Individual Plan: General Conditions

If your policy commenced prior to 1 September 2002 please contact Customer service who will provide you with the General Conditions applicable to your policy.

1 September 2002

Section 1 - Definitions

In these general conditions where the context so admits the following definitions shall apply:

Company: Nordben Life and Pension Insurance Co. Limited. Registration Number 14861.

Principal Office: Harbour House, South Esplanade, St Peter Port, Guernsey, GY1 1AP, Channel Islands.

Designated Beneficiary: The person for the time being designated by the Grantee to benefit from the Policy.

Grantee: The person who effects the Policy.

Investment Manager: The Investment Manager appointed by the Grantee and approved by the Company to manage the Permitted Investments of the Unit Fund.

Investment Value: The same proportion of the Value of the Unit Fund that the number of Units then allocated to the Policy bears to the total number of Units of that Unit Fund.

Life Assured: The person on whose life the Policy is written.

Parties to the Contract: The Company and the Grantee as defined above.

Permitted Investments: International bonds in major currencies, equity shares of companies quoted on recognised stock exchanges, collective investment arrangements located in recognised territories, bank deposits in major currencies and such other investments as the Company may from time to time, either generally or in any particular case, in its absolute discretion accept.

Policy: The policy issued to the Grantee by the Company including any statement of benefits and deductions issued from time to time by the Company and any endorsements, amendments and exclusions which may be attached to the policy document during the term of the Contract.

Unit Fund: The separate fund named in the Policy.

Unit Price: The Value of the Unit Fund divided by the number of Units and rounded to two decimal places. The benefit of any rounding adjustment shall belong to the Company.

Units: Units of the Unit Fund.

Value of the Unit Fund: The total value of the Unit Fund calculated by the Company by a market valuation of its assets. In that calculation the Company may make additions for dividends, interest, rents and other income received by the Company on the assets of the Unit Fund, net of any tax payable or deducted. Appropriate deductions are made in that calculation for all expenses, taxes, duties and other charges incurred in managing, maintaining, repairing, developing, valuing, acquiring and disposing of the assets, interest on money borrowed for the account of the Unit Fund and any liabilities, expenses, taxes, duties, levies or other charges not previously taken into account due in connection with the Unit Fund or made on the Company and referable to the Unit Fund.

Words of the masculine gender shall include the feminine and the singular shall include the plural.

Section 2 - The Contract

The Contract consists of the Policy, the General Conditions, an application by the Grantee as acknowledged by the Company, any written agreement between the Parties to the Contract, and any written declaration or statement made by one of the Parties to the Contract and acknowledged by the other. The Contract comes into force on the commencement date specified in the Policy.

Section 3 - Currency

The benefits and deductions shall be determined in the currency specified in the Policy.

If the Parties to the Contract agree to alter the currency in which the Policy is written, any conversion of currency will be determined by the Company based upon the prevailing rate of exchange.

Section 4 - Benefits

All benefits are payable at the Principal Office of the Company.

Section 5 - Lump Sum on Death

On the death of the Life Assured a Lump Sum shall become payable equal to the Investment Value at date of payment plus 1% of the Total Premiums Paid by the Grantee and accepted by the Company, where Total Premiums Paid means the premiums paid to the Company less the premiums deemed by the Company to have been surrendered pursuant to Section 8 hereof.

The Lump Sum on Death will be paid, or assets of an equivalent value transferred, to such of the Designated Beneficiaries living at the date of death of the Life Assured and if more than one, in the proportions specified in the Policy, or, if no proportions are specified in the Policy, in equal shares. If no Designated Beneficiary is alive at the date of death of the Life Assured, the Lump Sum on Death will be paid to the Grantee.

A pension may be payable in lieu of part or all of the lump sum payable at the option of the Designated Beneficiary on such terms as the Company may choose to offer.

Section 6 - Unit Fund

The Company maintains a separate fund for calculating the benefits of the Policy which is divided into units of equal value, some or all of which are notionally allocated to the Policy. This allocation of Units is solely for calculating the Policy benefits. The Policy does not give the Designated Beneficiary any title to or interest in any assets within the Unit Fund or any of the Company's assets. This fund may, with the Company's agreement, be invested in any one or more Permitted Investments to the extent the Investment Manager, or the Company, if there is no Investment Manager, decides.

The Investment Manager may sell all or part of any of the investments of the Unit Fund and purchase any other Permitted Investment. The Company's standard charge, currently £27 for each sale and each purchase, is deducted from the Unit Fund. The Company retains the right to alter the amount of this charge.

On 31st December in each year the Company deducts from the Unit Fund in arrears an administration charge as the Company may from time to time specify. When the Policy ends other than at the end of a calendar year the Company deducts these charges at termination.

Section 7 - Payment of Premiums

All premiums are to be paid to the Principal Office.

On the date the Company receives a premium the Company allocates to the Policy a number of Units and parts of a Unit rounded to two decimal places after deducting an initial charge as the Company may from time to time specify and shown in the Statement of Benefits and Deductions attached to the Policy.

Section 8 - Surrender Values

The Policy may be surrendered by the Designated Beneficiary at any time for a cash sum equivalent to the Investment Value of the Policy at the date of payment or the Company may transfer assets to the Designated Beneficiary of equivalent value.

If part of the Policy is surrendered the number of units allocated will be reduced in proportion to the value of encashment.

The minimum amount of partial surrender is £5,000 (or currency equivalent) or such other amount as the Company may from time to time specify.

A pension may be payable in lieu of part or all of the cash sum at the option of the recipient of the cash sum on such terms as the Company may choose to offer.

Section 9 - Misstatement of Age and Sex

If age or sex has been misstated, the benefits shall be adjusted to the amounts corresponding to the correct age or sex.

Section 10 - Misrepresentation

The Company can treat the Policy as invalid or deny a claim as a result of any material misrepresentation of a fact contained in an application or in any written declaration or statement.

Section 11 - Reports

The Company will send once a year a statement of benefits and deductions showing:-

• Premiums
• Investment Value
• Administration Charge

The statement will be sent to the Grantee during his lifetime and on his death to the Designated Beneficiary for the time being.

Section 12 - Designated Beneficiary

The Grantee shall be entitled at any time by notice in writing to the Company to add, replace or remove any person as a Designated Beneficiary.

Section 13 - Legal Jurisdiction

This contract is governed by the laws of Guernsey.