Industry Policy Provisions and Starting Your Journey

Industry Policy Provisions & Starting your Journey
This module will cover discussions about the legal aspects of life insurance, and general policy
provisions to the insurance industry. You will also discover your Sun Life journey.
Lesson 1 of 34
Introduction
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Complete the content above before moving on.

Next: Learning Objectives
Find out what you will be learning in this module.
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Lesson 2 of 34
Learning Objectives
In this module, you will:

Explore general policy provisions to the insurance
industry.
Learn about Annuities
Discover the importance of Ethics
Start your Sun Life Journey
Next: Topic 8 - Legal Aspects of Life Insurance

You will gain a deeper awareness of how life insurance works.
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Lesson 3 of 34
Topic Overview
In order for you to be able to successfully market Sun Life products and your services to potential clients as an
advisor, you need to have a deeper awareness of how life insurance works as a contract. In this topic, we will discuss
the legal aspects that revolves around a life insurance policy.
A life insurance policy is a legal contract between the two parties of the contract, the policyowner and the life
insurance company. Since the company is bound by all the promises in the policy if the contract is in force, it is
important to know what type of contract a life insurance policy is.
By the end of this topic, you should be able to:
Define the eligibility and qualification of a
policy owner and insurance company
Define insurable interest
Determine how insurable interest is established
Next: Life Insurance as a Contract

You will have a deeper awareness of how life insurance works as you go through life insurance as a contract.
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Lesson 4 of 34
Life Insurance as a Contract
We mentioned earlier that a life insurance policy is a contract of our promise of protection to our client. As there are
many types of legal contracts, here are the types of contracts that may help you understand what an insurance policy
is.
Valued Contract
–
A policy specifies the amount of benefit that will be payable when a covered loss occurs,
regardless of the actual amount of the loss that was incurred.
Informal Contract
–
A policy is enforceable because the parties to the contract met requirements concerning
the substance of agreement.
Unilateral Contract
–
In a life insurance policy, only one of the parties to the contract, in this case the insurer,
has a legally enforceable obligation.
Aleatory Contract
–
In a life insurance policy, one party provides something in value to another party in
exchange for a conditional promise. A conditional promise is a promise to perform a
stated act if a specified, uncertain event occurs, then the promise must be performed; if
the event does not occur, the promise will not be performed. Also under an Aleatory
contract, if the specified event occurs, one party may then receive something of greater
value than that party gave.
Contract of Adhesion
–
In a life insurance policy, one party, in this case, the insurer, prepares the contract which the other party, in this case,
the client, may accept or reject as a whole, without any bargaining between the parties to the agreement.
To know more about the different types of contract, please download this file.
Life Insurance as a Contract.pdf

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 For the Life Insurance policy to be valid, there must be an offer and
acceptance.
O F F E R A N D A C C E P TA N C E CONDITIONAL CONTRACT AND RECE...
One party must make an offer and another party must accept that offer in order to form a
legal contract. For example, if the company issues the policy at standard rates, this is
considered an offer and, to form a contract, the applicant accepts it by paying the
required premium.
O F F E R A N D A C C E P TA N C E CONDITIONAL CONTRACT AND RECE...
In most cases, when an advisor receives the premium payment from the client, he/she
issues a conditional receipt to acknowledge the payment. With this, the applicant and the
company have formed a conditional contract. This contract is contingent upon the
conditions that existed at the time the application was signed or when any later medical
exam was completed. When a qualified applicant pays the premium, the risk is taken
from the person, and assumed by the company.
The conditional receipt can provide insurance coverage earlier than the policy delivery
date if certain requirements are met. But if the requirements are not met or the
application is declined, the company may terminate the initial coverage.
The client and the company have agreed and entered into a contract upon payment of the
first premium, but since an actual contract is yet to be drafted/made available, the
company gives a conditional (or temporary) contract.
Next: Legal Capacity

You will take a look at different types of contracts and their scenarios.
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Lesson 5 of 34
Legal Capacity
A Life Insurance company has the legal capacity to enter into a life insurance contract if it:
Put a check mark as you finish reading each item.
Is registered with the Securities and Exchange Commission (SEC).
Is accredited and regulated by the Insurance Commission (IC).
Has a minimum capitalization as prescribed by the Insurance Commission (IC).
A policyowner has the legal capacity to enter into a life insurance contract if he/she is:
Of sound mind and body.
Of legal age (18 years old).

