Combined Financial Services Guide & Product Disclosure Statement

Transcription

1 BizSure Protection Combined Financial Services Guide & Product Disclosure Statement U Issued by: St Andrew s Life Insurance Pty Ltd ABN Australian Financial Services Licence No Level 11, 191 St Georges Tce Perth, WA, st March 2005

2 Introducing BizSure Protection Iwantpeaceof mind for my business.

3 Combined Financial Services Guide and Product Disclosure Statement. BizSure Protection. This document is divided into two parts: Part 01: a Financial Services Guide; and Part 02: a Product Disclosure Statement and General Policy Terms The Bank of Western Australia Ltd (ABN AFSL ) (BankWest) arranges BizSure Protection and is responsible for the content of Part 01. St Andrew s Life Insurance Pty Ltd (ABN AFSL ) (St Andrew s) is the underwriter and the issuer of BizSure Protection and is responsible for the content of Part 02. BankWest and St Andrew s are related companies. Both companies have the same ultimate owner, HBOS plc. St Andrew s is not an Authorised Deposit-Taking Institution. A BizSure Protection policy does not represent a deposit with or a liability of BankWest, HBOS Australia Pty Ltd ABN (HBOSA) or any other member of the HBOS group of companies in Australia or overseas (other than a liability of St Andrew s as insurer). Neither BankWest, HBOSA nor any member of the HBOSA group of companies (other than St Andrew s as insurer) guarantee or accept liability in respect of the BizSure Protection policy nor are they responsible for any statement contained in Part 02 of this document. 1

4 .01 Financial Services Guide ( FSG ) 2

5 Important This Financial Services Guide ( FSG ) is an important document which provides you with information about us to help you decide whether to use the financial services offered by Bank of Western Australia Limited ABN ( BankWest ) to retail clients. It contains information on: who we are; how we can be contacted; the services we can offer to you; how we are paid in relation to the services we offer; details of how you can make a complaint about us or the services we provide. We will also provide you with a Product Disclosure Statement ( PDS ) if you are a retail client and we: offer to issue a financial product to you; arrange the issue of a financial product to you; or recommend that you acquire certain products available from BankWest Financial Markets as part of personal advice. The PDS will contain information about the particular product to help you to make an informed decision about that product. The PDS will inform you of the features, costs, risks and benefits of the recommended product as well as other information that you may need to know before you decide to acquire the product. 3

6 Any advice, including any opinion or recommendation, which we give you about BankWest s products (with the exception of certain products available from BankWest Financial Markets) will be of a general nature only and will not take account of your objectives, financial situation or needs. This means that if the advice relates to your acquiring a particular BankWest product, you should obtain our Product Disclosure Statement for that product and consider it carefully before deciding whether to acquire the product. You will also need to consider whether the advice is appropriate to your personal circumstances. If you are given personal financial product advice by our Financial Markets staff and you are a retail client, we will provide you with a Statement of Advice ( SoA ). Personal financial product advice is advice that takes into account your objectives, financial situation and needs. The SoA will contain the advice, the basis on which it is given and information about fees, commissions and associations which may have influenced the advice. It will advise the quantum of any such commissions, or if that is not ascertainable, the means of its calculation. We have set out some important information in answer to the questions on the following page. 4

7 Before You Use Our Services How do I contact BankWest? You can contact and find out more about BankWest in the following ways: Postal address: GPO Box E237, Perth WA 6841 Internet address: Telephone: (BankWest Customer Help Centre) What kinds of financial services is BankWest authorised to provide and what kinds of products do those services relate to? We are authorised to offer you the following financial services under our Australian Financial Services Licence ( AFSL ). Whether your aim is to manage your risk better or make your money grow faster, BankWest has a range of account and product options in the categories below for retail clients. General Banking Products We provide general advice only on and/or deal in the following core banking products: transaction accounts including Offset Accounts; investment accounts including Cash Management Accounts and Term Deposits; non-cash payment facilities including direct debits and online banking. We provide general advice only on and/or arrange for the dealing in: insurance products issued by third parties; travellers cheques issued by third parties. 5

