. If no withdrawal day is requested, then the actual premium due day of the policy will be used. The authorization number for a PAC should be the same number as an existing authorization already being used. The account holder must sign the PAC authorization for the addition of a new policy contract on an existing PAC group. The account holder must sign the PAC authorization indicating the policy number(s) and the existing authorization number, if applicable. If there is no existing PAC agreement for the account holder, then the policy number will be used for the PAC authorization number. The grace period of the policy starts with the premium due date of the policy, not with the PAC withdrawal day. 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. OR F4A Request for Change OR Form 3127 (unavailable on Extranet) Request for Pre-Authorized Cheque Plan (IAP only). Acceptable Means for Submitting the Request Policyowner and Account Holder (Payor) Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction Upon receipt of the request at your Service Centre (unless otherwise specified). Individual Life Insurance Page 162 July 15, 2009

163 Acknowledgement of Transaction Confirmation of Transaction for traditional only Agent copy only. Traditional If the selected draw day is within the next 10 days, then PAC is delayed 13 days. If the selected draw day is greater than 10 days, then PAC draw will take place on selected draw day. If the selected draw day is in the past, then PAC is delayed 13 days. Universal Life If settling/placing a policy and the draw day is within the next 10 days, then the PAC is delayed 13 days. If settling/placing a policy and the draw day is greater than 10 days, then the PAC draw will take place on selected draw day. For policies already in force, if the selected draw day is in the past, a withdrawal will be processed without delay. For policies already in force, if the selected draw day is greater than 10 days, then PAC draw will take place on selected draw day. Last Revision Date July 2009 Individual Life Insurance Page 163 July 15, 2009

164 PAC Authorization Group/Regroup/Divide Several policies (traditional or universal), can be grouped together under a same PAC authorization for a same bank account. Several policies can be grouped together under a same PAC authorization; each can have its own withdrawal date or all policies can be withdrawn (paid) on the same PAC day. Several policies grouped under a same PAC authorization can be grouped with other authorizations (including authorizations for individual savings and retirement products). Several policies grouped under a same PAC authorization can be separated into an individual PAC authorization. A personalized cheque specimen or banking information submitted in writing and accompanied by the payor s signature is required for each payor involved in the transaction. 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 F35-136A Changes to an Existing PAC. Acceptable Means for Submitting the Request , fax, written by Policyowner and/or Agent. Signature(s) Required Fee(s) The bank account holder s signature is mandatory (where Policyowner s signature is required, see for details). None Effective Date of Transaction With next withdrawal if requested 3 days in advance. Please note: If the withdrawal date is the 1st or 2nd of the month, notification is required prior to the 28th of the previous month (unless request is to take effect at a subsequent date). Acknowledgement of Transaction No confirmation produced for this transaction, results can be reviewed using the Extranet. Last Revision Date July 2009 Individual Life Insurance Page 164 July 15, 2009

165 Premium Calculation Factors The premium rates are given on an annual basis. To obtain another method of payment, the annual premium must be multiplied by a corresponding factor. Universal Life Policies PAC = Annual premium divided by 12 Traditional Policies PAC = Annual premium X.09 Quarterly = Annual premium x.2625 Semi-annual = Annual premium x.52 Please note that the factors used may vary by product version and original writing Company. The following is a table for some of the previous contracts (refer to your Service Centre for assistance): Policy Date Payment Method Industrial Alliance Prior to Semi-annual Quarterly Monthly Monthly pay From to Semi-annual Quarterly Monthly Monthly pay From to Semi-annual Quarterly Monthly Monthly pay From to present Semi-annual.52 Quarterly.2625 Monthly.09 Monthly pay.0833 Last Revision Date July 2009 Individual Life Insurance Page 165 July 15, 2009

166 Modes of Payment and Billing Traditional Policies PAC, Direct Quarterly, Semi-annual and Annual Billing available. Universal Life, Transition, Alternative and Perspective Policies Direct Annual Billing or PAC only. Internet Banking is not available to policies using the PAC method of payment (regular premium payments, special withdrawals, redraw of previous returned items, etc.). The payment of premiums by Internet applies to Annual, Semi-annual and Quarterly direct bill only. Premium Notices are sent 25 days prior to the premium due date (Policyowner copy only). Follow up Notices are sent 15 days following the premium due date (Policyowner and Agent copy). Applicable to traditional policies only. An Automatic Loan Notice is sent if contract has surrender value (Policyowner and Agent copy). Termination Notice is sent upon policy termination (Policyowner and Agent copy). Anniversary Notices are generated for Traditional Policies and only when there is information to be communicated regarding future premium deposits, policy dividends and loans. The notice will include any direct bill premiums due at the same time. Last Revision Date July 2009 Individual Life Insurance Page 166 July 15, 2009