Next: Insurable Interests

You will learn what insurable interest is and how it is established.
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Lesson 6 of 34
Insurable Interests
Insurable Interest
Insurable Interest exists when a policyowner has reasonable chance of suffering financial
loss if the person who is insured dies.
It should also exist between the insured and the named beneficiaries.
Its existence during inception of the policy is required.
According to the Insurance Code, here are some relationships where insurable interest may exist. Every person has
an insurable interest in the life and health:
(Put a check mark on each item after you read them).
Of himself, of his spouse and of his children
Of any person on whom he depends wholly or in part for education or support, or in whom he has a
pecuniary interest
Of any person under a legal obligation to him for the payment of money, or respecting property or
services, of which death or illness might delay or prevent the performance
Of any person upon whose life any estate or interest vested in him depends
Next: Let's Review

Let's see what you have learned.
LET'S REVIEW
Lesson 7 of 34
Let's Review
Specifies the amount of benefit that will be payable when a covered loss
occurs, regardless of the actual amount that was incurred.
Contract of Indemnity
Informal Contract
Valued Contract
Unilateral Contract
SUBMIT
Only one of the parties (insurer) to the contract has legally enforceable
promises.
Bilateral Contract
Valued Contract
Contract of Indemnity
Unilateral Contract
SUBMIT
Next: Topic Summary
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Lesson 8 of 34
Topic Summary
In Legal Aspects of Life Insurance, you have learned:
What life insurance is as a contract

The legal capacity of a life insurance company
What insurable interest is
Next: Topic 9 - Policy Provisions

You will learn all about the provisions in the contract.
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Lesson 9 of 34
Topic Overview
You will learn all about the provisions in the contract. This topic will inform you about necessary information
regarding your client's policy, while he is alive and the policy is active, when he wants to quit paying premiums or
when he passes away.
What you will learn are terms that are general to the insurance industry.

Describe the different provisions in a policy
contract
Determine the policy provision applicable to a
given scenario
Next: Provisions in the Contract
Let's take a look at general policy provisions.
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Lesson 10 of 34
Provisions in the Contract
Below are the three main circumstances of an insured:
While the insured is alive and the policy is active
When the insured wants to stop paying
When the insured dies
To know more in detail, click Continue.
C O NT I NU E
While the insured is alive and the policy is active, the policyowner can exercise his rights to the policy. The
following are the provisions in his contract:
Entire Contract Clause
The policyowner is assured that every word of the contract is contained in

the contract. The contract is made up of the policy and the attached
application including a report of physical condition. The contract cannot
be affected by later changes, since all the company's obligations and the
policyowner's rights have already been written.
The company accepts the applicant's statements as representation. This

means that, to the best of the applicant's knowledge, the statements are
true. Even if the statements are found to be untrue, the contract may still
hold. The company would have to prove that it relied so heavily on an
untrue statement that it otherwise would not have issued the policy, or
would have issued it with modifications.
Ownership
This provision states that policyowners have valuable rights under their
insurance contracts. In this provision, policyowners have the right to
assign, transfer, or have their policies amended. They can also change
their beneficiaries and exercise every option and privilege provided in
their contracts or allowed by company practice.
They also have full right to cash values and dividends, if any, under their
policies. They may also transfer these rights to others if they so desire.
Premium Payment
Premium is a sum of money given by the insured as a consideration for the

promise by the insurer's promise to indemnify or replace the loss. This is
the amount of money that must be regularly paid to put the insurance in
force and keep it active. The Premium Payment clause tells that premiums
may be paid either annually, semi-annually and quarterly.
After the contract becomes binding with the payment of the first premium,
the payment of the subsequent premiums is entirely dependent on the will
of the insured. Therefore, as long as the policyowner keeps on paying the
premiums, the company is bound to carry out its part of the contract,
whatever the future may be.
Grace Period
The Grace Period Provision occurs when the policyowner neglects to pay
premiums on the due date of the policy. This provision protects the policy
from lapsing.
Policy Loan
One of the privileges the insured policyowner can take advantage of

during the lifetime of the policy is the right to loan against its cash value.
Cash Values are the guaranteed amount received in case the plan is
terminated prior to the death of the insured or the maturity of the policy.
These are the savings element of policies. Policies generally, acquire cash
values after the payment of three consecutive annual premiums.
Within prescribed limits, policyowners may borrow money against their

policies if they wish. However, the amount should not exceed the cash
value of the policy. These loans may not be called by the company and the
policyowners may repay the loans at any time but be careful for interest on
the loans will be charged to the policyowner.
If the loan is unpaid at the time of death of the insured, loan balances and
any interest due are deducted from the proceeds of the policy at the time of
claim settlement. If it is not paid at policy anniversary, the company may
increase the present loan by the interest.
Assignment
A life insurance policy is an asset. Since it is the policyowner's property,

they have the right to transfer or assign them. If they wish to secure loans,
they, as assignors can assign their policies temporarily to the lenders as
security for the loan.
In this scenario, the policy is said to be assigned. There are two types of
assignment, Absolute and Collateral. One can transfer or assign all the
rights of the policy to another, called Absolute Assignment. This also
exempts the assignee from Estate Tax. For example, a company who
insured its Key Man, may assign the policy to him after he retires, making
him the new policyowner.
Some banks, use life insurance policies as a form of collateral to meet

unpaid obligations. This is called Collateral Assignment. Here, the bank
would require a percentage of the death proceeds that is commensurate to
what the policyowner owes the bank. The assignment clause sets forth the
procedure of assigning one's policy. Because a life insurance company is
involved, the policyowner must notify the company of any assignment and
the company will accept the validity of the assignment without question.
This has to be done in writing and should be filed with the company. The
recipient of a policy is called the assignee.
Dividends
Dividends are paid on participating policies. At the end of the year, the
company issuing participating policies looks over the year's operations.
If there is demonstrated good mortality experience which means that there

were fewer claims than anticipated, investment earnings were better than
expected and expenses were less than estimated, then a surplus results.
This is called "Quality Business."
The company can return a part of the policyowner's premium in the form
of dividends. Therefore, the value or amount of dividends are NOT
GUARANTEED.
Dividend Options
To get your dividends, there are 5 options to choose from. Policyowners

may:
1. Choose to have their dividends paid in cash.

