London Life: Vanishing Premiums

TIPS FOR COMPLETING THE POLICYHOLDER ELECTION FORM

General Information

All policyholders are automatically entitled to Global Benefits and need not do anything at all if they are content to receive only Global Benefits.

All policyholders ought to check page 2 of the London Life mailing package, specifically the Policy Information Statement, to determine whether or not they automatically qualify for Enhanced Benefits.

If you qualify for Enhanced Benefits, you need not do anything at all if you are content to receive Global and Enhanced Benefits.

If you do not qualify for Enhanced Benefits, you can make an application for them, or you can make an Individual Claim Review Process (ICRP) claim, but not both.

If you automatically qualify for Enhanced Benefits as indicated on the Policy Information Statement on page 2 of the London Life mailing package, you can make an ICRP claim with low-risk in most cases of losing anything, and the possibility of better, more favourable relief.

Choosing Between an Application for Enhanced Benefits and an ICRP Claim

This applies to policyholders who do not automatically qualify for Enhanced Benefits, which means there is no positive Representative Report.

A Representative Report was an internal London Life form generally completed by the sales agent/representative at the time of purchase which, starting in 1985, included a question about premium offset. The London Life sales agent/representative would generally complete the report after selling a policy. From 1985 on, the report had questions for the sales agent/representative as to whether or not the future use of premium offset was a factor in the purchase of the policy by the policyholder.

You can apply for Enhanced Benefits but if you do so, cannot make an ICRP claim.

The Enhanced Benefits relief deals specifically with premium offset and not directly with policy value claims or income benefit Pay Day claims.

If you have a policy value or income benefit Pay Day complaint, those complaints are more properly dealt with under the ICRP than under Enhanced Benefits relief.

There are three types of individual claims:

1. Premium Offset claims — claims based on a representation of a guaranteed premium offset date.

Example: The agent said at point of purchase of the policy that the policyholder would only have to make premium payments for a period of 10 years, following which no further premium payments would be required to be made.

2. Pay Day claims — claims based on a representation of a guaranteed annual income for some period of time and, where applicable, a guaranteed premium offset date.

Example: The agent said at point of purchase of the policy that the policy would eventually generate a specified annual income amount (say $2,500.00) and in some instances, a guaranteed premium offset date — a representation that premium payments would be required to be made only for a fixed specified number of years (say 10 years) after which no further premium payments would be required to be made.

3. Cash Value claims — claims based on a representation of a guaranteed cash value at a specified point in time.

Example: The agent said at point of purchase of the policy that the policy would in 20 years have a guaranteed cash value of say $100,000.00 which could be accessed for purposes of retirement, etc.

If you have strong ICRP evidence, i.e., written proof from the sales agent/representative of the premium offset date promised at point of purchase of your policy, you ought to make an ICRP claim. Written proof would consist of an altered sales illustration with alterations having been made by the sales agent/representative or letters/notes from the agent.

If your sales agent/representative is prepared to execute a sworn statement confirming the alleged misrepresentations made at point of purchase of your policy, you ought to make an ICRP claim.

If you have this type of proof, you will likely qualify for relief which will honour the representations made at point of purchase of your policy, i.e., if you were promised that you would have to pay premiums for only 10 years, you will achieve that premium offset date and will receive a rebate of premiums overpaid.

If you do not have strong ICRP evidence of the type referred to above, you ought to consider an application for Enhanced Benefits.

Application for Enhanced Benefits

To apply for Enhanced Benefits, where you do not automatically qualify for same as indicated on the Policy Information Statement on page 2 of the London Life mailing package, you must check off Option 2 on the Election Form and complete the Application for Enhanced Benefits as well.

Applications are assessed based on the information provided in the completed application and the criteria for qualification.

In completing the Application for Enhanced Benefits, you ought to indicate that premium offset was a significant factor in the purchase of your policy if that is in fact the case. You will answer question 1 on the Application for Enhanced Benefits form by checking the “YES” box.

If you have supporting documentation from the time of purchase of your policy, you will answer question 2 by checking the “YES” box as well.

The supporting documentation can include (but is not limited to):

a) a sales illustration of the policy prepared by London Life at the time of purchase, which illustrates premium offset; or

b) a letter or notes from the London Life sales agent/representative who sold you the policy, written at the time of purchase of the policy, which indicates that premium offset applies to the policy.

The supporting documentation ought to be attached to the Application for Enhanced Benefits form and submitted to London Life. You ought to retain copies.

If you have supporting documentation and answered question 2 on the Application for Enhanced Benefits form by checking the “YES” box, you need not have the Application form sworn in the presence of a commissioner for oaths, notary public or lawyer. You simply sign the document and return it to London Life.

The Application for Enhanced Benefits need be sworn before a commissioner for oaths, notary public or lawyer only if you do not have documents from the time you purchased the policy that support that premium offset was a significant factor in the purchase of the policy (i.e., you answered question 2 on the Application by checking the “NO” box).

If you have no supporting documentation, you must attend before a commissioner for oaths, notary public or lawyer and have the document signed and sworn. You will qualify for Enhanced Benefits unless premium offset could not have been illustrated for your specific policy or there is in the London Life file a Representative Report that expressly indicates the policy was not sold to you based on the future use of premium offset.

For policies purchased to 1985, there will not be a Representative Report indicating that the policy was not sold based on the future use of premium offset since the Representative Report form with a question about premium offset was not used prior to 1985.

In all cases you should retain copies of relevant documentation for yourself. You should keep a copy of anything you send to London Life including your sales illustration or other supporting documentation.

Applying for ICRP Relief and Receiving Enhanced Benefits Automatically

This applies to policyholders who automatically qualify for Enhanced Benefits as indicated on the Policy Information Statement on page 2 of the London Life mailing package.

A policyholder content with the Global and Enhanced Benefits need not do anything at all. No forms need to be completed and returned.

There is a slight risk that a completely unsuccessful ICRP claim will result in a policyholder losing automatic entitlement to Enhanced Benefits, however, we believe that the risk is low in most circumstances.

Enhanced Benefits deal with complaints/concerns relating to premium offset only, i.e., the relief decreases the premium offset period, but does not in any way address other complaints/concerns relating to cash values or Pay Day.

In ICRP claim ought to be pursued if you have strong proof of the misrepresentations alleged to have been made by the sales agent/representative at the time you purchased your policy.

If participating in the ICRP, you ought to request the last known address for the London Life sales agent/representative that you dealt with and ought to at least attempt to contact that sales agent/representative with a view to obtaining a statement.

You ought to complete the request form for the last known address of the London Life sales agent/representative, which form is on the back of the Election Form.

If participating in the ICRP, you also have an opportunity to ask London Life to provide copies of documents from your policy file. That request is made after the ICRP package is sent to you. Note that the request for documents has to be made within 10 days of you receiving the Claim Adjudication Package (ICRP).

We recommend that all policyholders request copies of documentation from the London Life policyholder file in connection with ICRP claims.

Contact Us

If you would like more information regarding this claim or wish to be added to our database of claimants, you may e-mail us at manager@classactionlaw.ca.

You can also access our class action hotline at 1-905-523-8048.

You can contact us directly by telephone at Scarfone Hawkins LLP at 1-905-523-1333.

You can contact us by fax at 1-905-523-5878.

We are experiencing an extremely large volume of calls. We will return your call as soon as possible. We would ask that you please be patient. Thank you.