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Special points of in-
terest:
Insurance soft-
ware update
Insurance Appli-
cation forms
PPG Updates &
Housekeeping
Insurance Prod-
ucts Highlights
PPG Newsletter 2015
July 1
Current software version: 31.0
Current software version: Concourse 2.4
With Zoom 14.3
Current software version: 2015-2
Current software version: 7.7.4
Current software version: 15.5
Current software version: 9.1
Current software version: 6.6
Current software version: 10.4
Current software version: Life 15.2
Fusion Menu:6.6
Current software version: 10.0
Current software version: 4.1
Current software version: 4.1
INSURANCE.FINANCIAL.REAL ESTATE
#555-650 West 41st Ave. Vancouver, B.C. V5Z 2M9 Tel: 604-267-1833 Fax: 604-872-8896
“Knowing is not
enough; we must
apply. Willing is
not enough; we
must do.”
- Johann Wolfgang
von Goethe.
Life Insurance Software Update
Current Life Insurance Application Forms BMO Application for Life and CI 126E (2016/06/01) Application for Single Premium Immediate Annuities 348E (2013/01/01) Policy Owner Identification – Proceeds of Crime (Money laundering) & Terror-
ist Financing (576E) (2014/08/01) Politically Exposed Foreign Persons Questionnaire (420E) (2013/09/01) Canada Life Application for Life, CI and DI 17-8908 (09/14) Application for Life 17-8921 (09/14) Individual Life Insurance Application for Policy Change 17-8217 (07/14) SSQ Both Life and CI: FIND0035A (2014/10) IA Application for Life and Critical Illness (15/03) Manulife Both Life and CI: NN7000E (06/2012) Manulife Investment — online transaction
Life Insurance Updates continues
Important Memo:Important Memo:Important Memo:
Manulife Double Conference CreditManulife Double Conference CreditManulife Double Conference Credit Due to overwhelming response, we are extending the Man-Due to overwhelming response, we are extending the Man-Due to overwhelming response, we are extending the Man-uuullliiifffeee dddooouuubbbllleee cccooonnnfffeeerrreeennnccceee cccrrreeedddiiittt fffooorrr ooonnneee mmmooorrreee mmmooonnnttthhh... YYYooouuu have until July 31, 2015 to earn double credit on all the have until July 31, 2015 to earn double credit on all the have until July 31, 2015 to earn double credit on all the Manulife applications you submit and placed by the end of Manulife applications you submit and placed by the end of Manulife applications you submit and placed by the end of the year.the year.the year. ************************************************************************************************************************************************ Life Insurance & InvestmentLife Insurance & InvestmentLife Insurance & Investment Please be advised that there will be new changes coming Please be advised that there will be new changes coming Please be advised that there will be new changes coming up on September 1 2015 regarding compliances (Mandatory up on September 1 2015 regarding compliances (Mandatory up on September 1 2015 regarding compliances (Mandatory new advisor / client disclosure form). new advisor / client disclosure form). new advisor / client disclosure form). ************************************************************************************************************************************************ For all Manulife new applications, please be advised the first For all Manulife new applications, please be advised the first For all Manulife new applications, please be advised the first payment date should be the same as the date on the appli-payment date should be the same as the date on the appli-payment date should be the same as the date on the appli-cation. For example, if the application was completed on cation. For example, if the application was completed on cation. For example, if the application was completed on Dec 1st, then the initial cheque date should be Dec 1st as Dec 1st, then the initial cheque date should be Dec 1st as Dec 1st, then the initial cheque date should be Dec 1st as well.well.well. ************************************************************************************************************************************************ Effective immediately, all cheques made payable to Pacific Effective immediately, all cheques made payable to Pacific Effective immediately, all cheques made payable to Pacific Place Financial must be all clearly written Place Financial must be all clearly written Place Financial must be all clearly written Pacific Place Financial Services Inc..Pacific Place Financial Services Inc..Pacific Place Financial Services Inc.. ** This ONLY applies to all Life Insurance, TIC Travel Insur-** This ONLY applies to all Life Insurance, TIC Travel Insur-** This ONLY applies to all Life Insurance, TIC Travel Insur-ance, and Invoices issued by Pacific Place Financial Ser-ance, and Invoices issued by Pacific Place Financial Ser-ance, and Invoices issued by Pacific Place Financial Ser-vices Inc.. vices Inc.. vices Inc.. Any cheque made payable to PPG, Pacific Place…etc. will Any cheque made payable to PPG, Pacific Place…etc. will Any cheque made payable to PPG, Pacific Place…etc. will not be acceptable. **not be acceptable. **not be acceptable. **
Life Insurance Updates
Life Insurance Updates continue
Introducing Guaranteed Market Indexed Accounts Offer your clients a universal life investment option they'll feel positive about with the growth potential of a market index plus the security of a GIC. Now in Canada, exclusively through BMO
® Insurance.
