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Agent
Reference
Guide
Table of Contents
Contact Information
How to Contact Us... 2
Commission
Information
General Information ... 3
Frequently Asked Questions ... 4
Product
Overview
Base
Plans... 5
Rider
Options ... 6
Underwriting
Guidelines
General
Guidelines... 7-8
Medical Definitions and Terms ... 9
New
Business
Policy
Dating... 10
General Application Guidelines... 11
Premium
Calculation... 12
Completing the Application... 13-15
Base
Application Sample... 16-18
Children’s
Rider
Application Sample... 19
Application
Faxing ... 20
Conservation
Lapses
&
Cancellations... 21
Returned Bank Drafts & Checks ... 21
Reinstatements
Reinstatement
Guidelines... 22
Reinstatement Application Sample ... 23-24
Advertising
Advertising
Guidelines ... 25
Advertising
Approval
Procedures... 25
USA PATRIOT Act
Anti-Money Laundering Program... 26-27
This guide is not intended for consumer use, nor is it intended to represent a legal contract. The information contained herein is designed to serve as a general reference source only. The Company procedures and practices outlined in this guide are subject to change due to legal compliance requirements or the needs of the business. Sample forms are provided for reference only. Actual forms may vary by state and are subject to change or revision.
How to Contact Us
Licensing
Phone
(800) 423-9765
Ext. 6315
Fax
(607)
724-1599
New Business/
Phone
(800) 305-1335
Option 1
Agent Support
Fax (888)
233-6881
Claims
Phone
(800) 423-9765
Ext. 7557
Fax
(607)
723-0017
Underwriting
Phone
(800) 305-1335
Option 4
Fax
(888)
233-6881
Commissions
Phone
(800) 423-9765
Ext. 5908
Fax
(877)
319-2463
Online
www.cfglife.com
zBGMCommissions@cfglife.com
Premium Accounting
Phone
(800) 423-9765
Ext. 5907
and Billing
Fax
(877)
319-2463
Forms
Phone
(800) 423-9765
Ext. 7197
Fax
(607) 724-4345 (use Form No. 166)
New Business To
P.O. Box 4850
Norcross, GA 30091-4850
Fax Applications To
(877) 261-3266 (for Columbian Life Final Expense only)
Express Mail To
25 Technology Parkway South
Suite
200
Commissions
General Commission Information
Processing Time
Clean business that is received before noon Eastern Time on Wednesday will be issued by Friday. “Clean business” assumes that the writing agent is appointed with Columbian, the application is properly completed, premium is accurate, and the MIB and prescription drug check do not indicate undisclosed medical issues. For Draft First Premium, commission is not paid until the premium has been drafted.
Commission Splits
When splitting commissions between agents, indicate the percentage split next to each agent’s name under the Report of Licensed Agent section of the application.
Commissions on Rewritten / Reinstated Policies
If a new policy is written by the original writing agent within twelve months after the lapse, surrender or termination date of an existing policy, the first-year compensation on the new policy will be adjusted. The compensation adjustment will be based on the number of months the previous policy was in effect:
• If the policy lapsed, was surrendered or terminated at any time during its original twelve months in force, the total first-year compensation payable on the new policy will be the balance of the original twelve months on the old policy. Renewal compensation will be paid after that period.
• If the policy lapsed, was surrendered or terminated after its original twelve months in force, only renewal compensation will be payable on the new policy.
If, as a result of the rewrite, there is an increase in premium on the new policy, first-year commissions will be paid only on the amount of the increase, with renewal compensation paid on the remainder. When a policy is reinstated in the first year, first-year commissions will be paid on premiums received for the balance of the first twelve months of the policy. First-year commissions will not be paid for more than a total of twelve months. If a policy has been reinstated by redate and a change in age has caused a premium increase, commissions will be adjusted accordingly.
Commission Advances
At the discretion of the Company, commissions may be advanced for policies on monthly bank draft premium mode (EFT). Advances are loans against future commissions, which are repaid by commissions as earned. No commissions will be advanced until an Advance Agreement is signed by the Agent, the Managing General Agent, and an authorized Company representative. Policies written on an Agent’s immediate family (spouse, parent, child or sibling) are not eligible for commission advances.
1099 Tax Reporting
All earned compensation, including any bonuses or special programs, is included on the 1099. For commission advances, 1099’s are issued for the amount earned, not the amount advanced. For example, if an agent receives a 9-month commission advance of $900 in December and the actual amount earned was $100, the 1099 for that year would show only the $100 of earned commission. The remaining $800 would be included on the next year’s 1099, assuming all premiums are paid. The advantages of this method of 1099 reporting include:
• Earnings are more level from year to year.
• Advances are not subject to taxation until the year the commission is earned.*
• Advance chargebacks do not affect the 1099, since the advance was not included in the 1099 earnings. Commission chargebacks or reversals for non-advanced commissions are automatically deducted from 1099 earnings.
Commissions
Frequently Asked Questions
When are commissions paid?
Commissions are paid on a weekly basis and a month-end payment is made (if necessary) to close out the month. Commissions paid via EFT are deposited on Thursday and available on Friday morning. Paper checks are mailed each Friday. Commissions are not paid until the total amount payable is at least $25.
How do I get my commission statements?
To review your commission statements and all other reports, go to www.cfglife.com and click on the Final Expense button under “Producer/RSD Log In.” First-time users, click on “Enroll Here,” enter the last five digits of your Agent Number, the last four digits of your SSN or tax ID, and provide your Zip code, date of birth, telephone number, or email address. Once your identity has been confirmed, you will create your user ID and password for future log-ins.
When are advance commissions charged back?
For lapsed or surrendered policies and for death within the first year of a full benefit policy, the unearned portion of commissions paid is charged back. For policies not taken, rescinded, and for death within the first year of a graded benefit policy, 100% of commissions paid are charged back. A chargeback occurs when a policy is coded as lapsed, surrendered, not taken, rescinded, or when death occurs within the first year of the policy. See page 21for details on the number of days allowed for conservation efforts before commissions for lapsed or not taken policies will be charged back.
When a chargeback occurs, it will be recovered during the next available period for which funds would be payable. If those funds do not pay the chargeback in full, the balance will be carried over until the chargeback is satisfied.
When are earned commissions charged back?
Earned commissions are charged back when premium is returned unpaid by the bank or refunded to the client (see page 21for details). 100% of commissions paid are charged back for policies not taken, rescinded policies and for death within the first year of a graded benefit policy.
Earnings are charged back from the next commission payment. If a negative balance remains, it will be carried over until the chargeback is satisfied.
How do I check the status of my business?
The real-time status of your business is posted in your Application History at www.cfglife.com.
Where can I find out how much my commission check will be?
This information is also available at www.cfglife.com. Simply log in to your home page and use the “View Payment by Check” feature.
*
Age at the last birthday as of the effective date of the policy.Product Overview
Base Plans
Dignified Choice® - Classic I
Full benefit whole life insurance with simplified underwriting and level premiums.