8 Financial Markets Products We provide personal and general advice on and/or deal in the following financial markets products: Foreign Exchange Products. BankWest offers a range of financial services that allow you to: 1. buy or sell foreign currency; 2. protect against unfavourable movements in foreign exchange rates; and 3. invest short to medium term funds in a foreign currency. The products offered include spot and forward exchange contracts, currency options and foreign currency accounts. Who does BankWest act for when providing financial services? BankWest will be acting on its own behalf at all times except in the circumstances discussed below in the provision of the banking and financial markets services referred to in this FSG. In providing general advice and arranging the issue of insurance products, BankWest will be acting on behalf of various insurers including Vero Insurance Limited, St Andrew s Insurance (Australia) Pty Ltd, and St Andrew s Life Insurance Pty Ltd. In providing general advice only and arranging the issue of travellers cheques, BankWest will be acting on behalf of a third party supplier of travellers cheques such as American Express and/or Travelex. The issuer of the product for whom we act will be identified in the PDS for the product. 6

9 How does BankWest get paid for the services it provides? In respect of insurance products, BankWest will receive commission payments from the insurer whose product we arrange to sell to you. The amount of commission will vary depending on the insurer and the premium paid for the insurance product sold to you. However, in all cases, the commission will be paid on the initial premium and on each premium paid to renew the policy. It will be a fixed percentage of the premium, ranging from 8.5% to a maximum of 20%. For example, if the commission rate is 8.5% and the premium is $500.00, we will receive a commission payment from the relevant insurer of $42.50 when the policy is first taken out and each time it is renewed. In respect of travellers cheques, BankWest will receive commission payments from the third party supplier whose travellers cheques we arrange to sell to you. We will receive a point of sale commission which will be disclosed to you at the time you purchase the travellers cheques and/or a commission calculated on the value of total sales and/or by reference to the supplier s foreign exchange margins and payable periodically. From time to time the third party supplier may also fund the Bank s marketing of the supplier s travellers cheques. All BankWest representatives who provide a financial service to you ( the Representatives ) are paid a fixed salary and, in addition, can earn a performance-based bonus. Representatives will earn the following bonuses depending on the financial products they sell and/or on whether they achieve or exceed their operating profit targets. The annual bonus a Representative can earn ranges from approximately 14% to 52% of his/her before tax salary. 7

10 In addition, Representatives may receive additional rewards or benefits in connection with specific product offers or marketing campaigns. The additional rewards that the Representatives may receive can be either monetary or nonmonetary benefits. Non-monetary benefits can include prepaid holiday accommodation, airline tickets, gift vouchers and movie tickets etc. General Banking Representatives While the Representative s salary is dependant on a variety of general performance criteria (such as the level of experience, meeting customer service standards and their compliance and training obligations etc), eligibility to receive a bonus is dependant solely on achieving or exceeding operating profit targets, and/or meeting pre-set gross sales targets for different classes of products (which can be broadly categorised as loan, deposit and incidental products). The Representative will only be eligible for a bonus if s/he meets his/her pre-set operating profit targets and/or targets for each of these classes of product. Bonuses may be paid either monthly, quarterly, six-monthly or annually in the form of either cash, or reward points which can be converted into cash or paid in the form of vouchers (redeemable at various retail outlets). Reward points are earned and cash is paid for meeting all of the preset product class targets and, once these targets are met, additional reward points are earned or cash is paid for sums in excess of these targets. Team managers may also participate in the bonus program. The eligibility to do so and the amount of the bonus will depend on a number of factors including the extent to which the teams and their members meet targets for each class of product. 8

11 The proportion of income in the form of bonuses against salary earned by team managers is greater the more senior the team manager. For example, the maximum annual bonus a Retail Manager may earn is equal to approximately 29% of their before tax salary. In addition, Representatives may also receive a bonus based upon team performance and their contribution to it. Financial Markets Representatives To be eligible to receive a bonus Representatives must satisfy various subjective and objective measures including the extent to which they have achieved or exceeded their sales and income targets, compliance and training requirements and participated in teamwork. Bonuses are discretionary and are paid annually according to individual overall performance. Does BankWest have any relationships or association with a financial product issuer or provider? If you are dealing with our General Banking Division, clause 1 overleaf will apply. If you are dealing with our Financial Markets Division, clause 2 overleaf will apply. BankWest may also refer you to FundsWest Limited ABN AFSL Number ( FundsWest ), should you wish to obtain financial planning services or receive personal advice in respect of superannuation, investments and/or life insurance. BankWest and FundsWest are related bodies corporate. Both companies have the same ultimate owner, HBOS plc. 9

