2008 Term Life and Business Expense Return of Premiums -Sept.09

The CBIA is excited to announce that, due to better than anticipated financial results, we are able to provide most of our Term Life and Business Expense certificate owners with a partial refund of their 2008 paid premiums.

While we strive to maintain our no-profit, break-even pricing goal, on occasion our plans will perform much better than anticipated. This can help generate financial results that exceed our predicted long term requirements. While most companies would keep this as profit, it is our practice to share this financial success with our customers. Such is the case with the $3.6 million now being returned.

While we cannot guarantee our future performance, for over the past decade tens of thousands of CBIA clients have benefited from our financial success through improved contractual benefits, increased face amounts, lower rates, waived premiums and return of premium cheques. We are not aware of any insurance provider that can make this claim.

If you have not already done so, now is a great opportunity to re-evaluate your insurance needs. Call your Authorized CBIA Representative for more information.

Details of the 2008 Return of Premium program for Business Expense and Term Life

Business Expense

• Eligible Business Expense certificate owners will receive a cheque in an amount equal to 45% of paid 2008 policy year (December 1, 2007 to November 30, 2008) premiums.

• Only Business Expense certificates that were in-force and had premiums paid during the 2008 policy year and continue to be in-force on September 1, 2009 qualify for a return of premium.

• Insureds that did not pay premiums during the 2008 policy year due to a waiver of premium benefit claim, do not qualify for this offer.

Sales Tax paid on Business Expense Return of Premium amounts (Ontario and Quebec Only)

A return of paid sales tax based on the Business Expense Return of Premium amount for 2008 (45% of paid premiums) has been successfully negotiated for clients in Ontario and Quebec. The sales tax will appear as a credit on the December 1, 2009 invoice.

Term Life

• Where the total of all Term certificates combined on a life is $1,250,000 or less, a cheque will be issued in an amount equal to 15% of paid 2008 policy year (December 1, 2007 to November 30, 2008) premiums to the certificate owner(s).

• Only certificates that were in-force and had premiums paid during the 2008 policy year and continue to be in-force on September 1, 2009 qualify for a return of premium.

• Certificate owners that did not pay premiums during the 2008 policy year due to a waiver of premium benefit claim do not qualify for this offer.

• As a result of the current financial arrangements with our insurers, paid premiums for amounts above $1,250,000 do not qualify for a return of premium.

• In cases where the amount of coverage from all certificates combined exceeds $1,250,000, a pro-rated return of premium amount will apply.

An example is as follows:

		2008 Refund Example (total coverage exceeds $1.25 million)
		Total Term Life coverage for life insured		$2,000,000
		Total paid Term Life renewal year 2008 premium		$1,095
		Maximum coverage limit for refund		$1,250,000
		Portion of total coverage that is eligible for refund		$1,250,000 / $2,000,000 = 62.5%
		Portion of total premium that is eligible for refund		$1,095 x 62.5% = $684.38
		Refund percent		15%
		Total amount payable		$684.38 x 15% = $102.66

• In cases where there is more than one certificate owner on an insured life, each will receive a separate cheque for 15% of their portion of the total paid 2008 policy year premiums (subject to the $1,250,000 face amount maximum).

• In cases where there is more than one certificate owner on an insured life and the total amount of coverage from all certificates combined (on a single insured) exceeds $1,250,000, each owner will receive a pro-rated cheque amount based on the percentage owned of the first $1,250,000 of coverage.

An example is as follows:

		2008 Refund Example (total coverage exceeds $1.25 million) Multiple Owners
		Total Term Life coverage for life insured		$2,000,000
		Amount owned by A		$1,500,000 (75% of total)
		Amount owned by B		$500,000 (25% of total)
		Total paid Term Life renewal year 2008 premium		$1,095
		Maximum combined coverage limit for refund		$1,250,000
		Portion of total coverage that is eligible for refund		$1,250,000 / $2,000,000 = 62.5%
		Portion of total premium that is eligible for refund		$1,095 x 62.5% = $684.38
		Refund percent		15%
		Total amount payable		$684.38 x 15% = $102.66
		Total amount payable to owner A		$77.00(75% of total)
		Total amount payable to owner B		$25.66 (25% of total)

Sales Tax paid on Term Life Return of Premium amounts (Ontario and Quebec Only)

A return of paid sales tax based on the Term Life Return of Premium amounts for 2007 (25% of premium) and 2008 (15% of premium) has been successfully negotiated for clients in Ontario and Quebec. The sales tax will appear as a credit on the December 1, 2009 invoice.