Death Benefit:
− Immediate full coverage with level death benefit in all years
Underwriting:
− All health questions answered “no”
− Medical Information Bureau (MIB)
− Telephone interview (point of sale)
− IntelliScript (prescription drug check)
Classifications:
− Non-Tobacco
− Tobacco
Issue Limits:
Ages* Face Amounts
45 – 50 7,500 – 25,000 51 – 59 5,000 – 25,000 60 – 85 2,500 – 25,000
Available Riders:
− Accelerated Death Benefit Rider
− Accidental Death Benefit Rider
− Children’s Term Insurance Rider
− Waiver of Premium Due to Disability Rider
− Nursing Home Waiver of Premium Rider
See next page for rider descriptions and ages.
Dignified Choice® - Classic II (Classic II not available in AR, KS, MA, MN, NC, NV, WV)
Graded benefit whole life insurance with simplified underwriting and level premiums.
Death Benefit:
− Return of premiums plus 6% interest for non-accidental death occurring within the first two policy years.
− Full face amount for accidental death occurring within the first two policy years or for death by any cause in year three or thereafter.
Underwriting:
− Any Part 2 health question answered “yes”
− Medical Information Bureau (MIB)
Issue Limits:
Ages* Face Amounts
45 – 50 7,500 – 15,000 51 – 59 5,000 – 15,000 60 – 70 2,500 – 15,000 71 – 85** 2,500 – 10,000
Available Rider:
− Accelerated Death Benefit Rider
Classification:
− Graded Benefit
**Maximum issue age for Graded Benefit in Missouri is 75.
Maximum issue age for Graded Benefit in New Jersey is 77 for males and 82 for females.
Policy/Rider specifications and availability may vary by state. Issue ages may vary by state.
Child's term insurance may be converted to permanent insurance without evidence of insurability at ages 22 through 25.
Product Overview
Rider Options
Accelerated Death Benefit Rider(Rider not available in MA, NJ, TX)
Allows the Policyowner to request a benefit advance when the Insured is diagnosed by a physician as having a terminal condition and a life expectancy of 12 months or less. The Accelerated Death Benefit box must be checked on the application to have the rider added to the policy. Rider coverage is
provided at no additional premium charge and remains in force for the duration of the policy.*
Available with the Classic I Full Benefit Plan and the Classic II Graded Benefit Plan.
(Rider not available with Classic II Graded Benefit Plan in OH & VA)
Issue Ages: Same as base policy (all ages)
Accidental Death Benefit Rider (Double Indemnity)
Doubles the death benefit for accidental death of the Insured. Rider coverage is maintained to age 70.
Available with the Classic I Full Benefit Plan only.
Issue Ages: 45 – 65
Children’s Term Insurance Rider
Level term insurance on the Insured’s children to age 25. Single premium rate covers all eligible children. Rider coverage is maintained through the Insured’s age 65.
Available with the Classic I Full Benefit Plan only. Supplemental Application for Children’s Term Insurance Rider must be completed to apply for coverage.
Issue ages: Insured Parent 45 – 50 / Children 15 days – less than 19 years
Minimum Issue: 3 Units (1 Rider Unit equals $1,000 Face Amount)
Maximum Issue: - 5 Units on policies less than $10,000 - 10 Units on policies of $10,000 or more
Waiver of Premium Due to Disability
Waives premium payments after 6 full months of total and continuous disability of the Insured. Rider coverage is maintained until the policy anniversary on or next following the Insured’s 60th birthday. If the Insured is receiving benefits when the Rider expires, the waiver benefit continues as long as the Insured continues to provide proof of disability.
Available with the Classic I Full Benefit Plan only.
Issue Ages: 45 – 55
Nursing Home Waiver of Premium Rider (Rider not available in HI, MA, NJ, VA)
Waives premium payments during the Insured’s confinement in a qualified nursing home after 90 days of continuous confinement when care is recommended by a physician after the Rider is in effect. Rider coverage remains in force for the duration of the policy.
Available with the Classic I Full Benefit Plan only.
Issue Ages: 56 – 85
*If an accelerated benefit payment is made, an administrative service fee, not to exceed $200, is deducted from the payment (except where prohibited) and there will be an interest charge assessed, as outlined in the rider (see rider language for details). Receipt of accelerated benefit may affect eligibility for public assistance programs and may be taxable.
Underwriting Guidelines
General Underwriting Guidelines
Underwriting is primarily based on the responses to the application health questions. For Classic I applications, a telephone interview is conducted at the time of sale. The Company reserves the right to require a telephone interview for any Classic II application. A prescription drug database is accessed during the telephone interview to determine if the proposed insured is using any drugs that may indicate a medical condition listed on the application, which may prompt the interviewer to ask additional questions. At the end of the call, the interviewer shares this information with the agent to let them know if they should do further follow up while in the home. The Company accesses the Medical Information Bureau (MIB) when the application is received. On rare occasions, a follow-up interview may be required to clarify specific conditions. Under unusual circumstances, an Attending Physician’s Statement (APS) may be requested. These underwriting tools, used together, help to ensure a prompt and accurate underwriting decision.
A policy can be rescinded during the contestable period if the insurer discovers information that would have caused the policy to be declined or issued other than as applied for had the information been known at the time of application. When a policy is rescinded, everyone loses:
• The family loses valuable benefits they had counted on.
• The insurer loses the cost of issuing the policy and the cost of the investigation.
• The agent loses all commissions from the policy, and if the case was obviously mishandled or a pattern of rescissions is evident, he or she could be terminated for cause.
Columbian reviews all agent activity each month, including an evaluation of rescinded policies for each agent. Evidence of mishandling or a pattern of rescissions results in termination of the agent, regardless of production. You are our first defense against bad claims. In order to protect your clients, the Company, and
yourself, here are some things you can do to ensure the quality of the business you write:
• Use good judgment. For example, you should not take an application from someone in hospice care.
• Use good observation. For example, seeing an oxygen machine or prescription medicine should lead you to ask further questions.
• For Classic I, have the telephone interview conducted in your presence and listen for discrepancies.
• If you have suspicions regarding health issues, include a cover letter with the application. For example, if you noticed a wheelchair in the home but the Applicant did not mention limited mobility, let us know so that we can investigate further.
Ineligible Persons
You should not take an application on anyone who:
− answers “yes” to any of the questions in Part 1 of the Health History section.
− is institutionalized, including a penal institution or psychiatric facility.
− is mentally incompetent or lacks the legal capacity to contract.
− is not a U.S. resident. If the Applicant is a foreign national, he or she must be a legal
immigrant and have a Social Security number. We will accept applications up to $15,000 on foreign nationals who have a green card or tax ID number (TIN) and a driver’s license. This is provided as a general guide and is not intended to be a complete list.
Application Health Questions
It is essential that you read each health question aloud, word for word, and take the time to be sure the Applicant understands each one. At times, an Applicant’s diagnosis may fall under one of the general terms listed on the application, but may be known to the Applicant by another name. Use the Medical Definitions on page 9 as a guide, and call the Underwriting Team if you have questions.
Underwriting Guidelines
General Underwriting Guidelines
Prescribed Medicine
Several of the application health questions ask if the Proposed Insured has received treatment for the listed medical conditions. Prescription medicines are considered treatment. In order to help best assess eligibility, it is important that you ask if medicine has been prescribed and for what reason.