12 1. General Banking Relationships BankWest acts on behalf of the relevant insurer arranging insurance for you. BankWest, St Andrew s Insurance (Australia) Pty Ltd and St Andrew s Life Insurance Pty Ltd are related bodies corporate. These companies have the same ultimate owner, HBOS plc. 2. Financial Markets Relationships The Financial Markets Division does not have any relationships or associations with any financial product issuer. Will anyone be paid for referring me to BankWest? The Financial Markets Division of BankWest does not have any referral arrangements with any financial intermediaries. The General Banking Division of BankWest has arrangements in place with a number of financial intermediaries who introduce customers to BankWest wanting to acquire financial products. If you are introduced to us by any person that person may receive a commission and the amount of the commission will vary depending on both the intermediary and the product. For each money market account referred by a stockbroker to the General Banking Division of BankWest, a variable commission is payable to the stockbroker. The commission payable will vary according to the daily closing balances of each money market account. Also, the commission rate payable is subject to various tiers which are set by BankWest up to a maximum of 3% of the funds invested. Introducers including money market brokers and financial planners, who introduce deposit customers to the General Banking Division of BankWest receive a commission which is calculated using the following formula: Amounts Invested x Commission Rate/100 x Term 10

13 The Commission Rate is the difference between the interest rate that BankWest quotes to the intermediary and the interest rate that the intermediary quotes to you. The maximum Commission Rate that BankWest will pay to the intermediary is 0.25%. BankWest pays commission monthly. The Term is the number of days from the investment start date to the investment s repayment date. When You Get Our Advice Will I be given advice and, if so, will BankWest s advice address my personal objectives, financial situation and needs? Advice which addresses your personal objectives, financial situation and needs will only be given by our Financial Markets staff in respect of certain products. Our General Banking staff will not provide such advice at all and our Financial Markets staff will also not provide such advice except in connection with Foreign Exchange Products. Where our Financial Markets staff offer to provide you with personal advice, you will need to tell them about your personal objectives, financial situation and needs. You have the right not to provide that information, however, if you do not give us complete and accurate information relating to your personal circumstances, the advice you receive may not meet your intended objectives. In that event, you should, before acting on any advice you receive, consider the appropriateness of the advice and read carefully the warnings contained in the SoA before making any decision relating to the financial product in respect of which advice is given. 11

14 Where we give you advice which does not take into account your personal objectives, financial situation and needs, you should, before acting on the advice, consider its appropriateness having regard to your personal circumstances. You should also obtain a PDS relating to the financial product in respect of which the advice is given and consider it carefully before making any decision about whether to acquire the product. What information does BankWest keep in my file and can I examine my file? We keep a record of your personal profile and will ensure the privacy and security of your personal information in accordance with our Privacy Policy. You may access the information we hold about you at any time in accordance with that policy. How can I give you instructions about my financial products? You may give us your instruction by any means advised to you in the relevant account PDS. If You Have Any Complaints What can I do if I have a complaint? At BankWest we believe in listening to our customers. This is the only way to continually improve our products and services to meet your needs. If you have a complaint about our services, products, facilities or any other aspect of BankWest, we d like to hear from you. Please contact our Customer Help Centre on

15 You can also give feedback in the following ways: verbally or in writing at any one of our Customer Service Centres; by calling our toll free number Freecall ; by completing our feedback form (available from Customer Service Centres and through our Customer Help Centre); or by visiting our website and completing the electronic feedback form. Our staff will do everything they can to rectify your problem immediately. We strive, wherever possible, to resolve your complaint within 5 working days. If you are still not satisfied, you can ask our Service Quality Department to review the matter. Contact them by writing to: Manager Service Quality GPO Box E237 PERTH WA 6841 or phone or fax to: Telephone: Freecall Fax: (08) You will be advised of the details (including the timeframes) of our internal dispute resolution process and an officer with the appropriate authority to resolve the dispute will investigate your complaint thoroughly. We will do our best to resolve any complaint promptly and to your satisfaction. In the unlikely event that the matter cannot be resolved directly with BankWest, you can seek assistance from the Banking and Financial Services Ombudsman ( BFSO ). 13

16 The BFSO provides an independent dispute resolution service and is approved by the Australian Securities and Investments Commission ( ASIC ) as an external dispute resolution scheme. A brochure outlining the BFSO scheme is available from all our Customer Service Centres or by phoning our Customer Help Centre on The BFSO s contact details are as follows: Banking and Financial Services Ombudsman GPO Box 3 Melbourne Victoria 3001 Telephone: Facsimile: (03) Website: If you have any further questions about the financial services which BankWest provides, please call the BankWest Customer Help Centre on

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18 .02 Product Disclosure Statement and General Policy Terms 16