2. Use them to help reduce premium payments.
3. Leave them with the company to accumulate and earn interest. This will
give the policyowner maximum available cash in case of emergencies.
4. Use them to purchase paid-up insurance or paid-up additions.
5. Use them to buy Yearly Renewable Term insurance with any extra cash
remaining on deposit with the company and earning interest at a rate to be
declared by the company from time to time

 TIP: Don't forget the order of these dividend options. To make it easier to remember, use the
acronym CRIPY.
When the insured stops paying, they may opt for either Non-Forfeiture Options or Reinstatement.
Non-Forfeiture Options
Non-Forfeiture Options are options a policyowner has when they want to stop paying for
their premiums on whole life and endowment policies. Companies may also elect an
automatic non-forfeiture option upon the application.
These Non-Forfeiture Options are:
Cash Surrender Value (CSV)
Reduced Paid-Up (RPU)
Extended Term Insurance (ETI)
Automatic Premium Loan (APL)

Cash Surrender Value
The Cash Surrender Value option gives the policyowner the right to
exchange the policy for its equivalent cash value. The cash value is the
savings element of permanent life insurance policies. This option is drastic
and final. The policyowner can claim an immediate payment of cash but
when this option is applied, the contract stops completely.
Reduced Paid-Up
The Reduced Paid-Up option can also be referred to as Paid-Up Insurance.

In this option, when the policyowner is unable to make premium payments
but still needs life insurance protection, the option will take the cash value
built up to purchase paid-up insurance. This means that because the
policyowner will stop paying premiums, the new face amount of the client
will be smaller but his life insurance protection will still continue until age
100.
Extended Term Insurance
In the Extended Term Insurance option, when the policyowner is unable to

continue premium payments, the company will continue to protect him for
the original face amount but only until a specified period. In this option,
the cash value is used to buy a term insurance contract which extends the
period of protection even though no more premiums are being paid. When
there is no non-forfeiture option selected, Extended Term Insurance,
usually takes effect.
Automatic Premium Loan
In the Automatic Premium Loan option, the company lends to the insured
such an amount from the cash value to pay for overdue premiums. This
can be done as long as there is sufficient cash value to keep the policy
active. The policy will also remain in force for only such period. After the
cash value has been exhausted, the policy will lapse unless premium
payments are resumed and loans are paid.
Reinstatement
Reinstatement is a provision that may revive or save a policy even when it has already lapsed. Unless certain
conditions apply, the policyowner has the right to reinstate the lapsed policy and bring its value up-to-date. However,
this provision does not apply to policies that have been surrendered already for their equivalent cash value.
The policyowner has three years from the date the policy lapsed to reinstate the policy.
After three years of lapsation, the policyowner cannot revive his policy anymore. In some companies, reinstatement
can be done even when the policy has lapsed for five years.
The policyowner must also furnish evidence of insurability which is satisfactory to the insurance company.
Flip each card to know the two options of reinstatement.
With Pure Reinstatement, the

policyowner pays back all past due
premiums plus interest on these
premiums. The policyowner would
also have to pay all outstanding
loans plus interest due and even
prove insurability. The contestable
period and suicide clause starts all
With Redating, a new premium

would be charged to the
policyowner based on the
policyowner's new attained age
and a new contestable period and
suicide clause starts over. The
premiums that were paid will be
applied to the lapsed policy years

When the insured dies, the following circumstances are looked into:
Statement of Age
Contestability
Manner of Death
Beneficiary
Settlement
Statement of Age
The age of the insured is very important to determine the correct premium
rate for life insurance. If there has been a misunderstanding about the
applicant's age, the company would be acting on wrong information in
setting the premium rate for the policy. Thus, whenever the company
learns, after the policy has been issued, that the wrong age was used to
establish the premium, an adjustment must be made either in the amount
of insurance protection proceeds the policyowner may receive upon death.
Contestability
Through this clause, the company is given two years to rescind or contest
the validity of the life insurance contract by reason of concealment or
misrepresentation upon death of the insured. The incontestable period will
not begin until the policy has been in force for two years during the
lifetime of the insured.
The company has the right to question the statements in any application
and the incontestable clause sets that limit to the length of time that the
company holds that right. After a period of two years of the policy being
in force and the company did not raise any objection during that period,
there can be no objections about the payment of proceeds at the insured's
death.
Manner of Death
For the protection of the company and its policyowners, a suicide clause is
necessary to discourage financially desperate people from purchasing
policies with suicide already in mind.
If an insured takes his own life within two years of the policy being in
force, the company will pay the beneficiary a refund of all the premiums
paid by the policyowner. However, if the suicide takes place after two
years, the company will pay the full proceeds as if the reason for death
was of natural cause.
Beneficiary
Since the policyowner's purpose in purchasing insurance is to provide for

