Exhibit (10-10)
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The Procter & Gamble Executive Group Life Insurance Policy (Additional Policy)
Group Control No. 363417
AETNA LIFE INSURANCE COMPANY
HARTFORD, CONNECTICUT
(Herein called the Insurance Company)
Group Policy No.: GL-363417 Policy Delivered In: Ohio
(State or other Jurisdiction)
Policy holder: THE PROCTER & GAMBLE COMPANY
Policy Signed: June 14, 1977 To Take Effect: April 13, 1977
This policy is a contract between the Policyholder and the Insurance Company and
shall be construed in accordance with the law of the jurisdiction in which it is
delivered.
In consideration of the payment by the Policyholder of premiums in the amounts
and at the times hereinafter provided, the Insurance company hereby agrees with
the Policyholder, subject to the terms appearing on this and the following pages
of this policy (including, if any, the riders, endorsements, and amendments, to
this policy which are signed by the Insurance Company), to pay benefits in
accordance with the terms of this policy. The obligations and the rights of all
persons under this policy shall be determined in accordance with the terms of
this policy.
In witness whereof the Insurance Company has signed this policy at Hartford,
Connecticut.
Aetna Life Insurance Company
/S/HARVEY P. BERMAN /S/WILLIAM O. BAILEY
Secretary President
/S/HELEN N. MATIJCZYK
Registrar
GROUP LIFE INSURANCE POLICY
INDEX
Page
Article I-GENERAL PROVISIONS.
Article II-BENEFITS.
Article III-TERMINATION OF INSURANCE.
Article IV-PREMIUMS.
Article V-DISCONTINUANCE OF POLICY.
Article VI-MISCELLANEOUS PROVISIONS.
COPY OF APPLICATION
Article I-GENERAL PROVISIONS 363417
Section 1. General Definitions
As used in this policy:
(a) The term "Employee Coverage" means only insurance as to an
employee.
(b) The term "date of issue" means the date this policy took
effect as shown on Page 1 of this policy.
(c) Commencing January 1, 1978, "policy anniversaries" shall be
deemed to occur on said date, and on the same day in each
succeeding year.
(d) The term "policy year" means a period commencing with the date
of issue of this policy, or a policy anniversary, and
terminating immediately prior to the next succeeding policy
anniversary.
(e) A "policy month" shall commence on the date of issue. Each
"policy month" thereafter shall be deemed to commence on the
first day of the calendar month.
(f) "Contributory insurance" means insurance for which an employee
makes written request to his Participant Employer and agrees
to make the required contributions to his Participant
Employer. "Non-contributory insurance" is insurance for which
an employee does not make written request nor contribute
toward the cost. This policy provides insurance on the
non-contributory basis.
(g) The term "Added Compensation" means the total amount of
additional remuneration:
1) awarded by the Board of Directors of The Procter &
Gamble Company, the Compensation Committee of The Procter
& Gamble Company or the Procter & Gamble Chief Executive
Officers and heads of the various subsidiary companies,
and
2) charges against the Executive Additional Remuneration
Reserve, but excluding any supplemental awards which
are made because of the limits imposed by the Employee
Retirement Income Security Act of 1974 on credits to the
Profit Sharing Trust Plan.
(h) The term "Total Compensation" means the sum of (a) base
salary plus, (b) added compensation.
Section 2. List of Participant Employers
An Employer shall be eligible to be included in this list as a
Participant Employer if such inclusion is not contrary to any
applicable insurance law of the state or other jurisdiction in which
this contract is delivered.
The Policyholder may act for and on behalf of any and all of the
Employers included in this list in all matters pertaining to this
contract, and every act done by the Policyholder, agreement made
between the Insurance company and the Policyholder, or notice given by
the Insurance Company to the Policyholder or by the Policyholder to the
Insurance Company, shall be binding on all such Employers.
Any eligible Employer may be added to this list as a Participant
Employer only upon written agreement between the Policyholder and the
Insurance Company and upon terms mutually agreeable to them.
An Employer shall be eliminated automatically from this list when this
contract is discontinued with respect to employees of such Employer, as
provided for elsewhere in this contract, but termination of an
Employer's status as a Participant Employer shall not relieve such
Employer from any obligations to the Insurance Company with respect to
the time such Employer was a Participant Employer under this contract.
This list shall, at any time, consist of those Employers which have
been included under this contract by written agreement between the
Policyholder and the Insurance Company, and which have not been
removed, in accordance with the above terms of this section.
Section 3. Employees to be Insured
(I) Employee Coverage
A. Employees Eligible:
All employees of a Participant Employer shall be eligible for
Employee Coverage except employees in the following classes:
(a) temporary or substitute employees (i.e.,
employees who are not classified by
such Employer as permanent employees);
(b) employees who are actively working for such
Employer on a part-time basis, but this
exceptions shall not apply in the case of a
regular, full-time, active employee of such
Employer if and while he is only temporarily
working for such Employer on a part-time
basis;
(c) regular full-time active employees who are
not key executives of The Procter &
Gamble Company or its subsidiaries.
Each employee in an eligible class who has completed six
months or more of continuous service on the date of issue
shall become eligible for Employee Coverage on that date, and
each other employee in an eligible class shall become eligible
for Employee Coverage on the date on which he completes six
months of continuous service.
Anything to the contrary notwithstanding, if an individual is
in the employ of or connected with two or more Participant
Employers, he shall not be eligible for multiple coverage
under this policy, but shall be treated the same as if he were
in the employ of or connected with a single Participant
Employer; the amount of insurance for which any such
individual shall be eligible under this policy shall under no
circumstances exceed the amount which would apply if all of
the Participant Employers with which he is employed or
connected were a single Participant Employer and if the
aggregate of the remuneration being paid to him by all such
Participant Employers were being paid to him by a single
Participant Employer. If any Participant Employer is a
partnership, the natural-person partners thereof shall be
considered to be employees within the meaning of this policy
if and while they are actively engaged in and devoting their
time on a substantially full-time basis to the conduct of the
business of the partnership. If any Participant Employer is an
individual proprietorship, the natural-person proprietor
thereof shall be considered to be an employee within the
meaning of this policy on the same terms as those applicable
to partners of a partnership.