19 This Product Disclosure Statement (PDS) is a very important document. It contains the general terms of the BizSure Protection policy, which is a form of consumer credit insurance policy. If you apply for BizSure Protection, this PDS, together with the letter we send to you accepting your Application for BizSure Protection, forms your policy document. Your policy document contains all of the terms and conditions of our contract, including when we will pay a benefit under the policy. Please ensure you read this entire document carefully to ensure you understand the extent of cover provided by BizSure Protection and its limitations. You should store it in a safe place (for example a safety deposit box). The information in this PDS has been prepared without taking into account your objectives, financial situation or needs. Because of this, before acting on the information in this PDS, you should consider the appropriateness of this product having regard to your objectives, financial situation and needs. You or your guarantor may wish to speak to an adviser authorised to provide advice tailored for your situation before making a decision to apply for BizSure Protection. If you received this PDS electronically and want to obtain a paper copy, please contact St Andrew s for a free copy. This PDS can only be used by customers in Australia. In this PDS: St Andrew s Life Insurance Pty Ltd is referred to as St Andrew s, we, our or us ; You means a business entity that has or is applying for a business or commercial loan with a lender we approve of. 17

20 Bizsure Protection What is BizSure Protection? BizSure Protection provides insurance cover to help pay off your business or commercial loan in the event that a guarantor of your loan dies. The amount we pay is the benefit. The benefit is described on page 20. When does cover commence? If we accept your Application for BizSure Protection, we will send you a letter letting you know this. Our letter will set out the start date of cover of your policy, the maximum benefit payable by us under your policy, the guarantors we accept to be covered under your policy and the premium payable by you. Do you have to take out BizSure Protection? You and the guarantor are not obliged to apply for BizSure Protection from St Andrew s, and you and the guarantor may be able to arrange consumer credit insurance through a different insurance company. What is the purpose of consumer credit insurance? BizSure Protection is a type of consumer credit insurance. Consumer credit insurance provides a benefit in the event of the death of a person, where the amount of the benefit under the policy is to be ascertained by reference to a liability of the person, for example a guarantee provided on a loan. Under a BizSure Protection policy, we provide a benefit to you in the event of the death of a guarantor of your loan. The amount of the benefit is ascertained by reference to the guarantor s liability under the guarantee they have provided for your loan. 18

21 Eligibility Rules Are you and your guarantor eligible for BizSure Protection? You can apply for BizSure Protection if you are applying for a loan or if you have a loan, for business or commercial purposes. The loan must be with a lender we approve of and the repayment of your loan must be guaranteed by a person, the guarantor. You can nominate a guarantor to be insured under this policy if the guarantor: is aged 18 and over and under 60 years of age; and is an Australian resident who has lived in Australia lawfully for at least 200 days in the last 12 months; and has guaranteed repayment of the loan to the lender. The guarantor will need to complete a short medical questionnaire before we can accept your application if your loan or the guarantor s total amounts insured by St Andrew s is more than $350,000. You will be the policyholder and the guarantor will be the insured under this BizSure Protection policy. Your Guarantor Your loan may be guaranteed by more than one guarantor. You can nominate up to four guarantors to be insured under your BizSure Protection policy. Each guarantor must meet our eligibility rules. 19

22 The Benefit What is the amount of your benefit? If the guarantor dies and we accept a claim, we will pay the benefit to the lender under your BizSure Protection policy to apply against your loan. The benefit is subject to the maximum benefit contained in the table on page 21. The benefit is the amount the guarantor would be liable to pay in respect of your loan if the lender were to call on the guarantee immediately before the guarantor s death less: any amount which is more than three months in arrears under the loan; any penalties or costs or charges imposed by the lender under the guarantee; and any interest on these amounts. Your benefit may include: up to three months interest in arrears prior to the date of your guarantor s death; or up to three months interest accrued after the date of your guarantor s death. However, we will not pay any amount which is: more than three months in arrears; in excess of the maximum loan amount approved by your lender and which you nominate in your Application for BizSure Protection; or any interest on these amounts. 20

23 What is your maximum benefit? The maximum benefit we will pay under this policy is subject to any benefits payable under any other policies issued to you by St Andrew s and its related companies or under which you or your guarantor is insured by St Andrew s and its related companies. These maximums mean, for example, if your guarantor dies and a benefit of $750,000 is paid under another St Andrew s policy because of your guarantor s death, we will not pay a benefit under this policy. The maximum benefits are: Cover Life Cover under Bizsure Protection Life Cover under all policies held Maximum benefit $750,000 for all Bizsure Protection policies issued to you or under which your guarantor is insured by St Andrew s and its related companies. A total amount of $750,000 for all policies issued to you or under which your guarantor is insured by St Andrew s and its related companies. Are there any restrictions on the payment of the benefit? Only one benefit will be payable under this policy, even if more than one of the guarantors insured under this policy die at the same time. 21

