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HomeMy WebLinkAbout2001 Companion Ufe COMPANION LIFE INSURANCE COMPANY 51 CLEMSDN ROAD, SUITE C, COLUMBIA, SC 29225 P.O. BOX 100102, COLUMBIA, SC 29202 (803) 735-1251 TERM LIFE, ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE POLICY RENEWAL AT OPTION OF COMPANION LIFE (NON-PARTICIPATING) Policyholder: City of Jeffersonville Date of Issue: February 1, 2001 Policy Number: 903 1~ 76537 001 Effective Date: February 1, 20Ol S±ate of Delivery: Indiana Policy Anniversary: February I In consideration of the payment of the first premium, and of the statements and agreements in the Group Application and individual applications, if any, of the eligible empioyeea, Companion Life Insurance Company (herein called Companion Life) agrees to insure eligible employees of the Policyholder (and their eligible dependents, if any and if this Policy provides Dependent Life Insurance). ("Eligible employees" is defined in the General Poiicy Provisions section. "Eligible dependents'~ is defined in the Dependent Life Insurance section.) Companion Life promises to pay benefits according to the terms of this Policy. A copy of the Group Application is attached and made pa~t of this Policy. SubSect to the Policyholder Provisions and the Incontestability Provisions, ~his Policy may be renewed for successive renewal periods by the payment of the premium set by us on each renewal date. The length of each renewal period will be set by Companion Life, but will not be less than 12 months. , This Policy is deiivered in and governed by the laws of the State of Delivery named above. PLEASE READ YOUR POLICY CAREFULLY. For purposes of effective dates and ending dates under this Policy, ali days begin and end at 12:01 a.m. Standard Time at the Policyhelder's address where the Policy is delivered. COMPANION LIFE INSURANCE COMPANY GTP 635 (7/95) M. Edward Sellers, President SECTION NUMBER POLICY GUIDE SECTION NAME 1 2 $ 5 G 7 9 10 11 12 15 Iq Policy Face Page Policy Guide Premium Rate Schedule Policy Effective Date and Term Actively a~ Work Provision Definitions Term Li~e Insurance Bene~i~ Accidental Death & D~smembe~men~ Benefit Dependen~ Li~e Insurance Bene~i~ Beneficiary and SeAtlemen~ Options Assignmen~ Short Term Disability Benefit Change of Class or Earnings When Individual [nsurance Begins When Individual Insurance Ends Premium Provisions General Policy Provisions BEGINNING PAGE NUMBER 0.1 0.2 0.3 1.1 2.1 3.1 fi.1 5.1 6.1 7.1 8.1 9.1 10.1 ll.1 12.1 1~.1 /q.l GTP 655 (7/95) 0.2 ( Companion * Life* APPLICATION FOR GROUP LIFE, AD&D, SHORT TERM AND LONG TERM DISABILITY INSURANCE, VOLUNTARY STD AND LTD 1. FUL~L LEGAL NAME OF~EMPLOYER (as it should aPpear in policy) 2. EMPLOYER'S FEDERAL TAX ID NUMBER 3. ADDRESS Street 50' ¢. (~,-~-4-,~Vd'. ~-~o~ ~. Ci~ ~~5owv/~ Coun~ 4. ADMINISTflATIVE COfl~ESPO~DENCE with the applicant should be ~ddressed to: Name ~C rr ~d n F I~ (5 Title 5. NATURE OF BUSINESS~ 6. REQUESTED EFFECTIVE DATE (12:01 a.m.): 7. PREMIUMS ARE TO BE PAID MONTHLY. 8. Are there subsidia~ or affiliate businesses covered under this plan? ~ Yes If YES, please state name and nature of each subsidia~ or affiliate: Telephone Number ( R'/,,~- ) ~ g~' - ~0~' Area Code Post Office Box Zip State _~--~/D/,*//,/,,~ Zip ~' No Are separate billings required? [] Yes ~ No If YES, please provide billing instructions: 9. Type of Administration: ~ Home Office-administered [] Self-administered 10. Will the requested insurance repJa,,ce existing insurance? ~] Yes [] No If YES, give coverage, name of existing carrier, and proposed termination date: i¥1~--~poz- ,r~-,,~/ /~-~ 11. The normal work week for full-time employees is ~ O hours. Eligibility: All regular full-time employees working a minimum of ~ hours per week. (The minimum work week for full-time employees to be eligible for benefits is 30 hours. Employees working less than 30 hours per week may be acceptable for Life and STD. Contact Companion Life for approval. LTD requires a minimum of 30 hours per week.) 12. The employee waiting period for participation is: [~,,~lone (effective on next billing date). [] After days of continuous employment (30, 60, etc.). [] After months of continuous employment (1, 2, etc.). 13. Current eligible employees are to be covered immediately. 14. Employees hired after the plan effective date are to be covered: E~First of the month following completion of the waiting period. [] Fifteenth of the month following completion of the waiting period. 15. Number of Eligible Employees: 16. Number of Enrolled Employees: 17. SCHEDULE OF BENEFITS (If space ~rovided is inadequate, please attach additional page.) CLASSOEFINITIONS BASIC SUPPLEMENTAL SHORTTERM LONG TERM VOLUNTARY VOLUNTARY (Describe Below) LIFE/AD&D LIFE/AD&D DISABILITY DISABILITY STD LTD Percent of Premium Paid by Employer / ~ % % % % % % 11383) Rev. 5/99 COMPANION® Maximum Monthly Benefit is not to exceed $ Maximum Benefit period will be: [] To Age 65 (Reducing Benefit Duration) [] 5 Years [] 2 Years Benefit integration will be as follows: Optional Policy Features to be included are: [] As specified in the proposal (please attach), or [] Specified as follows: oays. Minimum Monthly Benefit is $ [] Primary and Family Social Security (standard) [] Primary Social Security H. Pre-Existing Condition Exclusion: (10-25 Lives) Standard: 12/6/24 not available in CO, FL, GA, MD, MS, PA, SO, WA, Wl FL & PA: 3/6/12 Others: 12/12 (26+ Lives) ' Standard: 3/6/12 30. VOLUNTARY LONG TERM DISABILITY BENEFITS [] Yes E~-No [] Companion Cornerstone Plan A. Maximum Benefit period will be: [] Two Years/Reducing Benefit Duration or [] Five Years/Reducing Benefit Duration B. Elimination Period: [] 90 days or [] 180 days C. All employees receive coverage equal to 50% of their earnings to a maximum monthly benefit of $3,000. [] Companion Prime Plan A. Maximum Benefit period will be: [] Five Years/RBD (All Causes) or [] Five Years/RBD for Sickness, Age 65/RBD for injury B. Elimination Period: [] 90 days or [] 180 days C. All employees receive coverage equal to 60% of their earnings to a maximum monthly benefit of $5,000. 