1. Policy benefits
You must pay all premiums to Sovereign at its head office in New Zealand (see Section 7d). Premiums are normally paid by direct debit. In addition we can offer facilities to pay premiums by credit card, or, you can pay premiums by cheque. Premium payments are not effective until after they have been cleared and credited to our bank account.
Your Sovereign MajorCare policy can provide financial assistance if you incur major medical expenses. Details of the MajorCare benefits you have chosen and the names of the people insured for the MajorCare benefits (called the life or lives assured ) are shown in the schedule . Sovereign will pay the MajorCare benefits to you , as the policy owner (s), an eligible provider , or to your estate. The MajorCare benefits provided are detailed in the attached MajorCare benefits sheet . It is Sovereign 's normal business practice to review the MajorCare benefits on a regular basis. This is to ensure it continues to provide cover for current medical treatments for common medical conditions at the time. It is also to ensure the insurance product remains commercially viable for Sovereign. A review of the MajorCare benefits may result in Sovereign changing the MajorCare benefits and updating this policy document accordingly. The following are examples of circumstances when Sovereign may wish to change the MajorCare benefits for all policy owners : > To increase the level of MajorCare benefits under the policy or to add new MajorCare benefits; > To move all policy owners to a refreshed policy document with a new drafting style/layout and similar levels of MajorCare benefits; > To allow for an unexpected increase in the type or level of claims that will not be sustainable long term based on the current schedule of premium rates or at any premium rates (uninsurable); > To take account of a significantly escalated or new public health threat e.g. a pandemic. Sovereign will give you at least 30 days' notice of any pending MajorCare benefit and policy document change. Such notice will include an updated MajorCare policy document and MajorCare benefits sheet highlighting any change to the MajorCare benefits and will confirm the actual date from which the revised MajorCare benefits and policy changes will take effect. You always retain the right to cancel this policy at any time – see Section 3 Cancelling this policy.
c) What happens if you do not pay the premium on time?
You have 30 days’ grac e in respect of any premium due. Sovereign will be entitled to cancel your policy by written notice to you at your last known address if a premium remains outstanding 31 days after a premium due date . If you want to have this policy reinstated, you must write to Sovereign . Sovereign does not have to reinstate this policy but may do so on any conditions it considers appropriate. If Sovereign has to pay a MajorCare benefit under this policy when a premium is overdue, the overdue premium may be deducted from the MajorCare benefit.
d) Change in premium amount
It’s Sovereign's normal business practice to revie w premiums on a regular basis. This is usually done each year on the policy anniversary date . Please note that; > Premium increases will always be applied across the policy type. > There will not be an increase in premium for your own policy based on your claim history or experience. > Premiums for MajorCare benefits are related to the life assured ’s age, unless otherwise agreed to by Sovereign. > Premiums will increase each year and the premium increase will usually take effect from the policy anniversary date . > Any policy fee will increase each year on the anniversary date in line with the consumer price index . The other circumstances in which your premium will change are as follows: > When you add or remove optional MajorCare benefits or adjust the excess > When you add or delete a life or lives assured to/from this policy.
2. Your payments
a) Premium
3. Cancelling this policy
To ensure that your policy remains in force you must pay the premium on a regular basis as agreed with Sovereign . The initial premium is shown in the schedule , the first payment of premium is due to Sovereign on the first premium due date , which normally coincides with the risk commencement date . The premium may change from time to time (as described below) and you will need to pay the new premium from the next premium due date and thereafter. Sovereign will advise you in writing of the new premium 30 days before the change takes effect.
a) When can you cancel your policy?
If for any reason you are not happy with this policy, you may return it to us within 15 days from the date your policy document is received. You will be deemed to have received your policy document three days after postage from Sovereign . In such cases Sovereign will promptly refund any premiums paid under your policy. Alternatively changes to your policy may be made and a replacement policy document issued.
b) Method of paying premiums
134 MAJUMB-SA version 7 Effective 5 December 2016
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