B. Effective Dates of Insurance:
(1) As to contributory insurance, each employee who makes
written request to his Participant Employer for
Employee Coverage and agrees to make the required
contributions therefor to his Participant Employer is
to be insured for Employee Coverage on the date he
becomes eligible for Employee Coverage or on the date
he makes such request, whichever is later; provided,
however, that
(a) the Employee Coverage of any employee who makes
such written request after thirty-one days from the
date he becomes eligible, or who revokes any written
request previously made, shall become effective only
if and when the Insurance Company gives its written
consent; and
(b) any employee who is both disabled (i.e., ill or
injured) and away from work on the date Employee
Coverage is to become effective shall not be insured
until he actually returns to work on a full-time
basis.
(2) As to non-contributory insurance, each employee is to be
insured for Employee Coverage on the date he becomes eligible
therefor; provided, however, that any employee who is both
disabled (i.e., ill or injured) and away from work on the date
Employee Coverage is to become effective shall not be insured
until he actually returns to work on a full-time basis.
Section 4. Changes in Amounts of Insurance
The initial amount of insurance for an employee under any Title of this policy
shall conform to that provided for his classification.
As to contributory insurance, if, for any reason, the terms of any Title of this
policy warrant an amount of insurance for any employee greater or less than that
for which he is then insured, the amount of his insurance shall be increased or
reduced as follows: Any reduction in insurance because of attainment of a
specified age or because of retirement shall become effective on the employee's
"reduction date"; any other reduction in insurance shall become effective on the
date the employee makes a request therefor to his Participant Employer: any
increase in insurance shall become effective only in conformity with the terms
applicable with respect to the effecting of the initial insurance of employees
as set forth in Section 3 of Article I of this policy.
As to non-contributory insurance, if, for any reason, the terms of any Title of
this policy warrant an amount of insurance for any employee greater or less than
that for which he is then insured, the amount of his insurance shall be
increased or reduced to the applicable amount as specified in such Title;
provided, however, that in any instance in which an employee is both disables
(i.e., ill or injured) and not working on the date his insurance would otherwise
be increased, the effective date of the increase in insurance shall be deferred
until he actually returns to active work on a full-time basis.
A retroactive change in an employee's rate of earnings shall be deemed to be
effective on the date of the determination of the change in the rate of
earnings.
If the terms of Title ELIC provide for a reduction in the amount of any
employee's insurance under that Title because of attainment of a specified age
or because of retirement, no further increases or reduction will be made in the
amount of such employee's insurance under that Title because of a change in the
employee's classification or because of a change in the Schedule of Insurance in
accordance with the terms of this section after the first reduction because of
age or retirement becomes effective.
Article II-BENEFITS
TITLE ELIC-EMPLOYEES' LIFE INSURANCE COVERAGE
Section 1. Life Insurance Benefit
If an employee shall die while Employee Coverage is in force for the employee,
the Insurance Company shall pay, upon receipt of due proof of the death of such
employee-to the beneficiary determined in accordance with the terms of this
policy-the amount determined in accordance with the terms of this policy.
Schedule of Insurance
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Classification Amount of Insurance
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All employees An amount equal to 100% of the
employee's total compensation, the
resulting amount, if not an integral
multiple of $500 is to be taken to
the nearest integral multiple of
$500, but in no event shall the
amount of insurance be more than
$1,000,000 nor less than $4,000.
Continuation of Coverage for Retired Employees
If an employee, while insured under this Title, becomes retired from the service
of a Participant Employer, his employment, for the purposes of this policy, will
be continued while the Policyholder continues to make premium payments for such
employee's insurance, provided the following requirements are met:
The employee retires in accordance with the terms of his Participant
Employer's Qualified Pension Plan and will receive pension
consideration (other than a deferred vested pension) thereunder.
Employees retired prior to January 1, 1981 and eligible only for the amounts of
insurance shown in the schedule of insurance below.
Schedule of Insurance
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Classification Amount of Insurance
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All employees An amount equal to 100% of the
employee's Annual Rate of Basic
Earnings, the resulting amount, if
not an integral multiple of $500, to
be taken to the nest higher integral
multiple of $500, but in no event
shall the amount of insurance be
more than $400,000 nor less than
$4,000.
Article III-TERMINATION OF INSURANCE
Section 1. Employee Coverage
All insurance of any employee under this policy shall terminate at the earliest
time specified below:
(1) Upon discontinuance of the policy.
(2) Immediately when the employee's employment with a Participant
employer in the classes of employees eligible for insurance
terminates. Cessation of active work by an employee shall be
deemed to be termination of his employment, except that
(a) in the case of an absence from active work because of
sickness or injury, his employment may, for the
purposes of insurance under this policy, be deemed to
continue until terminated by his Participant
Employer, but in no case beyond twelve months from
the date such absence from active work started, or
(b) in the case of absence of an employee from active
work because of temporary lay-off or leave of absence
(other than leave for military service), his
employment may, for the purposes of insurance under
this policy, be deemed to continue until terminated
by his Participant Employer but in no case beyond 12
months from the date such lay-off or leave of absence
commenced.
In the case of any of the exceptions in the foregoing
paragraph, the insurance under this policy for such employee
shall automatically cease on the date of such termination of
his employment by his Participant Employer, as evidenced to
the Insurance Company by the Policyholder, whether by
notification or by cessation of premium payment on account of
such employee's insurance hereunder. Any maximum period of
continuation permitted by the foregoing paragraph may be
extended by written mutual agreement between the Policyholder
and the Insurance Company.
In no event may any insurance provided on a contributory basis be continued
beyond the end of the period for which the employee has made to his Participant
Employer the contributions required.
