This document sets out the legal terms and conditions of your contract with Standard Life (Asia) Limited.

Transcription

1 This document sets out the legal terms and conditions of your contract with Standard Life (Asia) Limited. Policy Provisions of Fortuity Fortuity is a single premium investment-linked life insurance contract provided by Standard Life (Asia) Limited. Standard Life (Asia) Limited is an authorised insurer in Hong Kong authorised to write class A, class C and class I of long term business. Its registered office is at 40/F, Tower 1, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong. Standard Life (Asia) Limited takes full responsibility for the accuracy of the statements made and information contained in these policy provisions at the date of publication. If you pay the total amounts shown in the Policy Schedule which are due, we will pay the benefits of the Policy to you or any other person who is entitled to receive them subject to the terms and conditions set out in this document and any additional terms and conditions in the Policy Schedule or in any endorsement. Contact Details Standard Life (Asia) Limited 40/F, Tower 1, Times Square 1 Matheson Street, Causeway Bay Hong Kong Telephone: (852) Fax: (852) Website: cs@standardlife.hk The entire contract between you and us is constituted by the terms and conditions set out in this document, the enclosed Policy Schedule and endorsements, your application for this Policy, any medical evidence received by us in respect of the Life Insured. 1 DEFINITIONS In these policy provisions: Words in the singular include the plural and vice versa (unless the context otherwise requires). Words in the masculine gender include the feminine and vice versa (unless the context otherwise requires). Account means Initial Contribution Account or Additional Contribution Account. Additional Contribution is a single top up contribution subsequent to your Initial Contribution and made at your choice. Additional Contribution Account means a notional account set up for book-keeping purpose to record the allocation of the Additional Contribution to your Investment Choice(s). Administration Charge means the administration charge set out in policy provision 7. Advisory Fee means the fee shown in the Policy Schedule as the advisory fee. Beneficiary means the person or persons entitled to the proceeds of Death Benefit of this Policy. Customer Protection Declaration means the customer protection declaration required to be completed pursuant to The Code of Practice for Life Insurance Replacement to prevent twisting of life policies. The declaration is in the form attached to the application form provided with this Policy. Death Benefit means the proceeds payable on the death of the Life Insured for single life policies (or last surviving Life Insured for joint life policies). Establishment Fee means the establishment fee set out in policy provision 7. Exit Charge means the exit charge set out in policy provision 7. Fund means a fund created and/or maintained by us which is opened for the allocation of your Investment Contents under this Policy. The terms of Fund and Investment Choice can be used interchangeably. Fund Account, in respect of each Fund under the Policy to which your Investment Contents are allocated, means a notional book-keeping record of the Units allocated to you in respect of that Fund. Fund Account Value means the value of your Fund Account in respect of each Fund on each Valuation Day which shall be calculated as the Unit Price of that Fund on that Valuation Day multiplied by the number of Units then credited to your Fund Account in respect of that Fund. Fund Business Day means, in relation to a Fund which invests in a collective investment scheme, each day in which shares or units in that collective investment scheme are valued and may be issued or redeemed. Fund Switch means the switching, at your request, of all or part of your Fund Account Value with respect to any of the Funds to one or more of the other Funds under this Policy. Hong Kong Business Day means each day (other than a Saturday, Sunday or public holiday) on which banks are fully open for general business in Hong Kong. Initial Contribution means the contribution you paid at the outset to start your Policy and the amount of contribution shown in the Policy Schedule as the initial contribution. 1

2 Initial Contribution Account means a notional account set up for book-keeping purpose to record the allocation of the Initial Contribution to your Investment Choice(s). Investment Contents means Initial Contribution and Additional Contribution. Life Insured means the person named in the Policy Schedule as the life insured. Monthly Bonus means the monthly bonus set out in policy provision 7. Valuation Day, in respect of as Investment Choice(s), means each day which is a Hong Kong Business Day and (if relevant) a Fund Business Day. Withdrawal means the withdrawal, at your request, of part of your Fund Account Value in respect of any Fund. We, us, our or Company means the Standard Life (Asia) Limited. You or your means the policy owner of this Policy as shown in the Policy Schedule as the policy owner. Policy means this Fortuity policy. Policy Account is the notional account set up for bookkeeping purpose to record the allocation of Initial Contribution and Additional Contribution to your Investment Choice(s). Policy Account Value means the value of your Policy Account and will be determined according to the number of notional units of Investment Choices held in the Policy Account multiplied by the respective bid price of the investment choice, net of applicable underlying fund charges and ongoing fees and charges (if any). Policy Anniversary means the same day and month in each year as Policy Start Date, for each year this Policy remains in force. Policy Currency means the currency shown in the Policy Schedule, in which HKD means HK Dollar, USD means US Dollar, GBP means Pound Sterling, JPY means Japanese Yen and EUR means Euro. Policy Issue Date means the date shown in the Policy Schedule as the policy issue date. Policy Maturity Date means the date shown in the Policy Schedule as the policy maturity date. Policy Month means a recurring month which recurs in the