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Frequently Asked Questions (FAQ)Term Policy ConversionsNEW or UPDATED FAQs1 - Q. What form should be completed to request a term conversion or Guarantee Insurability Option (“GIO”)election?A. If no underwriting is required, submit a fully completed, signed “Term Conversion” Form (AGLC101672-PL)or “Election of Guarantee Insurability Option” Form (AGLC101672-GIO). If underwriting is required, submita fully completed, signed state-specific In-Force Change Application (AGLC100386).2 - Q. What products can a term product NOT be converted to?A. Survivorship ProductsROP term or other term products, unless the contract provides otherwise(NOTE: Effective with the version introduced in August 2009, AG Select-a-Term provides a conversionprivilege within the first 24 months to an AG ROP Select-a-Term policy.)3 - Q. What products can a term product be converted to beyond the 5th policy anniversary date?A. For face amounts of $50,000 and higher, Elite Transition UL is the only product available for conversionbeyond the 5th policy anniversary. For face amounts below $50,000, American Elite Whole Life SM is the onlyproduct available for conversion beyond the 5th policy anniversary4 - Q. Is there a grace period for submitting conversion paperwork beyond the conversion expiry date orthe 5th policy anniversary date?A. No. Paperwork must be received in the Home Office prior to the expiry/anniversary date.5 - Q. What benefits are automatically transferred from the old policy to the new policy without evidence ofinsurability?A. The two benefits that can be automatically transferred are Waiver of Premium (WP) (if available on theproduct converting to) and Child Rider.6 - Q. Can an increase in the death benefit or additions of riders be made to the policy?A. Yes, any increase in the death benefit and/or additions of riders will require completion of an application,evidence of insurability and Underwriting Department approval.7 - Q. What products are available for Guaranteed Insurability Options?A. American Elite Whole Life is the only product available when exercising Guaranteed Insurability Options.8 - Q. Can a term policy be converted to another term policy?A. A term product cannot be converted to another term product unless the contract language specificallyprovides a conversion to term privilege. There are some current AG Select-a-Term products that provide aconversion privilege within the first 2 policy years to the equivalent AG ROP Select-a-Term policy. (NOTE:Effective with the version introduced in August 2009, AG Select-a-Term provides a conversion privilegewithin the first 24 months to an AG ROP Select-a-Term.)9 - Q. How do I verify whether a term policy has the endorsement to convert to AG ROP Select-a-Termduring the first 24 months?A. Contact the Producer Call Team at 1-877-200-0220. Policies issued prior to August 1, 2009 will not havethis endorsement.10 - Q. Will commissions be adjusted on conversions from AG Select-a-Term to AG ROP Select-a-Term?A. First year commissions will be paid on the increase in premium only.Page 1 of 4 Updated January 2010
Frequently Asked Questions (FAQ)Term Policy ConversionsEXISTING FAQs11- Q. Can the cash value of a return of premium term policy be distributed to the owner when convertingto a permanent plan?A. Yes. The policy owner can take the cash value in cash or roll it into the new permanent plan.12- Q. Can you retain the balance of the face amount on a return of premium term policy if completing apartial conversion?A. No. Face decreases cannot be processed on ROP term policies. You can request a partial conversion;however, the remaining balance will be terminated.13- Q. How do I obtain a UL illustration for a conversion?A. Use your regular new business illustration software or contact your <strong>Marketing</strong> Support staff for assistance.14- Q. How do I verify the conversion privilege and underwriting class for a policy?A. Contact the Producer Call Team at 1-877-200-0220.15- Q. What product is available if the converting term policy’s face amount is less than the UL policyminimum required?A. American Elite Whole Life16- Q. Can a conversion policy be backdated?A. Yes. A conversion can be backdated 6 months from the application received date under the followingconditions:• To save issue age but NOT to save conversion eligibility. A new policy cannot be backdated to saveconversion eligibility if the conversion period has expired. This includes the 60 month eligibility guidelineproducts other than the Elite Transition UL.• Policy must be paid current• Conversion privilege with respect to age and duration must be in effect• New policy is not an indexed ULNote: New policies issued as a result of the policy owner exercising the GIO cannot be backdated.17- Q. Can a policy be converted if the policy is still within the conversion period but the insured is past themaximum conversion age?A. In order to convert, the insured must be at or younger than the maximum conversion age AND the policyconversion period cannot have expired.18- Q. Can a policy be converted if the insured’s age has not exceeded the maximum conversion age but theanniversary is beyond the conversion period.A. In order to convert, the insured must be at or younger than the maximum conversion age AND the policyconversion period cannot have expired.19- Q. Can a policy be converted that is currently being paid by premium waiver?A. The policy CANNOT be converted unless the policy states that the policy can be converted while premiumsare being paid by premium waiver.20- Q. Can a partial conversion be processed if it reduces the face amount of the old policy below theminimum?A. The existing term policy must remain at or above the minimum plan death benefit required.Page 2 of 4 Updated January 2010
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