March 2025

Let's dive into the essentials of settling your corporately owned life insurance policies. Our goal is to streamline the process and minimize back-and-forth communication, to efficiently get your client’s policy in force. By following our recommendations, you can ensure everything is accurate and complete, protecting you and your client at claim time.

Here are some best practices and common issues that can delay policy settlement:

• Complete all forms: Ensure all forms are initialed, signed, dated, and include the location as indicated. If there are multiple signers, all forms should be completed on the same day.
• Policy delivery receipt: Initial page 1 and provide signatures, titles, and initials on page 3, as applicable.
• Return all items: Be sure to return all items listed on the Policy Checklist.
• Location of delivery: Policies must be delivered in Canada. If the insured or policy owner is out of the country, contact your case coordinator for guidance.
• Timely submission: Submit the contract to Manulife within 24 hours of acceptance to enable review and placement in force. Delays can lead to additional questions and the need for extra signatures.

Here are some commonly overlooked questions that can hold up settlement:

• Owners that are entities: Identifying owners of Individual Insurance policies: Reference NN1558E-ENT.
• Entity owners: Reference NN1655E for valid industries and business types. If the legal form is a holding company, indicate the industry and business type related to the funding source.
• Tax residence declaration: Visit manulife.ca/tce for definitions to help classify the entity.
• Entity classification: Select one tax classification and provide any required information. For a Passive NFFE classification, provide Beneficial Owner information.
• Control information: Provide details about individuals who control 25% or more of the company. Beneficial owners must be actual persons, not another corporation or entity.
• Third party identification: If any questions are answered "Yes," provide the name, address, telephone number, and relationship, followed by individual or entity details. If a third party is funding the policy, complete the Source of Funds and Source of Wealth sections. Note: If your policy is held by the holding company, but the operating company is paying the premium, that is a third party. 

The digital age has changed how we identify clients. Here’s how to navigate client identification: 

• Single method: Use this in person with Canadian-issued government ID.
• Dual method NN1663 (sign in required): Use this for virtual meetings or when clients don’t have government-issued ID. 

A simple rule of thumb is if you cannot shake their hand, you cannot use the single method. For more details, refer to the Guide for Verifying Identity of Individuals.

Newer anti-money laundering legislation requires documentation showing who has signing authority for all universal life and permanent life insurance policies. Provide either a board resolution, meeting minutes, or the NN1703 form.

• Section 1: Complete the General Information.
• Section 2: Enter the company name, list all directors and officers, and their titles, and have each add their signature. Specify if one or two can sign to bind the company. If there’s more than one director or officer listed, and only one of them is authorized to sign, select the Other field and specify who the only person is that’s authorized to sign for the company.
• Section 3: An officer should complete and sign on behalf of the company.

Payment is required at the time of signing to avoid additional questions and signatures which can expose the client to risks and delay finalizing the policy. The fastest way to pay is through the PAC form included in most settling packages. Other payment options are available on our Advisor Portal (sign in required).

By implementing these strategies, you'll be able to finalize your cases faster, benefiting everyone involved. Your back-office staff and case coordination team are here to assist if you have any questions.

For more underwriting tips and insight follow Karen Cutler on LinkedIn. Karen is our VP, Head of Underwriting and Claims, Chief Underwriter Individual Insurance.