Unit Linked Plan: General Conditions
Handelsbanken Funds
1 December 2006
Section 1 - Definitions
In these general conditions the following definitions shall apply.
Company: Nordben Life and Pension Insurance Co. Limited.
Principal Office: Harbour House, South Esplanade, St Peter Port, Guernsey, Channel Islands, GY1 1AP.
Contract: Consists of the Policy, the General Conditions, an application by the Grantee and the Life Assured 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 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 the Life Assured as defined above.
Designated Beneficiary: A person designated in the Policy to receive a lump sum payment in the event of the Life Assured’s death.
Fund Manager: Handelsbanken Asset Management or an associated or affiliated company.
Fund: A collective investment arrangement managed by the Fund Manager.
Pool: An arrangement established by the Company and managed by the Fund Manager.
Units: Units of a Fund or Pool.
Dealing Day: The day or days in the week Units in respect of a Fund or Pool are allocated to or cancelled from a Policy.
Words of the masculine gender shall include the feminine and the singular shall include the plural where the context admits it.
Section 2 - The Contract The contract comes into force on the commencement date specified in the Policy.
Section 3 – Currency
| (a) |
The premiums must be paid in the currency specified in the Policy, which will be either Euro, US Dollar or Swedish Krona. |
| (b) |
The benefits will be paid in the currency specified in the Policy, which will be either Euro, US Dollar or Swedish Krona. |
Section 4 – Funds and Pools
| (a) |
In order to calculate the benefits under the Policy, the Company will notionally allocate Units in a number of Funds and Pools to the Policy. |
| (b) |
The number and type of Funds and Pools may be changed from time to time at the discretion of the Company. Details of the Funds and Pools can be obtained from the Company. |
| (c) |
Each Fund and Pool is divided into Units. |
| (d) |
The Units of a Fund or Pool remain in the ownership of the Company. |
| (e) |
The Units of a Fund or Pool are notionally allocated to policyholders. This notional allocation of Units is solely for calculating the Policy benefits. |
| (f) |
Income from a Fund or Pool, if any, is reinvested to buy more Units and these Units are notionally allocated to policyholders. |
Section 5 – Fund and Pool Deductions
| (a) |
The Funds may be subject to deductions in respect of expenses, taxes and charges as determined by the Fund Manager. The impact of such deductions will be reflected in the prices of the Units. |
| (b) |
The Pools may be subject to deductions in respect of expenses, taxes and charges as determined by the Company. The impact of such deductions will be reflected in the prices of the Units. |
Section 6 – Valuation of Funds and Pools
| (a) |
A Fund is valued by the Fund Manager for the purpose of determining the prices of the Units. |
| (b) |
A Pool is valued by the Company for the purpose of determining the prices of the Units. |
Section 7 – Management Charge
| (a) |
The Company is entitled to deduct a management charge from the Policy. The amount of the management charge is calculated as a percentage of the value of each Fund notionally allocated to the Policy. The percentage is one per cent per annum or such other percentage as the Company may, from time to time, specify. The management charge may vary according to the nature of the Fund (or Funds) notionally allocated to the Policy. |
| (b) |
Where the Company negotiates appropriate terms with the Fund Manager the management charge made by the Company will be reduced commensurately to avoid or reduce any element of double charging. |
| (c) |
The Company will receive the management charge, if levied, by cancelling the appropriate number of Units from the Policy. If all Units notionally allocated to the Policy are cancelled then the Policy is cancelled. |
Section 8 – Unit Prices
| (a) |
Each Unit of a Fund has either a selling and buying price or a single price which may have an initial charge. Where applicable, in subsequent Sections the words buying price include reference to Units subject to a single price increased by an initial charge. |
| (b) |
Each Unit of a Pool either has a selling and buying price or a single price. |
| (c) |
Where the Company negotiates appropriate terms with the Fund Manager the initial charge or buying price of a Fund will be reduced to avoid or reduce any element of double charging. |
| (d) |
The prices of the Units of the Funds are determined by the Fund Manager. |
| (e) |
The prices of the Units of the Pools are determined by the Company. |
| (f) |
All rounding and other adjustments in the buying and selling of Units of the Funds or Pools will accrue to the Company. |
Section 9 – Payment of Premiums
| (a) |
All premiums are to be paid to the Company’s Principal Office. |
| (b) |
Premiums can be paid at any time subject to a minimum payment of Euro 100,000, Swedish Kronor 1,000,000 or US Dollar 125,000 for the initial premium and Euro 10,000, Swedish Kronor 100,000 or US Dollar 12,500 for additional premiums or as stipulated by the Company from time to time. |
| (c) |
The premiums are apportioned between the Funds and Pools as specified by the Grantee or the Life Assured if the Grantee is an employer or a trustee of an employer sponsored trust. |
| (d) |
Premiums, where necessary, will be converted to the currency of the Fund or Pool. Any conversion of currency will be determined by the Company or Fund Manager based upon the prevailing rate of exchange. |