the security of the beneficiaries, it is very important to identify them
clearly. Beneficiaries are the ones who are designated by the terms of the
policy to receive the proceeds of the policy.
Also, according to the law, anyone can be named a beneficiary except a

public enemy and a common-law spouse. The common-law spouse cannot
be designated as a beneficiary if the insured's legal partner is still living
and the previous marriage has not been dissolved. As long as there is a
legal impediment to enter into a valid marriage, a man and a woman living
in common-law relationship can only designate their children as
beneficiaries.
Settlement
Settlement options are ways wherein the company can hold in trust the
proceeds of the policy. The company guarantees the absolute safety of
funds and keeps them profitably invested so that they will earn a fair rate
of interest.
Next: Types of Beneficiary

You will identify the types of beneficiary. It is important to identify them clearly as beneficiaries are the ones who are
designated by the terms of the policy to receive the proceeds of the policy.
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Lesson 11 of 34
Types of Beneficiary
Flip each card to know more.
Since the policyowner's purpose in

purchasing insurance is to provide
for the security of the
beneficiaries, it is very important
to identify them clearly.
Beneficiaries are the ones who are
designated by the terms of the
policy to receive the proceeds of
A secondary or contingent
beneficiary is a person nominated
by the policyowner to receive the
proceeds of the policy in case of
death of the primary beneficiary.
 Policyowners can name more than one beneficiary in any category and specify how much of death
proceeds each one will receive. If there is no named beneficiary in the policy, the proceeds will go
to the insured's estate A person's estate is the sum of all the properties of an individual. This
includes cars, savings accounts, house and lots, businesses, land and the like.
A policyowner may also state a beneficiary's revocabilty. This means they have the right whether or not they want to
retain or change their beneficiaries.
Revocable
When policyowners exercise all

their ownership rights by changing
beneficiaries, they designate their
beneficiaries as revocable. These
beneficiaries have mere
expectancies in relation to the
Irrevocable
If policyowners tell the company

they want to name certain
beneficiaries and give up the right
to name anyone else at a later time,
then they designate irrevocable
beneficiaries This affects all the
 Policyowners can regain full control of their policy if the irrevocable beneficiary gives his
written consent and if the policyowner outlives the irrevocable beneficiary.
Next: Settlement Options

You will discover the ways wherein the company can hold in trust the proceeds of the policy.
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Lesson 12 of 34
Settlement Options
Lump Sum | Interest Option
Previously, claims were paid out in lump sum. However, some beneficiaries made unwise investments or
mismanaged the money and the proceeds were quickly used up.
Fixed Period Option | Fixed Income Option
In this option, the company pays the beneficiary equal amounts at regular intervals over a specified period of years.
Both the principal amount and interest earnings are paid out.
The amount of each installment is determined by the length of desired period of income.
If this option is selected, the policy proceeds are used to pay out a specified amount of income as long as the
proceeds last. It pays out both the principal proceeds and earnings from interest.
Life Income Option
Under this option, the beneficiary receives a guaranteed regular income, not for a specified period of years, not as
long as the proceeds last but for the primary beneficiary's entire lifetime, no matter how long he lives.
Next: Let's Review

LET'S REVIEW
Lesson 13 of 34
Let's Review
This provision occurs when the policyowner neglects to pay premiums on

the due date of the policy. This provision protects the policy from lapsing.
Redating Provision
Insurable Interest Provision
Grace Period Provision
Policy Loan Provision
Premium Payment Provision
SUBMIT
Pays the beneficiary equal amounts at regular intervals over a specified
period of years.
Lump Sum
Fixed Period Option
Interest Option
Fixed Income Option
Life Income Option
SUBMIT
Next: Topic Summary
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Lesson 14 of 34
Topic Summary
In Policy Provisions, you have learned:
The three main circumstances of an insured

The General Policy Provisions
Next: Topic 10 - Annuities

You will learn what annuity is all about.
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Lesson 15 of 34
Topic Overview
Before we dive into more details, let us first define and find out what annuity is.