Telephone Interview
The telephone interview is required with every application for the Classic I Full Benefit policy. Whenever possible, the interview should be conducted before you leave the Applicant’s home. Interviewers are available at 800-737-6972 Monday through Friday 8:30 a.m. to Midnight and Saturday and Sunday 10:00 a.m. to 8:00 p.m. Eastern. Refer to Form No. 4780CFG for details.
• Complete and have the Applicant sign the application before calling for the interview.
• Tell the operator you are calling in regard to Columbian’s Final Expense product and provide your name and the state in which the application is being taken. Let the operator know if a translator is needed.
• Have the Applicant speak with the interviewer to confirm the answers to the health questions.
• A prescription drug database is accessed during the telephone interview to determine if the proposed insured is using any drugs that may indicate a medical condition listed on the application, which may prompt the interviewer to ask additional questions. At the end of the call, the interviewer shares this information with you to let you know if you should do further follow up while in the home.
• If the application is written after normal business hours, the telephone interview will be scheduled after the application is received by Columbian. Be sure to include the Proposed Insured’s phone number on the application and indicate the best time to call in the Special Requests/ Remarks section. If the Proposed Insured does not have a telephone, they will need to call the telephone inspection service during business hours.
• The signed application must be submitted to the Company, even if the Applicant decides not to apply for the policy. Be sure to indicate this by writing “WITHDRAWN” across the front of the application.
Power of Attorney
The Proposed Insured must sign the application. Because the Proposed Insured must personally answer the health questions, a Power of Attorney signature will not be accepted.
Medical Information Bureau
The Medical Information Bureau (MIB) is a nonprofit membership organization of life insurance companies, providing an information exchange for its members. It maintains information of
underwriting significance on policyholders and applicants as furnished to it by member companies. Columbian uses the MIB to check underwriting information, but only as a guide to identify areas about which we might need additional information before reaching a final underwriting decision. Columbian does not rely, in whole or in part, on an MIB report in making a final underwriting decision.
Attending Physician’s Statement
Columbian rarely requires an Attending Physician’s Statement (APS), however, we reserve the right to request one if conditions warrant.
Graded Policies as a Percent of Business
Graded Benefit applications should not exceed 30% of an agent’s issued and paid business for the past 12 months. This is monitored on an ongoing basis. Failure to honor the 30% limit will jeopardize your ability to write the graded benefit product.
Underwriting Guidelines
Medical Definitions and Terms
These definitions and terms are provided only as a guide and are not intended as an all-inclusive list. Please contact Underwriting with any medical questions.
Alzheimer’s Disease – A progressive neurological disease of the brain that leads to dementia. May also be called Presenile Dementia or Senile Dementia.
Amputation – Generally refers to removal of part or all of a body part enclosed by skin. The application question refers only to amputation which is caused by disease.
Aneurysm – A localized widening of an artery or localized bulging of the heart.
Black Lung Disease – Lung disease resulting from coal mining. Black lung disease is also called
coal worker’s pneumocononiosis or asbestosis.
Cancer– Cancer is not one disease; it is a group of more than 100 different and distinctive diseases involving an abnormal growth of cells. May also be called a malignancy, malignant tumor,
carcinoma or malignant neoplasm.
Chronic Obstructive Pulmonary Disease (COPD) – Any disorder that persistently obstructs bronchial airflow, not including asthma. COPD is also called chronic obstructive lung disease (COLD).
Congestive Heart Failure – Failure of the heart to pump blood with normal efficiency. Also may be present with cardiomyopathy, congestive myopathy and restrictive myopathy.
Diabetes – A chronic condition caused by insulin deficiency associated with abnormally high levels of sugar (glucose) in the blood.
Heart Attack – The death of heart muscle due to the loss of blood supply. Also called myocardial infarction or MI.
Kidney Failure – Loss of kidney function. Also called renal failure or kidney failure.
Liver Disease – This term includes cirrhosis, hepatitis, cholangitis, liver failure, and other diseases of the liver.
Multiple Sclerosis – A disease that attacks the central nervous system causing a loss of control over the body, with symptoms ranging from numbness to paralysis and blindness.
Parkinson’s Disease – A slowly progressive neurologic disease characterized by a fixed inexpressive face, a tremor at rest, slowing of voluntary movements, a gait with short accelerating steps, peculiar posture, and muscle weakness. Also called paralysis agitans and shaking palsy.
Stroke – The sudden death of brain cells due to a disruption of blood flow to the brain. Also called
CVA (cerebrovascular accident) or TIA (transient ischemic attack).
Treatment– Administration or application of remedies for disease or injury including, but not limited to, surgery, prescription drugs, oxygen use, x-ray, radiation therapy, chemotherapy, or physical therapy.
Draft First Premium
Application Date:
October 20
Requested Draft Date:
The 5th of each month
First Draft Date:
November 5
Effective Date:
November 5
Allow at least five business days between the date the application will be received by the Company and the date of the first bank draft. The first draft date
must be within 30days
of the application being signed.
New Business
Policy Dating
•
The application should always be dated the day it is completed and signed, even if the check date does not match the signature date or a different policy effective date is requested.•
Backdating up to 6 months to save age is allowed, as long as all premiums are submitted with the application. Indicate the requested effective date on the application.•
A future effective date of up to 30 days from the application date is allowed. For speedy processing, be sure to mail the application the same day it is completed. Indicate the requested effective date on the application.•
The Proposed Insured’s age should always be calculated from the effective date of the policy, not the application date.•
The policy effective date will be the application date except:1. If a different effective date is requested on the application, the effective date will be the date requested (cannot be more than 30 days from the application date).
2. If the initial premium is to be drafted from a bank account (checking or savings), the policy effective date will be the date of the first bank draft. (Draft date options are the 1st, 3rd, 5th, 10th, 15th, 20th, or 25th of the month.)
Draft First Premium
Example
3. If the initial premium is submitted with the application and subsequent premiums are to be paid by bank draft, the effective date will be one month prior to the first draft.
The policy effective date may not be more than 30 days from the application date.
Cash with Application
Example
4. If the application date is the 29th, 30th, or 31st of a month, the effective date will be the 1st of the next month. If this date would result in a change in age, the effective date will be the 28th of the month in which the application was signed.
The policy effective date may not be more than 30 days from the application date.
Cash with Application
Application Date:
October 20
Requested Draft Date:
The 5th of each month
First Draft Date:
December 5
Effective Date:
New Business
General Application Guidelines
Agent Notification
The Company will notify you if additional underwriting is required on an application.
Beneficiary Designation
If the Owner is other than the Proposed Insured, the Beneficiary must have an insurable interest. The Beneficiary’s relationship to the Proposed Insured must be stated on the application. A funeral home may not be named as beneficiary.
Corrections
Do not use correction fluid or tape on an application. If a mistake is made, draw a single line through the mistake and have the Applicant initial it.
Foreign Applicants
Applications for foreign nationals are accepted as long as the applicant is a legal immigrant and has a Social Security number. Applications up to $15,000 are accepted on foreign nationals who have a green card or tax ID number (TIN) and a driver’s license.
