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Article 1 |
(Constitution of the insurance contract)
These policy provisions and the attached proposal, endorsements, and other agreements are all constituent parts of this insurance contract ("this contract").
Interpretation of this contract shall seek the true intent of the parties involved, and may not adhere blindly to the language employed. Where there is doubt, the interpretation favoring the insured shall in principle be adopted.
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Article 2 |
(Definitions)
For the purpose of this contract, "guaranteed period" means a period of time during which this company guarantees to make annuity payments under this contract, regardless whether the insured is living.
For the purpose of this contract, "annuity amount" means a dollar amount this company pays in installments on the terms and over the period of this contract.
For the purpose of this contract, "remaining annuity balance" means annuity amounts not yet received by the insured during the guaranteed period contemplated in this contract.
For the purpose of this contract, "declared interest rate" means an interest rate declared by this company, in the month during which either the effective date of this contract falls or an applicable policy anniversary date occurs, for the purpose of computing the annuity policy non-forfeiture value for that policy year. Such interest rate will be set by this company with reference to , and may not be negative.
For the purpose of this contract, "assumed interest rate" means an interest rate used by this company on the annuity date to compute the annuity amount.
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Article 3 |
(Commencement of insurer liabilities)
This company shall bear insurance liabilities after it commits to insure and receives the first premium, and shall issue a policy as evidence of its commitment to insure.
Where, before committing to insure, this company collects in advance an amount equal to the first premium, the insurance liabilities borne by this company due to its commitment to insure shall date back to the time when such amount equal to the first premium is collected in advance. Notwithstanding the foregoing, where the insured dies before the time this company commits to insure, this company will refund, without interest, the premium already paid by the proposer.
Where within fifteen days after advance collection of the amount equal to the first premium this company fails to express any intention to commit or refuse to insure, it shall be deemed to have made a commitment to insure.
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Article 4 |
(Right of Revocation)
The proposer may revoke this contract within ten days from the day following delivery and receipt of the policy by providing written notice to this company with the policy attached.
When the proposer exercises the right to revoke this contract as provided in the preceding paragraph, revocation shall take effect from 12 o'clock midnight on the day following receipt of the proposer's written declaration of intent; this contract will then be void ab initio and this company shall return to the proposer without interest any premium already paid.
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Article 5 |
(Payment of premiums)
The insurance premiums under this contract shall be paid in an agreed manner to this company at its place of business or another location designated thereby, or be collected by a representative dispatched by this company, who will deliver a receipt issued by this company.
(Notification and computation of annuity policy non-forfeiture value)
Before the annuity date, this company shall, at the end of each policy year under this contract and in an agreed manner, notify the proposer of his or her annuity policy non-forfeiture value.
The annuity policy non-forfeiture value under the preceding paragraph means an amount as computed in the following order:
For the first policy year:
1.Deduct the expense loading (as per attachment) from premiums already paid;
2.Deduct any reduction applied for by the proposer under Article 10; and
3.To the net of the preceding two subparagraphs, add on a daily basis an amount computed by the simple interest method and based on the applicable declared interest rate.
For the second and subsequent policy years:
1.To the annuity policy non-forfeiture value at the beginning of the policy year, add the insurance premium already paid for that year after deduction of the expense loading (as per attachment);
2.Deduct any reduction applied for by the proposer under Article 10; and
3.To the net of the preceding two subparagraphs, add on a daily basis an amount computed by the simple interest method and based on the applicable declared interest rate.
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Article 7 |
(Beginning of annuity payments)
When applying for insurance coverage, the proposer may select any given date after the ____st/nd/th insurance anniversary date as the annuity date, which shall be no later than the policy anniversary date following the attained age of ____. Where the proposer fails to select an annuity date, this company will use the policy anniversary date after the insured reaches the attained age of ____ as the annuity date.
The proposer also may change the annuity date by written notice to this company no later than ___days prior to the annuity date. The annuity date after change shall be a date that is ____ days after the application date and shall comply with the provisions of the preceding paragraph in relation to the annuity date.
This company shall notify the proposer of the details of annuity benefits no later than ____days prior to the annuity date.
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Article 8 |
(Computation of annuity amounts)
The annuity amount to be received on the annuity date for the first year of the annuity payment period is calculated based on the then annuity policy non-forfeiture value (after deduction of policy loan, if any, and the interest accrued thereon) and by the then assumed interest rate and annuity table.
The annuity amount to be received for the second or any subsequent year of the annuity payment period is calculated by multiplying the due annuity amount for the previous year by the adjustment factor for that year.
The term "adjustment factor" under paragraph 2 is equal to (1 + the declared interest rate in the month in which the previous year's annuity payment anniversary date falls) divided by (1 + assumed interest rate). This company will notify the adjustment factor each year in an agreed manner on the annuity payment anniversary date in that year.