24 Exclusions So that the cost of this cover is kept low, some exclusions do apply. We will NOT pay any benefit if: the guarantor has reached the age of 65 years; or the claim results directly or indirectly from: (i) a pre-existing condition by which we mean a sickness or disability relating to the guarantor s health of which the guarantor was aware, or a reasonable person in their position could have been expected to have been aware, at the start date of cover; or for which the guarantor consulted a qualified medical practitioner during the 12 months prior to the start date of cover; or (ii) the guarantor s suicide or attempted suicide, within the first 13 months of the start date of cover; or (iii) the guarantor engaging in any criminal activities or illegal acts; or (iv) terrorism. Premium Premiums are the cost of BizSure Protection. How is your premium calculated? The premium that you will be charged depends on the guarantor s age, whether or not more than one guarantor is insured under this policy, the term, type (non-amortising or amortising) and the amount of your loan. It does not take into account the guarantor s gender, whether the guarantor is a smoker or not or the guarantor s health. The amount of your loan is the maximum loan amount approved by your lender and which you nominate in your Application for BizSure Protection. 22

25 A premium is payable for each guarantor insured under this policy. When the premiums for each guarantor are added together, this gives you the total premium payable for your policy. How do you pay your premium? You have a choice between two methods of paying your premium. You can finance up to five years of cover into your loan, thereby paying this period of premium up front. Once the term of cover that has been financed into your loan has expired and if your loan remains ongoing, a new application for insurance will have to be completed and a new premium paid to continue the cover. or Your premium can be conveniently and automatically debited to your nominated bank account or credit card each month commencing from the start date of cover for a maximum period of cover of five years. If you choose this method of paying your premium, a minimum monthly premium of $15.00 will apply. What is your premium? You can calculate the amount of your premium payable under your preferred payment option by using the formulas overleaf. The age premium factor is dependent on the type of finance being provided, the age of the guarantor and the term of the loan (for the financed in payment option) and is shown in the table overleaf. Rate A applies if your loan is an amortising loan (for example a reducing loan) and is for a period of less than or equal to five years. Rate B applies if your loan is non-amortising (for example an interest only loan) or if your amortising loan exceeds a period of five years. 23

26 Financed in payment option formula (Please note a maximum of five years cover can be financed in). Your loan amount x age premium factor x number of years to finance in = premium per guarantor Monthly direct debit payment option formula Your loan amount x age premium factor/12 = monthly premium per guarantor Type of Finance The guarantors age within the following age bands Rate A (where loan is amortising and does not exceed five years) Guarantor s age premium factor Rate B (where loan is non amortising or term of amortising loan exceeds five years) Guarantor s age premium factor years years years For example, ABC Ltd has a 6 year amortising loan for $100,000. A director has guaranteed repayment of the $100,000 loan. ABC Ltd would like to insure the guarantor who is 35 by financing in 3 years premium. This means the single premium is calculated using Rate B and guarantor s years age premium factor. The premium is therefore $

27 John is a 42 year old sole proprietor and is guarantor of a 3 year non amortising loan for $200,000. John would like to pay the premium monthly. This means the monthly premium is calculated using Rate B and the guarantor s years age premium factor. The premium is therefore $56.94 per month. These are only examples of the levels of premium which can be payable and you should not rely on the example as an indication of the premium which you will pay. These examples are based on the premium rates which apply on the date of this document. Will your premium change? If you finance the premium into your loan a new premium will be calculated on any new application at the end of the term of cover. If the premium is payable by monthly direct debit, your premium will be reviewed on the anniversary of your start date of cover and the applicable age premium factor applied to each guarantor. The premium is dependent upon the age of the guarantor. If your premium is to increase as the guarantor has moved into a different age band we will send you written notice of the change to your last known address at least 30 days before the effective date of the change. We may also from time to time review our premium rates for our policies. As a result premiums may increase. Premium rates will only increase, other than set out above, if we review all our rates for a type of policy within the same series (for example, all our BizSure Protection rates). We will not single you out for an increase in premiums. We will send a written notice of any change in your premium to your last known address at least 30 days before the effective date of the change. 25