Premium
• If the initial premium is paid in cash, premium must be submitted in the form of a personal check, cashier’s check, or money order from the Applicant. The Company will not accept an Agency or Agent’s personal check or any post-dated check. Alternately, the initial premium can be transferred electronically by completing the One Time Electronic Fund Transfer section of the application. Do not use this section for Draft First Premium (see below).
• If the initial premium is to be paid by Draft First Premium:
− Check the Draft 1st Premium box on Page 1 of the application and complete the First Draft and Ongoing Electronic Fund Transfer section.
− Submit a voided check or deposit slip with the application.
− The date for the first draft must be within 30 days of the application date.
− Allow at least 5 business days between the date the application will be received and date of first draft.
− The policy will not become effective until the first premium is drafted. Commission will be paid after the policy effective date.
• If subsequent premiums are to be paid by electronic funds transfer:
− Complete the First Draft and Ongoing Electronic Fund Transfer section of the application.
− Submit a voided check or deposit slip with the application.
− The date for the first drafted premium should be within 30 days of the effective date of the policy.
Multiple Policies
Additional coverage may be written on an Insured as long as the total insurance does not exceed maximum issue limits.
Non-Resident Applicants
When taking an application for an individual who resides in another state, the plan must be
approved and the agent must be appointed in the state where the application is signed. Underwriting criteria will be based on the state where the application is signed.
New Business
Premium Calculation
Annual Policy Fee: $40.23
Modal Factors: Semi-Annual .52; Quarterly .265; Monthly EFT .087 Monthly Direct Bill not available.
The above is an example only.
Rider Premium
A n n u al Rider P remiu m per Th o usan d 1 .08
multiply by:
Face A mo un t in N u mb er o f Th o usan ds x x 1 0
equals:
A n n u al Rider P remiu m = = 1 0.80
for payment modes other than annual, multiply by:
Mod al Facto r x x .087
equals:
A m ount o f R ider Prem ium = = .94
A n nu al P remiu m p er Th ou san d 21 .37
multiply by:
Face A mo un t in N u mb er o f Th o u san d s x x 1 0
equals:
A n nu al Base P olicy P remiu m = = 21 3.70
add:
A n nu al P olicy Fee + 4 0 .2 3 + 40.23
equals:
A n nu al P remiu m P lus P o licy Fee = = 253.93
for payment modes other than annual, multiply by:
Mod al Factor x x .087
equals:
A m o unt o f B a se Prem ium = = 22.09
Base Premium
Female, 45 Full Benefit Non-Tobacco $10,000 Face Monthly EFT EXAMPLE Accidental Death Benefit Rider EXAMPLENew Business
Completing the Application
Check the appropriate box at the top of the application to indicate whether the policy will be mailed to you or to the Policyowner. If neither box is checked, the policy will be mailed to the Policyowner. If you elect to have the policy mailed to you for delivery to the Policyowner, you must personally
deliver the policy and obtain the signature of the owner on the delivery receipt. You must return a signed copy of the receipt to the Company and retain a copy for your records.
1. PROPOSED INSURED
Fill this out completely, being sure to include the Social Security number and phone number of the Proposed Insured. When calculating the Proposed Insured’s age, if a specific effective date is
requested or if the first premium is to be paid by bank draft, calculate the age as of the effective date or draft date, not the application date.
2. OWNER
Complete this section if the Proposed Insured will not be the owner of the policy. Be sure to include the owner’s Social Security number. The Policyowner must have an insurable interest in the life of the Proposed Insured. The insurable interest requirement is satisfied if the individual is an
immediate family member or would suffer an economic loss by the death of the Proposed Insured. The relationship must be stated on the application.
3. BENEFICIARY
If the Proposed Insured is the Owner, he or she may name the beneficiary of their choice. If the Owner is other than the Proposed Insured, the beneficiary must have an insurable interest. The relationship must be stated on the application.
4. POLICY INFORMATION Base Plan of Insurance:
If any question in Part 1 of the Health History is answered “yes,” the Proposed Insured is not eligible for any plan. If any question in Part 2 is answered “yes,” the Proposed Insured is eligible to apply for the Graded Benefit Plan only.
Amount of Base Premium (Minus Riders):
Enter the amount of the base premium before adding any applicable rider premium.
Riders:
Enter the applicable rider premium amounts.
• If applying for a Graded Benefit policy, only the Accelerated Death Benefit Rider is available.
• If applying for the Nursing Home Rider, be sure to answer the Nursing Home Rider question in Part 4. If the question is answered “Yes,” the Proposed Insured is not eligible for the Rider.
• If applying for Children’s Term Rider, complete the Supplemental Application for Children’s Term Insurance Rider.
• The Family Income Rider is not yet available. You will be notified when it is available in your state.
Amount Paid with Application:
New Business
Completing the Application
4. POLICY INFORMATION (continued) Payment Mode:
Check the payment mode selected. Monthly payments are available only with Electronic Funds Transfer (bank draft). If the initial premium will be paid by Draft First Premium, check the Draft 1st Premium box in addition to the payment mode selection.
Requested Effective Date:
Normally, the effective date of the policy is the application date (for Draft First Premium, the effective date is the date of the draft). A specific effective date can be requested within the following parameters:
• Backdating up to 6 months to save age is allowed. All premiums must be submitted with the application.
• A future effective date up to 30 days from the application date is allowed.
If an effective date other than the application date is requested, note the requested date in this section of the application. State the reason for the request under “Special Requests/Remarks.”
5. HEALTH HISTORY
If any question in Part 1 is answered “yes,” discontinue writing the application. If any question in Part 2 is answered “yes,” the Proposed Insured is eligible to apply for the graded benefit policy only. Circle or underline all applicable conditions relating to a “yes” answer. Be sure to answer the tobacco question in Part 3.
6. REPLACEMENT
Answer both replacement questions on the application.
• If the application is signed in a state other than Oregon that has adopted the Model Replacement Regulation:
− If the Applicant does not have any existing life insurance or annuities, your duties with respect to replacement are complete.
− If the Applicant does have existing life insurance or annuities, you must complete the appropriate replacement notice for your state, even if the existing insurance or annuities are not being replaced. The notice must be read aloud to the Applicant, unless he or she initials the bottom of the form indicating that they have declined to have it read aloud.
• If the application is signed in Oregon or in a state that has not adopted the Model
Regulation, complete the appropriate replacement notice if the Applicant answers “yes” to the second replacement question: “Is this application for insurance intended to replace any life insurance or annuities now in force?”
Be sure to keep current on your state’s replacement regulations.
A replacement should be recommended only when it is in the best interest of the Applicant.
Columbian does not condone unwarranted or unsuitable replacements. Any time that you complete a replacement notice, you must submit a copy with the application and leave a copy with the
Applicant, as well as copies of all sales materials used in the presentation.
Example:
Signature of Proposed Insured (Parent/Guardian if 15 or under)
X John
X
JonesHis Mark
New Business
Completing the Application
7. SPECIAL REQUESTS/REMARKS
Use this space to add any details regarding the application.