Article IV-PREMIUMS
Section 1. PREMIUM RATES
EMPLOYEE COVERAGE
TABLE OF PREMIUM RATES
Age on Monthly Age on Monthly Age on Monthly Age on Monthly
Birthday Premium Birthday Premium Birthday Premium Birthday Premium
Nearest Per Nearest Per Nearest Per Nearest Per
Beginning $1,000 Beginning $1,000 Beginning $1,000 Beginning $1,000
of the of of the of of the of of the of
Policy Year Insurance Policy Year Insurance Policy Year Insurance Policy Year Insurance
15 $ .19 35 $ .32 55 $1.65 75 $ 8.56
16 .20 36 .34 56 1.80 76 9.24
17 .21 37 .36 57 1.97 77 10.00
18 .22 38 .38 58 2.14 78 10.86
19 .23 39 .41 59 2.32 79 11.81
20 .23 40 .45 60 2.51 80 12.83
21 .24 41 .49 61 2.72 81 13.93
22 .24 42 .53 62 2.96 82 15.07
23 .25 43 .58 63 3.21 83 16.26
24 .25 44 .63 64 3.48 84 17.50
25 .25 45 .68 65 3.78 85 18.80
26 .25 46 .74 66 4.11 86 20.16
27 .26 47 .81 67 4.48 87 21.60
28 .26 48 .89 68 4.89 88 23.13
29 .26 49 .97 69 5.34 89 24.79
30 .27 50 1.06 70 5.81 90 26.62
31 .27 51 1.16 71 6.32 91 28.68
32 .28 52 1.26 72 6.84 92 31.03
33 .29 53 1.38 73 7.38 93 33.75
34 .30 54 1.51 74 7.95 94 36.95
95 40.98
For annual, semi-annual, or quarterly premiums multiply the monthly premiums
determined from the above table by 11.83, 5.96 or 2.99 respectively.
Policy Charge
The premium calculated as above shall be increased by a policy charge of $.20
for each $1,000 of insurance in force hereunder at the beginning of the then
current policy year for each policy month which occurs during the premium paying
period, provided that the policy charge shall not exceed $8.00 in respect of any
month.
During the first policy year, the policy charge shall be waived and the total
premium is subject to a reduction of 35%.
Advance Expense Adjustment
For the first policy year the total premium, including the policy charge, shall
be reduced by the applicable advance expense adjustment indicated below (for
annual, semi-annual or quarterly premiums, divide the total premium, including
the policy charge by 12, 6, or 8, respectively, before entering this table):
Total Monthly Advance Expense Total Monthly Advance Expense
Premium Before Adjustment Premium Before Adjustment
Advance Expense Advance Expense
Adjustment Adjustment
Under $125 0% $ 700- 899 26%
$125-149 10 900- 1,399 27
150-174 11 1,400- 2,499 28
175-199 13 2,500- 3,999 29
200-224 14 4,000- 7,499 30
225-249 16 7,500-11,999 31
250-299 17 12,000-26,999 32
300-349 19 27,000-59,999 33
350-399 20 60,000-79,999 34
400-449 21 80,000 and over 35
450-499 22
500-549 23
550-599 24
600-699 25
Section 2. Premium Calculations and Experience Rating
Portion Applicable to Employee Coverage Only:
At the beginning of each policy year the Insurance Company shall compute an
aggregate annual, semi-annual, quarterly, or monthly premium, as the case may
be, based upon the frequency of premium payments then agreed upon between the
Policyholder and the Insurance Company, which shall be the sum of the individual
premiums for the employees then insured, calculated according to the table of
premium rates then in effect hereunder on the basis of the ages (nearest
birthday) then attained by the employees insured for Employee Coverage and their
respective amounts of insurance. From such computation an average premium rate
shall be determined by dividing the aggregate premium by the aggregate amount of
insurance then in force, and such average premium rate shall remain in effect,
and shall be used in calculating premiums under this policy, until a new one is
determined. Each premium due during the policy year shall be calculated by
multiplying the amount of insurance in force at the beginning of the
premium-paying period by the average premium rate in effect on the premium-due
date.
Portion Having General Application:
The premium due under this policy on any premium-due date shall be the sum of
the premium charges for the insurance provided under the Titles then forming a
part of this policy.
If premiums are payable monthly, any insurance becoming effective shall, except
as hereinafter provided, be charged for from the first day of the policy month
coinciding with or next following the date the insurance takes effect, and
premium charges for any insurance terminated shall cease as of the first day of
the policy month coinciding with or next following the date the insurance
terminates. If premiums are payable quarterly, semi-annually, or annually,
premium charges or credits for a fraction of a premium-paying period required by
the foregoing terms of this paragraph shall, except as hereinafter provided, be
made on a pro-rate basis for the number of policy months between the date
premium charges commence or cease and the end of the premium-paying period. If
this policy is amended to provide additional coverage, or any increase in
coverage, and if the effective date of such amendment is other than the first
day of a premium-paying period, a pr-rate premium in respect of such coverage
shall become due and payable as of such date, to cover the period beginning on
that date and ending immediately prior to the commencement of the next
premium-paying period.
The premium charges for the insurance under any Title forming a part of this
policy shall be calculated at the premium rates specified above, subject to such
reductions or increases as the Insurance Company shall determine to be warranted
by experience or by reason of any change in factors bearing on the risk assumed.
Each reduction or increase in any premium rate shall be made by written
notification to the Policyholder by the Insurance Company.
No experience reduction or increase in premium rates shall become effective less
than twelve months after the effective date of this policy.
As of the end of any policy year the Insurance Company may declare an experience
credit in such amount as the Insurance Company shall determine. The amount of
each experience credit declared by the Insurance Company shall be refunded to
the Policyholder, or upon request by the Policyholder, a part or all of the
experience credit shall be applied against the payment of any premium or
premiums.
If at any time the aggregate of employee contributions theretofore made for
group insurance shall exceed the aggregate of premiums theretofore paid for
group insurance (after giving effect to any experience credits allowed the
Policyholder), such excess shall be applied by the Policyholder for the sole
benefit of employees, but the Insurance Company shall not be obliged to see to
the application of any such excess.
Instead of the method of calculation of premiums above provided, premiums may be
calculated by any method which produces approximately the same total amount of
premiums and is mutually agreeable to the Insurance Company and the
Policyholder.
Section 3. Premiums, How Payable
Premiums shall be payable by the Policyholder in advance at the Home Office of
the Insurance Company or to its authorized agent.
The first premium under this policy shall be due and payable as of the date of
issue to cover the period beginning on that date and ending on the last day of
the first policy month and thereafter premiums shall be due and payable on the
first day of each policy month. The Policyholder may change the frequency of
premium payments as of any premium-due date with the written consent of the
Insurance Company.
Section 4. Grace Period
A grace period of thirty-one days following the due-date shall be allowed the
Policyholder for the payment of each premium.
Article V-DISCONTINUANCE OF POLICY
The Policyholder may discontinue this policy with respect to all employees of
any one or more Participant Employers, and any Participant Employer may
discontinue this policy with respect to all employees of such Employer, by
giving to the Insurance Company written notice stating when, after the date of
such notice, such discontinuance shall become effective; but no such
discontinuance shall become effective with respect to employees of any
Participant Employer during any period for which a premium has been paid to the
Insurance Company with respect to employees of such Employer.