31. SPECIAL REQUESTS/INSTRUCTiONS:. PLEASE READ CAREFULLY Quotations were based on the proposal data submitted to Companion Life. Final premium rates will be determined on the basis of the actual composition of the group of persons who become insured. f the 'n't'a deposit is at least equal to the first month's premium, and ~f the requested 'nsurance is acceptable under Companion Life's cur- rent rules and pract ces nsurance under the terms of the policy shall be effective on the effective date requested. Otherwise, insurance becomes effective only when a policy is de vered and accepted in writing. In the interim, liability is limited to a return of the original deposit. Only Comj~anion Life's home office has the authority to guarantee the acceptability of the requested insurance. 32. INITIAL DEPOSIT (Minimum first month's premium is required.): $ ~ ~ ~ I. I ~ 33. Are all the employees to be insured for Disabili~ income covered by Workers Compensation? ~ Yes ~ NO If NO, explain: 34. Have you explained to the employer that an employee not actively at work on the policy effective date will not be covered until such em- ployee returns to active work full time unless approved in writing by an underwriter or officer of Companion Life? ~ Yes [] No Remarks: 35. Is there another group insurance plan(s) which duplicates any of the benefits applied for with this application that will remain in force or be placed concurrently with this plan(s)? [] Yes ,~3 No If YES, please describe the benefit amounts and purpose(s) of this plan(s): 36. Is Agent or Broker licensed in the State of this group for the types of insurance solicited? ¢ Yes [] No 37. To the best of the Agent's or Broker's knowledge, replacement ~;~ is [] is not involved with this transaction. 38. Print name of Agent/Broker ~,,~','~,~¢ ~..~-P~?,E--¢~- ~¢',~¢,'~-- License No. 39. Signature of Agent/Broker.~- ~ ~ _~//~.. _:~-~ Bate FRAUD WARNING (Not App cable in AZ, FL, MD, 0R, VA): Any person who knowingly and with intent to defraud any insurance com- pany or other person f es an application for insurance or a statement of c a m containing any materially false information or conceals for the purpose of misleading, information concerning any fact mater a thereto commits (in TX may be committing) a fraudulent insurance act, which is a crime and subjects (in KS, which may be determined by a court of law to be a crime which.subjects) such person to criminal and civil penalties. FRAUD WARNING (FL only): Any person who knowingly and with intent to injure, defraud or deceive any insurer files a statement of claim or an application containing any false, incomplete or misleading information is guilty of a felony of the third degree. 18. Are there any ineligible classes or divisions? [] Yes [~ No If YES, please describe: 19. Are any eligible employees disabled at this time? [] Yes [] No If YES, please describe: 20. is a Section125 Plan in effect? ~ Yes [] No Indicate which Companion Life Benefits will be subject to the Section 125 Plan? [] Life & AD&D [] STD [] LTD [] Dental []Voluntary Life [] Voluntary STD []Voluntary LTD []Voluntary Dental [] None 21. BASIC LIFE AND AD&D BENEFITS reduce as follows (select one): [] 35% at age 65, 50% at age 70. Benefits terminate when employee is no longer actively at work. [] 35% at age 65, 50% at age 70, and then 75% at age 75. Benefits terminate when employee is no longer actively at work. [] 50% at age 70, and then 70% at age 75. Benefits terminate when employee is no longer actively at work. [] % at age __ and then % at age and then % at age . Benefits terminate when employee is no longer actively at work. 22. SUPPLEMENTAL LIFE AND AD&D BENEFITS reduce as follows (select one): [] 35% at age 65, 50% at age 70. Benefits terminate when employee is no longer actively at work. [] 35% at age 65, 50% at age 70 and then 75% at age 75. Benefits terminate when employee is no longer actively at work. [] 50% at age 70 and then 70% at age 75. Benefits terminate when employee is no longer actively at work. 23. THE REDUCTION SCHEDULES above must be the same as shown in your quotation; otherwise, the rates quoted are subject to review. 24. AD&DBENEFITS J~ Yes [] No 25. BASIC LIFE AND AD&D guaranteed issue amount: $ 26. DEPENDENT LIFE BENEFITS [] Yes [] No A. Spouse Amount: $ B. Maximum Child Amount: $ C.' Coverage for children continues until age D. Percent of Premiums paid by Employer: SUPPLEMENTAL LIFE guaranteed issue amount: $ (Cannot exceed 50% of employee's Life amount) (Cannot exceed 50% of employee's Life amount) ., or to age if a full-time student. % 27. SHORT TERM DISABILITY (STD) BENEFITS A. B. C. D. [] Yes ,~ No Benefits are payable from day accident and First Day Hospital Coverage: [] Yes [] No Full Maternity coverage is included. (Excludes Occupational injury or sickness) day sickness for maximum of weeks. For Benefits expressed as a Flat Amount, the Maximum Benefit will be the lesser of the Flat Amount or 70% of weekly earnings. 