9. AUTHORIZATION & ACKNOWLEDGEMENT
The Proposed Insured must sign the application. A Power of Attorney signature will not be accepted. If the Owner will be other than the Insured, the Owner must sign as well. Signatures are to be witnessed by the Agent. If the signature was not witnessed by the Agent, the reason must be noted under “Special Requests/Remarks.”
If an Applicant is unable to write his or her own signature, he or she can make an “X” mark on the signature line. The Agent must then write the name beside the mark, showing the first name to the left of the mark and the last name to the right of the mark. The Agent should also write the word “His” or “Her” above the mark and the word “Mark” below the mark. Indicate the reason the Proposed Insured has signed with an “X” in the “Special Requests / Remarks” section.
Note: The application must be received by the Company within 30 days of signature.
10. REPORT OF LICENSED AGENT
Answer both replacement questions and indicate whether a telephone interview has been completed. If applying for a Classic I Full Benefit policy and the application is taken after business hours, be sure to include the Applicant’s phone number and indicate the best time to call in the “Special Requests/Remarks” section.
REQUEST FOR ELECTRONIC FUNDS TRANSFER PLAN
Complete the One Time Electronic Fund Transfer section if the initial premium is to be debited from a bank account. Do not use this section for Draft First Premium.
Complete the First Draft and Ongoing Electronic Fund Transfer section if the initial premium is to be paid by Draft First Premium and/or if subsequent premiums are to be paid by monthly EFT. Include a voided check or deposit slip.
CONDITIONAL RECEIPT
Complete this section only if premium is submitted with the application. If requesting Draft First Premium, do not complete the receipt.
APPLICATION FORM NUMBER MAY VARY BY STATE.
COLUMBIAN LIFE INSURANCE COMPANY APPLICATION FORWHOLE
LIFE INSURANCE POLICY
MAIL POLICY TO: Agent Owner
HOME OFFICE: CHICAGO, IL
ADMINISTRATIVE SERVICE OFFICE: PO Box 4850, Norcross, GA 30091 - 4850 1. PROPOSED INSURED:
Proposed Insured (First, Middle Initial, Last) Social Security Number Sex Age Last Birthday Date of Birth State of Birth
Home Address/Apt. #, City, State, Zip Code Phone Number
( )
2. OWNER: (Complete only if Owner is other than Proposed Insured)
Name of Owner Social Security Number Relationship to Proposed Insured
Mailing Address/ (If different from Insured)
3. BENEFICIARY:
Primary Beneficiary Designation: (Full Name & Relationship to Insured) Contingent Beneficiary Designation: (Full Name & Relationship to Insured)
4. POLICY INFORMATION:
Email Address Base Plan of Insurance:
Full Benefit Plan Non-Tobacco Tobacco Graded Benefit Amount of Base Premium (Minus Riders): $_____________ Amount of Insurance (Face Amount): $____________ Riders:
Accidental Death Benefit Accelerated Death Benefit Waiver of Premium – Nursing Home Waiver of Premium – Disability Children’s Term Insurance Rider Family Income Rider *
*Circle benefit per month ( 250 / 350 / 500)
Rider Premium: $___________ (No Charge) $___________ $___________ $___________ $___________ Amount Paid with Application: $_________
Payment Mode: Annual Semi-Annual Quarterly Monthly EFT Draft 1st Premium?
(Draft date must be within 30 days of application date.)
Requested Effective Date: Automatic Premium Loan: Yes No 5. HEALTH HISTORY:
PART 1 (If any question in this section is answered “YES,” DO NOT SUBMIT THE APPLICATION) YES NO
1. Is the Proposed Insured currently hospitalized, confined to a nursing home, hospice, bed, or confined to a wheelchair (due to a disease or chronic illness), institutionalized, receiving home health care, ever been recommended for an organ or bone marrow transplant, or ever had a heart, lung, liver or bone marrow transplant, or ever had an amputation due to disease or, within the last twelve (12) months, received kidney dialysis?……….………..……....…… 2. Has the Proposed Insured ever been diagnosed or treated by a member of the medical profession for an Immune Deficiency Disorder, Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC), or has the Proposed Insured been diagnosed as having a terminal medical condition that is expected to result in death within the next twelve (12) months?……… 3. Has the Proposed Insured ever been diagnosed with, or received treatment for: mental retardation, Down’s Syndrome, cerebral palsy,
muscular dystrophy, spina bifida, cystic fibrosis, sickle cell anemia or un-operated heart defects?………..…..……. 4. Has the Proposed Insured ever been diagnosed or received treatment (including taking medication) with congestive heart failure, Alzheimer’s disease, dementia or Lou Gehrig’s disease (ALS)?.……….…..………..…... 5. During the last twenty-four (24) months, has the Proposed Insured had, been diagnosed or received treatment (including taking
medication) for any form of cancer (other than basal cell skin cancer)?... 6. During the last twelve (12) months has the Proposed Insured been diagnosed as having a heart attack? ………...……. 7. Are you male and over 350 pounds, or are you female and over 300 pounds? ………..
PART 2 (If the answer to any question in Part 2 is “YES,” the Proposed Insured is eligible for the GRADED BENEFIT PLAN only.) YES NO
1. During the last thirteen to twenty-four (13 - 24) months has the Proposed Insured been diagnosed as having a heart attack? ……… 2. During the last twenty-four (24) months, has the Proposed Insured been diagnosed as having: A stroke (including TIA), aneurysm, enlarged heart, angina, pacemaker implant or any procedure to improve circulation to the heart or brain?……… 3. During the last thirty-six (36) months, has the Proposed Insured had, been diagnosed or received treatment (including taking
medication) for:
A. Emphysema, chronic obstructive pulmonary disease (COPD), black lung disease, any chronic respiratory disorder (excluding asthma or sleep apnea), or used oxygen equipment to assist in breathing?………...…..…………...……….………... B. Kidney disease, kidney failure, liver disease, chronic hepatitis, drug or alcohol abuse, or Systemic Lupus?... C. Multiple Sclerosis, Parkinson’s Disease, schizophrenia, brain tumor or has the Proposed Insured been hospitalized or institutionalized for a mental or nervous disorder within the last twenty-four (24) months?... 4. During the last twenty-four (24) months, has the Proposed Insured experienced complications of diabetes, including insulin shock,
diabetic coma, Retinopathy (eye), Nephropathy (kidney), Neuropathy (nerve, circulatory) disorder, or diabetes not under control with current treatment , or has the Proposed Insured used insulin for the treatment of diabetes prior to age 50?...
FORM NO. A343-CL PAGE 1 of 4
123 456-7890 IL 8/11/64
45 999-99-9999 F
1234 Happy Valley Road, Anywhere, IL 12345 Lucinda M. Jones
John S. Jones - Spouse Carrie A. Jones - Daughter
10,000 22.09
.94
2.611.28 26.92 lucyjones@email.net
APPLICATION FORM NUMBER MAY VARY BY STATE.
PART 3 TOBACCO USE YES NO
1. Within the past twelve (12) months, has the Proposed Insured used any form of tobacco or nicotine products including cigarettes, cigars, pipes, chewing tobacco or snuff?………..……….….