The Insurance Company reserves the right to discontinue this policy.
(a) with respect to all employees of any Participant Employer, at
any time after the end of the grace period allowed for payment
of a premium with respect to employees of such Employer which
has not been paid, by giving written notice to the
Policyholder stating when such discontinuance shall become
effective;
(b) either in its entirety or with respect to all employees of any
Participant Employer, at any time, by giving to the
Policyholder written notice stating the date as of which such
discontinuance shall become effective but such date shall not
be one that occurs earlier than thirty-one days after the date
of such notice unless mutually satisfactory to the
Policyholder and the Insurance Company.
If this policy discontinues with respect to any of the employees of a
Participant Employer, the Policyholder and the Employer shall be jointly and
severally liable to the Insurance Company for all unpaid premiums for the period
during which this policy was in force with respect to any of the employees of
such Employer.
Article VI-MISCELLANEOUS PROVISIONS
Section 1. Assignment
No assignment of any present or future right or interest, under this policy by
the Policyholder or by any Participant Employer shall bind the Insurance Company
without its written consent.
Neither the employees nor their beneficiaries may assign any of the insurance or
other benefits under this policy; provided, however, that if the Policyholder
and the Insurance Company consent in writing, the employee or his assignee may,
as a gift, transfer by absolute and irrevocable assignment all of his incidents
of ownership and all of his other right, title, and interest, both present and
future, in and to insurance under this policy, including but not limited to the
right to designate and change the beneficiary, the right to make any requisite
contributions to maintain the insurance in force under this policy, and the
right to exercise any conversion privilege provided under this policy.
No assignment shall be binding upon the Insurance Company unless the assignment
meets the foregoing conditions and requirements, is in form approved by the
Insurance Company, and it or a duplicate thereof is filed with the Insurance
Company at its Home Office in Hartford, Connecticut.
Neither the Insurance Company nor the Policyholder guarantees or assumes any
obligation as to the validity, sufficiency, or effect of any assignment.
Section 1-A. Claims of Creditors
Except so far as may be contrary to the laws of any state having jurisdiction in
the premises, the insurance and other benefits under this policy shall be exempt
from execution, attachment, garnishment, or other legal or equitable process,
for the debts of the employees or their beneficiaries.
Nothing in this section, however, shall be construed so as to prejudice the
right of any person to receive payment pursuant to the beneficiary provisions of
this policy.
Section 2. Employees' Certificates
The Insurance Company will issue to the Policyholder, for delivery to each
insured employee, an individual certificate setting forth a summary of the
essential features of the insurance coverage to which the employee is entitled
and stating to whom the benefits are payable, together with a statement of the
"Conversion Privilege" set forth in Section 7 of this Article.
Section 3. Data Required-Clerical Error-Misstatements-Non-Discrimination
The Policyholder and each of the Participant Employers shall furnish to the
Insurance Company all information which the Insurance Company may reasonably
require with regard to any matters pertaining to this policy. All documents,
books, and records which may have a bearing on the insurance or premiums shall
be open for inspection by the Insurance Company at all reasonable times during
the continuance of this policy and until the final determination of all rights
and obligations under this policy.
Neither clerical error (whether by the Policyholder, by any of the Participant
Employers, or by the Insurance Company) in keeping any records pertaining to the
insurance, nor delays in making entries thereon, shall invalidate insurance
otherwise validly in force or continue insurance otherwise validly terminated,
but upon discovery of such error or delay an equitable adjustment of premiums
shall be made.
If any relevant facts pertaining to any individual to whom the insurance relates
shall be found to have been misstated, an equitable adjustment of premiums shall
be made, and if such misstatement affects the existence or the amount of
insurance, the true facts shall be used in determining whether insurance is in
force under the terms of this policy and in what amount.
No refund of any premium or portion thereof, whether paid in error or otherwise,
shall be made for any period commencing earlier than (a) three months prior to
the date on which evidence that the particular refund should be made is received
by the Insurance Company, or (b) the beginning of the policy year in which such
evidence is received, whichever method (a) or (b) above would result in the
greater refund.
In connection with the administration of this policy, the Policyholder and the
Participant Employers shall act so as not to discriminate unfairly between
individuals in similar situations at the time of such action, but the Insurance
Company shall be entitled to rely upon any action of the Policyholder or of any
of the Participant Employers without being obliged to inquire into the
circumstances thereof.
Section 4. Entire Contract-Incontestability
This policy and the application of the Policyholder, a copy of which is attached
to this policy, constitutes the entire contract. All statements made by the
Policyholder or by the insured employees shall be deemed representations and not
warranties. No written statement made by any insured employee shall be used by
the Insurance Company in any contest unless a copy of the instrument containing
the statement is or has been furnished to such employee or to his beneficiary.
The validity of this policy shall not be contested, except for non-payment of
premiums, after it has been in force for two years from its effective date. No
statement made by any insured employee relating to his insurability shall be
used by the Insurance Company in contesting the validity of the insurance with
respect to which such statement was made after such insurance has been in force
prior to the contest for a period of two years during such employee's lifetime
nor unless such statement is contained in a written instrument signed by him.
This policy is issued in the non-participating department of the Insurance
Company. This policy may be changed at any time or times by written agreement
between the Insurance Company and the Policyholder, without the consent of any
employee or other person. All agreements made by the Insurance Company are
signed by an executive officer of the Insurance Company. No other person can
change or waive any of the terms of this policy or make any agreement which
shall be binding upon the Insurance Company.
Failure to insist upon compliance with any provision of this policy at any given
time or times on under any given set or sets of circumstances shall not operate
to waive or modify such provision, or in any manner whatsoever to render it
unenforceable, as to any other time or times or as to any other occurrence or
occurrences, whether the circumstances are, or are not, the same.
Section 5. Contribution By Employee
Contributory Insurance: The maximum amount that any employee shall be required
or permitted to contribute toward the cost of his contributory insurance, if
any, under Title ELIC shall be $0.60 per month for each One Thousand Dollars of
such insurance hereunder.
Non-contributory Insurance: No insured employee shall be required or permitted
to contribute toward the cost of non-contributory insurance, if any hereunder.