Here's how the GMIA works: At the beginning of each month, a new GMIA "Series" is made available for new deposits on a Life Dimensions policy. Deposits into a GMIA will earn daily interest until the effective Series "Investment Date" (typically the begin-ning of the following month), after which time that specific Series is closed to additional deposits. Deposits are made for an Investment Term of 10 years. Interest is calculated and credited every year on specified Interest Crediting Dates, using the pre-disclosed Interest Crediting Factors. At the end of every 12 months during the In-vestment Term, the Interest Crediting Factors for the next 12 months are published on bmoinvestpro.ca At the end of the Investment Term, unless we receive other investment instructions, funds are automatically rolled over for a further Investment Term using the terms and conditons offered when funds are renewed Consider a GMIA which includes the following factors:
In this example, if the price return for the S&P/TSX 60 for the year is 15%, the Credited Interest Rate will be: 60%
x (15%-3%) = 7.2%
Interest is calculated and credited annually on specified dates during the Investment Term up until and including
the Maturity Date. Even if markets decline in a particular year, the net credited interest rate will never be negative.
GMIA Interest Crediting Rate Factors*:
Minimum Rate of Return 0 The credited interest rate will never be negative
Index Participation Rate: 60%
The rate of return is based on 60% of the S&P/TSX 60 market index price return
Index Cap Rate: No Maximum
Hurdle Rate: 3%
This is the minimum per-centage increase in the value of the S&P/TSX 60 market in-dex price return that must be achieved for the Credited Interest Rate to be positive; otherwise the credited interest rate will be zero
Life Insurance Updates
New Business Now update
Waiving premiums
Effective immediately, in recognition of new business delays, we’re pleased to advise that we will temporarily waive back premiums to “save age” or if documentation delivery is delayed for life, critical illness and disability insurance policies. That means for policies other than large cases, we will waive the premium when or if: We’ve had an application for at least 30 days and any time thereafter a client changes insurance age during the underwriting process. The effective date of the policy will be back-dated to save age, and we’ll waive the premium from that date to the date at which we’re ready to issue the policy. Please note: Identifying these situations involves a manual process. If you have a save age situation that was missed, contact your New Business associate. If you have not been sent documentation of your client’s coverage 15 calendar days after the cover-age effective date, then we’ll waive the premium for the entire time between the coverage effective date and the date we send you the documentation. For annual premiums, we’ll adjust the first premi-um based on the equivalent number of months waived. Documentation of coverage includes: The policy together with placing requirements (e.g. the acknowledgement of policy received (AOPR) and other forms as required). A coverage agreement (officially called Coverage Agreement and Declarations) confirming the terms of coverage offered when there has been a delay in producing the contract, or Other important considerations: Large cases will be individually reviewed and assessed. This temporary offering is not available for internal replacements, including term renewals (which al-ready receive reduced premium). Waiving premium will be applied at the time of placing. Therefore, the contract or advisor summary will not take into account any premium being waived. We’ll communicate with you as soon as this temporary policy is no longer in effect. If you have any questions about this new process, contact your New Business associate.
Definition of large cases
Large cases are defined as: Life insurance: $25,000 in premium, or $10 million in face amount Disability insurance: Personal non-cancellation disability insurance: monthly disability benefit is $10,000 or $10,000 mini-mum premium Overhead expense plan: monthly expense benefit is $20,000 or $10,000 minimum premium Buy/sell plan: The buy-out benefit amount is $500,000 or $10,000 minimum premium Critical illness insurance: Benefit amount is $750,000 or $10,000 minimum premium
To assess the risk of money laundering and terrorist financing, Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires we know specific details about the indi-viduals or entities involved in transactions with our organization. To manage this requirement, the sender of incoming premium payments or deposits, including wire payments, must be the client or a previously identified third party related to the policy.
Receiving payments from unknown third parties increases our risk of exposure to money launder-ing and terrorist financing activities. It puts both our organization and you at risk of not complying with legislative requirements.
Starting immediately, incoming payments from unknown third parties will no longer be permitted. A freeze will be placed on the account and Corporate Compliance will contact you to obtain addition-al information about the identity of the third party and the transaction. The freeze will only be re-moved once the risk is deemed reasonable and all required information has been received.
For more information, contact your nearest MGA, branch office or Canada Life regional marketing centre.