Explain what Annuity is
What is Annuity?
An annuity is not really a life insurance policy. It is merely a purchase of income. Annuities answer the needs of
people who would want a steady flow of income during their later years. Individuals who purchase annuities are
called annuitants.
An annuity is a scientific liquidation of both capital and interest with income payments so calculated that the annuity
income is not depleted before the person receiving it dies.
So how are annuities different from life insurance contracts?
patience.)
Next: Types of Annuities

You will explore the different types of annuities.
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Lesson 16 of 34
Types of Annuities
The two types of annuities are Fixed Annuities and Variable Annuities. Click Continue to know more.
C O NT I NU E
Fixed Annuities
Fixed Annuities are contracts where the insurance company makes fixed payments to the annuitant for the term
of the contract, usually until the annuitant dies. The company guarantees both earnings and the principal.
Here are some forms of fixed annuities:
Single Premium Immediate

–
Entire premium is deposited in the annuity fund at one time

Income begins immediately
Single Premium Deferred

–
Annuity fund is purchased through a single payment
Income begins years after the payment is made

Installment Deferred
–
Provides pension for life; no life insurance coverage
Fund is built up through a series of regular payments

Variable annuities
Variable annuities cannot guarantee an interest yield from investments because its results are usually geared
mostly to a portfolio of common stocks.
Variable annuities could be:

Conventional
–
Investment yield is guaranteed and is based on fixed-dollar investments
Specified interest and maturity values
Deferred
–
Period of time (allow) the fund to accumulate
Value may rise and fall depending on the investment results

Next: Annuity Settlement

You will discover the different annuity settlement arrangements.
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Lesson 17 of 34
Annuity Settlement
Annuities have different settlement arrangements, especially when the annuitant passes away after annuity income
has already been provided. They are as follows:
  
 

Life Annuity
Provides a series of periodic payments to the annuitant
Payment for the rest of his life


Cash Refund Annuity
If annuitant dies, the beneficiary will receive cash payment equal to annuity fund
Cash payment will be less the amount already paid out


Installment Refund Annuity
If annuitant dies, the beneficiary will receive the same monthly income
Installments will be paid until annuity fund is exhausted


Joint and Full Survivor Annuity
Income that is paid out to the annuitant and the beneficiary
If either dies, the same income continues to the survivor for life
When the survivor dies, no further payments are made to anyone


Period Certain Annuity
if annuitant dies within a specified period, such as 10 or 20 years, payments will continue until
the end of the period.
Next: Let's Review

LET'S REVIEW
Lesson 18 of 34
Let's Review
Annuities have different settlement arrangements. Select all that apply.
Life Annuity
Cash Refund Annuity
Installment Refund Annuity
Period Certain Annuity
Joint and Full Survivor Annuity
SUBMIT
Next: Topic Summary
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Lesson 19 of 34
Topic Summary
In Annuities, you have learned:
What annuity is all about.
Next: Topic 11 - Ethics

You will learn about the importance of selling ethically in the life insurance industry.
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Lesson 20 of 34
Topic Overview
In this topic, you will learn ethical selling in the life insurance industry. We will also cover the common unethical
practices which will help you understand the need to observe proper ethics.

Define common unethical practices
Next: Unethical Practices

You will take a look at different common unethical practices.
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Lesson 21 of 34
Unethical Practices
patience.)
Next: Let's Review

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Lesson 22 of 34
Let's Review
These are the common unethical practices that will help you understand the
need to observe proper ethics. Select all that apply.
Twisting
Knocking
Overloading
Rebating
Misrepresentation
Selling
Authorizing
SUBMIT
This practice refers to when a person makes derogatory remarks about competing
policies, advisors or companies.
Twisting
Overloading
Knocking
Rebating
Misinterpretation
SUBMIT
This practice refers to when an advisor offers part of their commission to their client, or
accepting a smaller premium than the one stipulated in the policy.
Twisting
Overloading
Knocking
Rebating
Misinterpretation
SUBMIT
Next: Topic Summary
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Lesson 23 of 34
Topic Summary
In Ethics, you have learned:
The common unethical practices which should

guide you in your activities.
Next: Topic 12 - Starting Your Sun Life Journey

You will discusses the steps in preparing and taking either of the prescribed examinations to become a Licensed
Financial Advisor.
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Lesson 24 of 34
Topic Overview
This topic discusses the steps in preparing and taking either of the prescribed examinations to become a Licensed
Financial Advisor.

Define IC Exam and its procedure
Define IIAP Validating Exam and its procedure
Next: The Insurance Commission Licensing Exam

You will explore the requirements and procedure when taking the IC Licensing Exam.
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Lesson 25 of 34
The Insurance Commission Licensing Exam
After you successfully complete the Sun Life Insurance Concepts Course, you will then select between the two
licensing exam options - the IC Licensing Exam or IIAP-Validating Final Exam.
Let us begin with the requirements and procedure of the IC Licensing Exam.
Option 1: Insurance Commission Licensing Exam
If you opt to take the IC Licensing Exam, these are the steps to follow.
Click Start to begin.