pattern of every month while this Policy remains in force and which starts to recount from the same day of each following month as that of the policy start date. If the start date of any Policy Month falls on a non-hong Kong business day, that start date will be deemed to fall on the next Hong Kong business day. This does not however affect the start date(s) of any other Policy Month unless the same situation arises. Policy Owner means the person named in the Policy Schedule as the policy owner. Policy Schedule means the document which provides a summary of your insurance application and is attached to the Policy after its issuance. The Policy Schedule forms part of the Policy. Policy Start Date means the date shown in the Policy Schedule as the policy start date. Regular Withdrawal means a sequence of Withdrawals, at your request, on a regular basis and in a pattern agreed with us, by completing the relevant form provided by us and returning it to us. Surrender means the surrender of your Policy. Switching Fee means the switching fee set out in policy provision 7. Unit, in respect of a Fund, means notional units of that Fund. Unit Price, in respect of a Fund, is the price per Unit of that Fund as determined in accordance with policy provision GENERAL PROVISION 2.1 Applicable Law and Jurisdiction This Policy is governed by and shall be construed in accordance with the laws of Hong Kong Special Administrative Region. The courts in the Hong Kong Special Administrative Region shall have non-exclusive jurisdiction to settle any disputes and claims that arises out or in connection with this Policy. 2.2 Cooling-off Period You may cancel this Policy within 21 days from the earlier of the date of delivery of the Policy or (b) the date of issue of a notice informing you or your representative about the availability of the Policy and the expiry date of the cancellation rights described in this provision. If you want to cancel this Policy, your request to cancel must be in writing, signed by you and received directly by us at: Standard Life (Asia) Limited 40/F, Tower 1, Times Square 1 Matheson Street, Causeway Bay Hong Kong within 21 days after the delivery of the Policy or issue of the aforementioned notice to you or your representative, whichever is the earlier. When we receive your written request we will refund the Initial Contribution and Additional Contribution paid without interest, from which we may deduct a market value adjustment charge to cover any investment loss resulting from realising the value of any assets acquired through our investment of any premiums paid at that time. No refund of the Initial Contribution and Additional Contributions (if any) will be paid if payment in respect of a claim has been made. 2.3 Payment Method You can pay us the Initial Contributions and Additional Contributions with payment methods determined by us at the time of processing and set out in our application documents provided to you. All amounts payable to the Company are payable at the Company s registered office in Hong Kong or at any other place designated by us. 2.4 Incontestability Your or the Life Insured s failure to disclose a material fact or making of an incorrect statement about a material fact will not, in the absence of fraud, render this Policy voidable by us after it has been in force during the Life Insured s lifetime for two years from the Policy Start Date. A material fact is a fact which would have been likely to influence our decision to offer this 2

3 Policy or affect coverage provided or the Initial Contributions and Additional Contributions which we would charge for this Policy. This provision will apply to any schedules attached to this Policy unless stated otherwise. 2.5 Incorrect Age or Sex If the Life Insured s date of birth or sex as shown in the Policy Schedule is incorrect, the amount payable and every benefit accruing under this Policy will be calculated on the basis of the Initial Contribution and Additional Contributions paid and at the correct age or sex. 2.6 Currency of Payment Policy payments shall be made in a Policy Currency. We may accept the payment in currencies other than the Policy Currency in our discretion. Such payment will be converted to the Policy Currency at the prevailing exchange rate (as determined by us in good faith and commercially reasonable manner with reference to prevailing market exchange rates from time to time) on the date the payment is processed by us. 2.7 Suicide If Life Insured for single life policies (or last surviving Life Insured for joint life policies) commits suicide, whether sane or insane, and the relevant payment(s) of contribution is(are) established for less than 12 months prior to the death of the Life Insured for single policies (or last surviving Life Insured for joint life policies), our liability under this Policy with respect to that relevant payment(s) of Initial Contribution and Additional Contribution will be limited to the original contribution amount paid to the relevant account(s) less any Withdrawals from that account(s), if applicable, and a market value adjustment charge to cover any investment loss resulting from realising the value of any assets acquired through our investment of any such contributions paid at that time. 2.8 Changed Circumstances We can alter or modify these policy provisions, at any time without your consent while the Policy remains in force if: it becomes impossible or impracticable to carry out any of the policy provisions as a result of changes in the law or other circumstances beyond our control; or tax rules are changed; or we have to pay a government levy. We reserve the right to change the minimum and maximum values and levels referred to in these policy provisions from time to time by a reasonable amount to reflect any changes to the administration, specification and costs of providing the Policy. Such alteration or modification will be determined fairly and reasonably by an actuary or other person of professional standing. We will give you with not less than one month s prior written notice or such other period of notice in compliance with the relevant regulatory requirements explaining the change to your last known address. 