Conversions and Replacement Guidelines

Replacement form guidelines
Province Form required Note
Ontario Life Insurance Replacement Declaration form (E4357) and a copy of the written analysis The written analysis can be submitted by completing either written analysis to accompany Life Insurance Replacement Declaration form (E4459) or the advisor's own version of the written analysis.
Quebec A Notice of Replacement of Insurance of Persons Contract form is required (available online in electronic format only on the Autorité des marchés financiers website). The advisor has an obligation to send a copy of the notice of replacement signed by him/her within 5 days of the application signed date. The client signatures can be a settlement requirement, however, we will not issue the policy if we didn't receive the forms and/or the advisor did not sign) Note: For each new policy, a separate Notice of Replacement of Insurance of Persons Contract form is required for each original policy that is being replaced (i.e. if 2 new policies are replacing one original policy, each new application needs a Notice of Replacement of Insurance of Persons Contract policy form for that original policy). If the new number is replacing more than one original number, a Notice of Replacement of Insurance of Persons Contract form must be completed for each original number. The Client signature, date and the advisor signature must be on the form. If any of these are missing the form must be returned to the advisor for completion.
All other provinces

The PDF Life Insurance Replacement Declaration (LIRD) form (4357-E) 

 

Note: For PEI, Nova Scotia, New Brunswick, Yukon, Northwest Territories, Nunavut and Newfoundland we will also accept a Disclosure replacement form (only available in hardcopy).

 

 

 

Please ensure a copy of the LIRD form is sent to head office. 

 

Give the client a written explanation of the advantages and disadvantages of replacing the policy. Keep a copy of this explanation in your files. 

 

 

Conversion applications

Product

Individually owned

Corporately owned

 Sun Universal Life II
  • Apply using the Sun eApp
  • AML section of Sun eApp OR form 4830
  • Signed illustration o If partial conversion appropriate Disclosure forms will be required prior to issue (check the Disclosure/Replacement form guidelines chart to determine which form is applicable)
  • If increasing coverage/adding benefits/changing smoking status (from S to NS)/Term to term rider more than 3X the base amount/ -> Evidence required
  • Apply using the Sun eApp
  • 4831, 4545 and 5091 forms required
  • Signed illustration o If partial conversion appropriate Disclosure forms will be required prior to issue (check the Disclosure/Replacement form guidelines chart to determine which form is applicable)
  • If increasing coverage/adding benefits/changing smoking status (from S to NS)/Term to term rider more than 3X the base amount/ -> Evidence required

Sun PAR & Sun PERM
  • Apply using the Sun eApp
  • Signed illustration (not required for Sun Perm)
  • If partial conversion – appropriate Disclosure forms will be required prior to issue (see Disclosure/replacement chart below)
  • If increasing coverage/adding benefits/changing smoking status (from S to NS)/Term to term rider more than 3X the base amount/ -> Evidence required
  • Apply using the Sun eApp
  • Form 4545 is required
  • Signed illustration (not required for Sun Perm)
  • If partial conversion – appropriate Disclosure forms will be required prior to issue (see Disclosure/replacement chart below)
  • If increasing coverage/adding benefits/changing smoking status (from S to NS)/Term to term rider more than 3X the base amount/ -> Evidence required

Term or Critical Illness
  • Apply using the Sun eApp o If partial conversion appropriate Disclosure forms will be required prior to issue (check the Replacement form guidelines chart to determine which form is applicable)
  • If increasing coverage/adding benefits/changing smoking status (from S to NS)/Term to term rider more than 3X the base amount/ -> Evidence required
  • Apply using the Sun eApp o If partial conversion appropriate Disclosure forms will be required prior to issue (check the Replacement form guidelines chart to determine which form is applicable)
  • If increasing coverage/adding benefits/changing smoking status (from S to NS)/Term to term rider more than 3X the base amount/ -> Evidence required

  • A policy cannot be issued without the accurate Life Insurance Replacement Declaration (LIRD) form/replacement forms, based on province of signature.
  • We require a replacement form any time the full amount of coverage is not being kept (refer to table above for form requirements). For example, if a Client has 500K in coverage and converts 250K:
    • if the remaining 250K is cancelled they are walking away with less insurance than they started with and a LIRD is required.
    • If  they’re keeping the remaining 250K in force, a LIRD is not required.
  • Rating/exclusion on original policy:
    • If the original policy is rated, the policy is reviewed by the Underwriter and they determine if the rating is carried over or removed
  • If completing a cross channel conversion, the advisor of record must be changed prior to the conversion being processed. A Request for Service Advisor form can be completed to change the advisor of record.
  • We need release form (E37) for policies that have collateral assignments and the ownership is changing. This form is required before we make any ownership changes.

Individual to a third-party individual owner

  • If partially converting and the remainder is staying in force under the original owner:
    • Form E229 required (original owner needs to sign)
    • The new policy can be issued under the new ownership as applied for
  • If full conversion, we require form E82, Transfer of ownership, to be completed on the original policy so the owner can be changed and match the owner of the new business policy.

Individual to a corporate owner

  • If partially converting and the remainder is staying in force with the original owner:
    • We need to issue the new business policy under the original owner
    • Form E82,transfer of ownership
    • You can do the ownership change in advance or submit the E82 with settle documents. Ownership change will be processed prior to settling.
  • If full conversion, we require form E82,Transfer of ownership, to be completed on the original policy so the owner can be changed and match the owner of the new business policy.

Corporate ownership to an individual

  • If partially converting and the remainder is staying in force with the original owner, we need to issue under the corporate owner. The transfer of ownership will be processed after settlement.
  • If it’s a full conversion, the ownership can be changed on the original policy before the submission of the conversion application,. Or, we send the E82,transfer of ownership, as a settle document. This is before the case manager terminates the original policy. The owner must be changed to match the new policy owner.

Splitting a multi life policy

  • Form E229 is required
  • If Clients A & B own a multi life contract and Client A is converting their portion and Client B is remaining on the original plan, Client B must sign the E229to “release” Client A’s portion to the new plan.
  • If full conversion, we require form E82, Transfer of ownership, to be completed on the original policy so the owner can be changed and match the owner of the new business policy.

Note: If converting or replacing to a UL,  product AML requirements apply