Step 1
Pay Exam Fee
Payment should be coursed through any of Sun Life's Client Centers and the following
must be indicated:
Purpose of Payment (Particular): IC-ACE Examination
Remarks: IC-Exam (56225) Trad and VUL or Trad only or VUL only
Payor: Name of Recruit/Examinee and Branch
Amount: PhP 1,010.00 Trad / PhP 1,010.00 VUL

Step 2
Email COMPLETE requirements (Trad and/or VUL) to Licensing

Exams Associates concerned and attach the following scanned
documents:
For IC-ACE:
Completely filled-out IC- Excel Information sheet (available at the Branch)
Official Receipt of IC- Licensing Exam Fee (From item #1)
2x2” ID Picture in business attire, with white background and name plate.
Insurance Concepts Certificate of Completion – Trad and VUL or Trad only or

VUL only (Depending on type of exam to be taken)
Step 3
Licensing Exams Associates will assign the exam schedule based on

the available slots in the IC-ACE system.
Please note that Thursday is the weekly cut-off. Requirements received on a Friday will
be processed on the following Monday or the next immediate business day. Send
Request two weeks prior the exam date.
Step 4
IC-ACE system confirms the recruit's exam schedule.

Step 5
Licensing Exam Associates will forward the following details to the recruit's indicated
email in the information sheet:
Exam date and time
IC-ACE user name and password
Certificate of Authority (CA) Application Form (Licensing Application Form)

Step 6
On the exam day
Recruit should bring all the necessary documents to the Insurance Commission:
Government Issued ID (Driver’s License, SSS, GSIS, PRC Card)
Barangay or NBI Clearance
Official Receipt of Payment
Insurance Concepts Training Certificate
Printed email confirmation with username and password

Step 7
Take the exam. Result/s will be released right after.

Step 8
If the recruit fails the exam, there are two options:
Same day retake at IC
OPTION 1: If slots are available, the Insurance Commission can schedule a same-day
retake and payment amounting to PhP 1,010.00 should be paid directly to the Insurance
Commission.
Retake on a different day
OPTION 2: Retake on a different schedule must be coursed through SL, following the
same IC-ACE procedure:
Payment of examination fee in the amount of PhP 1,010.00 in any Sun Life Client
Center.
Re-take examination date will still be subject to schedule availability.

Exam results should be included in the ACM file together with
other requirements.
***Same procedure for Cebu and Davao IC-ACE handled by Recruitment

Specialists***
Note that as per Insurance Commission, once the recruit has been confirmed for a
IC-ACE exam date, cancellation nor rescheduling will not be possible, exam fees will
be forfeited.

Below are the Insurance Commission - Special Exam Schedule and Confirmation
Guidelines. Please take the time to read the details.
Licensing Special Exams
1. Check email from Agency Recruitment & Licensing (Licensing Associates) on Special
Exams Schedule.
2. Recruits must complete Insurance Concepts Training for Trad and VUL
3. Pay the exam fee amounting to Php 1,010.00 (per exam) to any of our Sun Life Client
Centers.
Please indicate the following when paying:
Purpose of Payment (Particular): IC Examination
Remarks: IC Special Exam Fee (56225) Trad and VUL or Trad Only or VUL
Only
Payor: Name of Recruit/Examinee and Branch
Amount: PhP 1,010.00 Trad / PhP 1,010.00 VUL
4. Register recruit via SurveyGizmo.
Attach scanned copy of the following:
OR for the exam fee/s
Insurance Concepts Training Certificate/s
5. An email confirmation will be sent to the Manager and recruit for a successful registration
On the exam day, recruit should bring the following documents:

Government Issued ID (Driver’s License, SSS, GSIS, PRC Card)
Insurance Concepts Training Certificate/s
Ballpen
Filled-out Walk-in Examination Form with Picture (1x1)
Exam results will be forwarded to recruit’s respective branch and it should be included in the
ACM file together with other requirements
 Note that as per Insurance Commission, once the recruit has been confirmed for a specific
special exam date, cancellation nor rescheduling will not be possible, exam fees will be
forfeited.
*** Insurance Concepts Training (Trad and VUL) is a prerequisite to Insurance Commission
Licensure Exam***
Contact Persons Details: Download for reference
Contact Persons.pdf
134.4 KB
Exam Schedule
IC Manila Office: Exams conducted Tuesday to Friday starting at 8:30am. An Applicant who comes after 10:30
am shall not be allowed to take the examination on that day.
An applicant shall not be allowed to retake the exam within the same day.
Cebu and Davao IC Offices: Exams in the said venues shall be conducted every Wednesday. The requirements
shall be submitted to the district office at least five (5) days before the examination. Exam fees shall be paid at the IC
Manila Office.
After the Exam: Wait for your result. The results of the exam come out immediately. You can wait for the results
on the same day you took the exam. The test proctor will return one copy of the Application for Insurance Agent's
Examination form with the result stamped ("PASS" or "FAIL")
If you Pass, you have to submit the Application with results to Sun Life's Licensing Section so that you can be coded
as a Sun Life advisor.
If you Fail, you need to retake you will not be allowed to retake the exam on the same day. Ask your test proctor for
the next examination date.
*(IC Circular 2-2011 Dated: January 26,2011)
Next: The IIAP Validating Final Exam

You will explore the requirements and procedure when taking the IIAP Validating Final Exam.
LEARN MORE
Lesson 26 of 34
The IIAP Validating Final Exam
The second licensing exam option is the IIAP Validating Final Exam (VFE).
Let us take a look at the requirements and procedure of the IIAP Validating Final Exam.
Option 2: The IIAP Validating Final Exam
If you opt to take the IIAP Validating Final Exam, these are the steps to follow. Click Start to begin.
Step 1
Attend and complete SLTC including passing the re-validation exam.