28 What makes up your premium? An insurance company does not retain the entire premium that you pay. In addition to any commission paid, there are a number of statutory charges and taxes that may be included in an insurance premium. Your BizSure Protection premium is inclusive of any applicable statutory charges and taxes. What commission is paid? St Andrew s will pay a commission of up to 20% of the premium payable, excluding any applicable statutory charges and taxes, to any person or their employer who assists you in arranging to apply for BizSure Protection and with whom St Andrew s has a distribution arrangement. Any commission we pay is included in the premium you pay it is not an additional cost to you. The Term What is the term of BizSure Protection? Your policy will continue until the termination date if you continue to pay the premium when it falls due. If your premiums are unable to be collected within 30 days of the due date, we will cancel your policy. What is the termination date? Your policy can terminate or, if you have more than one guarantor who is insured under your policy, a guarantor may cease to be insured under your policy. A guarantor will cease to be insured under your policy on the earliest of the date: the guarantor reaches 65 years of age; or the guarantor s obligations under the guarantee are discharged; or 26

29 you advise us that you no longer require the guarantor to be insured under your policy. Your policy will terminate on the earliest of the date: you cancel the policy; the only guarantor insured under your policy reaches 65 years of age; we cancel the policy; you repay your loan; a benefit is paid under your policy; the term of cover that has been financed into your loan has expired; or the expiry of a period of five years from the start date of cover. Can St Andrew s cancel the policy? We may cancel this policy if your premiums are unable to be collected under this policy within 30 days after the due date. We can also cancel this policy if you or your nominated guarantors do not comply with your duty of disclosure (see page 28) or if we are otherwise permitted to do so by law. We will give you written notice if we cancel your policy. Can you cancel the policy? You may cancel this policy at any time by sending us a notice in writing and giving us 30 days notice of cancellation. Are premiums refunded on cancellation? If you have paid a single premium for the period of cover (financed in payment option) and the policy is cancelled for any reason prior to the term of cover expiring, or a guarantor is removed prior to the term of cover expiring, we will refund a part of the premium, paid in advance, to the lender for credit against your outstanding loan balance. The refund will be calculated in accordance with legislation. 27

30 Risks There are some risks if you take out BizSure Protection. If a claim is made, the most significant risks are that: the benefit will not be payable under this policy because an exclusion applies or you or a guarantor did not satisfy your duty of disclosure (see below); or the benefit we agree to pay may be insufficient to repay your loan and discharge your guarantor s liability under their guarantee. Your Duty Of Disclosure What you must tell us Before we agree to insure your guarantor, you and the guarantor have a duty of disclosure under law to tell us anything you and the guarantor know, or could reasonably be expected to know, which is relevant to our decision as to whether to accept your application for insurance and on what terms. In providing us with information, you and the guarantor have a duty to be truthful. What you do not need to tell us You and your guarantor do not need to tell us anything that: reduces our risk; is of common knowledge; we know or, as an insurer, should know; or we indicate that we do not want to know. 28

31 If you do not tell us If you and your guarantor fail to comply with your duty of disclosure and we would not have insured your guarantor if you and your guarantor had complied with this duty we can avoid this policy at any time within three years of the start date of cover. This means we could refuse to pay a benefit. If you and your guarantor provide information fraudulently, we may refuse to pay a benefit and treat the policy as never having existed, at any time. Your Privacy St Andrew s will only collect personal information from you and your guarantor that facilitates our internal business operations or is necessary in order for us to process, issue and administer your policy and assess and pay any claims made under the policy. We realise that this information is often very sensitive in nature and will treat it with the utmost care and security. Unless required by law, your and your guarantor s personal information will not be released to anyone other than in the normal operation of our business (such as our reinsurers, related companies or service providers, some of which may be located overseas) or those parties necessary to administer your claim (doctors, advisors, assessors etc). If you apply for BizSure Protection, you will receive St Andrew s full policy on our treatment of personal information in our Privacy Policy. This document is also available on our website or by contacting St Andrew s. You and your guarantor can seek access to any of your and your guarantor s personal information by contacting St Andrew s. 29

32 Making A Claim To make a claim under this policy, you can contact St Andrew s on or in writing at the address set out on the back of this document, and we will guide you through the claims process. Claims should be made within 120 days of your guarantor s death. You must, at your expense, provide us with an original or certified death and birth certificate and other records or evidence of your guarantor we request, such as your guarantor s medical history. We have no obligation to pay any benefit under this policy if a claim is made more than 120 days after your guarantor s death without good cause. If we do not have evidence to our satisfaction of your guarantor s death or the cause of your guarantor s death we may also not pay any benefit. We will not pay a benefit under this policy if any premium remains unpaid. Questions And Complaints If you have any questions or concerns regarding BizSure Protection, or the service you received when you were advised about BizSure Protection, please contact St Andrew s. Our contact details are on the back cover of this PDS. In our letter to you confirming our acceptance of your application, you will be notified of your Agreement Number. Please supply your Agreement Number when contacting us. This will help us to deal with your question or complaint promptly. Your question or complaint will be dealt with by someone with appropriate authority. 30