28. VOLUNTARY STD A. B. C. E. F. G. H. [] Yes ~ No In order for a group to enroll in Voluntary STD, an employer-paid Companion Life Group Term Life insurance program must be implemented. Enrollment minimum of 10 employees or 15% of Group required, whichever is greater. [] $100 flat weekly benefit, or [] 60% of weekly earnings to ($100 minimum) Benefits are payable from first day accident and eiahth day sickness for a maximum of weeks (choice of 13 or 26 weeks). Full Maternity coverage is included. A 6/12 Pre-existing Condition limitation applies: Voluntary STD coverage excludes Occupational injury or sickness. The coverage is not available if another STD program from Companion Life is in force. SECTION 1 POLICY EFFECTIVE DATE AND TERM The Effective Date of this Policy is shown on the Group Application. This Policy will stay in force for as long as the proper premium is ~aid; however, either the Policyholder or Companion Life may cancel this Policy on any Premium Due Date by telling the other in writing at least 31 days prior to such Premium Due Date. SECTION 2 ACTIVELY AT WORK PROVISION "Active, Full-Time Employee" means an employee who performs all of the duties of his or her job with the Policyholder. This job may be at either: 1. the Policyholder"s normal place of employmentj or 2. at some other place to which the regular business operations of the Policyholder require that person to go. "'Full-time", means an employee must be: 1. scheduled to work for the Policyholder at least 40 hours each week; and 2. on the regular payroll of the Policyholder for that work. "Active work"" is work performed as an active, full-time employee. '"Actively at work~" means being engaged at active work. GTP 633 (7/95) 1.1A 2.1 SECTION DEFINITIONS "Earnings" means the InsuredWs rate of earnings from the PolicyhoIder in effect immediately prior to the date a claim begins. It does not include bonuses, overtime pay and other extra compensation other than commissions. Commissions will be averaged over the 1Z month period prior to the date a claim begins. "TotaI Disability" or "Totally Disabled" means any disability that: 1. Segins while this Policy is in force as to the Insured. Z. Results from injury or sickness. Prevents the Insured from engaging in any occupation for which he or she is or becomes quaIified by education, training, or experience. Requires the Insured to be under the regular care and attendance of a Iicensed physician. "Group Application" means the application for this Policy signed by the Policyholder. "Schedule of Benefits" means the description of benefits set forth in the Group Application. "Insured" means an eligible employee who is insured under this Policy. "Insured Dependent" means an Insured's eligible spouse and/or child(Pen) who are insured under this Policy~ if this Policy provides Dependent Life Insurance. "The date the Insured retires" or t~retirement~' means the effective date of the retirement pension benefits under any plan o~ a federal, state, county or municipal retirement systems, if such pension benefits include any credit for employment with the Policyholder; 2. retirement pension benefits under any plan which the Policyholder sponsors, or makes or has made contributions; retirement benefits under the United States Social Security Act of 1935, as amended, or under any similar plan or act. "Physician" means a medical doctor or surgeon licensed to render services in accordance with the laws of the state where such services are rendered. The term "physician~' will also include a licensed medical practitioner whose services are required by law to be recognized on the same basis as if they had been performed by a Iicensed medical doctor. Such practitioner must be acting within the scope of his or her license. Physician does not include the Insured; or a member of the Insured's immediate family (spouse, daughter, son father, mother, sister, or brother). GTP 633 (7/95) 3.1 SECTION q TERM LIFE INSURANCE BENEFIT If an Insured dies while insured under this Policy, Companion Life will pay the applicable Life Insurance Benefit shown in the Schedule of Benefits. Part 1 CONTINUATION OF BASIC TERM LIFE INSURANCE BENEFIT_ DURING TOTAL DISABILITY EXTENSION OF BASIC TERM LIFE INSURANCE BENEFIT In the event of termination of employment, a death benefit will be paid if the Insured dies while Totally Disabled provided that the disability: I. began while the person was both insured under this Policy and under age 60; and 2. has been continuous until death; and 3. began within I2 months of the date of death. WAIVER OF BASIC TERM LIFE INSURANCE PREMIUM BENEFIT If an Insured becomes Totally DisabZed, prior to age 60, Companion Life will waive premium for the Basic Term Life Insurance Benefit. The waiver of premium will began on the first of the month following 12 consecutive months of Total Disability. The Insured must file written notice within IZ months after the date of Total Disability to be eligible for this benefit. With respect to the Insured, this Waiver of Premium Benefit shall end on the earliest of the foIlowing= 1. on the date the Insured~s Total Disability ends; on the 91st day after Companion Life requests proof of continuous Total Disability~ provided the Insured fails to furnish Companion Life with such proof during such 9] day period; 3. on the Premium Due Date immediateIy prior to the Insured~s 65th birthday; on the effective date of any individuai life insurance policy obtained in accordance with Part 2, Right to Convert; 5. on the date the Insured retires. AMOUNT OF BASIC TERM LIFE INSURANCE BENEFIT CONTINUED The Basic Term Life Insurance Benefit which is continued during Total Disability is the applicabIe amount of Basic Term Life Insurance in force as to the Insured