Step 2
Pass the Simulated IIAP-VFE.

Step 3
Secure Form 0930 (Form 0788 for Regular VFEs) from Sun Life Sales Training and Development.
Step 4
Completely Fill out Form 0930 Don’t forget to attach your 1x1 photo (2 copies), and bring Photocopy of
Valid ID.
Step 5
Proceed to IIAP 26th Floor, Ayala-FGU Center 6811 Ayala Avenue, Makati to take exam.
Summary
The government administers these exams to have adequate control over the conduct of advisors, to
maintain high professional and ethical standards and to protect the public.
The passing score is 30 for a 50-item test
*(IC Circular 2-2011 Dated: January 26,2011)

Exam Schedule
Walk-in VFE Makati Office Office: Every Saturday mornings administered by IIAP 26th
Floor, Ayala-FGU Center 6811 Ayala Avenue, Makati. Schedule is on a first come, first
served basis. An Applicant who comes after 8:00 am shall not be allowed to take the
examination on that day. An applicant shall not be allowed to retake the exam within the
same day.
Regular VFE: Once-a-month in specified nation-wide venues administered by deputized
proctors.
Luzon – Baguio, Batangas, Cabanatuan, Cauayan, Dagupan, Legaspi, Lucena, Naga,

Puerto Princesa, San Fernando (La Union), Tuguegarao, (Later: Laoag)
Visayas – Bacolod, Kalibo,Tacloban, (Later: Cebu, Iloilo, Dumaguete)
Mindanao – Butuan City, Dipolog City, Ozamis City, Zamboanga City, (Later:
Cagayan De Oro, General Santos, Davao)
Next: Additional Information
Take a look at additional details that will help you further.
LEARN MORE
Lesson 27 of 34
Additional Information
Licensing Process Flow

Please take the time to read and understand the process flow provided below.
Insurance Commission Map
And to help guide you on your journey, take a look at the Insurance Commission map once again.
Next: Let's Review
LET'S REVIEW
Lesson 28 of 34
Let's Review
Below are the steps to take if you opt in choosing the IC Licensing Exam.
Match them according to step number.
Pay exam fee Step 1
Email COMPLETE
requirements (Trad and/or
Step 2
VUL) to Licensing Exams
Associates concerned
Licensing Exams Associates

will assign the exam schedule Step 3
based on the available slots
IC-ACE system confirms the

Step 4
recruit's exam schedule
Licensing Exam Associates
will forward the details to the Step 5
recruit's indicated email
Recruit should bring all the

necessary documents to the Step 6
Insurance Commission
Take the exam. Result/s will be

Step 7
released right after
If the recruit fails the exam,

they can - Same day retake at Step 8
IC or on a different day
SUBMIT
Step 3 in taking the IIAP Validating Final Exam is Securing Form 0930
(Form 0788 for Regular VFEs) from Sun Life Sales Training and
Development.
True
False
SUBMIT
Next: Topic Summary
LEARN MORE
Lesson 29 of 34
Topic Summary
In Starting Your Sun Life Journey, you have learned:
The requirements and procedure of the IC Exam

and IIAP Validating Final Exam
Next: Glossary
GLOSSARY
Lesson 30 of 34
Glossary
Here are some terms and definitions you learned from this module.
Insurable Interest
–
Insurable Interest exists when a policyowner has reasonable chance of suffering

financial loss if the person who is insured dies.
It should also exist between the insured and the named beneficiaries.
Its existence during inception of the policy is required.
Premium Payment
–
Premium is a sum of money given by the insured policyowner as a consideration for the
promise by the insurer's promise to indemnify or replace the loss.

–
The Cash Surrender Value option gives the policyowner the right to exchange the policy
for its equivalent cash value.

–
In the Extended Term Insurance option, when the policyowner is unable to continue
premium payments, the company will continue to protect him for the original face
amount but only until a specified period.
Fixed Annuities
–
Are contracts where the insurance company makes fixed payments to the annuitant for
the term of the contract, usually until the annuitant dies. The company guarantees both
earnings and the principal.
Variable annuities
–
Cannot guarantee an interest yield from investments because its results are usually
geared mostly to a portfolio of common stocks.
Twisting
–
Persuading the person to lapse or surrender a policy in order to purchase a new one. Also
called Replacement.
Knocking
–
Making derogatory remarks about competing policies, advisors or companies.
Next: Knowledge Check

