Manulife Financial | New procedure for policy conversions and policy splits
We’re writing to share important information about a new procedure we’ve put in place to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing legislation. The legislation requires us to know our clients, and to maintain sufficient records and evidence in our files to confirm their identity.
What you need to know
We are legally required to identify clients when they apply for a permanent product. This also applies when a client requests to convert their coverage from a term policy to a permanent product or to split their policy. Client identification is required within 30 days of receiving a conversion or policy split application, otherwise it will be closed. We rely on your advisors to gather this important information regarding the client’s identity when they apply to convert their product or to split their policy.
Please note that we are missing important AML information for select policies that have undergone conversion to a permanent product or had their policy split. Later this month, we may be contacting your office and advisor with further details surrounding this issue.
New procedure details
Please ensure that your advisor’s client continues to pay their policy premiums on their current policy until we have all the information required to issue their new product or to split their policy. See below for a sample schedule of the steps we will take if we don’t hear from your advisor when their client has applied to convert their product or to split their policy, and we have outstanding AML requirements:
- On day 1 of the conversion / policy split application review (e.g. June 1), the advisor will be sent a communication indicating the outstanding requirements with a mandatory return date of June 15.
- On day 15 (e.g. June 15) the advisor will be sent a follow up communication again asking for the information.
- On day 30 (e.g. June 30), we will contact the advisor’s client directly, copying the advisor, to let them know that their request to convert or split their policy has been closed. We will also let the client know that if they wish to reopen their request for a conversion or a policy split, they need to send us the required AML information.
If you have questions
We appreciate your understanding in this matter. If you have questions, or if we can help in any way, please contact us at the number shown below:
- MGA Head Offices: 1-888-304-3188
- National Accounts Head Offices: 1-888-533-9444