Section 6. Beneficiary and Mode of Settlement
Beneficiary
An employee, whether or not employment has terminated, may designate a
beneficiary, and from time to time change his designation of beneficiary, by
written request filed at the headquarters of the Policyholder or at the Home
Office of the Insurance Company. Such designation or change shall take effect as
of the date of execution of such request, whether or not the employee be living
at the time of such filing, but without prejudice to the Insurance Company on
account of any payments made by it before receipt of such request at its Home
Office.
Any amount payable to a beneficiary to a beneficiary shall be paid to the
beneficiary or beneficiaries designated by the employee, except that, unless
otherwise specifically provided by the employee in his beneficiary designation:
(a) if more than one beneficiary is designated, the designated
beneficiaries shall share equally;
(b) if any designated beneficiary predeceases the employee, the
share which such beneficiary would have received if surviving
the employee shall be payable equally to the remaining
designated beneficiary or beneficiaries, if any, who survive
the employee; and
(c) if no designated beneficiary survives the employee, or if no
beneficiary has been designated, payment shall be made to the
employee's widow or widower, if surviving the employee; if not
surviving the employee, in equal shares to the employee's
children who survive the employee; if none survives the
employee, to the employee's parents, equally, or to the
survivor; if neither survives the employee, in equal shares to
the employee's brothers and sisters who survive the employee;
or, if non survives the employee, to the employee's executors
or administrators.
Mode of Settlement
The whole or any part of any amount payable under Article II shall be paid in
accordance with that one of the following Methods (A) or (B) that shall be
elected by the employee, or in accordance with such other method of settlement
as shall be elected by the employee and agreed to by the Insurance Company. An
employee may revoke any such election at any time before payments commence upon
written notice filed at the Home Office of the Insurance Company. An employee
may change any such election at any time but only with the consent of the
Insurance Company.
In any case where the amount of any death benefit is payable in one sum, the
beneficiary may, after the death of the employee but before payment is made,
elect that the whole or any part of any death benefit be payable in accordance
with Method (B) below, or in accordance with such other method of settlement as
shall be elected by the beneficiary and agreed to by the Insurance Company. A
beneficiary may change or revoke any such election but only with the consent of
the Insurance Company.
METHOD (A): Payment in one sum. This method shall be automatic if no other
method is elected.
METHOD (B): Payment in monthly installments of any fixed amount specified in
the election (which shall be not less than $5.00 per month per
$1,000 so payable nor less than $10.00 per month regardless of the
amount so payable), until the amount so payable with interest
is exhausted. With respect to each such election of this method,
the rate of interest to be allowed on the unpaid balance shall be
determined by the Insurance Company but shall in no case be less
than the guaranteed rate of interest provided for with respect to
optional methods of settlements under the individual policies of
life insurance being issued by the Insurance Company on the date of
such election. At the death of the payee to whom payment is being
made under this method, the unpaid balance shall be paid in one sum
to the executors or administrators of the payee, unless otherwise
provided in the election.
If any payee for any benefit payment under this policy is a minor or is, in the
opinion of the Insurance Company, legally incapable of giving a valid receipt
and discharge for such benefit payment, the Insurance Company shall have the
option, unless claim has been made by a duly appointed guardian or committee of
such payee, of paying such benefit in monthly installments of not over $100 the
first month and not over $50 a month thereafter to the person or persons who, in
the opinion of the Insurance Company, are caring for and supporting such payee.
Payment made in accordance with the terms of this paragraph shall be a complete
discharge of the Insurance Company's obligations to the extent of such payment,
and the Insurance Company shall not be obligated to see to the application of
any payment so made.
Section 7. Conversion Privilege
Employee Coverage
If an employee's insurance under this policy, or any amount of such insurance,
ceases because of termination of employment or because of termination of
membership in the class or classes of employees eligible for insurance under
this policy, the employee shall be entitled to have issued to him by the
Insurance Company, without evidence of insurability, an individual policy of
life insurance without disability or other supplementary benefits, provided
written application for the individual policy shall be made, and the first
premium thereon paid, to the Insurance Company within thirty-one days after such
termination, and provided further that:
(a) the individual policy shall be on any of the forms, other than
term insurance, that shall be selected by the employee from
among the forms then customarily issued by the Insurance
Company at the age and for the amount applied for:
(b) the individual policy shall be in an amount equal to or, at
the option of the employee, an amount less than the amount of
the employee's life insurance which ceases under this policy
because of such termination;
(c) the premiums payable under the individual policy shall be at
the Insurance Company's then customary rate applicable to the
form and amount of the individual policy, to the class of risk
to which the employee then belongs, and to his age (nearest
birthday) attained on the effective date of the individual
policy; and
(d) any individual policy issued under the terms of this section
shall take effect at the end of the thirty-one day period
during which application for the individual policy may be
made.
If this policy discontinues, whether by its terms or by agreement between the
Insurance Company and the Employer, and whether with respect to all employees or
with respect to any class or classes of employees insured hereunder, any
employee insured under this policy at the date of such discontinuance who has
been continuously insured for group life insurance by the Insurance Company
under this policy for at least five years prior to such discontinuance shall, if
his insurance this policy, or any portion of such insurance, ceased because of
such discontinuance, be entitled to the conversion privilege as though his
employment had terminated on the date of such discontinuance, except that the
amount of the individual policy shall not exceed the smaller of (a) the amount
of the employee's life insurance which ceases under this policy because of such
discontinuance, less the amount of any life insurance for which he is or becomes
eligible within thirty-one days after such discontinuance under any group
policy, whether issued by the Insurance Company or by any other insurer, and (b)
$2,000.
If an employee dies during the thirty-one day period within which he is entitled
to have an individual policy issued to him in accordance with this section and
before any insurance such individual policy has become effective, the amount of
life insurance which the employee is entitled to have issued to him under such
individual policy shall be payable as a claim under Title ELIC, whether or not
application for the individual policy or the payment of the first premium
therefor has been made.
When any insurance becomes effective under an individual policy issued under the
conversion privilege, it shall be in exchange for all privileges and benefits
under the group policy.
Aetna Life Insurance Company
Hartford, Connecticut
(Herein called the Insurance Company)
Group Policy No.: GC-363417 Policy Delivered In: Ohio
State of other jurisdiction)
Policyholder: THE PROCTER & GAMBLE COMPANY
Policy Signed: November 11, 1981 To Take Effect: October 1, 1981
This policy is a contract between the Policyholder and the Insurance Company and
shall be construed in accordance with the law of the jurisdiction in which it is
delivered.
