Triple C Plan: General Conditions

1 January 2011

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.

Contract: Consists of the Policy, the General Conditions, an application by the Grantee as acknowledged by the Company and any written declaration or statement made by one of the Parties to the Contract and acknowledged by the others.

Grantee: The person who effects the Policy.

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

Policy: The Policy issued to the Grantee by the Company including any statement of benefits and premiums 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.

Parties to the Contract: The Company, the Grantee and where applicable, the Life Assured as defined above.

Specified Dependant: A person specified in the Policy to receive a survivor’s or children’s pension.

Designated Beneficiary: A person designated in the Policy to receive a lump sum payment in the event of the Life Assured’s death prior to the retirement age specified in the Policy.

Deferred Period: 90 days, either continuously or made up of two or three durations of no less than thirty days each during a twelve month period. However, if the Life Assured becomes incapacitated within six months after a claim has ceased upon apparent recovery and return to work, and the incapacity is due to the same medical condition, the Deferred Period is waived.

Renewal Date: The date each calendar year that the Company writes to the Grantee to find out whether the benefits or premiums are to be amended for the following Policy year.

Commencement Date: The date the Contract comes into force.

Due Date: The date a premium is due for payment. The date will depend on the Premium Frequency agreed by the Parties to the Contract.

Premium Frequency:	Due Dates
Single	Commencement Date
Annual	Commencement Date and each Renewal Date
Semi-Annual	Commencement Date, each Renewal Date and each Renewal Date plus six months
Quarterly	Commencement Date, each Renewal Date     and each Renewal Date plus three, six and nine months

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

Section 2 ~ The Contract

The Contract comes into force on the Commencement Date specified in the Policy.

Section 3 ~ Currency

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

The Grantee or the Life Assured if the Grantee is an employer may request the Company to alter the currency in which the Policy is written. The conversion of currency will be determined by the Company having regard to the advice of the appointed actuary.

Section 4 ~ Benefits

The following benefits may be included:

• Disability pension 
• Survivor’s pension
• Children’s pension 
• Lump sum on death
• Waiver of premium 
• Lump sum or pension at retirement age.

The type of coverage and the amounts insured are shown in the statement of benefits and premiums as issued from time to time by the Company.

The benefits may, with the agreement of the Company, be changed on any Due Date. The Company may not permit a change of benefit if the premium has been paid for a given Due Date.

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

Section 5 ~ Disability Pension

The Life Assured is entitled to a disability pension when he becomes incapacitated for work as a result of sickness or accident, to the extent that he is unable to perform the duties of his own occupation and after the pension has been paid for twenty four months, he cannot perform the duties of any occupation for which he is reasonably suited by training, education or experience.

The entitlement shall not begin until the Deferred Period has expired.

In order to receive the disability pension the Life Assured must submit a doctor’s certificate confirming his incapacity for work.

The certificate shall be in a form accepted by the Company and issued by a doctor or medical institution approved by the Company.

The disability pension is payable from the first day of the month following the date at which entitlement began and is payable monthly until the end of the month in which the earliest of the following events occurs:

• The Life Assured is no longer incapacitated as defined; or 
• The Life Assured dies; or 
• The Life Assured reaches the retirement age specified in the Policy; or 
• The Life Assured’s earnings exceed 80% of his pre-disability monthly earnings adjusted for price inflation.

If the Life Assured is earning more than 20% of his pre-disability monthly earnings adjusted for price inflation in his regular occupation or another occupation then a partial disability pension is payable. The disability pension is calculated as (A ÷ B) x C, where:

Pre-disability monthly earnings means the Life Assured’s monthly rate of earnings just prior to the date incapacity begins. It does not include over time pay, bonuses and other extra compensation.

If the Life Assured resides outside the European Union, Andorra, Australia, Bermuda, Canada, Channel Islands, Gibraltar, Iceland, Isle of Man, Japan, Monaco, New Zealand, Norway, San Marino, Switzerland, United States of America or the Vatican the disability pension will be paid at the discretion of the Company after the disability pension has been paid for a period of six months. The Life Assured will have the option to reside in one of the stated territories to ensure that the disability pension may continue.