New restrictions on incoming payments from unknown third parties
Restrictions now in effect
Questions?
Life Insurance Updates continue
Life Insurance Updates
Featured News Standard Life Ideal Term Funds - closing to new contract sales On June 30, 2015, Standard Life Ideal Term Funds will close to new contract sales. The Manulife Investments GIC continues to be available and offers similar investment options and product features. A quick and easy way to share Manulife Quick Issue TermTM with your clients By now you’ve discovered just how fast Manulife Quick Issue Term (Manulife QITTM) is and you probably agree, sharing it with your busy, mid-market clients should be just as fast. That’s why we created the Manulife QIT video, now available! Introduce your advisors to Solutions Looking for a new way to provide value to your advisors? Introduce them to Solutions! The magazine and online arti-cles cover a variety of financial planning concepts in easy to understand language – all professionally packaged and ready to share with clients. Best of all, it’s free! Learn how easy it is to get Solutions working for your advisors with our new training tutorial. Visit www.manulifesolutions.ca/training/.
Insurance and Living Benefits Insurance: See the real-time maximum deposit for even more products on My Clients Now you can view the ‘real-time’ maximum deposit amount for even more insurance products through the My Cli-ents tool on Repsource. Risky Business: Reinsurance shopping – myths and realities In 2014, Manulife Insurance “shopped” 3% of the life insurance lives we underwrote. Find out the difference between the myths and the reality of reinsurance shopping.
Manulife Investments Important deadlines for new and existing Standard Life Ideal Term Funds To align with the closing of new contract sales for Standard Life Ideal Term Funds on June 30, 2015 we want to highlight important administration deadlines to submit remaining Standard Life Ideal Term Fund sales, clarify the procedures for managing existing Standard Life Ideal Term Funds clients and help familiarize you with the ease of processing Manulife Investments GICs. Process for unsettled trades due to not-in-good-order submissions In an effort to encourage in-good-order submissions, Manulife Investments has a process in place for reconciling unsettled trades due not-in-good-order (NIGO) paperwork.
Learning & Development New FATCA training resources Available now in the Training Corners Since taking effect in July 2014, FATCA has been a source of questions and confusion for many in the financial in-dustry. In an effort to break down this complex topic, we invite you to review the following resources that we have devel-oped to help you submit business in good order with fewer barriers: FATCA FAQ: Provides answers to the most frequently asked questions we receive about FATCA FATCA job aid: Designed to help you complete the FATCA questions on Manulife forms in good order
New Job Aid: Replacing an insurance policy internally within Manulife
Available now in the Insurance Training Corner (Administration > Insurance > Training Corner > Resources > Job Aids)
Major life events can result in a need to revisit a client’s insurance requirements and sometimes, a need to re-place coverage altogether. Our Replacing an insurance policy internally within Manulife job aid provides step-by-step instructions for quick and efficient replacement of your client’s coverage.
Life Insurance Updates
Self-serve training: Insurance cover letters – Making them count Available now on the CE Centre (Products > Insurance > Insurance Webinars) A powerful cover letter can be as valuable to an underwriter as any third party evidence. However, if a cover letter isn’t warranted, it can slow down a straight-forward case. In an effort to help your advisors make their cover letters count and to ensure their client’s policies are handled without unnecessary delays, we have developed a self-serve module to break down when a cover letter is appropriate, the various components of a cover letter, and its role in the underwriting process. Self-serve training: Effectively using the GIC RRIF illustration tool Available now in the Investment Training Corner (Administration > Investments > Training Corner > Resources > Self-Serve Modules > Introductory) The Manulife Investments GIC RRIF illustration tool provides an effective visual reference to help clients understand their investment features and figures using information that is relevant to their financial situation. This self-serve module teaches you how to run and interpret a Manulife Investments GIC RRIF illustration so that you can leverage the helpful features this tool offers for your practice.
Did you know? Insurance: Fund transfers On Repsource, there are three different fund transfer forms for life insurance policies, specific to:
Manulife policies
Former Maritime Life policies, and
Former Zurich Life policies With the various forms out there, it can be challenging to ensure the appropriate paperwork is being completed.