The assumed interest rate under paragraphs 1 and 3 will remain unchanged from the annuity date forward.
Where the annuity amount to be collected, as computed on the annuity date, is less than NT$______, this company will change its practice to make payment to the beneficiary(ies) on the annuity date in a lump sum equal to the annuity policy non-forfeiture value, upon which this contract will be terminated.
Where the annuity policy non-forfeiture value on the annuity date exceeds the annuity policy non-forfeiture value required for an annual annuity amount of NT$_____, the surplus portion of the annuity policy non-forfeiture value will be returned to the proposer.
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Article 9 |
(Termination of contract and limitation on termination)
At any time prior to the annuity date, the proposer may terminate this contract, upon which this company shall pay the surrender value within one month after receipt of notice of termination. Where payment is not made within that period, this company shall make an additional payment of interest at a rate of 10 percent per annum.
The surrender value under the preceding paragraph is annuity policy non-forfeiture value less surrender charge. A year-by-year table of surrender charge rates for that purpose is provided in an attachment hereto.
Termination of the contract under the first paragraph shall take effect from the time this company receives the written notice of termination from the proposer. The interest for the termination day shall be added to the annuity policy non-forfeiture value.
The proposer may not terminate this contract during the annuity payment period.
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Article 10 |
(Reduction in annuity policy non-forfeiture value)
The proposer may apply to reduce the annuity policy non-forfeiture value at any time prior to the annuity date. Each reduction shall be made in an amount no less than NT$_________, and the annuity policy non-forfeiture value after that reduction may not be less than NT$_________.
With respect to the amount by which the annuity policy non-forfeiture value is reduced under the preceding paragraph, this contract shall be deemed partially terminated. The surrender value for that purpose shall be computed as provided in Article 9, paragraph 2.
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Article 11 |
(Notification of death of the insured and refund of annuity policy non-forfeiture value)
Where the insured dies, the proposer or beneficiary(ies) shall notify this company upon learning of the death of the insured.
Where death of the insured occurs prior to the annuity date, this company will refund the annuity policy non-forfeiture value, upon which this contract will be terminated.
Where death of the insured occurs after the annuity date, if there is still a remaining annuity balance, this company shall, as agreed, pay the remaining annuity balance to the death beneficiary(ies) or other entitled persons.
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Article 12 |
(Disappearance of the insured)
Where the insured disappears before the annuity date during the effective term of this contract and is declared dead in a court judgment in which the determined date of death is a date before the first annuity payment is made, this company will refund the annuity policy non-forfeiture value in accordance with the provisions of Article 11; provided that if the insured is found thereafter to have survived, this contract may be reinstated by return of the refunded annuity policy non-forfeiture value to this company. This company will not pay the interest for the period starting on the determined date of death mentioned above and ending on the date on which the proposer returns the annuity policy non-forfeiture value.
Where the insured disappears during the effective term of this contract and after payment of annuities has begun, unless there is a remaining annuity balance for the guaranteed period that has not yet been received, this company will no longer bear liability for payment of annuities starting from the date of death as determined in a court judgment; provided that if the insured is later found to be still alive, this company shall resume the payment of annuity benefits agreed to under this contract and make up the annuity benefits accrued and unpaid during that period.
The preceding paragraph shall apply where the insured disappears before the annuity date during the effective term of this contract and is declared dead in a court judgment in which the determined date of death is a date after the first annuity payment is made.
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Article 13 |
(Application for refund of annuity policy non-forfeiture value)
When applying for annuity policy non-forfeiture value under Article 11 or 12, the proposer shall submit the following documents:
1.The insurance policy or a transcript thereof.
2.Death documents of the insured and a household registration certificate from which the insured's name has been crossed out.
3.An application form.
4.Proof of the proposer's identity.
This company shall make payment within 15 days after receiving all documents referenced in the preceding paragraph, provided that if payment is not made within such time period for reasons attributable to this company, this company shall pay default interest at the rate of 10 percent per annum.
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Article 14 |
(Application for annuities)
After the annuity date and during the lifetime of the insured, the first time that the insured files claim to collect annuity benefits in a given year, he or she shall produce documents that are sufficient to prove that he or she is living. However, the same shall not apply to a claim filed during the guaranteed period (or within the guaranteed amount).
Where there is a remaining annuity balance after the death of the insured, the beneficiary(ies) shall submit the following documents when filing claim to collect such annuity benefits:
1.The insurance policy or a transcript thereof.
2.Death documents of the insured and a household registration certificate from which the insured's name has been crossed out.
3.Proof of the beneficiary's identity.
If the payment is not made by the due date for reasons attributable to this company, this company shall pay default interest at the rate of 10 percent per annum.