on the date such Insured~s Total Disability begins (subject to any reductions shown in the Schedule of Benefits). This Continuation of Basic Term Life Insurance Benefit During Total Disability does not appIy to the Accidental Death and Dismemberment Benefit. GTP 655 (7/95) ~.! Part 2 RIGHT TO CONVERT If an Insured is no longer eligible for part or all of the Life Insurance Benefit provided by this Policy, such Insured is entitled to apply to Companion Life for an individual policy of life insurance, without submitting evidence of insurability provided: The policy applied for: A. is a type of individual life policy, other than term or universal life~ then being issued by Companion Life; and does not include Accidental Death and Dismemberment, Short Term Disability or other Supplemental benefits; and 2. The amount of life insurance applied for under such individual life policy is in accordance with the Amount To Convert provision below; and The Insured agrees to pay the premium for such individual life policy. The premium will be based on the following, as of the effective date of such individual life policy: A. Companion Life's usual rate for the amount and type of individua! life policy; B. the Insured"s attained age; and The Insured applies and pays the first premium for such individual life policy within 31 days following termination or reduction of the Life Insurance Benefit under this Policy. Such individual life policy ~ill become effective on the first day folloNing the end of such 31 day period. AMOUNT TO CONVERT This conversion privilege is allowed for the Term Life Insurance that ceases as described in items i. and 2. The Insured may convert all or part of the amount of Life Insurance Benefit the Insured is no longer eligible for due to: A. reductions resulting from attainment of a specific age, as shown in the Schedule; or B. loss of the individual eligibility. GTP 6~5 (7/95) 9.2 If the Insured has been insured under this Policy for at least 5 years, the lesser of Ghe amounts shown in (i) or (ii) below may be converted if the Insured is no longer eligible due Go: A. termination of this Policy~ or B. termination of the class of Insureds to which the Insured belongs~ or C. reduction of benefiGs for Ghe class of Insureds to which the Insured is a member. (i) (ii) ~10,000.00, or All or parG of the amount for which the Insured is no longer eligible. This amounG will be reduced by the amount of any life insurance for which Ghe Insured becomes eligible to receive under a group policy issued or reinsGated by Companion Life or any other insurer during Ghe thirGy-one day period immediately following GerminaGion of insurance under Ghis Policy. If Ghe Insured dies during Ghe conversion period the maximum amount of Term Life Insurance which the Insured would have been entitled Go have issued shall be payable as a claim under Ghis Policy; whether or not application for the individual policy or Ghe payment of Ghe first premium has been made. The rights or benefits granted under Ghis provision are in lieu of any other rights or benefits granGed under Ghis Policy. ParG 3 SUICIDE EXCLUSION With respect Go the Life Insurance Benefit, in Ghe event an Insured, while sane or insane (in Missouri while sane), dies from inGenGionally self-inflicted injuries or any attempts thereaG, within two years from the effective date of coverage, Companion Life's liability shall be only to return premiums paid under this Policy as Go such Insured. The Suicide Exclusion will nog apply Go Ghe Insured who: 1. is actively at work on Ghe effective date of this Policy; and 2. was insured for Group Life Insurance under Ghe prior carrier's policy on its termination daGe. GTP 633 (7/95) ~.3 Part q THE ACCELERATED BENEFITS PROVISION THE BENEFIT The Insured with a medically determined terminal conditEon would be elEgEble to receive the foilowing accelerated benefit: Fifty percent (5OX) of the Basic Term Life Insurance benefit in effect on the InsuredWs last day of active work up to a maximum Ensured amount of ~lOOjOOO. The maximum payable under thEs benefit is $50,D08. An "Accelerated Benefit" covered under this Policy Es a benefit payable; to the Insured. If, during hEs or her lifetime, the Insured sustains a termEnal conditEon, as defined in this provisEon, the Insured or his or her legal representative may request a lump-sum accelerated death benefEt payable once during the lifetime of the Insured, and Z, which reduces the death benefit otherwise payabIe under this PolEcy, and which is payable upon the occurrence of a single quaIifyEng event whEch results in the payment of a benefit amount fixed at the tEme of acceleration. TAX TREATMENT BenefEts paEd under thEs provisEon may be taxable. The Insured or his or her benefEcEary may incur a tax obIEgatEon. As with ail tax matters, an Insured should consuit with his or her personaI tax advEsor and/or attorney. DEFINITION OF TERMINAL CONDITION "Terminal ConditEon" means that the Insured has a medically determinable condition with no reasonable prospect of cure, whEch can be expected to resuit in death wEthin IZ months of the date of disabElity. The proof of TermEnal ConditEon satisfactory to Companion LEfe must be certified by the Insured's attending physician and one other physician. CompanEon Life reserves the rEght to have the Insured examined at its expense by one or more physEcians of its choice in connection with a request for AcceIerated Death BenefEt for TermEnai ConditEon. GTP 653 (7/95) ~.