In consideration of the payment by the Policyholder of premiums in the amounts
and at the times hereinafter provided, the Insurance Company hereby agrees with
the Policyholder, subject to the terms appearing on this and the following pages
of this policy (including, if any, the riders, endorsements, and amendments, to
this policy which are signed by the Insurance Company), to pay benefits in
accordance with the terms of this policy. The obligations and the rights of all
persons under this policy shall be determined in accordance with the terms of
this policy.
In witness whereof the Insurance company has signed this policy at Hartford,
Connecticut.
Aetna Life Insurance Company
/S/LEWIS R MERVINE /S/WILLIAM O. BAILEY
Secretary President
Registrar
Countersigned at Cincinnati, Ohio, April 13, 1982
by ___________________________
Licensed Resident Agent
GROUP INSURANCE POLICY
INDEX
Page
Article I--GENERAL PROVISIONS
Article II--BENEFITS
Article III--TERMINATION OF INSURANCE
Article IV--PREMIUMS
Article V--DISCONTINUANCE OF POLICY
Article VI--MISCELLANEOUS PROVISIONS
COPY OF APPLICATION
ARTICLE I -- GENERAL PROVISIONS
Section 1. General Definitions
As used in this policy:
(a) The term "Employee Coverage means only insurance as to an
employee.
(b) The term "non-occupational disease" means a disease which
does not arise, and which is not caused or contributed to by,
or as a consequence of, any disease which arises, out of or
in the course of any employment or occupation for
compensation or profit; however if evidence satisfactory to
the Insurance Company is furnished that the individual
concerned is covered as an employee under any workmen's
compensation law, occupational disease law, or any other
legislation of similar purpose, or under the maritime
doctrine of maintenance, wages, and cure, but that the
disease involved is one not covered under the applicable laws
or doctrine, then such disease shall, for the purposes of
this policy, be regarded as a "non-occupational disease".
(c) The term "non-occupational injury" means an accidental bodily
injury which does not arise, and which is not caused or
contributed to by, or a as a consequence of, any injury which
arises, out of or in the course of any employment or
occupation for compensation or profit.
(d) The term "date of issue" means the date this policy took
effect shown on Page 1 of this policy.
(e) Commencing January 1, 1982, "policy anniversaries" shall be
deemed to occur on said date, and on the same day in each
succeeding year.
(f) The term "policy year" means a period commencing with the date
of issue of this policy, or a policy anniversary, and
terminating immediately prior to the next succeeding policy
anniversary.
(g) A "policy month" shall commence on the date of issue. Each
"policy month" thereafter shall be deemed to commence on the
first day of the calendar month.
(h) The term "physician" or "surgeon" means only a legally
qualified physician.
(i) "Contributory insurance" means insurance for which an employee
makes written request to his Participant Employer and agrees
to make the required contributions to his Participant
Employer. "Non-contributory insurance" is insurance for which
an employee does not make written request nor contribute
toward the cost. This policy provides insurance on the
non-contributory.
(j) The term "Added Compensation" means the total amount of
additional remuneration:
1) Awarded by the Board of Directors of The Procter &
Gamble Company, the Compensation Committee of The
Procter & Gamble Company or the Procter & Gamble
Chief Executive Officers and heads of the various
subsidiary companies, and
2) Charges against the Executive Additional Remuneration
Reserve, but excluding any supplemental awards which
are made because of the limits imposed by the
Employee Retirement Income Security Act of 1974 on
credits to the Profit Sharing Trust Plan.
(k) The term "Total Compensation" means the sum of (a) base
salary plus, (b) added compensation.
Section 2. List of Participant Employers
An Employer shall be eligible to be included in this list as a Participant
Employer if such inclusion is not contrary to any applicable insurance law of
the state or other jurisdiction in which this contract is delivered.
The Policyholder may act for and on behalf of any and all of the Employers
included in this list in all matters pertaining to this contract, and every act
done by the Policyholder, agreement made between the Insurance Company and the
Policyholder, or notice given by the Insurance Company to the Policyholder or by
the Policyholder to the Insurance Company, shall be binding on all such
Employers.
Any eligible Employer may be added to this list as a Participant Employer only
upon written agreement between the Policyholder and the Insurance Company and
upon terms mutually agreeable to them.
An Employer shall be eliminated automatically from this list when this contract
is discontinued with respect to employees of such Employer, as provided for
elsewhere in this contract, but termination of an Employer's status as a
Participant Employer shall not relieve such Employer from any obligations to the
Insurance Company with respect to the time such Employer was a Participant
Employer under this contract.
This list shall, at any time, consist of those Employers which have been
included under this contract by written agreement between the Policyholder and
the Insurance Company, and which have not been removed, in accordance with the
above terms of this section.
Section 3. Employees to be Insured
(I) Employee Coverage
A. Employees Eligible:
All employees of a Participant Employer shall be eligible for
Employee Coverage except employees in the following classes:
(a) temporary or substitute employees (i.e. employees
who are not classified by such Employer as
permanent employees);
(b) employees who are actively working for such
Employer on a part-time basis, but this exception
shall not apply in the case of a regular,
full-time, active employee of such Employer if
and while he is only temporarily working for such
Employer on a part-time basis;
(c) regular full-time employees who are not key
executives of The Procter & Gamble Company or
its subsidiaries.
Each employee in an eligible class who has completed six
months or more of continuous service on the date of issue
shall become eligible for Employee Coverage on that date, and
each other employee in an eligible class shall become eligible
for Employee Coverage on the date on which he completes six
months of continuous service.
Anything to the contrary notwithstanding, if an individual is
in the employ of or connected with two or more Participant
Employers, he shall not be eligible for multiple coverage
under this policy, but shall be treated the same as if he were
in the employ of or connected with a single Participant
Employer; the amount of insurance for which any such
individual shall be eligible under this policy shall under no
circumstances exceed the amount which would apply if all of
the Participant Employers with which he is employed or
connected were a single Participant Employer and if the
aggregate of the remuneration being paid to him by all such
Participant Employers were being paid to him by a single
Participant Employer.