PART 4 ANSWER ONLY IF APPLYING FOR THE NURSING HOME WAIVER OF PREMIUM RIDER
(If any question in Part 2 is answered “YES,” the Proposed Insured is not eligible for this rider): YES NO
Does the Proposed Insured currently use mechanical devices such as a wheelchair, crutches, hospital bed or oxygen; or currently need or require assistance from another person in bathing, eating, dressing, toileting, transferring from bed to chair or maintaining continence; or has the Proposed Insured received medical advice or treatment or consulted with a member of the medical profession for osteoporosis or memory loss? ...……….………..………
6. REPLACEMENT: YES NO
Do you have any existing life insurance or annuities?……….……… Is this application for insurance intended to replace any life insurance or annuities now in force?……….
(If “YES,” submit any special formsrequired by the state in which the application is signed.)
7. SPECIAL REQUESTS / REMARKS:
8. CONDITIONS RELATING TO THE APPLICATION:
I have read the questions and answers in all parts of this application and agree that they are complete and true to the best of my knowledge and belief. I agree that this application shall form a part of any polic y issued. I understand and agree that no agent has the authority to waive a complete answer to any question in the application, pass on insurability, make or alter any contract, or waive any of the Company’s other rights or requirements; that any policy applied for shall not take effect (except as provided in the Conditional Receipt bearing the same number as this application) unless and until the policy has been issued and delivered and the full first premium, according to the mode of paym ent selected by the applicant (as permitted by the Company) and stipulated in the policy, has been paid and accepted by the Company during the lifetime and condition of health of the Proposed Insured as stated in the application.
9. AUTHORIZATION & ACKNOWLEDGMENT:
I authorize any licensed physician, m edical practitioner, hospital, clinic, pharmacy benefit manager, other medical or medically related facility, insurance company, the Medical Inform ation Bureau, consumer reporting agency, or other organization, institution or person that has any records or knowledge of me, to give any such inform ation to Columbian Life Insurance Company (“the Com pany”) or its reinsurers for underwriting or claims purposes. This authorization also includes information about drugs, alcoholism, prescription drug records, or any other medical history information. To facilitate rapid submission of such information, I authorize all said sources, except MIB, to give such records or knowledge to any agency employed by the Company to collect and transmit such information. I understand my information may be subject to redisclosure to a third party and may no longer be protected by federal privacy laws. I understand a telephone interview may be necessary to verify or supplement information given to the Company on this application. This interview may be made from the Administrative Service Office or from a consumer-reporting agency by a trained interviewer acting on the Company’s behalf. A photocopy of this form will be as valid as the original; this authorization will be valid for two (2) years from the date shown below, and will survive my death if it occurs during such two (2) year period. You may revoke this authorization by contacting us at PO Box 1381 Binghamton, NY 13902-1381 however, we retain the right to use any inform ation obtained under your authorization prior to your revocation. I have read and understand the Conditions Relating to the Application and the Authorization & Acknowledgment.
I acknowledge receipt and review of the Information Practices Relating to Underwriting Your Application.
I have read and acknowledge the applicable fraud notice required by state law.
_________________________________________ X _______________________________________________________________
Date of Application Signature of Proposed Insured (Parent/Guardian if 15 or under) (Date) _________________________________________ X _______________________________________________________________
Dated At (City, State) Signature of Owner (If other than Insured) (Date)
10. REPORT OF LICENSED AGENT:
Does the applicant have any existing life insurance or annuities?………. YES NO Is this insurance intended to replace, in whole or part, any life insurance or annuities?………. YES NO
(If “YES,” submit any special forms required by the state in which the application is signed.)
HAS THE TELEPHONE INTERVIEW BEEN COMPLETED? ..……….……….….. YES NO I hereby affirm that I personally solicited, witnessed, and completed this application and all answers given above are true and correct to the best of my knowledge.
____________________________________________________ X __________________________________________________
Name of Licensed Agent (Print) Signature of Licensed Agent (required) (Date) _________________________ _______________________ __________________________________________________
Agent Number % Second Agent Number % Agent’s State License ID No. (in jurisdictions where required) (If Splitting)
FORM NO. A343-CL Page 2 of 4
1 2/20/09 Anywhere, IL
Lucinda M. Jones
12/20/09 Alfred Q. Agent 12/20/09 12345 678910Alfred Q. Agent
APPLICATION FORM NUMBER MAY VARY BY STATE.
MISCELLANEOUS Complete, If Applicable – Not Required In All States SECONDARY ADDRESSEE / THIRD PARTY DESIGNEE Not Electing A Secondary Addressee/Third Party At this Time.
(The Applicant/Owner may designate a Secondary Addressee/Third Party to receive a copy of Important Notices.)
Name & Address:
Secondary Addressee / Third Party Authorization
I hereby give permission to accept any Important Notices on behalf of the named Proposed Insured.
X ______________________________________________________________________________
Signature of Secondary Addressee/Third Party (If Required)
REQUEST FOR ELECTRONIC FUNDS TRANSFER PLAN - (Must complete in full) DO NOT USE FOR DRAFT 1st PREMIUM Amount Paid With Application: $___________________
ONE TIME ELECTRONIC FUND TRANSFER
For Electronic Funds Transfer, your agent will submit your application for insurance and this authorization for payment to Columbian Life Insurance Company (“the Company”). By signing this form, you authorize the Company to initiate an electronic funds transfer from your bank account.
Please note that your bank account may be debited the same day your agent submits this authorization. The below hereby authorizes the Company to draw an electronic fund transfer from my bank account for payment of new life insurance.
This will be a one time withdrawal from my account in the amount of $ ____________________ from the account detailed below.
Financial Institution: ________________________________________ Name of Bank Account Holder: _________________________________________
Account Type : Checking or Savings
Routing Number: Must have 9 digits in routing #
Account Number: Can have up to 17 positions in account #
______________________________ X ______________________________________________________
Date Authorized Signature as it appears on Bank Records (one time withdrawal)
IF YOU WISH TO CONTINUE MAKING PREMIUM PAYMENTS VIA ELECTRONIC FUNDS TRANSFER, PLEASE COMPLETE THE INFORMATION BELOW AND SIGN. PLEASE NOTE: YOU NEED ONLY INCLUDE THE ACCOUNT INFORMATION IF IT IS DIFFERENT THAN STATED ABOVE.
FIRST DRAFT AND ONGOING ELECTRONIC FUND TRANSFER
I authorize the payment of debits drawn on my account payable to Columbian Life Insurance Company, provided there are sufficient funds in the account. I agree that if any such debit be dishonored, you shall be under no liability in the event the dishonored debit results in forfeiture of insurance.
Any requirement for giving notice of premiums due shall be waived as long as this Electronic Funds Transfer plan is in effect. No premium shall be deemed to have been paid until the Company receives actual payment. The use of this plan shall in no way change the provisions of the policy with respect to the termination of such policy upon nonpayment of the premium due.
This plan shall continue in effect until terminated by the Company or by me by thirty days written notice to the other party. The Company may terminate the EFT plan if any check or electronic fund transfer is not paid on presentation. Upon termination of the Electronic Funds Transfer plan, premiums due under the policy after such termination shall be payable directly to the Company at the minimum modal premium available at the time of issue.
