Reinstate with Redate - FAQs - NIDA Marketing and...The Reinstate with Redate program is designed to...

Reinstate with Redate

The Reinstate with Redate program is designed to help retain members, keep commissions and boost persistency.

This program allows you or the Certificate Owner to request a PlanRight, Term or Whole Life/ADV Plus certificate that has lapsed within the first year to be reinstated without paying back premiums. If approved, the certificate is first reinstated then redated based on the premium amount paid prior to the lapse. A lapsed certificate reinstated under this program will improve your persistency.

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Internal Use Only406820 US (11/12)

Eligibility Criteria

Who can use this program?

Two options:

1. Any active producer in any hierarchy can use this program; the original hierarchy does not need to be maintained

OR

2. Certificate Owner can call the Member Service Line directly to discuss

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Applies to PlanRight, Lifefirst and Foresters Whole Life/ADV Plus cases only (excludes SMART and BIG UL and Prepared) that have lapsed

• If the lapsed Lifefirst certificate has the First Rewards Rider (FRR), this rider will be available on the reinstated certificate

– If the original certificate was issued with the FRR Jan 1, 2010 or after the reinstated certificate will include the FRR. This rider can only be dropped as of the redate

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– Lapsed certificates only (within 12 months of issue)

– Completed paperwork must be received by Foresters within 12 months, less a day from the paid to date

– Does not apply to certificates that have a status of:

– Pending lapse

– Not Taken

– Cancellation / Surrender

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– All certificates are subject to evidence of insurability and may be declined

– Rated Term and Whole Life/ADV Plus cases qualify

– No face amount limitations on existing lapsed certificate

– Available only once per certificate

– Program may be changed or cancelled at any time

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Rules for Reinstating

– Product type cannot change

– Example: Lifefirst fully-underwritten 20-year term must be reinstated as the

same 20-year term fully underwritten

– Risk cannot increase

– No rider adds or face amount increases (face amount decreases are allowed)

– Reinstated certificate premium mode must be Monthly PAC or Annual billing

> New issue date may change issue age. As a result, new premium rates will apply and the certificate or riders may not be eligible

– Use the illustration software when quoting the new premium

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Forms

A. Signed Payment Information Form

• Use if selecting monthly PAC PLUS

B. Application for Reinstatement. Use if:

• Whole Life/ADV Plus certificate, Lifefirst

• State variations of this form exist and are available on the

producer website

C. Producer Change Form

• Use if not the original writing producer

406820 US (11/12)Internal Use Only

Forms

• All forms are available on Foresters producer website

• Some states have variations

Submission of First Premium with Application

• A check for at least one month’s premium is required

• No FPOP, Money Orders / Cashier’s Checks allowed

• If face amount decrease and/or deleting a rider, a signed written request from Certificate Owner is also required

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Application for Reinstatement

PlanRight only

Used when reinstating a PlanRight certificate

Provide certificate number of lapsed certificate

Complete all of Section Proposed Insured

Answer all medical questions

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Application Reinstatement PlanRight only

Page 2

Proposed Insured’s Physician or Medical

Practitioner Information

Financial Questions

Payment Information

Owner, if different from Proposed Insured

Signature Section

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Application for Reinstatement

Non-PlanRight

Used when reinstating a Non-PlanRight

certificate

Provide certificate number of lapsed certificate

and indicate “Re-date Insurance Contract”

Complete all of Proposed Insured Information

Financial Questions

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Application Reinstatement Non-PlanRight

Page 2

Payment Information

Other Insurance

Answer all Lifestyle questions

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Page 3

Answer all Lifestyle questions


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Page 4


Additional Information for all “Yes”

answers from the Medical Questions

section

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Page 5

Signature Section

Owner, if different from Proposed Insured

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Producer Change Form 17

Internal Use OnlyInternal Use Only406820 US (11/12)

Form must accompany the Reinstate with Redate request when another producer, other than the original writing producer, is making the Request.

Complete the following:DateProducer nameCertificate number

Form must be signed and dated by the Owner and the producer

This form will change the servicing producer on record for the certificate

Mailing Instructions

Requirements can be sent to Foresters via fax, mail or courier

> Fax

– 1 866 271 6216 attn: Reinstatement Team

– Final processing will commence when the original premium arrives at Foresters

> Mail

– P.O. Box 179, Buffalo NY 14201-0179

– attn: Reinstatement Team, 19th floor

> Courier

– c/o Frontier 1000 Young St, Suite 160, Tonawanda NY 14150

– attn: Reinstatement Team, 19th floor

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Compensation

• If a certificate lapses within the first year the original writing producer and their upline will be charged back the unearned commissions

• When the certificate is reinstated under this program the reinstating producer and their upline will be paid advanced commissions based on the remainder of the potential first year commissions (FYC)

• If the reinstating producer is the original writing producer, the commissions statement will show a negative transaction when the certificate lapses and a positive transaction, if and when the new certificate is reinstated

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Certificate Owner will receive:

• A cover letter outlining the change

• Updated contract, along with a copy of the original Application for insurance

• Same certificate number, different issue date

• A copy of the Application that was used for Reinstatement

• There will be a new contestability period for questions answered on the Application

• Original contestability period applies to the Application for insurance

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Internal Use OnlyInternal Use Only406820 US (11/12)

Reinstate with Redate

• To initiate:

– One monthly premium required plus forms

– Certificate Owner receives an updated contract based on changed issue date (riders may or may not be available)

– Age change could prohibit product or rider availability

Reinstatement

• To initiate:

– All back premiums plus interest are required plus forms

– Certificate Owner retains their issue age, premium amounts and riders

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