~ ELIGIBILITY REQUIREMENTS Aii eIigible actively at-work fulI ~ime employees who have been covered under the Basic Term Life Insurance are eIigibie for ±he Accelerated Benefit. The benefi~ terminates at ~he earlies~ of: l. when the Insured's Basic Term Life ~erminates, or 2. a~ attained age 76, or a~ retirement from employment. In order to be eIigibIe for this benefit, the Insured mus~ have been continuously covered for a~ Ieast one year under this Policy prior ~o sustaining a terminal condition, or covered under this Policy from ±he PoIicy Effective Da~e. EFFECTIVE DATE OF THE ACCELERATED BENEFITS The Accelerated Benefi~ provision shall be effective for accidents on the PoIicy Effective Date. The Accelerated Benefit prevision shall be effective for illness thirty (30) days FoIlowing the PeIicy Effective Date. EXCLUSIONS AND LIMITATIONS The Acceiera~ed Benefit wiI1 not app[y: 1. ~o any self-inflicted injuries or suicide a~tempts~ ~o any Supplemental Term Life Insurance benefits, incIuding Dependent Life, nor to any Accidental Death and Dismemberment benefi~s~ if an Insured is totally disabled on his or her Effective Date of coverage~ 4. to a Basic Term Life Insurance benefi~ that has been assigned; S. ~o a Basic Term Life Insurance benefi~ payable ~o an irrevocabIe beneficiary; 6. ~o a Basic Term Life Insurance benefit with a face amount of less than ~lO,OOO; 7. if ~he required Basic Term Life Insurance premium is due end unpaid. GTP 633 (7/95) ~.5 CONVERSION The amount of Basic Term Life Insurance that may be converted is ~he Insured's Basic Term Life Insurance reduced by ~he Accelerated Benefi~ amoun~ paid. REDUCTIONS If a benefit reduces in accordance with a reduction provision the ~o~al amount payable to ~he Insured wil] no~ be affected by the advanced payment. FREQUENCY Only one Accelerated Benefi~ paymen~ will be made to an Insured TERMINATION This provision will ~erminate for the Insured on the earliest of the following da~es: I. the date the Policyholder ~erminates coverage under ~his Policy; 2. the date this Policy terminates; the da~e the Insured retires; the date the Insured dies~ 5. the da~e the Insured receives an Acceierated Benefit payment~ or 6. the date the Insured continues coverage under the Conversion Provisions ~his Policy. GTP 65S (7/95) ~.6 SECTION 5 Part ACCIDENTAL DEATH AND DISMEMBERMENT BENEFIT If an Insured suffers any of the following losses, Companion Life will pay the indicated percentage of the Principal Sum, provided such loss: resuits from injury and independently of all other causes, which injury is caused by an accident that occurs while this benefit is in force as Ko the Insured; and 2. occurs within 90 days of that accident. The Principal Sum is shown in the Schedule of Benefits. Loss of Life Loss of Both Hands or Both Feet Loss of Entire Sight of Both Eyes Loss of One Hand and One Foot Loss of One Hand and the Entire Sight of One Eye Loss of One Foot and the Entire Sight of One Eye Loss of One Hand or One Foot Loss of Entire Sight of One Eye 100% 100% 100% 100% lOO% 100% 50% 50% 1. with reference to hand or foot, complete loss of the use of the hand, or foot; and 2. with reference to eye, irrecoverable loss of the entire sight thereof. If the Insured suffers more than one of the above losses as a result of the same accident, the benefit provided under this provision will be paid oniy for the greatest loss, If loss of Life results while an Insured was riding as a fare-paying passenger in or upon a public conveyance being opera,ed by a licensed common carrier for passenger service, the Accidental Death benefits provided under the Policy wilI be increased. The additional benefit payable will be the lesser of: 1. 100% of the Principal Sum shown in the Schedule of Benefits; or 2. ~100,000. GTP 6~5 (7/95) 5.1 ACCIDENTAL DEATH AND DISMEHBERHENT BENEFIT EXCLUSIONS This Policy does not provAde bane~A~ ~r any ibS~ caused by or resu[tAng from: I. Declared or undeclared war or any act of war; ServAce in the armed forces of any country or international authority; SuicAde or intentiona[Zy seIf-AnflActed injury whether the Insured was sane or insane (An HAssourA whale sane) at the time of the suAcide or Anjury; Flying in an aArcraft owned, operated~ leased or chartered by the Po[Acy- hoider; 5. PartAcipatAon An, or in consequence of having partAcApated An, the commAssion of any felony; 6. Sickness or dAsease, ptomaAne or bacterial infectAon (except Anfect~ons occurrAng through an accidental cut or wound); 7. Intentionally taking a narcetAc, drug, barbiturate, hallucAnogenic drug, alcohol er any combination of these ~hen not part of a profess&onal medAcal treatment plan. The Accidental Death and DAsmemberment BenefAt As not available to Insured Dependents. Part 2 SEAT BELT BENEFIT The Accidental Death benefits provided under this PolAcy NAIl be increased if, as a result of driving or rAdAng An a prAvate passenger automobile, the Insured dies as a result of an automobile accident. The addAtAonal benefAt payable NAIl be the Iesser of: 1. lOOZ of the Principal Sum shown An the Schedule of Benefits; or 2. ~10,000. GTP 655 (7/95) 5.Z CONDITIONS Companion Life must receive proof that: 1. the Insured was insured for Accidental Death and Dismemberment benefits under this Policy; and according to the official vehicle accident reportj the Insured was wearing a properly installed seat belt or lap and shoulder restraint, or any other National Highway Traffic Safety Administration approved restraint at the time of the accident. EXCLUSION This additional benefit will not be paid if: 1. the Insured was driving while impaired by alcohol or drugs; or 2. the driver of the automobile in which the Insured was riding was driving while impaired by alcohol or drugs. DEFINITION