167 Returned PAC 1st NSF The type of notice generated is dependent on the reason for the return and the timing and/or frequency of the returned item(s). The information included on the notice should be reviewed carefully and instructions followed within the required time frames. Form(s) Required Available on Extranet N/A Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) N/A Refer to Transaction Fees Effective Date of Transaction N/A Acknowledgement of Transaction N/A Additional Information Notice (generated by PAC authorization number) F200-1 Notice of Banking Withdrawal for Traditional Policies and UL Policies that are within the grace period sent to Policyowner at the address of the most recently issued contract (copy to Agent). 1 st NSF or funds not cleared - Automatic redraw (except for universal life contracts in which the redeposit date is equal or higher than the end of the grace period date of the contract, plus applicable fee(s) to be processed in 14 days. Individual Life Insurance Page 167 July 15, 2009

168 Last Revision Date YYYY-MM Individual Life Insurance Page 168 July 15, 2009

169 Returned PAC 2nd NSF, Stop Payment, Account Closed, Payor Deceased, Misc. The type of notice generated is dependent on the reason for the return and the timing and/or frequency of the returned item(s). The information included on the notice should be reviewed carefully and instructions followed within the required time frames. Form(s) Required Available on Extranet N/A Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) N/A Refer to Transaction Fees Effective Date of Transaction N/A Acknowledgement of Transaction N/A Additional Information Notice (generated by PAC authorization number) F200-2 Notice of Returned Cheque (future PAC withdrawals are stopped) sent to Policyowner (copy to Agent). 2nd NSF if the return is within 30 days of a previous returned item. For items returned as Account Closed or Cannot Trace, and prior to a change of banking information was processed. If a change of banking information was processed, an automatic redraw will take place and no notice is sent. For the reason Funds Not Cleared, and if it s the first return, the system processes an automatic redraw. Individual Life Insurance Page 169 July 15, 2009

170 For a Stopped Payment, Account, Closed (if there was no change of banking information since the last withdrawal, future withdrawals are stopped) or Misc. reason, the coupon at the bottom of the form must be returned with the policyowner s or the agent s instructions. If no instructions are provided, the missed premium is not automatically withdrawn and the billing remains stopped. F200-3 Notice of Returned Cheque sent to Policyowner (copy to Agent). 2nd NSF, Payment Stopped, Account Closed, Payor Deceased, or Misc. reason following the 45 day grace period. In addition, a notice confirming the actions to be taken due to the non-payment of premiums will be sent separately. (e.g.: Termination Notice, Automatic Premium Loan, etc.) Last Revision Date MM-YYYY Individual Life Insurance Page 170 July 15, 2009

171 Returned PAC Returned Item Within 2 Months of Policy Effective Date or Payor Deceased The type of notice generated is dependent on the reason for the return and the timing and/or frequency of the returned item(s). The information included on the notice should be reviewed carefully and instructions followed within the required time frames. Form(s) Required Available on Extranet N/A Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) N/A Refer to Transaction Fees Effective Date of Transaction N/A Acknowledgement of Transaction N/A Additional Information Notice (generated by PAC authorization number) F200-4 Notice to Agent - Returned Cheque (future PAC withdrawals are stopped) - Agent copy only and for a newly issued policy contract. Return of first or second premium no matter the reason Premium returned for Payor Deceased. Immediate action is required. Individual Life Insurance Page 171 July 15, 2009

173 Returned PAC Payment Returned of Deposit with Application The type of notice generated is dependent on the reason for the return and the timing and/or frequency of the returned item(s). The information included on the notice should be reviewed carefully and instructions followed within the required time frames. Form(s) Required Available on Extranet N/A Acceptable Means for Submitting the Request N/A Signature(s) Required Fee(s) N/A Refer to Transaction Fees Effective Date of Transaction N/A Acknowledgement of Transaction N/A Additional Information Notice (generated by PAC authorization number) F Notice of Returned Cheque - Deposit with the Insurance Application (E-APP) - sent to Policyowner (copy to Agent). NSF, Payment Stopped, Account Closed, Payor Deceased, or Misc. reason. The Interim Insurance Agreement received when applying for the insurance is null and void. Immediate action is required. Individual Life Insurance Page 173 July 15, 2009

174 F Notice of Returned Cheque - Deposit with the Insurance Application (E-APP) Agent copy only. Incorrect banking information entered on an electronic application The Interim Insurance Agreement is null and void. Immediate action is required. (E-App). Last Revision Date July 2009 Individual Life Insurance Page 174 July 15, 2009