2.9 Address to which Notices Sent Any notice to be given under this Policy will be sent by post to your latest address as notified to us, and will be deemed to have been received by you within 48 hours of posting Policy Termination Subject to policy provision 2.2, this Policy will automatically terminate on the earliest of the following: the Policy Anniversary on or immediately before the 100 th birthday of Life Insured for single life policies (or the younger (by age) Life Insured for joint life policies) (i.e. maturity of the Policy); or the proceeds of Death Benefit is paid; or the Policy Account Value, immediately after a Withdrawal or Regular Withdrawal is less than the minimum Policy Account Value requirement in effect at the time (for the avoidance of doubt, the Policy will not be terminated if the Policy Account Value subsequently drops below the minimum Policy Account Value requirement due to market movements or deduction of fees and charges while the Policy Account Value remains above zero); or the Policy Account Value becomes zero; or the effective date of Surrender. The situations and above will be subject to applicable Exit Charge as set out in policy provision 7. To the extent permissible by applicable laws, we may terminate this Policy at any time if, in our opinion acting fairly, in good faith and a commercially reasonable manner, your ownership of this Policy is likely to impose any regulatory or tax obligation on us that we would not otherwise be subject to. On termination, you will be entitled to receive the Policy Account Value less any applicable fees and charges, or if applicable, the Death Benefit will be paid Rounding We reserve the right to round off any figures in the decimal places in any of our calculations. Such calculations will include, but are not limited to, the determination of charges, Unit Prices as well as the creation, redemption and/or allocation of Units. Based on our current practice, round off adjustments will result in: the notional unit of Funds allocated and cancelled to the nearest five decimal places; and the value of your Policy and the Exit Charge amount of your Policy to the nearest two decimal places; and monthly rate of fees and charges to the nearest five decimal places (except for Establishment Fee and Advisory Fee are truncated to 5 decimal places). Any bid price or offer price of Funds will not be rounded. Notwithstanding the above, we reserve the right to adjust the number of decimal places or rounding method for each calculation with not less than one month s prior notice or such other period of notice in compliance with the relevant regulatory requirements FATCA Compliance Definitions The following definitions apply specifically to this policy provision 2.12: FATCA means the U.S. Foreign Account Tax Compliance Act as amended from time to time. 3

4 FATCA Obligations means our obligations under FATCA (as varied or supplemented by the IGA) including, without limitation, our obligations to undertake due diligence into Account Holders to identify U.S. Accounts and U.S. Account Holders, to report information on U.S. Account Holders and U.S. Accounts to the Tax Authorities, and to obtain their consent to do so, and to deduct and withhold tax from certain payments made to or from certain U.S. Accounts and to remit this to the IRS pursuant to applicable laws and regulations. Account Holder means, in respect of this Policy: the Policy Owner; and if the Policy Owner is a corporate or other entity, the persons who exercise control over that entity such as the majority shareholders of a corporate Policy Owner; and each person entitled to access the Policy s value (for example, through Withdrawal, Surrender or otherwise) or the ability to change a Beneficiary under the Policy who will usually also be the Policy Owner but also: any person to whom the Policy Owner assigns any of those rights under the Policy; and (b) the Policy Owner s personal representatives, executors or administrators on the death or bankruptcy of an individual Policy Owner or insolvency of corporate Policy Owner; and any person entitled to receive a future payment under the Policy such as a Beneficiary; and if the Policy is held in trust, the settlor, the trustees, the protector (if any), the beneficiaries and any other person exercising ultimate effective control over that trust. Account Holder Information means the information about Account Holders we are required to obtain as part of our FATCA Obligations which currently includes: where the Account Holder is an individual, their name, date and place of birth, residential address, mailing address, contact information (including telephone number), U.S. taxpayer identification number, U.S. social security number, citizenships, residency, tax residency and details of any other tax regime to which they are subject or in respect of which they have any tax reporting or tax payment obligations; and where the Account Holder is a corporate or other entity, its full name, date and place of incorporation or formation, registered address, address of place of business, U.S. taxpayer identification number, tax status, tax residency and details of any other tax regime to which it is subject or in respect of which it has any tax reporting or tax payment obligations and such other information as we may reasonably require about each of the Account Holder s shareholders or controlling persons. IGA means the intergovernmental agreement made between Hong Kong and the U.S. in respect of FATCA as may be amended from time to time. Non-Participating FFI means an FFI other than a participating FFI, a deemed-compliant FFI or an exempted beneficial owner as defined under FATCA. Policy Information means the information about the Policy we are required to provide to the Tax Authorities as part of our FATCA Obligations which currently includes Policy number, Policy balance, interest and dividend income and Withdrawals, or value and information about payments we receive or make in connection with the Policy including details of any Withholding Tax. Required Information means: the Account Holder Information and associated supporting documentation and certification; and the Policy Information. Specified U.S. Person has the same meaning as defined under FATCA and includes: certain