New rates for our range of term and critical illness contracts

Background and action required

As part of Legal & General’s long term commitment to the protection market, with effect from 20 November 2005 we will be introducing a further reprice to our series of term assurance products. This includes all term assurances, level, indexed, convertible, decreasing, with and without critical illness cover (CIC), guaranteed and reviewable premiums, Whole of Life and Family and Personal Income Plan.

New rates

Policy Authorisation

*For Online Protection saved and recalled cases, submission will not be allowed for cases older than four months from the original quote date.

Existing Transitional Arrangements

Below is a table of historical transitional arrangements for reference purposes.

* Reprice affecting electronic rates only

†We understand that in some circumstances it is not always possible to adhere to the four month pipeline rules. For example when the product is mortgage related and the sale of the property has not completed or the case is still being underwritten. Therefore, we will extend the deadline to a maximum of six months from the reprice date for cases where the delay is out of the agent and the customer’s control.

However, in order to control our pipeline of cases, please note that Legal & General retain the right to reject cases after four months where we feel that the delay in the policy start date is not out of the agent and customer’s control.

Old rates and or terms and conditions cannot be honoured post six months after the first reprice date after a case was quoted. New rates and/or terms and conditions only will be available post six months from that reprice date. If terms and conditions have changed the case will have to be resold and resubmitted on a new application. If only a change of rate applies we will need confirmation that the new premium is acceptable to your client.

Systems

Quotations with the new premiums will be available from a number of systems, please click here for full details

Online Protection Process

Any new cases that are submitted via Online Protection and quoted on or after the 20 November 2005 will be based upon the new premium rate. If you have saved a case and obtained an acceptance in principle before 20 November 2005 and want to submit the case via Online Protection after this date, this should be accepted, as long as the case is not over four months old from the original quote date, otherwise the manual process should be followed.

Please click here for the Online Protection Manual Process

Quotes and Submission for ‘e’ price

To obtain the ‘e’ price for your client and receive the extra 10% LAUTRO Initial Commission (LIC), for level term and decreasing term life assurance business, the application must be submitted via either Online Protection or Term PAC, or for Family and Personal Income Plan via Online Protection.

Please click here for the quotes and submission process for ‘e’ price

Paper Transitional Arrangements

If the application is accompanied by an illustration, the date of the illustration will drive the terms of the policy.

	Applications with illustrations dated before 20 November 2005 will receive the old rates and terms.
	Applications with illustrations dated on or after 20 November 2005 will be given the new rates and terms.

If the case is not accompanied by an illustration the date that the application form was signed will drive the terms.

	Applications dated before 20 November 2005 will receive the old rates.
	Applications dated on or after 20 November 2005 will be given the new rates.

It will not be possible to re-input pipeline cases if the new rate is more beneficial than the old rate.

Contact details