INDUSTRIAL ALLIANCE IS REDUCING ITS RATES FOR PERMANENT INSURANCE PRODUCTS

• Medical requirements valid for one (1) year
• Changes to the Q4A questionnaire
• New questions on form F1A - Life application
• Closure of index accounts
• Interface Suite via online download

Industrial Alliance is reducing the rates for its universal life insurance products as well as most of its permanent life insurance products. This reduction applies to all new policies and to new coverage on an existing contract effective October 6, 2014.

This competitive repositioning is resulting in mainly rate reductions but may also include rate increases in specific categories.

The table below specifies our actions by product category:

Also:

• The equivalent age table will be increased by one year for joint last-to-die policies (UL and Traditional).
• As with the premiums, the extra premiums tables were also subject to a downward revision.

Medical Requirements

Effective October 6, 2014, the medical requirements required by the Underwriting Department when underwriting new insurance coverage will now be valid for one year (instead of 6 months, as is currently the case) when the insured is less than 70 years of age.

Additional requirements or the renewal of the insurance declarations may be required for specific impaired risks in order to be in a position to make an offer.

The electronic version of the F1A and the F3A form will be modified as a result, in order to reflect this change. The paper versions will be corrected and will be available soon.

Q4A Critical Illness Questionnaire:

Adjustments were made to the Q4A questionnaire required for critical illness coverage.

• Precisions were added at question 2
• Two (2) additional questions were added (questions 3 and 4) with respect to Type-2 Diabetes and Hepatitis B, C or chronic Hepatitis. 

The new questionnaire is already available on the Extranet.

F1A Life and Critical Illness insurance Application

Information to be added to the life and critical illness application:

• At section 18 - Tobacco Usage, the use of electronic cigarettes has been added to the list of products.

The paper version of the F1A will be corrected and will be available soon.

Closure of Index Accounts

Please note that effective October 6, 2014, the following index accounts will no longer be available for new sales:

• Diversified (Fidelity)
• Global Equity (Mackenzie Cundill)
• Canadian Equity (IA)

Transitional Rules

Effective date of these new features:

• Policy ISSUED before October 6, 2014: current rates
• Policy ISSUED on or after October 6, 2014: new rates  

Interface Suite

Illustration software updates will be available via the online download link, which will be available on September 29 in a memo and on the Extranet. However, a troubleshooting CD will be available to your agency and can also be ordered by your provisioning centre if you are unable to download online.

We recommend that you install the new version starting October 6, 2014. If you install the new version before the date the new rating comes into effect, you will be able to produce the new product illustrations but the Electronic Applications application may not be transferred or processed until October 6, 2014.