Bank Name ________________________________________ Checking (Attach voided check if available.) or Savings Transit / Routing # Must have 9 digits in routing #
Account # Can have up to 17 positions in account #
I request withdrawal of payments on or about the 1st 3rd 5th 10th 15th 20th or 25th of each month, beginning in the
month of _____________________________ .
__________________________ _____________ X___________________________________________________________
Name of Bank Account Holder Date Authorized Signature as it appears on Bank Records (ongoing withdrawals)
FORM NO. A343-CL Page 3 of 4
Trustworthy Bank of Anywhere
0 9 January 12/20/09
Lucinda M. Jones
26.92 Lucinda M. JonesLucinda M. Jones
12/20/09Complete this section to have the initial premium transferred electronically (do not use for Draft 1st Premium or EFT mode).
Complete this section for Draft First Premium AND/OR Monthly EFT mode.
No need to complete account information if same as above. 0 0 1 1 1 2 3 4
6 5 8 7 6 5 4 3 2 1 2 3 4
APPLICATION FORM NUMBER MAY VARY BY STATE.
COLUMBIAN LIFE INSURANCE COMPANY SUPPLEMENTAL
APPLICATION FOR CHILDREN’S TERM INSURANCE RIDER
HOME OFFICE: CHICAGO, IL
ADMINISTRATIVE SERVICE OFFICE: PO Box 4850, Norcross, GA 30091-4850
This application supplements Application Form No. _________________________, dated __________________. CHILDREN’S TERM INSURANCE RIDER NUMBER OF UNITS APPLIED FOR: ______________________________
1. CHILDREN PROPOSED FOR INSURANCE:
Name all natural born children, stepchildren, and legally adopted children of Proposed Insured who have not reached age 19. Insurance will not be provided on newborn children less than 15 days of age.
FULL NAME OF PROPOSED
INSURED CHILD SOCIAL SECURITY NUMBER BIRTHDAY AGE LAST DATE OF BIRTH MO/DAY/YEAR HEIGHT FT IN WEIGHT LBS
A. B. C. D. E.
2. BENEFICIARY: (If a trust, give Trustee Name, Trust Name & Trust Date. If no Beneficiary is named for any child, the Beneficiary Designation defaults to the Insured of the base policy.)
Primary Beneficiary Designation (Full name): Relationship to Insured:
Contingent Beneficiary Designation(Full name): Relationship to Insured:
3. HEALTH HISTORY:
1. Has any Proposed Insured Child ever been diagnosed or treated for cancer, diabetes, heart or circulatory disorder, mental or nervous disorder, mental retardation, Down’s Syndrome, cerebral palsy, muscular dystrophy, spina bifida, cystic fibrosis, un-operated heart defects, epilepsy, asthma, disorder of the muscles or bones, anemia to include sickle cell or other blood disorder, or been diagnosed or received treatment for a kidney, liver or lung disorder?……….
YES NO
2. Has any Proposed Insured Child ever been diagnosed or treated by a member of the medical profession for an Immune
Deficiency Disorder, Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC)?………….……...…
3. Has any Proposed Insured Child ever used or received treatment, advice or counseling from a physician or other
practitioner relating to the usage of alcohol, heroin, cocaine, narcotics, hallucinogens, tranquilizers, barbiturates, amphetamines, or other similar drugs except as prescribed by a physician?………. 4. Is any Proposed Insured Child currently institutionalized, hospitalized, confined to a wheelchair or bed due to chronic
illness or disease or has any Proposed Insured Child had or been recommended for an organ transplant?... PLEASE GIVE DETAILS TO ANY “YES” ANSWER TO QUESTIONS 1 – 4 (Attach Another Sheet If Necessary):
Proposed Insured Child Condition & Treatment Date Name & Address of Physician or Hospital
4. ACKNOWLEDGEMENT & SIGNATURES:
I declare and represent that the foregoing statements and answers have been correctly recorded and that they are full, complete and true to the best of my knowledge and belief and shall constitute a part of the application.
___________________________ X __________________________________________________________________
Date Signature of Parent/Guardian
___________________________ X __________________________________________________________________
Date Signature of Licensed Agent Agent Number
FORM NO. A333-CL
0001 2345 12/20/09 5 Carrie A. Jones Jonah E. Jones 555-55-5555888-88-8888 1617 9/5/938/8/92 5' 2" 11 0 5' 6" 150
John M. Jones Father
Lucinda S. Jones Mother
12/20/09
Lucinda M. Jones
Application Faxing
Columbian Life Final Expense applications may be faxed toll-free to 877-261-3266 for speedy processing. Please use this number only for faxing Columbian Life Final Expense business. A separate fax number is set up for Columbian Mutual Life (New York) applications. Using this fax line for Columbian Mutual Life applications or other requests may result in a delay of that request being processed.
Faxing applications will help get your policies issued as quickly as possible, but please allow 48 hours before calling Customer Service with inquiries or looking for the pending policy in your on-line Application History at www.cfglife.com. If we are not able to process an application, we will contact you by e-mail or phone.
Important Tips
• To help ensure legibility, please complete applications using bold ink.
• Please copy the back of each page of the application before faxing so that you can fax all pages in the proper order (if you are using an application printed from our web site, it will not be necessary to copy the pages before faxing).
• Be sure to include our Application Fax Cover Sheet, Form No. 3969CL-U, with each application. If you fax more than one application at a time, please use a cover sheet for each one.
• When paying the initial premium from a checking or savings account, complete the One Time Electronic Fund Transfer section of the application and include a voided check or deposit slip.
• If the first premium will be drafted, complete the First Draft and Ongoing Electronic Fund Transfer section of the application and include a voided check or deposit slip from the account to be drafted.
• Applications with money orders or cashier’s checks cannot be accepted by fax. Mail the original application with the money order or cashier’s check to the Norcross Office. As always, we do not accept agency checks.
• Be sure to include all additional required forms, such as Replacement Forms or Disclosure Statements.
• After faxing, check your fax transmittal sheet to be sure that the correct number of pages transmitted successfully.
• DO NOT mail the original application or check after faxing. Mailing the items in addition to faxing could result in the policyowner’s account being debited twice and the policy being coded as incomplete, which will affect your persistency. You should retain the original application and check in your files for at least six months.
Conservation
Lapses
If it appears that a policy is in danger of lapsing, the Company will mail notices to the Policyowner with a copy to the Agent.
• 15 days after the policy is past due, the Company will mail a Reminder Notice to both the Policyowner and the Agent.
• 30 days after the policy is past due, the Company will mail a Delinquent Notice to both the Policyowner and the Agent.
• 40 - 45 days after the policy is past due, the Company will mail a Lapse Notice to both the Policyowner and the Agent, the policy will be removed from the system and any unearned commissions will be charged back. If the agent collects the back premium before the policy is removed from the system, or within 10 calendar days after the date of the Lapse Notice, the policy can be reactivated without a reinstatement application being required.
It is always best to attempt to conserve a policy before it lapses. Although a lapsed policy might be reinstated, reinstatement applications are subject to new underwriting. If there has been a change in the health of the Insured, they may no longer be insurable. If the policy is reinstated by redating, premiums could increase if there has been a change in age. Also, any time a policy is reinstated, the contestable period begins anew.