Life Insurance Updates
FEATURED NEWS Reminder: Termination of Standard Life contracts Please visit Repsource to learn when your Standard Life contract will terminate and if there is any action required on your part. Standard Life Ideal Term Funds - closing to new contract sales On June 30, 2015, Standard Life Ideal Term Funds will close to new contract sales. The Manulife Investments GIC continues to be available and offers similar investment options and product features. Important deadlines for new and existing Standard Life Ideal Term Funds
To align with the closing of new contract sales for Standard Life Ideal Term Funds on June 30, 2015 we want to high-light important administration deadlines to submit remaining Standard Life Ideal Term Fund sales, clarify the proce-dures for managing existing Standard Life Ideal Term Funds clients and help familiarize you with the ease of pro-cessing Manulife Investments GICs. INVESTMENTS Process for unsettled trades due to non-in-good-order submissions In an effort to encourage in-good-order submissions, Manulife Investments has a process in place for reconciling un-settled trades due to not-in-good-order (NIGO) paperwork.
Self-serve training: Effectively using the GIC RRIF illustration tool
Available now in the Investment Training Corner (Administration > Investments > Training Corner > Resources > Self-Serve Modules > Introductory).The Manulife Investments GIC RRIF illustration tool provides an effective visual refer-ence to help clients understand their investment features and figures using information that is relevant to their financial situation. This self-serve module teaches you how to run and interpret a Manulife Investments GIC RRIF illustration so that you can leverage the helpful features this tool offers for your practice.
INSURANCE A quick and easy way to share Manulife Quick Issue Term
TM with your clients
By now you’ve discovered just how fast Manulife Quick Issue Term (Manulife QITTM) is – and you probably agree, sharing it with your busy, mid-market clients should be just as fast. That’s why we created the Manulife QIT video, now available! Get a quote on the new Manulife Quick Issue Term
TM with Rates to go!
Not only can the new Manulife Quick Issue Term™ help you to build up your Term business fast, you can also get a quote on this speedy new product with Rates to go. Risky Business: Reinsurance shopping – myths and realities
In 2014, Manulife Insurance “shopped” 3% of the life insurance lives we underwrote. Find out the difference between the myths and the reality of reinsurance shopping.
Life Insurance Updates
Insurance: See the real-time maximum deposit for even more products on My Clients
Now you can view the ‘real-time’ maximum deposit amount for even more insurance products through the My Clients tool on Repsource. Student Travel Plan
Do you have a client studying abroad or in another Canadian province/territory, or an international student studying in Canada? Manulife Travel Insurance for Students enables them to get coverage for up to $2 million in benefits if a medical emergency strikes unexpectedly. Self-serve training: Cover letters – Making them count In an effort to help your advisors make their cover letters count and to ensure their client’s policies are handled without unnecessary delays, we have developed a self-serve module to break down when a cover letter is appropriate, the various components of a cover letter, and its role in the underwriting process. Repsource > Quicklinks > Ce Credits > Products > Insurance > Insurance Webinars TAX, RETIREMENT & ESTATE PLANNING SERVICES (TREPS) Investments Did you know? Keeping the family cottage in the family When selling a family cottage to the next generation; don’t try and reduce the capital gain by selling the cottage for a nominal price. The Canada Revenue Agency will calculate the capital gain based on the fair market value (FMV) and when the next generation sells the cottage, their cost base will equal the nominal price, resulting in double taxation. Insurance As a Matter of Law - Should reoccurring gifts of money be used to determine support? Annual gifts of money from parent to child may cause gifts to be imputed into income for calculating support obliga-tions under family law. As a Matter of Law - The marriage contract saved the day
Marriage contracts are important in a second marriage situation. Help prepare your clients for the price of tuition
Do your clients have teens headed for college or university? Help ensure they’re financially prepared. The Solutions ‘Money smarts’ article is a great resource to help students and parents learn what the price tag will be and how to fund it. Share this article and the accompanying budget worksheet by visiting manulifesolutions.ca/advisor.
Life Insurance Updates
New Application form and Information Folder and Contract As of June 15, 2015, new documents must be used for all new sales. New application form Here are the changes to the application form: The funds table has been updated A new annuity settlement option has been added to the beneficiary designation section In the Authorizations and Signatures section, the Financial Security Advisor's declaration has been updated with the following addition, as recommended by the CLHIA and provincial reglementation authorities: "I have informed the Investor of names of the companies I represent, that I receive com-pensation for the sale of life insurance company products, of the possibility I may receive additional compensation in the form of bonuses, conference programs or other incentives, of any conflicts or potential conflicts of interest." Previous versions of these forms will be accepted until July 13, 2015. After this date, only the new versions will be accepted. New Information Folder and Contract brochure Here are the changes to the Information Folder and Contract brochure: Fund Facts have been updated as at December 31, 2014 The annuity settlement option was added to the contract The Securities Lending risk was added to section X In section "Fees Charged to Contractholders', the following mention, in bold, was added: "Section 7.2.1 also applies to redemptions before maturity of ASTRA Equity GIAs for the portion invested in segregated funds for the ASTRA Equity GIAs and for units purchased again at the date of the rein-vestment at the end of the GIA term." The words "in writing" have been deleted each time we mention that a notification will be sent "in writing". The new brochure must be used as of June 15, 2015. Once you receive these documents, we ask
that you destroy any previous versions that you may still have.