If any Participant Employer is a partnership, the
natural-person partners thereof shall be considered to be
employees within the meaning of this policy if and while they
are actively engaged in and devoting their time on a
substantially full-time basis to the conduct of the business
of the partnership. If any Participant Employer is an
individual proprietorship, the natural-person proprietor
thereof shall be considered to be an employee within the
meaning of this policy on the same terms as those applicable
to partners of a partnership.
B. Effective Dates of Insurance:
(1) As to contributory insurance, each employee who makes
written request to his Participant Employer for
Employee Coverage and agrees to make the required
contributions therefor to his Participant Employer is
to be insured for Employee Coverage on the date he
becomes eligible for Employee Coverage or on the date
he makes such request, whichever is later; provided,
however, that
(a) the Employee Coverage of any employee who
makes such written request after thirty-one
days from the date he becomes eligible, or
who revokes any written request previously
made, shall become effective only if and
when the Insurance Company gives its written
consent; and
(b) any employee who is both disabled (i.e., ill
or injured) and away from work on the date
Employee Coverage is to become effective
shall not be insured until he actually
returns to work on a full-time basis.
(2) As to non-contributory insurance, each employee is to
be insured for Employee Coverage on the date he
becomes eligible therefor; provided, however, that
any employee who is both disabled (i.e., ill or
injured) and away from work on the date Employee
Coverage is to become effective shall not be insured
until he actually returns to work on a full-time
basis.
Section 4. Changes in Amounts of Insurance
EMPLOYEE COVERAGE
A retroactive change in an employee's rate of earnings or classification will
not result in a retroactive change in coverage. Any change in coverage will be
effective on the date the change in earnings or classification is determined.
This section will not apply to any reduction due to attainment of a specified
age. Any such rules appear in Title ADDC, if included in this policy. If any
rule which reduces an employee's Principal Sum due to attainment of a specified
age is changed so that an employee is eligible for an increased amount of
Principal Sum by reason of such change, such increase will become effective only
if the Insurance Company gives its written consent.
As to contributory insurance:
If, at any time, the employee's rate of earnings or classification changes so as
to warrant level of benefits different from that for which the employee is then
covered, the amount of his coverage will be changed as follows:
Any reduction under Title ADDC, if included in this policy, will become
effective on the date the employee requests his Participant Employer to
make the reduction.
Any other reduction will become effective automatically.
Any increase will become effective automatically; provided, however, that
the employee may, within thirty-one days of the date an increase would
become effective under Title ADDC, if included in this policy, refuse
such increase. If an employee refuses such increase, then no increase in
the employee's amount of Principal Sum by reason of a change in his rate
of earnings or classification will become effective until the Insurance
Company gives its written consent.
If, at any time, any schedule or level of benefits is changed so as to warrant
an amount different from that for which the employee is then covered, the amount
of his coverage will be increased or decreased automatically, However, the
employee may, within thirty-one days of the date an increase would become
effective under Title ADDC, if included in this policy, refuse such an increase.
The employee may at any thereafter elect that the increase become effective; it
will only be effective if the Insurance Company gives its written consent.
In any instance in which an employee is both disabled (i.e., ill or injured) and
not working on the date his coverage would otherwise be increased, the effective
date of the increase shall be deferred until he actually returns to active work
on a full-time basis.
As to non contributory insurance:
If, for any reason and at any time, the employee's rate of earnings or
classification, any schedule or any level of benefits is changed so as to
warrant an amount different from that for which the employee is then covered,
the amount of his coverage will be increased or decreased automatically as
warranted. However, in any instance in which an employee is both disabled (i.e.,
ill or injured) and not working on the date his coverage would otherwise be
increased, the effective date of the increase in insurance shall be deferred
until he actually returns to active work on a full-time basis.
Article II --BENEFITS
TITLE ADDC--ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE
Section 1. Accidental Death and Dismemberment Benefit
Schedule of Insurance
---------------------
Classification Principal Sum
-------------- -------------
All employees An amount equal to 100% of the employees
total compensation, the resulting amount, if
not an integral multiple of $500 is to be
taken to the nearest integral multiple of
$500, but in no event shall the amount of
insurance (Principal Sum) be more than
$1,000,000 nor less than $4,000.
If an employee suffers a bodily injury caused by an accident and as a direct
result of such injury and, to the exclusion of all other causes, sustains within
not more than ninety days after the date of the accident which causes such
injury any of the losses listed in the Table of Benefits in this section, then,
provided:
(a) the injury occurs while insurance is in force for the employee
under this Title; and
(b) the loss resulting from the injury is not excluded from coverage
in accordance with Section 2 of this Title;
the insurance Company shall, subject to the terms of this policy, pay a benefit
in the amount provided for such loss in said Table of Benefits but in no case
shall more than the Principal Sum be paid for all losses sustained by an
employee through any one accident.
Table of Benefits
-----------------
In the Event of Loss of The Benefit will be
- ----------------------- -------------------
Life The Principal Sum
A Hand One-Half The Principal Sum
A Foot One-Half The Principal Sum
An Eye One-Half The Principal Sum
Loss means, with regard to a hand or foot, actual severance through or
above the wrist or ankle joint; with regard to an eye, the entire and
irrecoverable loss of sight of such eye.
Section 2. Exclusions
The insurance provided under this Title does not include, and no payment shall
be made for, any loss resulting from any injury caused or contributed to by, or
as a consequence of, any of the following excluded risks, even though the
proximate or precipitating cause of loss is accidental bodily injury:
(a) bodily or mental infirmity; or
(b) disease, ptomaines or bacterial infections, of any kind, except
a pus-forming infection attributable solely to and occurring as
the proximate result of an injury not excluded by this Title; or
(c) medical or surgical treatment, except a loss covered by this
Title which results directly from a surgical operation made
necessary solely by an injury not excluded by this Title and
performed within ninety days after the date of such injury; or
(d) suicide or any attempt there at (whether sane or insane), or
intentionally self-inflicted injury; or
(e) war or any act of war (whether war is declared or not).
Section 3. Beneficiary
An employee, whether or not employment has terminated, may designate a
beneficiary, and from time to time change his designation of beneficiary, by
written request filed at the headquarters of the Policy holder or at the Home
Office of the Insurance Company. Such designation or change shall take effect as
of the date of execution of such request, whether or not the employee be living
at the time of such filing, but without prejudice to the Insurance Company on
account of any payments made by it before receipt of such request at its Home
Office.