Section 6 ~ Survivor’s Pension

The entitlement to a survivor’s pension commences when the Life Assured dies prior to the retirement age specified in the Policy.

The survivor’s pension is paid to the Specified Dependant named in the Policy.

The survivor’s pension is paid from the first day of the month following the death of the Life Assured and is payable monthly until the end of the month in which the Specified Dependant dies. 

Section 7 ~ Children’s Pension

The entitlement to children’s pension commences when the Life Assured dies prior to the retirement age specified in the Policy. The children’s pension is paid to each child specified in the Policy.

The children’s pension is paid from the first day of the month following the death of the Life Assured and is payable monthly until the end of the month in which each child specified in the Policy reaches the termination age specified in the Policy or dies prior to that date.

Section 8 ~ Lump Sum on Death

If the Life Assured dies prior to the retirement age specified in the Policy, the lump sum is paid in addition to the amount in the Grantee’s accumulated account. The proceeds will be paid to the Designated Beneficiary or, if no such beneficiary exists, to the estate of the deceased. A pension may be payable in lieu of part or all of the amount payable.

Section 9 ~ Waiver-of-Premium

The entitlement to the waiver-of-premium is subject to the same conditions as the entitlement to a disability pension (Section 5). The evidence of incapacity must be supported by the same documents that are required in respect of a claim for a disability pension.

Section 10 ~ Lump Sum or Pension at Retirement Age

The benefit payable at the retirement age specified in the Policy shall be the amount in the Grantee’s accumulated account at the time the benefit is paid. A pension may be payable in lieu of part or all of the amount in the accumulated account.

The pension may be payable for life, guaranteed for a period of years, payable for a certain number of years, payable to the Life Assured, followed by a contingent pension to a selected dependant or payable in such way as agreed by the Company.

The benefit under this section is payable to the Grantee unless the Grantee is an employer in which case the benefit shall be payable to the Life Assured.

Section 11 ~ Retirement Age

If the Parties to the Contract agree the retirement age specified in the Policy may be altered on terms determined by the Company having regard to the advice of the appointed actuary.

Section 12 ~ Premiums and Premium Payment

All premiums are to be paid to the Company’s Principal Office in advance of any Due Date.

The premiums may, with the agreement of the Company, be changed on any Due Date. The Company will not permit a change of premium if the premium has been paid for a given Due Date.

Paid premiums cannot be refunded other than by means of surrender to which Section 19 refers. 
 
Premium payments continue until the Due Date of the last premium as specified in the statement of benefits and premiums or earlier death. The premiums for the death and disability benefits and the administration charge are shown in the statement of benefits and premiums attached to the Policy. The Company retains the right to alter the premiums for the death and disability benefits during the term of the Contract.

Single premiums cannot be added to a Policy within five years of the retirement age specified in the Policy without the approval of the Company. Furthermore, single premiums cannot be added or annual premiums increased by more than the amount agreed by the Parties to the Contract at the commencement of the Policy if the Company changes the guaranteed bonus.

Section 13 ~ Notification

The Company shall direct all correspondence, notifications and information under this Contract to the Grantee unless the Grantee has in writing designated the Life Assured as an additional or sole addressee for such communications.

Section 14 ~ Period of Grace

If a premium is not paid within two calendar months the Policy will lapse. In the event that benefits become payable during a two calendar month period of grace, any premiums due will be deducted from the benefits payable.

Section 15 ~ Paid-Up Policies

If a Policy lapses because of non-payment of premiums it will be converted to a paid-up Policy on the Due Date.

The paid-up Policy will not contain entitlement to disability pension, survivor’s pension, children’s pension, lump sum on death (other than the Grantee’s accumulated account) or waiver-of-premium.

The Company shall deduct an annual charge of GBP 50 (or currency equivalent) from the accumulated account if the accumulated account is less than GBP 10,000 (or equivalent in other currency) annually on 1 January.

The annual charge shall be increased each year by the Company. The target increase is Sterling price inflation. The target is not a guarantee. The increase in a given year may be higher or lower than Sterling price inflation.

In addition the annual charge may be increased but subject to a current  maximum of GBP 100  (or equivalent in other currency) and if the accumulated account is less than GBP 20,000 (or equivalent in other currency). These amounts shall be increased each year by the Company. The target increase is Sterling price inflation. The target is not a guarantee. The increase in a given year may be higher or lower than Sterling price inflation.

