CONVERSION GUIDE. CNA Term Life Business to. SunUniversalLife

Transcription

1 CONVERSION GUIDE CNA Term Life Business to SunUniversalLife November 18, 2005

2 Guidelines for Converting CNA Life Term Business 2 TABLE OF CONTENTS CNA Term Conversions to SunUniversalLife Conversion Privilege 3 Conversion Rules 3 Applying for Conversions 4 Method of Payment 5 Issue Dates 6 Commissions 6

3 Guidelines for Converting CNA Life Term Business 3 CNA Term Conversions to SunUniversalLife Overview On October 28, 2002 CNA LOC was purchased by Canada Life. This marked the last day of new business through the Sun Life Financial and CNA Intercorporate Marketing Agreement. This purchase does not impact the contractual privilege provided in certain CNA Term policies to convert to SunUniversalLife. The following guidelines outline which CNA term policies have a contractual right to convert to SunUniversalLife. Please note that CNA Life has not been amalgamated into Canada Life and therefore remains a distinct and separate legal entity from Canada Life Assurance Company. It has been renamed The Canada Life Insurance Company of Canada (CLICC). However, for purposes of the CNA Term conversion guidelines to SunUniversalLife we will continue to refer to these policies as CNA term policies. Conversion Privilege The conversion privilege is available for all CNA Term Life policies that satisfy the following two conditions: Any CNA Term policy that has an issue date on, or after, June 18, 2000 The CNA Term policy is a ViaTerm 10, ViaTerm 20, ViaTerm Plus 5, 10, 15 and 20, or ViaPro Plus Note: The minimum term face amount that can be left in force on a partial conversion is $100,000. For product information on SunUniversalLife, please consult the Sun Life Financial Advisor Site at To ensure that the conversion request is processed promptly, please follow the conversion rules and procedures as outlined below. Conversion Rules The cost of insurance rates will be based on the insured s underwriting class as determined by Canada Life, and his/her sex and age at conversion. The rates will not vary by face amount, i.e. they are not banded. Canada Life Underwriting Class SunUniversalLife Mapped Class Classes 1, 2 and 3 Conversion Class 1 Classes 4, 5 and 6 Conversion Class 2 Classes 7 and 8 Conversion Class 3

4 Guidelines for Converting CNA Life Term Business 4 At conversion, the insured s underwriting class will be based on the actual qualifying class. For instance, an insured who was rated a Class 7/6 and has been paying a CNA non-smoker Class 6 premium, will be issued a SunUniversalLife policy at the rate for Conversion Class 3. However, Sun Life Assurance Company of Canada will honour the rate for the revised class if medical evidence, in accordance with CNA s original requirements, is submitted with the conversion application to Sun Life Assurance Company of Canada. Furthermore, if the insured in the above example has not smoked in the previous 12 months and has not experienced a change in health status, the insured will be eligible for a Conversion Class 2 rate (which includes Canada Life Classes 4, 5 and 6). Conversions to SunUniversalLife will only have access to features that were available prior to November 18, Only SunUniversalLife s Level COI option will be available. Non-underwritten increases to the policy s face amount will not be permitted. Therefore, only the Level Face Amount and Face Amount Plus Fund death benefit options will be offered, and only Retain Face Amount will be available under the Exempt Status. The Indexed Face Amount death benefit option, as well as increases to keep the policy exempt, will not be allowed. Rates will be based on age nearest birthday, to be consistent with Canada Life products. Conversions to SunUniversalLife will be permitted to age 70. Conversions to SunUniversalLife will not be accepted while the insured is on disability waiver of premium. The Accidental Death Benefit and Total Disability Benefit - Waiver of Premium will be subject to Sun Life Assurance Company of Canada s customary limits. The Children s Insurance Benefit will not be available. Applying for Conversions To ensure that the conversion request is processed promptly, please follow these procedures: Step 1: Complete Sun Life Financial s Application for Conversion and Exercising GIB (Guaranteed Insurability Benefit) Option. Use the Application for Conversion and Exercising GIB (Guaranteed Insurability Benefit) Option form (English form , and French form ). These forms are available on the secure portion of under Forms/Quotes/Applications or you can order them through your normal supply order process.

5 Guidelines for Converting CNA Life Term Business 5 Step 2: Complete a Request for CNA Term to SunUniversalLife Conversion Illustration form. Advisors cannot run a CNA term conversion illustration in Eos. Therefore, they must obtain an illustration from the Sales Desk. An application will not be processed without a Sun Life Assurance Company of Canada illustration. A Request for CNA Term to SunUniversalLife Conversion Illustration form is located on the Sun Life Financial Advisor Site at under Forms/Quotes/Administration. After completing the form, advisors should fax it to the Sales Desk at (416) Please note that phone requests will not be accepted. Please ensure that you provide the necessary information for the illustration as the Sales Desk does not have access to any CNA term life policy information. The Sales Desk will produce an illustration and fax it to the advisor. The target service standard is 48 hours (subject to the volume of requests). Step 3: Complete a Canada Life Policy Exchange Form Canada Life requires this form to be completed prior to releasing any CNA client information to Sun Life Assurance Company of Canada. As well, this form signed by the CNA policyowner stands as the official instructions to Canada Life to cancel or amend their CNA term policy. The Canada Life Policy Exchange Form is located at under Forms/Quotes/Administration. Step 4: Determine method of payment. a) If a client chooses to pay the premium on an annual basis, obtain a cheque for the amount of the initial premium. Canada Life will subsequently refund any unused premiums to avoid double coverage (both from Sun Life Assurance Company of Canada and Canada Life) when a conversion takes place. b) If a client chooses to pay the premium using the pre-authorized monthly payment method, complete Section 3 of the conversion application and attach a void cheque, as Canada Life and Sun Life Assurance Company of Canada cannot exchange banking information.

6 Guidelines for Converting CNA Life Term Business 6 Step 5: Submit all documents a) Send completed documents: Completed Sun Life Financial Application for Conversion and Exercising GIB Option Form Canada Life Policy Exchange Form SunUniversalLife Conversion Illustration, and Initial premium or void cheque To: Sun Life Assurance Company of Canada 227 King Street South PO Box 1601 Station Waterloo Waterloo, ON N2J 4C5 c/o Document and Distribution Centre 300B25 b) Once the application for conversion has been received, you will be able to track its status by visiting the Sun Life Financial Advisor Site at: c) An advisor can expect to receive the SunUniversalLife policy within one week from the date Sun Life Financial receives the above documents. Issue Dates The issue date of the SunUniversalLife policy will be prior to or the same as the current paid-to-date of the CNA term policy. Commissions Sun Life Assurance Company of Canada will pay regular commissions on the conversion to SunUniversalLife. Contestability If no medical evidence is required, a CNA term policy has the same contractual rights and privileges as a Sun Life Financial convertible policy. Therefore the suicide and contestability clause carries over to the new SunUniversalLife policy.