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Article 15 |
(Deduction of arrears)
Where this company pays the surrender value or refunds the annuity policy non-forfeiture value prior to the first annuity payment, this company shall deduct from such payment any policy loan under this contract and the interest accrued thereon.
The provisions of Article 8 shall apply where the first annuity payment has been made.
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Article 16 |
(Policy loans)
Before the first annuity payment begins, the proposer may apply to this company for a policy loan in an amount not exceeding the annuity policy non-forfeiture value. When the combined amount of unpaid principal and interest on any policy loans exceeds the annuity policy non-forfeiture value, this contract will be suspended, provided that this company shall give written notice of suspension to the proposer no later than 30 days prior to the date of suspension.
During the annuity payment period, the proposer may not apply to this company for a loan by using the insurance contract as a collateral.
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Article 17 |
(Computation of age and handling of errors)
The proposer shall fill out the insured's year, month, and date of birth on the proposal when applying for insurance. The insuring age of the insured shall be counted as his or her age last birthday, or, where a period of six months has elapsed since his or her last birthday, the age next birthday.
An error in the insured's insuring age shall be handled in accordance with the following provisions:
1.Where the actual insuring age is greater than ____ or less than ____, this contract is void, in which case this company shall return to the proposer, without interest, premiums already paid, and if any annuity benefits have already been paid the beneficiary(ies) shall return them without interest to this company.
2.Where an error in the insured's insuring age results in this company paying less than the required annuity amount, this company shall compute the difference between the annuity amounts already paid and the annuity amounts actually owed, and make the next annuity payment based on the annuity amount owed, together with a lump-sump payment to make up the difference between the annuity amounts previously paid and the annuity amounts that were actually owed.
3.Where an error in the insured's insuring age results in payment of more than the required annuity amount, this company shall re-compute the difference between the annuity amounts already paid and the annuity amounts actually owed, and deduct the same from future annuity payments.
Where the reason for the error under subparagraph 1 or 2 of the preceding paragraph is attributable to this company, the money shall be returned with interest at the rate of ___ (which shall not be lower than the interest rate for policy loans taken out against this policy).
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Article 18 |
(Designation and change of beneficiary)
Only the insured may be the beneficiary of this contract during his or her lifetime; this company will accept no designation or change of such beneficiary.
The stipulation in the preceding paragraph notwithstanding, the proposer may designate or change a beneficiary as follows:
1.When this contract is entered into, designation of a death beneficiary may be made with consent of the insured; where no such designation is made, the death beneficiaries of this contract shall be the lawful heirs of the insured.
2.Unless the right of disposal has been waived, with the consent of the insured a death beneficiary may be changed prior to occurrence of any insured peril. Where the proposer fails to notify this company of such change, it shall not be effective as against this company.
Except where an effective date is otherwise designated by the proposer, the change of a death beneficiary as provided in the preceding paragraph shall become effective when the proposer delivers to this company the application and the insured's letter of consent; this company shall promptly issue a stamped or attached endorsement.
If the death beneficiary(ies) under paragraph 2 die at the same time or before the insured, then unless the proposer has designated otherwise, the death beneficiaries of this contract shall be the lawful heirs of the insured.
Where no death beneficiary is designated for the purpose of this contract and the lawful heirs of the insured therefore become the death beneficiaries hereof, the provisions of Article 1138 of the Civil Code shall apply in determining the order of beneficiaries, while the provisions of Article 1144 shall apply, except as otherwise stipulated hereunder, in determining the proportion of benefits.
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Article 19 |
(Change in domicile)
The proposer shall immediately give written notification to this company of any change in domicile.
Where the proposer fails to provide notification as set out in the preceding paragraph, notices by this company may be sent to the address of the insured's last domicile as indicated in this contract.
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Article 20 |
(Extinctive prescription)
Any right arising out of this contract shall be extinguished if not exercised within two years of the date a claim may be asserted.
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Article 21 |
(Endorsements)
Except as otherwise provided in Article 18, any alteration in the content of this contract, or addition or deletion of contractual particulars, shall be made only with the written consent of both the proposer and this company, for which the issuance of a stamped or attached endorsement by this company is required.
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Article 22 |
(Court of jurisdiction)
For any litigation arising out of this contract, the parties hereto stipulate that the court of first instance shall be the district court of the place where the proposer is domiciled, provided that when the proposer is domiciled outside the territory of the Republic of China, the court of first instance shall be the _________________ District Court. Notwithstanding the foregoing, the application of the provisions of Article 47 of the Consumer Protection Act and of the provisions of Article 436-9 of the Code of Civil Procedure in relation to small claim courts shall not be excluded.
(Computation and payment of policy dividends)
(Where this insurance is in the nature of a participating policy, each company has discretion in formulating this article. Where this insurance is not in the nature of a participating policy, the following shall be stated: "This insurance is a non-participating policy, in which neither dividend participation nor payment of dividend benefit is granted.")
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