Section 16 ~ Limitation on Claims

Any claims of whatsoever nature arising under or relating to the Contract shall be brought against the Company by not later than the expiry of a period of three years calculated from the date the last payment of any benefit described under Section 4 was made; or the date the payment of the surrender value under Section 19 was made, whichever be the case, upon expiry of which period of three years all and any claims not instituted against the Company and all liability of the Company shall be extinguished.

Section 17 ~ Records

The Company shall, upon expiry of a period of six years calculated from the date the last payment of any benefit described under Section 4 was made; or the date the payment of the surrender value under Section 19 was made, be entitled to dispose of all documentation and records relating to the Policy.

Section 18 ~ Partial Cancellation

If the Grantee wishes to cease payment of premiums for part of the Contract, the Company will decide whether the remaining part of the Contract can be maintained without changes in conditions and premiums in respect of that remaining part.

Section 19 ~ Surrender Values

If the Parties to the Contract agree the Policy may be surrendered on terms determined by the Company having regard to the advice of the appointed actuary.

Section 20 ~ 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 21 ~ Misrepresentation

The Company can contest the validity of the Policy or deny a claim as a result of any material misrepresentation of a fact, provided the misrepresentation has been made in an application or in any written declaration or statement.

Section 22 ~ Exclusions

Claims arising directly or indirectly from an act or acts of terrorism resulting in any of the following:

• Sudden release of atomic energy or nuclear radiation or,
• Radioactive contamination (whether controlled or uncontrolled) or,
• Biological or chemical substance

Section 23 ~ Suicide

Until the insurance has been effective for twelve months, the insurance cover does not include death or disablement as a result of suicide or attempted suicide. If the insured amounts are increased, a new one year period will apply to each increase, beginning on the date of each increase.

Section 24 ~ War

If a state of war or any similar increase of danger occurs in the Life Assured’s country of residence, an annual extra premium may be collected by the Company.

Section 25 ~ Guaranteed Bonus

The guaranteed bonus is 0% per annum.

Section 26 ~ Additional Bonus

Policies written in a particular currency form a separate bonus group. The additional bonus is computed and distributed in accordance with regulations determined by the Company.

The additional bonus is added to the Grantee’s accumulated account at each year end. A pro rata proportion of the additional bonus is credited in relation to each part of the Grantee’s accumulated account which has been held for a period of less than a full year.

Section 27 ~ Increases for Pensions in Payment

The benefits payable under Sections 5, 6 and 7 will increase annually in line with the Company's declaration of increases for pensions in payment.

Section 28 ~ Reports

With the exception of policies which have become paid-up under Section 15, the Company will send the Grantee, once a year, a statement of benefits and premiums showing:

• Premiums 
• Benefits covered under Section 4 
• Bonus since last statement
• The accumulated account

The Grantee will notify the Company and the Life Assured if the Grantee is an employer, of the following:

• Amendments to the Specified Dependant entitled to survivor’s pension. 
• Amendments to the Specified Dependant entitled to children’s pension. 
• Amendments to the Designated Beneficiary entitled to the lump sum on death.
• Any other amendments.
• The prolonged absence of the Life Assured due to illness or injury prior to the end of the Deferred Period. If written notice of incapacity is not received by the Company within the Deferred Period then the Company shall have no liability to pay the benefits specified in Sections 5 and 9.

Section 29 ~ Amendments

The Company will allow the Grantee to make the following amendments subject to the stipulated restrictions.

* Acceptance of this amendment is in the discretion of the Company and is subject to the Company receiving and being satisfied with the appropriate verification documentation in respect of the new Grantee to comply with the Company's internal controls and procedures, as well as all applicable money laundering laws and guidelines.

The Company expressly reserves the right to refuse the amendment unless the Company is satisfied that by agreeing to it, there would be no breach of any law, regulations, regulatory guidelines or directive and that there would be no reputational risk to the Company.

In addition to the above restrictions the Company may require the Life Assured to supply medical information or for the Grantee/Life Assured to complete a form.

Section 30 ~ Legal Jurisdiction

This Contract is governed by the laws of Guernsey.