U.S. citizens or resident individuals; certain U.S. partnerships or corporations; and certain trusts the administration of which is governed by the U.S. courts or the controlling person(s) of which include a U.S. citizen or resident. Tax Authorities means the U.S. Internal Revenue Service ( IRS ), the Hong Kong Inland Revenue Department ( IRD ) and any other competent tax authority to which we or any of our holdings companies are required to report the Required Information or any part thereof. U.S. means the United States of America. U.S. Account means an account held by one or more Specified U.S. Person(s) or an entity of which one or more controlling person(s) is a Specified U.S. Person. U.S. Account Holder means, in respect of an U.S. Account, a Specified U.S. Person, or an entity of which one or more controlling persons(s) is a Specified U.S. Person, who holds that U.S. Account. Withholding Tax means the U.S. tax we are required to withhold as part of our FATCA Obligations. Provision of Account Holder Information You must: when you apply to take out this Policy, as a condition of its issue to you, and from time to time during this Policy when we require you to do so, provide us with Account Holder Information about yourself and the other Account Holders; (b) provide us with such supporting documentation for and certification of Account Holder Information as we may require; (c) where there is any change in Account Holder Information already provided to us (including any change in the residency, citizenship or tax status of an Account Holder), notify us immediately of this in writing and provide us with such information, documentation and certification in that regard as we may require; (d) where there is a change in Account Holder, immediately provide to us the Account Holder Information for the new Account Holder (and 4

5 where you propose that change, for example by notifying us you want to assign your rights under this Policy or nominate a new beneficiary, you must provide us with the Account Holder Information on the new Account Holder as a condition to our agreeing that change); and (e) complete and sign such documents and take such actions, as we may reasonably require from time to time to enable us to comply with our FATCA Obligations in respect of this Policy. Disclosure of Required Information You consent to our disclosure and transfer of the Required Information to the Tax Authorities both in Hong Kong and outside Hong Kong to comply with our FATCA Obligations and waive all rights you have, if any, to prohibit or restrict such disclosure. Withholding Tax You consent to our deducting and withholding Withholding Tax from payments made to or from the Policy Account and remitting this to the IRS to comply with our FATCA Obligations including, without limitation, to us deducting and withholding Withholding Tax on withholdable payments into this Policy and remitting this to the IRS if the IRD fails to exchange information with the IRS under IGA (and the relevant tax information exchange agreement between Hong Kong and the U.S.) or if you are or any other Account Holder is a Non-Participating FFI. Other Account Holders Where you have an obligation under this Policy with respect to Account Holder Information relating to any other Account Holder you must use your best endeavours to procure that the other Account Holder complies with that obligation with regard to their Account Holder Information including providing to us directly that Account Information and supporting documentation and certification and giving us their consent to the disclosure and transfer of that Account Holder Information to the Tax Authorities and deducting and withhold Withholding Tax and remitting this to the IRS. You agree we may contact the other Account Holders directly for these purposes. 3 OWNERSHIP PROVISIONS 3.1 Policy Ownership Subject to the rights of any irrevocable Beneficiary referred in policy provision 3.2 and assignment referred in policy provision 3.3, you have all rights of ownership in this Policy while it is in force. Where there are two Policy Owners under this Policy: (b) (c) (d) any transaction requiring a request by the Policy Owner will require a request to be made jointly by both of you; any proceeds of Death Benefit payable to you as Policy Owner will be evenly split; if any one of you predeceases the other Policy Owner, all the rights, title, and interest in the Policy as Policy Owner will automatically accrue to the surviving Policy Owner; and if both of you die simultaneously, we will treat as if the person who is older by age had died 3.2 Beneficiary before the person who is younger by age, subject to the terms of this Policy. During the lifetime of the Life Insured for single life policies (or last surviving Life Insured for joint life policies), a Beneficiary has no right to deal in any way with this Policy. The proceeds of this Policy shall be paid in Policy Currency to the nominated Beneficiary or, if there is being no nominated Beneficiary, to you or, if you are deceased, to the appointed executors or administrators of your estate, as the case may be. The interest of any Beneficiary under this Policy who predeceases the Life Insured shall vest in you and the interest of any joint Beneficiaries who predeceases the Life Insured for single life policies (or last surviving Life Insured for joint life policies) shall vest in the surviving Beneficiaries equally. If any Beneficiary dies simultaneously with the Life Insured for single life policies (or last surviving Life Insured for joint life policies), the proceeds of this Policy shall, unless otherwise provided in the application or in a written request, be paid to the same payee or payees and in the same manner as if the person who is older by age had died before the person who is younger by age. You may, during the lifetime of the Life Insured for single life policies (or last surviving Life Insured for joint life policies) and while this Policy is in force, change the Beneficiary of this Policy by providing to us a written notice in a form satisfactory to us. Once received by us, such change shall be effective immediately. If you have an irrevocable Beneficiary designated in the Policy, he must agree in writing to you changing the Beneficiary and/or percentage entitlement in the Policy. 