A "private passenger automobile"~ is a four-wheel private passenger car, station wagon~ vanj truck or jeep-type automobile. It is not: 1. a taxi, bus or any other vehicle being used for public conveyance; Z. used in off-road activities; or 3. used in testing racing or endurance contests, either amateur or professional. Part 5 PAYMENT OF BENEFITS Upon receipt of due proof of loss, the Accidental Death and Dismemberment benefit will be paid to the [nsured, if living; otherwise, to the beneficiary. All Claim Provisions and Beneficiary and Settlement Provisions apply to this coverage. GTP 655 (7/95) 5.5 SECTION 6 DEPENDENT LIFE INSURANCE BENEFIT NOT PROVIDED GTP 653 (7/95) 6.1 SECTION 7 BENEFICIARY AND SETTLEMENT OPTIONS Part 1 BENEFICIARY DESIGNATION The beneficiary or beneficiaries of an Insured shall be that person or persons indicated on the Insured's individual application for insurance. This application will be filed with the PolicyhoIder. The beneficiary of an Insured Dependent, if this Policy provides Dependent Life Insurance, shall be the Insured. Part 2 CHANGE OF BENEFICIARY Unless the Insured has made an irrevocable assignment of benefits, the beneficiary may be changed by sending a written request to the Home Office of Companion Life. When such request is received by Companion Life, the change of beneficiary shall take effect as of the date of execution of the written request~ but without prejudice to Companion Life on account of any payment previously made by Companion Life. Part CONSENT OF BENEFICIARY If the Insured does initially name the spouse as beneficiary, Companion Life will require written consent of the spouse to name or change the beneficiary in community property states. Part PREFERENTIAL BENEFICIARY If the Insured has died and no beneficiary is living or named, Companion Life may, at its option, pay the benefits to the Insured~s estate or to the following surviving relatives of the Insured: The Insured's: 1. Spouse; 2. Child or Children~ Parent(s); Brothers and sisters; or 5, Executors or administrators. Companion Life w/il not be liable to the extent of any payment so made, unless it receives written notice of a vaIid claim by some other person before payment is made. GTP 633 (7/95) 7.1 Part 5 MINOR BENEFICIARY If the beneficiary is a manor or, An the opinAon of Companion Life, is not able to give valid release for any payment due~ CompanAon Life may~ at Ars optAon and until claim As made by the duly appoAnted guardian, pay the benefAt to the person or entity who appears to have assumed the care and support of the beneficAary. Benefits An thAs event will be made in monthly payments of not more than $50 each. Companion LAfe wall not be liable to the extent of any payment so made in good faith. Part MORE THAN ONE BENEFICIARY If the Insured named more than one benefAciary~ the applAcable amount of insurance shall be paid to the beneficiaries who survive the Insured~ in equal shares, unless the Insured has specifAed a dAfferent proportion. Part 7 NO BENEFICIARY If the beneficiary predeceases the Insured or if the Insured does not designate a beneficAary, then the applicable amount of life insurance will be paid to the estate of the Insured. Part 8 SETTLEMENT OPTIONS An Insured may elect or change a settlement optAon by filing a written request with Companion Life. The settlement options available will be those offered by CompanAon LAfe when the option is chosen. If an Insured does not request a settlement optAon, the beneficiary may do so after the Insured's death. GTP 653 (7/95) 7.2 SECTION 8 1. ASSIGNMENT The Insured may make an irrevocable assignment of ~nterest under this Policy. The assignment= A. must be made in Nr~t~ng an a form approved by Companion Life; B. must be an absoIute assignment that transfers all rights except those of an ~rrevocabIy named beneficiary; and C. must not be a collateral assignment. Assignment of interest conveys aZI r~ghts of ownership. These include the r~ght to change the beneficiary, receive payment of c~aims and assign the insurance. Companion Li~e is not responsible for the validity or results of the assignment. GTP 6SS (7/95) 8.1 SECTION 9 SHORT TERM DISABILITY BENEFIT NOT PROVIDED GTP 63~ (7/953 9.I SECTION 12 WHEN INDIVIDUAL INSURANCE ENDS The insurance will end with respect to an Insured on the earliest of the following: 1. When this Policy is cancelled; 2. When the insurance is cancelled for the class of insureds to which the Insured belongs; The beginning of the period for which premium is not paid as to the Insured; The date the Insured is no longer actively working on a full-time basis in any class or classes insured under this Policy; unless (and only with respect to the Basic Term Life Insurance Benefit, if provided by this Policy) the Continuation of Basic Term Life Insurance Benefit During Total Disability applies. SECTION PREMIUM PROVISIONS PREMIUM PAYMENT: Premiums are payable at ~he Home Office of Companion Life on or before each premium due date. PREMIUM DUE DATE: The first premium will be due on the Policy effective date and on the same day of each subsequent month unless the Policyholder and Companion Life agree on some other method of premium payment. CHANGES IN PREMIUM RATES: The monthly premium rates may be changed by Companion Life from time to time if it gives the Policyholder at least 31 days advance written notice. No such change will be made until 1Z months after the Policy Effective Date except when the Policyholder requests it. INCORRECT PREMIUM PAYMENT: Premiums paid in error for a person who is not eligible to be insured will be refunded without