Make every attempt to contact the Policyowner to determine the cause of the problem before the policy lapses. It could be something as simple as the Owner changing banks and neglecting to inform the Company. If the Owner is experiencing a temporary economic setback, look for a
solution that will help them keep the policy in force, such as a policy loanor a reduced face amount. Remind them of the reasons they purchased the policy. It is unlikely that those reasons are less important today than they were on the day the application was signed, and your efforts to conserve the policy will show that you have the Owner’s best interests in mind.
Cancellations
Cancellation requests must be made in writing to the Company. The Company will notify you of any cancellation request 10 business days prior to processing in order to allow you time to try to conserve the policy.
Returned Bank Drafts & Checks
When the Company is unable to collect premium due to insufficient funds or a closed or frozen account, the premiums and commissions are reversed. We will immediately mail a letter to the Policyowner and writing Agent, advising them of the situation. The Agent will have 10 business days from the date the letter is mailed to contact the Owner and collect the premium due.
• If the returned item was for an initial premium and the funds remain unavailable, the policy is classified as Not Taken (NTO) and all commissions are charged back.
• If the returned item was not for an initial premium, the premium must be remitted within the 31-day grace period, or the policy will lapse. Any unearned portion of commissions paid will be charged back.
A policy can be
redated only once
during its lifetime,
and only within 12
months of its laps
e date.
Reinstatements
Reinstatement Guidelines
When a policy lapses, the Company mails a letter to the Policyowner, informing them of the status and asking them to contact the Company to reinstate the policy. The Agent is copied on the letter, providing an opportunity to contact the Policyowner and attempt to conserve the policy.
Normal Reinstatement
On a normal reinstatement, all premium in default must be submitted to reinstate the policy. The policy date and issue age do not change, but the contestable period begins anew from the date of the Reinstatement Application.
Reinstatement by Redate
A policy that has lapsed within the last 12 months and has
no cash surrender value may be reinstated without payment of back premiums. One mode premium is required, and the policy is given a new policy date. The contestable period begins anew from the date of the Reinstatement Application. If a change in age has occurred since the original policy issue, premiums after the reinstatement will be calculated on the Insured’s current age. When reinstating by redate and the Insured’s age has changed, be sure to collect sufficient premium.
Before meeting with the Policyowner, contact Columbian’s Customer Service Department to determine which reinstatement method should be used, and the amount of premium required to reinstate the policy. When completing the Reinstatement Application:
• Use the appropriate Reinstatement Application for the Insured’s current state of residence.
• Ask all health questions on the application.
• If premiums are paid by bank draft, verify current bank information, have the payor sign the Request for Electronic Funds Transfer Plan, and submit a voided check. If premiums are not paid by bank draft, collect the amount needed to reinstate the policy and complete the Reinstatement Deposit Receipt.
• If reinstating by redate, write “Reinstatement by Redate” in the Remarks section.
• The Reinstatement Application must be signed by the Insured. If the Policyowner is different than the Insured, the Policyowner must also sign.
• Leave the “Information Practices Related to Underwriting Your Application for Reinstatement” with the Policyowner.
• Allow sufficient time for the reinstatement to be approved in order to draft premium for the current month; otherwise, collect for the month in which the reinstatement is submitted. A telephone interview will be scheduled and MIB check conductedto verify medical information after the Reinstatement Application has been received by the Company. If warranted, additional information may be requested.
The Policyowner will be notified of the underwriting decision, with a copy to the Agent. If the application is declined, any premium collected will be refunded immediately. If the application is approved, the premium will be applied to the policy. If the policy was reinstated by redating, a new policy will be mailed to the Policyowner.
APPLICATION FORM NUMBER MAY VARY BY STATE.
APPLICATION FOR COLUMBIAN LIFEINSURANCE COMPANY
REINSTATEMENT HOME OFFICE: CHICAGO, IL
ADMINISTRATIVE SERVICE OFFICE: PO Box 4850, Norcross, GA 30091 - 4850
FOR THE OUTSTANDING PREMIUMS :
NAME OF INSURED NUMBER POLICY RECEIVED AMOUNT FROM THROUGH
$
CURRENT ADDRESS: STREET/RD: APT #
CITY: STATE: ZIP CODE: PHONE NUMBER:
Email Address
I hereby apply for reinstatement of the above numbered policy, subject to its provisions and terms. This application is made on the basis of, and is subject to, the following answers:
HEALTH HISTORY:
Part 1 YES NO
1. Is the Insured currently hospitalized, confined to a nursing home, hospice, bed, or confined to a wheelchair (due to a disease
or chronic illness), institutionalized, receiving home health care, ever been recommended for an organ or bone marrow transplant, or ever had a heart, lung, liver or bone marrow transplant, or ever had an amputation due to disease or, within the last twelve (12) months, received kidney dialysis?...
2. Has the Insured ever been diagnosed or treated by a member of the medical profession for an Immune Deficiency Disorder,
Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC), or has the Insured been diagnosed as having a terminal medical condition that is expected to result in death within the next twelve (12) months?………..………
3. Has the Insured ever been diagnosed with, or received treatment for: mental retardation, Down’s Syndrome, cerebral palsy,
muscular dystrophy, spina bifida, cystic fibrosis, sickle cell anemia or un-operated heart defects?...
4. Has the Insured ever been diagnosed or received treatment (including taking medication) with congestive heart failure,
Alzheimer’s disease, dementia or Lou Gehrig’s disease (ALS)?...
5. During the last twenty-four (24) months, has the Insured had, been diagnosed or received treatment (including taking
medication) for any form of cancer (other than basal cell skin cancer)?...
6. During the last twelve (12) months has the Insured been diagnosed as having a heart attack?... 7. Are you male and over 350 pounds, or are you female and over 300 pounds?...
IF THE ANSWER TO ANY OF THE ABOVE HEALTH QUESTIONS IS “YES,” DO NOT ANSWER ANY OF THE FOLLOWING QUESTIONS. SIGN AND SUBMIT THE APPLICATION TO THE ADMINISTRATIVE SERVICE OFFICE.
Part 2 YES NO
1. During the last thirteen to twenty-four (13-24) months has the Insured been diagnosed as having a heart attack?...
2. During the last twenty-four (24) months, has the Insured been diagnosed as having: A stroke (including TIA), aneurysm,
enlarged heart, angina, pacemaker implant or any procedure to improve the circulation to the heart or brain?...
3. During the last thirty-six (36) months, has the Insured had, been diagnosed or received treatment (including taking
medication) for:
A. Emphysema, chronic obstructive pulmonary disease (COPD), black lung disease, any chronic respiratory disorder (excluding asthma or sleep apnea), or used oxygen equipment to assist in breathing?....………. B. Kidney disease, kidney failure, liver disease, chronic hepatitis, drug or alcohol abuse, or Systemic Lupus?...…….…….. C. Multiple Sclerosis, Parkinson’s Disease, schizophrenia, brain tumor or has the Insured been hospitalized or
institutionalized for a mental or nervous disorder within the last twenty-four (24) months?...….….….
4. During the last twenty-four (24) months, has the Insured expe