3.3 Notice of Assignment If you transfer your legal rights under this Policy to someone else ( assignment ), we must receive formal notice that the Policy has been assigned. This notice must be sent to our registered office. We will not be bound by any assignment until we receive formal notice that the Policy has been assigned, nor will we be responsible for the consequences, validity or effect of any attempted or purported assignment. 4 BENEFIT PROVISIONS 4.1 Death Benefit If the Policy remains in force and we have received satisfactory proof of the Life Insured for single life policies (or last surviving Life Insured for joint life policies) s death, we will pay out the proceeds of Death Benefit in the Policy Currency to the person or persons entitled within 15 Hong Kong Business Days after the Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately following the date on which after we receive all relevant documentation completed to our satisfaction. We may also require other documents or information that may be relevant to the material facts the Life Insured for single life policies (or last surviving Life Insured for joint life policies) was required to 5

6 provide at the time of application. Such payment will discharge all our obligations under this Policy. If there is more than one Life Insured named in the Policy Schedule, the Death Benefit will be paid on the death of the last surviving Life Insured. Only one Death Benefit is payable in this Policy. The proceeds of Death Benefit under this Policy will be 105% of your Policy Account Value. No interest is payable in respect of the period between the effective date of claim and the date of payment. The Valuation Day for the Units standing to the credit of your Policy will then be the next Valuation Day immediately following our receipt of the claim form. Once the Death Benefit has been paid our obligations under this Policy shall cease and we shall not be liable for any claims made under this Policy on or after the termination of this Policy. 4.2 Deduction of Debts We will deduct all outstanding charges you owe us from the amount we pay out under this Policy. 5 CONTRIBUTION PROVISIONS 5.1 Payment of Contributions The Initial Contribution and Additional Contribution, after deduction of relevant charges in accordance with policy provision 7, will be used to purchase Units. You may pay Additional Contributions provided that such contributions are above any minimum Additional Contribution requirements; and (b) the Life Insured for single policies (or the younger (by age) Life Insured for joint life policies) and all Policy Owners do not at the time exceed the maximum age limit set by us. You must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. Units will be allocated to the relevant Fund Account in accordance with your investment allocation on the Valuation Day following the date of our receipt of your payment of Initial Contribution or Additional Contribution. The date of our receipt of your payment of Initial Contribution or Additional Contribution shall be the later of the day upon which we receive our bank s confirmation of such receipt on a cleared-fund basis of your payment or (b) our internal processing of such payment is completed (processing time may vary depending on different payment methods). The investment allocation to any Fund is subject to the minimum allocation and our administrative rules in effect at that time. Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately after the Policy Maturity Date. Such payment will terminate this Policy and discharge all our obligations under this Policy. We will deduct all outstanding charges you owe us from the benefits we pay out under this Policy. No interest is payable in respect of the period between the Policy Maturity Date and the date of payment of your Policy Account Value. 6 FINANCIAL ADVISER Subject to our agreement you may appoint a financial adviser to act on your behalf for the purpose of making fund switching decisions for your Policy on the express understanding that you retain full responsibility for the acts or omissions of your financial adviser. For any appointment or termination of appointment of a financial adviser, you must use our appropriate form and meet all specified conditions in effect at that time. We reserve the right to make or terminate an appointment, or withhold consent to an appointment proposed by you or any other person without prior reference to you or any other person concerned. We will not be accountable for any actual or prospective loss incurred as a result of any exercise of this right. 7 CHARGES PROVISIONS 7.1 Establishment Fee In respect of the Initial Contribution Account or each Additional Contribution Account, the Establishment Fee is a percentage of the contribution allocated to the relevant Account. The Establishment Fee will be applied for the first 60 months from the effective date of the relevant Account. The Establishment Fee is payable to us and will be deducted on monthly basis from the Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the relevant Account. The percentage to be applied as the Establishment Fee is determined by the amount of contribution allocated to the relevant Account in Policy Currency. Amount of relevant contribution received in Policy Currency equal or greater than USD2,500; HKD20,000; GBP1,666; EUR2,500; JPY325,000 USD15,000; HKD120,000; GBP10,000; EUR15,000; JPY1,950,000 USD37,500; HKD300,000; GBP25,000; EUR37,500; JPY4,875,000 Establishment Fee per annum 1.7% 1.5% 1.3% 5.2 Policy Maturity If your Policy remains in force until the Policy Maturity Date, we will surrender your Policy and determine your Policy Account Value at the Policy Maturity Date. We will pay you your Policy Account Value in the Policy Currency within 15 Hong Kong Business Days after the USD60,000; HKD480,000; GBP40,000; EUR60,000; JPY7,800, Administration Charge 1.1% The current Administration Charge is 1.2% per annum of your Policy Account Value. 6