33 If you have a complaint we will acknowledge receipt of your complaint within 48 hours. In some cases, we will need to investigate a complaint and this may take some time. In the unlikely event that your complaint is not resolved to your satisfaction, you may refer the matter for a further review to the Internal Dispute Resolution Department at the address on the back cover of this document. If you remain unhappy with the response, you may then contact the Financial Industry Complaints Service (FICS). FICS is an independent body that deals with disputes concerning insurance matters. You may contact them at: Financial Industry Complaints Service (FICS) PO Box 579, Collins Street West Melbourne VIC 8007 Phone (local fee applies) Facsimile (03) A decision of FICS is binding on us (up to specified limits) but not on you. It is a service provided without charge to you. Tax In general, having regard to the views of the Australian Taxation Office expressed in public rulings, the premiums paid for your BizSure Protection policy are unlikely to be deductible and the benefit paid under the policy is unlikely to be taxable. However, this will depend on your particular circumstances. Therefore, we recommend that you consult your accountant for advice on any taxation implications of taking out BizSure Protection. 31

34 Changing Your Mind If you are unhappy with the terms or conditions of your BizSure Protection policy or if you change your mind, you can notify us in writing that you wish to cancel your policy within 21 days of the start date of cover. We will refund any premium you have paid in that time. General Conditions There are further general conditions which apply to BizSure Protection. These are: you may not transfer your rights under your policy; your policy will be subject to the law of the State of Western Australia (as amended or affected by statutes of the Commonwealth of Australia); and the policy has no surrender value. When you apply for BizSure Protection, you and your guarantor agree to comply with your obligations set out in this PDS and to take all reasonable steps to minimise our risk under your policy. St Andrew s Life Insurance Pty Ltd ABN is the issuer and underwriter of the benefit provided by BizSure Protection. The benefit provided under BizSure Protection is written out of St Andrew s Statutory Fund No.1. 32

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36 St Andrew s can be contacted at: Post: PO Box 7395 Cloisters Square WA 6850 Telephone: Facsimile: standrews@st-andrews-ins.com.au Website: BWBSPB MAR05

37 Application for BizSure Protection Applicant (Policyholder) Details Registered Business Name The Product Disclosure Statement accompanying this Application was completed on 1st March Postal Address Suburb State Postcode Telephone Fax Loan Details *If greater than $350,000, please complete the Medical Questionnaire Amount Financed/Credit Limit* Monthly Instalment Agreement Start Date/Finance Disbursal Date Finance Term Lender BSB Loan Account Number Type of Loan: (Please tick) Amoritised eg Reducing Balance Non-amortised eg Interest Only Guarantor (Insured) Details Guarantor 1 Title Family Name Guarantor 2 Title Family Name Given Name/s Date of Birth Given Name/s Date of Birth DDMMYY DDMMYY Postal Address Postal Address Suburb State Postcode Suburb State Postcode Telephone Occupation Telephone Occupation Guarantor 3 Title Family Name Guarantor 4 Title Family Name Given Name/s Date of Birth Given Name/s Date of Birth DDMMYY DDMMYY Postal Address Postal Address Suburb State Postcode Suburb State Postcode Telephone Occupation Telephone Occupation Premium Details Monthly Premium Financed in Guarantor 1 $ Guarantor 2 $ TOTAL (min $15 per month) 1 year 2 years 3 years 4 years 5 years Guarantor 3 $ Guarantor 4 $ $ Declaration by Applicant I/We, as an authorised signatory for the Applicant, declare: I/We have received and read the document titled Combined Financial Services Guide and Product Disclosure Statement for BizSure Protection, including the clause headed Your Duty of Disclosure. I/We will retain this document for future reference; and I/We have received a General Advice Warning and I/we understand and agree that our personal circumstances, needs, objectives and fi nancial situation were not considered when advised on BizSure Protection; and If the Lender has fi nanced the premium payable for BizSure Protection, I/we irrevocably authorise and direct St Andrew s Life Insurance Pty Ltd to pay any sums which would otherwise be payable to me/us, (if this application is declined or cancelled) directly to the Lender in reduction of amounts outstanding under the facility under which the premium was fi nanced; and I/We understand that the cover does not commence until St Andrew s Life Insurance Pty Ltd has received all required information, including any applicable medical questionnaires, and they have notifi ed me/us in writing of acceptance of the application; and I/We understand that I/we can arrange a similar policy with an insurer of my/our choice; and I/We declare that the information contained in this application is true and correct. Authorised Signature Date Authorised Signature Date DDMMYY DDMMYY Declaration by Guarantor/s Each guarantor (insured) declares: I am aged 18 years or over and under 60 years of age and have lived in Australia lawfully for at least 200 days in the last 12 months; and I have guaranteed repayment of the loan to the lender; and I acknowledge that I have read and understood the privacy clause headed Your Privacy in the Combined Financial Services Guide and Product Disclosure Statement and consent to the collection, use, maintenance and disclosure of my personal information (including health information) as set out in that clause; and I understand that this policy does not cover pre-existing conditions of which I am, or should be aware of, or which I have consulted my Doctor in the 12 months prior to the commencement of this policy. Guarantor 1 Signature Date Guarantor 2 Signature Date DDMMYY DDMMYY Guarantor 3 Signature Date Guarantor 4 Signature Date DDMMYY DDMMYY If you are paying the premium monthly please complete Direct Debit Request overleaf.