interest when requested by the Policyholder. These premiums will not be refunded for any period before the last Policy anniversary date. GRACE PERIOD: If, before any premium due date except the first, the Policyholder has not given written notice to Companion Life that ~his Policy is to be terminated, a grace period of 31 days will be given in which to pay the premium then due. This Policy will stay in effect during that time. If any premium is not paid by the end of the grace period, this policy will automatically terminate at the end of the grace period; except that if the Policyholder has given written notice in advance of an earlier date of termination, this Policy will terminate as of the earlier date. GTP 633 (7/95) 12.1 ~ 13.1 SECTIO~ 10 CHANGE OF CLASS OR EARNINGS If a change in an Insured"s class or earnings would increase the amount of the benefits entitled to be received under this Policy, such increase in benefits will become effective on the Premium Due Date following such change, provided: 1. Notice of the change is given to Companion Life within 30 days of the change. 2. Such increase in benefits does not exceed ~he Guarantee issue Amount, stated in the Group Application. If notice is not given within the required time or the increase in benefits would exceed the Guaranteed Issue Amount, stated in the Group Application, such increase in benefits: 1. Hus~ be approved by Companion Life; and 2. Will become effective on the Premium Due date following Companion Life's approval. If the Insured is not at work full-time due to injury or sickness on the date an increase in benefits is due to begin, such increase in benefits will not begin until the Insured returns to fulI-time work. If a change in an Insured's class or earnings would decrease the amount of benefits entitled to be received under this Policy, such decrease in benefits will become effective on the Premium Due Date following the change. SECTION 11 WHEN INDIVIDUAL INSURANCE BEGINS To become insured, eligible employees must make written application to Companion Life. Coverage wiZl begin on the Premium Due Date, shown in the Group Application for benefits, following ~he date Companion Life approves the application. Companion Life may require evidence of insurability before approving ~he application. If an eligible employee is not at full-time work due to an injury or sickness on the date insurance is due to begin, it will not begin until return to full- ~ime work. GTP 633 (7/95) 10.1 & 11.1 SECTION GENERAL POLICY PROVISIONS ENTIRE CONTRACT: This Policy, with the Policyholderts Application, the individual applicationsj if anyj and Amendments~ if any~ is the entire contract between the Policyholder and Companion Life. Ail statements made by the Policyholder or the persons insured wiii be deemed representations and not warranties. No change in this Policy will be valid until approved by a Companion Life officer. This approval must be endorsed on or attached to this Policy. No agent may change this Policy or waive any of its provisions. INCONTESTABILITY: The validity of this Policy may not be contested, except for nonpayment of premium~ after it has been in force for two years from its Effective Da~e. No sta~emen~ made by an Insured may be used ~o reduce or deny a claim or to contest the validity of the insurance unless ail of the following are true: 1. The insurance has been in effect for a period of two years or less. 2. The statement is in a written instrument signed by the Insured. copy of the written instrument has been given to the Insured or the Insured"s beneficiary. POLICY REINSTATEMENT: In the event that this Policy is terminated because premiums were not paid within the grace periodj Companion Life may reinstate this Policy at its sole optionj and may charge an additionai reinstatement fee if it wishes to do so. If Companion Life does not elect to reinstate this Policy~ it is not required to do so. NOTICE OF CLAIM: Written notice of claim must be given within 30 days after a covered loss begins, or as soon as reasonably possible. The notice may be given to Companion Life at P.O. Box IOOZOZ, Columbia, SC 29Z§Z. Notice should include information which identifies the Insured or Insured Dependent and this Policy. CLAIM FORMS: When Companion Life receives notice of claim, forms for filing proof of loss wiii be sent to the claimant. If these forms are not sent within 15 days, the claimant will meet the proof of loss requirements if, within 90 days after the loss began, he or she gives Companion Life ~ri~ten proof of the nature and extent of the loss. GTP 633 (7/95) 14.1 PROOFS OF LOSS: Written proof of loss must be given to Companion Life 90 days after the loss begins. Companion Life will not deny nor reduce any claim Af At was not reasonably possible to give Companion Life such proof in the time required. In any event~ proof mus~ be given to Companion Life I year after it is due~ unless the claimant is legally incapable of doing so. Companion Life has the righ~ to require proof of the continuance of total disability at any ~ime during the first two years after receipt of initial proof of ~otal disability; and thereafter~ once a year. PAYMENT OF CLAIMS: Benefits provided by this Policy will be paid ~o ~he beneficiary determined in accordance with Section 7 of this Policy, entitled BENEFICIARY AND SETTLEMENT OPTIONS. TINE OF CLAIR PAYMENTS: Shor~ Term Disability Benefit claims (if this Policy provides a Shor~ Term Disability Benefit) will be paid weekly as of ~he dates required, Claims for other benefits wall be paid no~ more than 60 days al±er receip~ by Companion Life of