7 7.3 Exit Charge The Administration Charge is payable to us and will be deducted on a monthly basis from your Policy Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the Policy Account. The Administration Charge will be reduced by the Monthly Bonus (i.e. Administration Charge minus Monthly Bonus) and is applied to the Policy Account Value in Policy Currency at the due date of the Administration Charge. Policy Account Value in Policy Currency equal or greater than Monthly Bonus per annum USD2,500; HKD20,000; GBP1,666; EUR2,500; JPY325, % USD120,000; HKD960,000; GBP80,000; EUR120,000 or JPY15,600,000 USD240,000; HKD1,920,000; GBP160,000; EUR240,000 or JPY31,200,000 USD360,000; HKD2,880,000; GBP240,000; EUR360,000 or JPY46,800,000 USD480,000; HKD3,840,000; GBP320,000; EUR480,000 or JPY62,400, % 0.10% 0.15% 0.20% The Monthly Bonus, where applicable, will be applied on a monthly basis as reduction to the Administration Charge. In the case of Surrender or other events of termination of this Policy under and of policy provision 2.10 before the 60 th month since the effective date of the Initial Contribution Account or the relevant Additional Contribution Account (if applicable), the Exit Charge will be applied to the Policy. If you make a Withdrawal or Regular Withdrawal from the Initial Contribution Account or Additional Contribution Account, the Exit Charge will be applied on the encashment if less than 50% of the original contributions made to the relevant Account remains. This Exit Charge will be applied to the relevant Account to be encashed at the date of Withdrawal. The Exit Charge of each account in case of surrender of Policy is calculated as follows: Original contribution amount made to relevant account X Applicable Exit Charge percentage Adjustment Factor = 50% of original contribution amount made to relevant account - Value of relevant account immediately after the withdrawal 50% of original contribution amount made to relevant account The applicable Exit Charge percentage is as set out in the table below: Month since effective date of relevant account Applicable Exit Charge percentage Month since effective date of relevant account Applicable Exit Charge percentage % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % 60 & onward % 7.4 Switching Fee This charge is payable to us. There is currently no Switching Fee but this is a fee which we reserve the right to introduce and revise. The fee, if any, is payable to us and will be paid for any Fund Switch. The Exit Charge for Withdrawal or Regular Withdrawal will be applied by multiplying the below adjustment factor to the above mentioned Exit Charge for surrender: 7.5 Advisory Fee In accordance with your agreement on paying the Advisory Fee (if any) to your appointed financial adviser, the Advisory Fee will be deducted on a monthly basis from your Policy Account by redeeming the appropriate number of Units at the beginning of each Policy Month in proportion to the value of the Fund in the Policy Account. 7

8 7.6 Revision of Charges We reserve the right to vary the policy charges or impose new charges with not less than one month s prior written notice, or such other period of notice in compliance with the relevant regulatory requirements. 8 FUND SWITCH At any time while this Policy remains in force, you may request us to make a Fund Switch. The following conditions apply to Fund Switches: The amount of such a Fund Switch with respect to a Fund must not exceed your Fund Account Value in respect of such Fund. We will introduce and apply a Switching Fee as set out in policy provision 7 for a Fund Switch. However, we will not impose this fee in the event of an involuntary Fund Switch where we close a relevant Fund. The amount of any Fund Switch from a Fund will be deducted from your Fund Account Value of that Fund on the Valuation Day immediately following the date on which we receive your valid written request for such a Fund Switch. The amount of such Fund Switch, after we have deducted any applicable Switching Fee, will be added to your Fund Account Value in respect of the new Fund to which the Fund Switch is to be credited on the Valuation Day immediately following the date on which we receive the amount of such Fund Switch. To apply for the Fund Switch, you must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. The minimum switch-out amount of each Fund Switch cannot be less than 1% of the value of the Fund Account. 9 WITHDRAWAL You may request to make a Withdrawal or Regular Withdrawal. The following conditions apply to Withdrawals and Regular Withdrawals: If this Policy is assigned to a lender as security for a loan or mortgage, the lender must agree in writing to you making a Withdrawal or Regular Withdrawal. The amount of any Withdrawal or Regular Withdrawal must not be less than the minimum amount of Withdrawal or Regular Withdrawal, as the case may be, in effect at that time. The Policy Account Value immediately after a Withdrawal or Regular Withdrawal must not be less than the minimum Policy Account Value requirement in effect at that time; otherwise, we will surrender the Policy and pay you the surrender value in accordance with policy provision 10. If there is more than one Account, you may designate the account from which the amount withdrawn. (vii) (viii) (ix) 10 SURRENDER We will pay out the amount of any Withdrawal or Regular Withdrawal less the Exit Charge (if applicable) as set out in policy provision 7 in the Policy Currency within 15 Hong Kong Business Days after the Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately after the effective date for such Withdrawal or Regular Withdrawal. The effective date of any Withdrawal or Regular Withdrawal will be the Valuation Day immediately following the date on which we receive your valid written request for such a Withdrawal or Regular Withdrawal. To apply for the Withdrawal or Regular Withdrawal, you must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. We will deduct all outstanding charges you owe us from the amount we pay out under this Policy. No interest is payable in respect of the period between the effective date of Withdrawal or Regular Withdrawal and the date of payment. You may Surrender your Policy while it remains in force. The following conditions apply to Surrender: If this Policy is assigned to a lender as security for a loan or mortgage, the lender must agree in writing to you surrendering the Policy. The