38 your records and account details to be provided in connection with any claim made on it relating to an alleged incorrect or wrongful debit. the Debit User will keep the details of the customer s account and debit payments confi dential. The Bank of Western Australia Ltd may require information relating to 13. Except to the extent that disclosure is necessary in order to process debit payments, investigate and resolve disputed transactions or is otherwise required by law, referred to above or by directing your request to your fi nancial institution at which your account is held. 12. Should you wish to cancel the Direct Debit Request or to stop individual payments you must give at least 7 days written notice to the Debit User at the address 11. If a debit payment is returned unpaid, you may be charged a fee for each returned item by your fi nancial institution. payment will be processed to your account, you should make enquiries directly with your fi nancial institution at which your account is held. 10. If a debit payment falls due on any day which is not a business day, the payment will be made on the next business day. If you are uncertain as to when a debit Direct Debit Request - Service Agreement 1. St Andrew s Australia Pty Ltd ABN ( Debit User ) will initiate direct premium debit payments in the manner referred to in the Schedule. 2. Debit payments will be made when due. The Debit User will not issue individual confi rmation of payments made. 3. The Debit User will give you at least 14 days written notice if the Debit User proposes to vary details of this arrangement, including the amount and frequency of debit payments. 4. If you wish to defer any payment or alter any of the details referred to in the Schedule, you must either contact the Debit User on or write to the Debit User at the following address, Head Offi ce: St Andrew s Australia Pty Ltd PO Box 7395 Cloisters Square WA Any queries concerning disputed debit payments must be directed to the Debit User in the fi rst instance. Details of the dispute resolution process that applies to the Debit User are described within the Combined Product Disclosure Statement and Financial Services Guide. You may also contact the Debit User on or at the above address. Any queries you have regarding any disputed debit payments, may also be directed to your fi nancial institution. Direct payment debiting is not available on the full range of accounts at all fi nancial institutions. If in doubt, you should check with your fi nancial institution before completing the Direct Debit Request. 7. You should ensure that your account details given in the Schedule are correct by checking against a recent statement from your fi nancial institution at which your account is held. 8. It is your responsibility to have suffi cient cleared funds available, by the premium due date, in your account to enable debit payments to be made in accordance with the Direct Debit Request. 9. By signing the Direct Debit Request, you warrant and represent that you are duly authorised to request and instruct the debiting of premium payments from your account described in the Schedule. 6. SCHEDULE Direct Debit Request Name I authorise and request St Andrew s Australia Pty Ltd (User ID ) ( Debit User ) until further notice, to arrange for my account (as described in the schedule below) to be debited with any amounts which the Debit User may debit me through the Direct Debit System and as prescribed in the Bulk Electronic Clearing System ( BECS ); The Schedule Account Name Financial Institution Branch Name BSB Number Account Number Note: Direct Debiting is not available on the full range of accounts. If in doubt please contact your Financial Institution. I have read the Service Agreement and agree to its terms. I authorise that this Direct Debit Request remain in force until cancelled, deferred or otherwise altered in accordance with this Service Agreement. Signature Date Signature Date Note: Please ensure that account details are correct and that this request is signed by the required number of signatories. For example, if it is a joint account all signatures may be required. If in doubt please contact your Financial Institution. Complete this section if paying by credit card DDMMYY DDMMYY Bankcard Card Number MasterCard Card Holder Name Expiry date Visa Card Card Holder Signature Date DDMMYY DDMMYY American Express STAFF ONLY USE Lenders Name Staff Number Contact Number Cost Centre BWBSPA Mar05