Life Insurance Updates continue
New life insurance business On June 19, new life insurance business applications will be available on sunlife.ca/advisor, and for online ordering if applicable. You may continue to use old versions of applications until July 3, 2015. Payout annuities On June 19, the updated Payout annuity application (3318) will be available on sunlife.ca/advisor, and for online ordering if applicable. You can continue to use the old version of the application un-til March 30, 2016. We're providing advance notice to give you time to use up any old stock you may currently have on-hand.
FATCA updates We're in the process of updating form 4545 - Declaration of FATCA classification for an enti-ty to improve usability. The updated form will be available on August 29, 2015.
At the same time, we're changing the name of the form to 4545 - International tax classification for an entity. While we're updating the name of form 4545 on all of our other applications and forms, there might be a period of time where the title of the 4545 form referenced, does not match the title of the form on sunlife.ca/advisor. Search for "4545" instead of the title to find the correct form.
Upcoming changes in August In August, we'll provide an update on further changes, including:
updates to forms and applications for guaranteed interest products,
updates for non-registered Sun Life GIFs segregated fund products,
CI Investments' Advisor Online (AOL) communication for changes to the legacy segregated fund products that are issued by Sun Life Assurance Company of Canada and managed by CI Investments, and
updates to forms 4104 - Identity verification, third party determination and politically exposed foreign persons (PEFP) form (Life insurance) and 4105 - Identity verification, third party deter-mination and politically exposed foreign persons (PEFP) form (Investments and Wealth). Contacts:
General AML: [email protected]
Life Insurance Updates continue
The answer is they're topics in the new June articles on the Retirement Resource Centre (RRC) - Sun Life Financial go-to place for advisors to learn more about retirement and how topics like these affect your business.
Check out the latest selection of tax tips, conversation starters and market insights on the RRC:
What you and your clients need to know about owning foreign property - Identify the impact to taxes and retirement savings when your clients own foreign property. Steering the farm in the right direction - The second in a 3-part series - tech savvy and fiscally focused, more farmers are building vital businesses with customized financial advice at the core.
Balancing later life adoptions and retirement: What are the considerations? - Did you know the cost of adopting is estimated at $20,000 to $30,000 for domestic adoptions, and up to $60,000 for foreign adoptions?* Learn more about how this decision could affect your clients' retirement plans.
And if you haven't talked with your clients about segregated fund products, maybe it's time to take a closer look at what they have to offer.
Please share your ideas for topics you'd like to see on the RRC. You can also talk with a mem-ber of Sun Life Financial Sales team for more information.
Taxation of foreign property, farmers and later-life adoptions - what do these topics have to do with your business? (June 11, 2015)
Administration Responsibility Indication - July 1 2015
Pacific Place-Financial Services Inc. (Life Insurance Division) Hendry Liu: Insurance Manager Aries Chen: Insurance assistant manager Mimi Sum: Manulife new business and Canada Life new business and investment Karen Yau: Manulife Investment; insurance contracting; life insurance new business other than Manulife, Canada, SSQ, and IA Angel Wong: SSQ and IA life and investment new business; Commission Tiffany Tang: Currently on maternity leave Mable Wong: Life Insurance policy service and TIC on Tuesdays, Wednesdays, and Fridays Sasa Cheung: Life Insurance policy service and TIC on Mondays and Thursdays Pacific Place-Insurance Services Inc. (General Insurance Division) Eileen Zeng: New business on commercial properties, house quotes, ICBC (overflow) Kate Zhang: ICBC (Pacita Only), Claims, Endorsements, back up on ICBC batching and house quotes (overflow) Victoria Ng: Renewal and endorsements for commercial properties, New business condo quotes, ICBC batching, commissions Angus Yiu: ICBC, house renewals Shelley Lin: ICBC, Remarketing, and house quotes Pacific Place-Arc Realty Ltd. (Real Estate Division) Lo-Ming Lee: Managing Broker Leslie Wu: Real estate conveyancer Annie Wong: Real estate conveyancer Pacific Evergreen Realty Ltd Lo-Ming Lee: Managing Broker Leslie Wu: Real estate conveyancer Annie Wong: Real estate conveyancer
Pacific Place Group Updates & Housekeeping