effective date of Surrender will be the Valuation Day immediately following the date on which we receive your valid written request for such Surrender. The surrender value of the Policy will be your Policy Account Value less the Exit Charge as set out in policy provision 7. The Policy will automatically terminate on the effective date of Surrender. We will pay out your Policy Account Value less the Exit Charge as set out in policy provision 7 in the Policy Currency within 15 Hong Kong Business Days after the Valuation Day (according to the latest Valuation Day of the Funds under the Policy Account) immediately after the effective date for such Surrender. (vii) (viii) To apply for a Surrender, you must use our appropriate form and meet all specified conditions in effect at that time. We will notify you if we accept your application. We will deduct all outstanding charges you owe us from the amount we pay out under this Policy. No interest is payable in respect of the period between the effective date of Surrender and the date of payment of the surrender value. 8

9 11 EXCEPTIONAL CIRCUMSTANCES In exceptional circumstances, we may not allow you to make a Fund Contribution, Switch, Withdrawal, Regular Withdrawal or Surrender in order to maintain fairness and equity between those Policy owners holding and those Policy owners cancelling the Units of a Fund. Such exceptional circumstances may include, but are not limited to, the suspension, gating or deferral of subscriptions to or redemption from any Fund in which your policy is invested. We can only prevent you from making a Fund Contribution, Switch, Withdrawal, Regular Withdrawal or Surrender for a continuous period of no more than 30 Hong Kong Business Days unless the event which triggers the exceptional circumstance is still outstanding and in such case you may be prevented from making a Fund Contribution, Switch, Withdrawal, Regular Withdrawal or Surrender until the events has ceased or been eliminated. When you do make the Fund Contribution, Switch, Withdrawal, Regular Withdrawal or Surrender, we will use the Unit Prices that apply at that time. We will give you a written notice as soon as reasonably practicable if any exceptional circumstances exist which would prevent you from making a Fund Contribution, Switch, Withdrawal, Regular Withdrawal or Surrender or we have suspended the valuation of the units relating to a Fund. 12 FUND PROVISIONS 12.1 Funds (vii) All Units in a Fund will be equal in value. We may create or cancel Units in a Fund on any Valuation Day. The allocation of Units of a Fund to the Policy is notional. The assets of each Fund will belong to us and you have no legal or beneficial rights or ownership over any of those assets. Units are issued in a Fund only for the purpose of calculating your Fund Account Value in respect of that Fund. The investment return of Fund is calculated or determined by us with reference to the performance of the underlying funds. The selection of the investments of each Fund shall be such as we may from time to time determine. The assets of each Fund may include a proportion of uninvested cash or other assets which produce no income. Subject to the prior approval of the Securities and Futures Commission, we reserve the right to delegate all or any of our discretion and investment powers to any person on such terms as we may determine. All interest, dividends and other income attributable to the assets of a Fund will be deposited in that Fund. We can deduct from a Fund any amounts to cover: (b) (c) all expenses incurred directly or indirectly upon the purchase and sale of investments for the account of that Fund; all expenses incurred directly or indirectly in managing, maintaining and valuing assets in that Fund; any tax or other statutory levy or duty attributable to the investment income, capital gains or assets of that Fund. It should be noted that each of the Funds is currently invested in external underlying funds authorised by the Securities and Futures Commission ( SFC ) under Section 104 of the Securities and Futures Ordinance. SFC authorisation is not a recommendation or endorsement of the external underlying funds nor does it guarantee the commercial merits of such external underlying funds or their performance. It does not mean the external underlying funds are suitable for you nor is it an endorsement of their suitability for you. Details of terms and conditions of the underlying fund management charge of each underlying fund under this Policy are as shown in the fund booklet of the Policy and offering documents of the underlying fund. (viii) The offer price is the price you pay for a Unit to be allocated to your Policy. The bid price is the price at which we cancel a Unit from your Policy. The difference between the offer price and bid price in a Fund is the bid-offer spread which is effectively a charge which you pay to us. This charge may vary from Fund to Fund. Details of terms and conditions of the bid-offer spread of each underlying fund under this Policy are as shown in the fund booklet of the Policy and offering documents of the underlying fund. (ix) 12.2 Borrowing In the event any underlying fund which a Fund invests into pays dividend, we may calculate the amount which you are entitled to and distribute the dividend to you in a way at our discretion. The Policy has no borrowing power Creation and Cancellation of Units Basis of Valuation Subject to section of this provision, the Unit Price with respect to each Fund will be calculated on each Valuation Day. The Unit Price of a Fund is the amount obtained by dividing the value of the net assets of the Fund by the number of outstanding Units of that Fund in issue on the Valuation Day less any deductions provided for in policy provision The valuation of the net assets of a Fund shall be determined by valuing the assets attributable to that Fund and deducting all outstanding costs, expenses and liabilities attributable to that Fund. The assets of a Fund shall be valued on the following basis: (b) (c) any unit, share or other interest in a collective investment scheme shall be valued by reference to the latest available price of such unit, share or other interest quoted at the relevant time by the manager, trustee or issuer of the relevant collective investment scheme (or if more than one price is quoted, by reference to the latest available bid price when determining value for the purpose of realising such units, shares or other interests or the latest available offer price when determining value for the purpose of issuing such units, shares or other interests); any cash in hand or on deposit shall be valued at its face value; any securities listed or traded on a recognised stock exchange or other type of regulated market will be valued at their latest available prices, or, in the event that there should be several such markets, on the basis of their latest available prices of the main market for the relevant security; 9