written proofs of loss. PHYSICAL EXAMINATIONS AND AUTOPSY: Companion Life at its own expense will have the righ~ and opportunity to have ~he Insured examined as often as reasonably necessary while a cIaim is pending. Companion Life at its own expense may have an autopsy made (during ~he period of contestabAlity)~ unless prohibited by law. If ~he Insured fa/Is ~o submA~ proof of con±inuAng Total Disability when required; or fails ~o be examined medically when required, no further benefit wall be provided for that Total Disability. LEGAL ACTIONS= No legaI action may be brought ~o recover on ~his Policy before 60 days after written proof of loss has been ~urnished~ as required by this Policy. No such action may be brough~ after 6 years from the ~Ame written proof of loss is required to be furnished. NON-PARTICIPATION: This Policy will not share in any earnings of Companion Life. MISSTATEMENT OF AGE: If an Insured's or Insured Dependent's age has been mAssta~ed~ benefits payable for such Insured or Insured~s Dependent wall be what the premium paid would have purchased a~ the correct age. This benefit wall be subject to the applicable Policy maximums. EMPLOYEE ELIGIBILITY: Active full-time Employees of the Policyholder (Employer) who: 1. are in a class of employees de,ermined by conditions of employment, which is agreed upon as eligible by ~he Policyholder and Companion Life; and have been continuously employed during ~he minimum service period, as shown in the Group Application, immediately preceding ~heir individual effective da~es of insurance. Full-time means regularly working a minimum of ~0 hours per week at ~he Policyholder's usual and customary place of business for each employee. GTP 6~ (7/95) DUAL COVERAGE PRECLUDED: No person may be insured under this Policy as: 1. A dependent of more than one employee; or 2. BoGh an employee and a dependent, EXAMINATION OF POLICYHOLDER'S RECORDS: Companion Life will be allowed to examine the records of Ghe Policyholder relaGAng to this Policy. This may be done at any reasonable GAme up Go 2 years alger the cancelIaGion of this Policy, or until seGtlement of all claims~ whichever As later. CERTIFICATES: Companion Life wall issue a Certificate of Insurance for each Insured. It will describe: 1. The benefits Go which an Insured (or Insured Dependent, if this Policy provides Dependent Life Insurance) As entAGled under this Policy; 2. To whom such benefits are payable; and The 1imitaGions and requiremenGs of this Policy. ERISA: If Ghis Policy is an integral part of an employee welfare beneffG plan subject to Ghe provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA)~ Companion LAfe is a claim fAducAary. As claim fiduciary~ Companion Life shall have Ghe discretionary authority to determine eligibliGy for benefiGs and Go consGrue Ghe Germs of that parG of Ghe ERISA plan represented by this Contract. Any judicial review of a decision of Companion Life shall be conducted under the arbAGrary and capricious sGandard of review wAGh deference given Go Ghe claim fiduciary~s decision. SPENDTHRIFT CLAUSE: To the extent allowed by law, no benefit of the Policy is subjecG to the claim or legal process of a creditor of an Insured or a beneficiary. RECORDS AND ESSENTIAL DATA: The Policyholder will keep a record o~ all Insureds. This record will contain all o~ the data that is specified by Companion Life. CONFORMITY WITH STATE STATUTES: Any provision o~ this Policy which, on its Effective DaGe, is in conflict with Ghe laws of the stage An which this Policy is delAveredj As amended to conform Go Ghe minimum requirements of such laws. GTP 633 (7/95) lq.3 ,pOLICY TERNINATION: The Policyholder may terminate this Policy by giving CompanAon LAfe at least 51 days prior ~rAtten notice. Companion Life may termAnate thAs Po[icy as of any premAum due date by givAng at least 31 days advance wrAtten notice to the PolAcyholder Af any of the following occurs: 1. If on a non-contrAbutory plant less than lOOZ of the elAgible employees are insured under this Policy. If on a contrAbutory plan, less than 75Z of the elAgAble employees are insured under this PolAcy. 5. If less than 15 eligAble employees are Ansured under this Policy. 4. If less than the mAnAmum required by la~ are Ansured under this Policy. CompanAon LAfe may terminate this PolAcy at any time after At has been in effect for 12 months by givAng advance written notice to the Policyholder. Termination ~ill take effect on the later of the date stated in the notice or ~l days ~rom the date of mailing such notice. The PolAcy ~All terminate at the end of the grace period Af premiums have not been paid by that date. ALLOCATION OF AUTHORITY: Except for those functAona which the Policy specAfically reserves to the Policyholder, CompanAon Life has full and e×clusAve authorAty to control and manage thAs PolAcy, to admAnister claims and to Anterpret this Policy and resolve all questions arAsing An the adminAstration~ interpretation and applAcatAon of thAs PolAcy. Companion Li~e~s authorAty Ancludes, but is not limAted to: 1. The right to resolve all matters when a revAew has been requested; The rAght to establish and enforce rules and procedures for the admAnistration of the group polAcy and any claims under Atj and The right to determine: A. eligibility for Ansurance; C. the amount of benefAts payable; and the suffAcAency and the amount o~ informatAon Companion Life may reasonably requAre to determine A~ ~ or C above. Subject to the review procedures o4 the group policy, any decision CompanAon Life makes in the exercAse of thAs authority is conclusive and binding. GTP 655 (7/95) 14.4