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. Sovereign will promptly refund any premiums paid under your policy provided no benefit has been paid or any claim has been made. Alternatively, changes to your policy may be made and a replacement policy document issued. You can cancel your policy at any time by giving Sovereign notice in writing. If you pay your premium less frequently than monthly, we will refund any part of a premium already paid that relates to any period more than one month beyond the date of cancellation. Otherwise, Sovereign does not have to refund any part of the premium you have paid. You will remain liable to pay any premium due on the policy before Sovereign received the cancellation notice. You will not be entitled to any benefit under the policy from (and including) the date Sovereign receives notice of cancellation of the policy. When can Sovereign cancel your policy? Sovereign can cancel this policy if the premium has not been paid within 31 days of the premium due date . If Sovereign issues you this policy with the understanding that it is to replace a policy you already have then you must cancel your existing policy. If you fail to cancel your existing policy, Sovereign can cancel this policy or decline liability for any claims made under this policy. A Business Replacement Advice (BRA), application form, illustration or quote which indicates this policy is intended to replace an existing policy will be sufficient evidence that your policy was issued on the basis that you would cancel the existing policy. Sovereign can cancel this policy and decline liability for any claims made under this policy if you or any life assured, or anyone acting on your or any life assured’s behalf, makes a claim under this policy that is false or fraudulent in any respect. In the event that a false or fraudulent claim is established after payment of a claim, all amounts paid in relation to the false or fraudulent claim must be repaid by you to Sovereign.
Sovereign may, at its complete discretion either:
− subject to the Insurance Law Reform Act 1977, avoid your entire policy from its inception (this means the policy is deemed to have never existed); or − avoid from its inception any individual benefits provided by your policy (this means the individual benefit(s) are deemed to have never existed); or − alter the terms upon which cover is provided under your policy (such alteration of terms will be effective from the risk commencement date or such date of our choosing, at our discretion); or − remove from cover any life assured from inception but leave the policy in force for the remaining lives assured. If this policy is avoided or any terms altered or a life assured is removed from cover, we are entitled to retain all premiums paid in relation to the policy or that life assured.
14. Your premiums
To ensure 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 is due to Sovereign on the first premium due date .
The premium amount may change from time to time (as described below) and you will need to pay the new premium on the agreed regular basis. Sovereign will advise you of the new premium before the change.
Change in premium amount Your premium will be recalculated at each anniversary date based on:
the age of the life assured; and
>
the sum assured shown in the schedule ; and
>
> Sovereign’s underlying premium rates at that time.
Method of paying premiums You must pay all premiums to Sovereign at its head office in New Zealand (see Section 15 for Sovereign’s address). Premiums are normally paid by direct debit or credit card. Alternatively, you can pay premiums by cheque. Premium payments are not effective until after they have been credited and cleared to Sovereign’s bank account. How will you know what to pay? Each year prior to the anniversary date, Sovereign will write to you and tell you how much the premium will need to be to maintain your existing cover.
Non-disclosure or the provision of false or misleading information
Any information you or any life assured gives us, and any information given to us on your behalf, must be complete, true and correct.
If Sovereign tells you that premiums need to increase to maintain your existing benefit amount, you can choose to:
If you or any life assured:
− fails to disclose material information to Sovereign prior to inception of this policy or any variation or reinstatement of this policy, or − has made a statement on the faith of which the policy was issued, renewed, varied or reinstated that was substantially incorrect .
> increase the premium to maintain the existing benefit amounts; or > reduce the benefit amount to the amount which your existing premium will cover.
420 Start-Up IP version 7 Effective 06 March 2017
Page 5 of 8
Powered by FlippingBook