10 (d) (e) (f) in the event that the latest available price does not, in our opinion, truly reflect the fair market value of the relevant securities, the value of such securities will be determined by us based on the reasonably foreseeable sales proceeds determined by us prudently and in good faith; any securities not listed or traded on a recognised stock exchange or other type of regulated market will be valued on the basis of the probable sale proceeds determined prudently and in good faith by us; where the underlying assets of any Fund are not denominated in Unit Price currency, we will set the exchange rate at which these assets are converted into the Unit Price currency, taking into account whether the transactions are into or out of the currency. Temporary Suspension of Determination of Unit Price We may suspend the determination of the Unit Price for one or more Funds and the creation or cancellation of the Units of any Fund in the following circumstances: (b) (c) (d) (e) during any period when the principal stock exchange or other market on which a substantial portion of the investments of the Fund are quoted or dealt in is closed otherwise than for ordinary holidays, or during which dealings therein are restricted or suspended, provided that, in our opinion, such restriction or suspension affects the valuation of the investments of the Fund quoted thereon; during the existence of any state of affairs which, in our opinion, constitutes an emergency as a result of which the disposal or valuation of Fund assets would be impracticable; during any breakdown in the means of communication or computation normally employed in determining the price or value of any of the investments of such Fund or the current price or value on any stock exchange or other market in respect of the assets attributable to such Fund; during any period when we are unable to repatriate Funds for the purpose of cancelling or creating Units or during which any switching of Funds involved in the realisation or acquisition of investments cannot, in our opinion, be effected at normal rates of exchanges; when for any other reason the prices of any investments attributable to such Fund cannot promptly or accurately be ascertained. Creation of Units Amounts are added to your Fund Account Value in respect of each Fund by the creation of additional Units in that Fund to reflect the amount of your Investment Contents allocated to that Fund. Units in any Fund will be created under this Policy and allocated to your Fund Account in respect of that Fund when your Investment Contents are allocated and on the effective date of any Fund Switch to your Fund Account in respect of that Fund. Investment Contents will only be allocated to (and Units created in) a Fund on the Valuation Day immediately following the date on which we receive such Investment Contents. The number of such Units to be created will be calculated: (b) in the case of new Investment Contents being allocated, by dividing the Investment Contents allocated to such Fund by the Unit Price of that Fund on the relevant Valuation Day; and in the case of Fund Switch, by dividing the amount of the Fund Switch (net of any Switching Fee) to such Fund by the Unit Price of that Fund on the relevant Valuation Day. Cancellation of Units Amounts are deducted from your Fund Account Value in respect of any Fund by the cancellation of Units created to your Fund Account in respect of that Fund. Units in any Fund will be cancelled under this Policy and deducted from your Fund Account in respect of that Fund on the due date of any charges set out in policy provision 7, and on the effective date of any Withdrawal, Regular Withdrawal, Surrender, Fund Switch and Policy Maturity Date. Units will only be cancelled in a Fund on a Valuation Day. The number of Units to be cancelled will be calculated as the amount to be withdrawn from such Fund in respect of any charges set out in policy provision 7, Withdrawal, Regular Withdrawal, Surrender, Fund Switch and policy maturity divided by the Unit Price of that Fund on the relevant Valuation Day. Fund Closure We may at any time close a Fund and/or cease to allow the allocation of Investment Contents or any Fund Switch to any Fund. We will give you with not less than one month s prior written notice or such other period of notice in compliance with the relevant regulatory requirements, of our intention to close or suspend a Fund. If your existing instruction for the allocation of Investment Contents includes any allocation to a Fund which we have closed or shall close, when you make any Additional Contribution, you must change your instruction to exclude such a Fund; otherwise, we will allocate your Investment Contents between such of the Funds as we consider, in our absolute discretion, appropriate. If there is any Funds under this Policy to be closed, you may request a Fund Switch from that Fund to another Fund. If we do not receive such a request before the expiry of the notice of the closure of that Fund, we will make a Fund Switch to such other Fund as we consider, in our absolute discretion, appropriate as if we had received your request to do so and any such Fund Switch shall be final. Fund Merger or Division We may at any time merge two or more Funds into a single Fund, or divide a single Fund into two or more Funds. We will give you with not less than one month s prior written notice or such other period of notice in compliance with the relevant regulatory requirements, of our intention to merge or divide a Fund. 10