| (e) |
The Company shall deduct an initial charge from each premium of such amount as the Company may, from time to time, specify. |
| (f) |
The number of Units of a Fund or Pool notionally allocated to the Policy in respect of a premium is calculated by dividing the appropriate part of the premium after deducting the initial charge by the buying price of the Units of the Fund or Pool on a Dealing Day available to the Company by the Fund Manager following the date of receipt of the premium by the Company and completion of the appropriate forms by the Grantee and/or the Life Assured. |
| (g) |
The number of Units notionally allocated to the Policy may be subject to rounding. The rounding adjustment accrues to the Company. |
| (h) |
The Company reserves the right to defer the notional allocation of Units if the Company believes that there is good and sufficient reason to do so. |
Section 10 – Switching
| (a) |
The Grantee or the Life Assured if the Grantee is an employer or a trustee of an employer sponsored trust may at any time, request the Company to cancel some or all of the Units of any Fund or Pool then notionally allocated to the Policy in exchange for a notional allocation of Units in another Fund or Pool or Funds or Pools, subject to the Company’s terms and conditions at the time. |
| (b) |
The Company may make a charge for switching of such amount as the Company may from time to time specify. |
| (c) |
The switch will be effected, after allowance for any switching charge, on the basis of the appropriate prices of the Units on a Dealing Day available to the Company by the Fund Manager following receipt by the Company of the request. Any conversion of currency will be determined by the Fund Manager based upon the prevailing rate of exchange. |
| (d) |
The Company reserves the right not to switch Units if the value of Units to be cancelled and notionally allocated would be less than any minimum amounts required by the Company at that time. |
| (e) |
The Company reserves the right to defer implementation of a switch if the Company believes that there is good and sufficient reason to do so. |
Section 11 – Surrender Values
| (a) |
The Policy may be surrendered at any time for a cash sum equivalent to the value of the Units notionally allocated to the Policy at the selling price on a Dealing Day available to the Company by the Fund Manager following receipt by the Company of appropriate instructions. |
| (b) |
The Policy may be surrendered in part provided the value of the remaining Units is greater than Euro 50,000, Swedish Kronor 500,000 or US Dollar 62,500 or the minimum amount required by the Company at that time and the cash sum is greater than Euro 10,000 SEK 100,000 or US Dollar 12,500 or the amount specified by the Company from time to time. |
| (c) |
On surrender the appropriate number of Units notionally allocated to the Policy are cancelled. If all Units notionally allocated to the Policy are cancelled then the Policy is cancelled. |
| (d) |
The Company reserves the right to defer implementation of a surrender if the Company believes that there is good and sufficient reason to do so. |
| (e) |
The cash sum is payable to the Grantee unless the Grantee is an employer or a trustee of an employed sponsored trust where the Life Assured is a beneficiary, in which case the cash sum shall be payable to the Life Assured. |
| (f) |
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 12 – Lump Sum on Death
| (a) |
The amount payable on the death of the Life Assured is one hundred and one per cent of the value of the Units notionally allocated to the Policy at the selling price on a Dealing Day available to the Company by the Fund Manager following receipt of proof satisfactory to the Company of death. |
| (b) |
In the event of payment upon death the Policy and all Units notionally allocated to the Policy will be cancelled. |
| (c) |
The Company reserves the right to defer determination of the Lump Sum on Death if the Company believes that there is a good and sufficient reason to do so. |
| (d) |
The Lump Sum on Death will be paid to the Designated Beneficiary, or if no such Beneficiary exists, to the estate of the Life Assured. If any of the Designated Beneficiaries should predecease the Life Assured then that Designated Beneficiary’s share shall be divided between the surviving Beneficiaries pro rata |
| (e) |
A pension may be payable in lieu of part or all of the amount payable at the option of the Designated Beneficiary on such terms as the Company may choose to offer. |
Section 13 – Benefits All benefits are payable at the Principal Office of the Company
Section 14 – 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 15 – 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 16 – 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 17 – 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 11(a) or 12 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 18 – 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 11(a) or 12 was made, be entitled to dispose
of all documentation and records relating to the Policy.
Section 19 - Amendments The Grantee will notify the Company and the Life Assured if the Grantee is an employer or a trustee of an employer sponsored trust where the Life Assured is a beneficiary of the following:
| (a) |
Amendments to the Designated Beneficiary entitled to the lump sum on death. |
| (b) |
Any other amendments. |
The Company will notify the Grantee and the Life Assured should it be necessary to change the Fund Manager.
Section 20 – Legal Jurisdiction This Contract is governed by the Laws of Guernsey.