Let's see how much you've learned.
LEARN MORE
Lesson 31 of 34
Knowledge Check
Question
01/06
_____________________ exists when a policyowner has reasonable chance of suffering financial

loss if the person who is insured dies.
Insurance Policy
Insurable Interest
Insurance Capacity
Insurable Delivery
Question
02/06
This option gives the policyowner the right to exchange the policy for its equivalent cash value.
Automatic Premium Loan
Reduced Paid-Up
Question
03/06
___________________ are contracts where the insurance company makes fixed payments to the
annuitant for the term of the contract, usually until the annuitant dies. The company guarantees both
earnings and the principal.
Fixed Annuities
Variable Annuities
Bi Annual Annuities
Yearly Annuities
Question
04/06
The insurance industry relies greatly on public trust.
True
False
Question
05/06
This type of unethical practice is done when an advisor persuades a client into surrendering an
existing policy to purchase a new one.
Twisting
Knocking
Overloading
Rebating
Misinterpretation
Question
06/06
This is considered an unethical practice when an advisor provides misstatement of material facts for
insurance.
Twisting
Knocking
Overloading
Rebating
Misinterpretation
Lesson 32 of 34
Summary
Let’s review the key concepts of this module.


A Life Insurance company has the legal capacity to enter into a life insurance contract if it:
Is registered with the Securities and Exchange Commission (SEC).
Is accredited and regulated by the Insurance Commission (IC).
Has a minimum capitalization as prescribed by the Insurance Commission (IC).


Policy Provisions
Necessary information regarding your client's policy, while he is alive and the policy is active,
when he wants to quit paying premiums or when he passes away.

Annuity
An annuity is not really a life insurance policy. It is merely a purchase of income. Annuities
answer the needs of people who would want a steady flow of income during their later years.
Individuals who purchase annuities are called annuitants.
An annuity is a scientific liquidation of both capital and interest with income payments so
calculated that the annuity income is not depleted before the person receiving it dies.

Ethics
The insurance industry relies greatly on public trust. That is why insurance companies promote
and uphold high standards of professional selling. As a member of the field force, we are
committed to fair dealing, honesty, integrity and compliance with applicable laws in the conduct
of your business.
Achievement Badge
You are about to complete the module.
CONGRATULATIONS
Lesson 33 of 34
Congratulations!
You have completed Topics 8, 9, 10, 11, 12.
You earn a badge!

Next: Downloadable Resources
You may download the handouts for your review.
DOWNLOAD
Lesson 34 of 34
Downloadable Resources
Click the PDF document to download the module handout.
Industry_Policy_Provisions_and_Starting_your_Journey.pdf
25.9 MB
Click the EXIT MODULE button to exit. You may proceed to the next module.
EXIT MODULE

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Industry Policy Provisions & Starting your Journey

Complete the content above before moving on.

In this module, you will:

Next: Topic 8 - Legal Aspects of Life Insurance

Next: Life Insurance as a Contract

Life Insurance as a Contract

Life Insurance as a Contract.pdf

Complete the content above before moving on.

O F F E R A N D A C C E P TA N C E CONDITIONAL CONTRACT AND RECE...

Next: Legal Capacity

Put a check mark as you finish reading each item.

Is registered with the Securities and Exchange Commission (SEC).

Is accredited and regulated by the Insurance Commission (IC).

Has a minimum capitalization as prescribed by the Insurance Commission (IC).

Complete the content above before moving on.

Of sound mind and body.

Of legal age (18 years old).

Next: Insurable Interests

Its existence during inception of the policy is required.

(Put a check mark on each item after you read them).

Of himself, of his spouse and of his children

Complete the content above before moving on.

Next: Let's Review

Next: Topic Summary

In Legal Aspects of Life Insurance, you have learned:

What life insurance is as a contract

Next: Topic 9 - Policy Provisions

By the end of this topic, you should be able to:

Provisions in the Contract

Below are the three main circumstances of an insured:

While the insured is alive and the policy is active

When the insured wants to stop paying

When the insured dies

To know more in detail, click Continue.

The policyowner is assured that every word of the contract is contained in

The company accepts the applicant's statements as representation. This

Premium is a sum of money given by the insured as a consideration for the

One of the privileges the insured policyowner can take advantage of

Within prescribed limits, policyowners may borrow money against their

A life insurance policy is an asset. Since it is the policyowner's property,

Some banks, use life insurance policies as a form of collateral to meet

If there is demonstrated good mortality experience which means that there

To get your dividends, there are 5 options to choose from. Policyowners

1. Choose to have their dividends paid in cash.

Complete the content above before moving on.

These Non-Forfeiture Options are:

Cash Surrender Value (CSV)

Reduced Paid-Up (RPU)

Extended Term Insurance (ETI)

Automatic Premium Loan (APL)

The Reduced Paid-Up option can also be referred to as Paid-Up Insurance.

In the Extended Term Insurance option, when the policyowner is unable to

Complete the content above before moving on.

With Pure Reinstatement, the

With Redating, a new premium

Complete the content above before moving on.

Since the policyowner's purpose in purchasing insurance is to provide for

Also, according to the law, anyone can be named a beneficiary except a

Complete the content above before moving on.

Next: Types of Beneficiary

Flip each card to know more.

Since the policyowner's purpose in

Complete the content above before moving on.

When policyowners exercise all