To: California Columbus Life Licensed Producers
Since May 30, 2015 Columbus Life UL and VUL policies that qualified for the Accelerated Death Benefit Life Plus Rider have received the new enhanced version of this Rider. This Rider contains enhancements to the Chronic Illness benefit that added a new benefit payout option with higher maximum payouts and a residual death benefit. There is no additional premium charge for the Life Plus Rider.
1. Due to California SB 281, Columbus Life did not issue the Life Plus Rider between June 28, 2014 and May 30, 2015. During this time, these policies received the Terminal Illness Rider with the understanding that, upon approval of the new Life Plus Rider by the California Department of Insurance, the Company would retroactively provide the new, enhanced Life Plus Rider to these clients. Since May 30 the Company has sent the new Life Plus Rider directly to eligible clients who bought UL or VUL policies in the 6/28/2014 to 5/30/2015 time period. For these cases, no further action is needed by producers or clients.
2. For eligible clients who purchased Columbus Life UL or VUL policies from January 5, 2013 to June 28, 2014, we are offering a special opportunity to receive the new ADB Life Plus Rider, again at no charge.
Many of you have received a list of your clients who are eligible along with instructions. These instructions require client and producer signatures that are required by SB 281 and indicate the client’s understanding of the difference between Chronic Illness Accelerated Death Benefit and Long Term Care Insurance. These forms must be completed and received by the Home Office within 60 days from the date of the letter to producers. Here is a summary of the process and forms:
I) Policy Change without evidence
II) Fax Consent form
III) The following ADB forms:
a. Form CL45.943: This form asks if the accelerated death benefit rider is replacing an existing long term care policy. If the ‘No’ box is checked, then form CL 45.941 can be ignored. If the ‘Yes’ box is checked, then form CL 45.941 must be filled out, with one copy sent to the Home Office and one copy for the Applicant.
b. Form CL 45.942 must be signed by the Applicant and Producer, with one copy sent to the Home Office and a copy retained by the Applicant.
c. Form CL 45.944 similarly must be signed by the Applicant and Producer, with one copy sent to the Home Office and a copy retained by the Applicant.