Any amount payable to a beneficiary shall be paid to the beneficiary or
beneficiaries designated by the employee, except that, unless otherwise
specifically provided by the employee in his beneficiary designation;
(a) if more than one beneficiary is designated, the designated
beneficiaries shall hare equally;
(b) if any designated beneficiary predeceases the employee, the
share which such beneficiary would have received if surviving
the employee shall be payable equally to the remaining
designated beneficiary or beneficiaries, if any, who survive the
employee; and
(c) if no designated beneficiary survives the employee, or if no
beneficiary has been designated, payment shall be made to the
employee's widow or widower, if surviving the employee; if not
surviving the employee, in equal shares to the employee's
children who survive the employee; if none survives the
employee, to the employee's parents, equally, or to the
survivor; if neither survives the employee, in equal shares to
the employee's brothers and sisters who survive the employee;
or, if none survives the employee, to the employee's executors
or administrators.
Article III--TERMINATION OF INSURANCE
Section 1. Employee Coverage
All insurance of any employee under this policy shall terminate at the earliest
time specified below:
(1) Upon discontinuance of the policy.
(2) Immediately when the employee's employment with a Participant Employer in
the classes of employees eligible for insurance terminates. Cessation of
active work by an employee shall be deemed to be termination of his
employment, except that
(a) in the case of an absence from active work because of sickness
or injury, his employment may, for the purposes of insurance
under this policy, be deemed to continue until terminated by his
Participant Employer but in no case beyond twelve months from
the date such absence from active work started, or
(b) in the case of absence of an employee from active work because
of temporary lay-off or leave of absence (other than leave from
military service), his employment may, for the purposes of
insurance under this policy, be deemed to continue until
terminated by his Participant Employer but in no case beyond the
end of the policy month following the policy month in which such
lay-off or leave of absence commenced.
In the case of any of the exceptions in the foregoing paragraph, the
insurance under this policy for such employee shall automatically cease
on the date of such termination of his employment by his Participant
Employer, as evidenced to the Insurance Company by the Policyholder,
whether by notification or by cessation of premium payment on account of
such employee's insurance hereunder. Any maximum period of continuation
permitted by the foregoing paragraph may be extended by written mutual
agreement between the Policyholder and the Insurance Company in each
individual case.
In no event may any insurance provided on a contributory basis be continued
beyond the end of the period for which the employee has made to his Participant
Employer the contributions required.
Article IV--PREMIUMS
Section 1. Premium Rates
The premium rates are as follows, but are subject to change as hereinafter
provided: The premium rates shown are for a period of one month.
Title ADDC- Premium per $1,000 of Principal Sum: $ .02
Section 2. Premium Calculations and Experience Rating
The premium due under this policy on any premium-due date shall be the sum of
the premium charges for the insurance provided under the Titles then forming a
part of this policy. The premium charges for the insurance under any such Title
shall be calculated at the Premium Rates specified above, subject to such
reductions or increases as the Insurance Company shall determine to be warranted
by experience or by reason of any change in factors bearing on the risk assumed.
Each reduction or increase in any premium rate shall be made by written
notification to the Policyholder by the Insurance Company.
No experience reduction or increase in premium rates shall become effective less
than twelve months after the effective date of this policy.
As of the end of any policy year the Insurance Company may declare an experience
credit in such amount as the Insurance Company shall determine. The amount of
each experience credit declared by the Insurance Company shall be refunded to
the Policyholder, or upon request by the Policyholder, a part or all of the
experience credit shall be applied against the payment or any premium or
premiums.
If at any time the aggregate of employee contributions theretofore made for
group insurance shall exceed the aggregate of premiums theretofore paid for
group insurance (after giving effect to any experience credits allowed the
Policyholder), such excess shall be applied by the Policy holder for the sole
benefit of employees, but the Insurance Company shall not be obliged to see to
the application of any such excess.
If premiums are payable monthly, any insurance becoming effective shall, except
as hereinafter provided, be charged for from the first day of the policy month
coinciding with or next following the date the insurance takes effect, and
premium charges for any insurance terminated shall cease as of the first day of
the policy month coinciding with or next following the date the insurance
terminates. If premiums are payable quarterly, semi-annually, or annually,
premium charges or credits for a fraction of a premium-paying period required by
the foregoing terms of this paragraph shall except as hereinafter provided, be
made on a pro-rata basis for the number of policy months between the date
premium charges commence or cease and the end of the premium-paying period. If
this policy is amended to provide additional insurance, or any increase in
insurance and if the effective date of such amendment is other than the first
day of a premium-paying period, a pro-rata premium in respect of such insurance
shall become due and payable as of such date, to cover the period beginning on
that date and ending immediately prior to the commencement of the next
premium-paying period.
Instead of the method of calculation of premiums above provided, premiums may be
calculated by any method which produces approximately the same total amount of
premiums and is mutually agreeable to the Insurance Company and the
Policyholder.
Section 3. Premiums, How Payable
Premiums shall be payable by the Policyholder in advance at the Home Office of
the Insurance Company or to its authorized agent.
The first premium under this policy shall be due and payable as of the date of
issue to cover the period beginning on that date and ending on the last day of
the first policy month and thereafter premiums shall be due and payable on the
first day of each policy month.
Section 4. Grace Period
A grace period of thirty-one days following the due-date shall be allowed the
Policyholder for the payment of each premium.
Article V--DISCONTINUANCE OF POLICY
The Policyholder may discontinue this policy with respect to all employees of
any one or more Participant Employers, and any Participant Employer may
discontinue this policy with respect to all employees of such Employer, by
giving to the Insurance Company written notice stating when, after the date of
such notice, such discontinuance shall become effective; but no such
discontinuance shall become effective with respect to employees of any
Participant Employer during any period for which a premium has been paid to the
Insurance Company with respect to employees of such Employer.
The Insurance Company reserves the right to discontinue this policy,
(a) with respect to all employees of any Participant Employer, at
any time after the end of the grace period allowed for payment
of a premium with respect to employees of such Employer which
has not been paid, by giving written notice to the Policyholder
stating when such discontinuance shall become effective;
(b) either in its entirety or with respect to all respect to all
employees of any Participant Employer, at any time, by giving to
the Policyholder written notice stating the date as of which
such discontinuance shall become effective but such date shall
not be one that occurs earlier than thirty-one days after the
date of such notice unless mutually satisfactory to the
Policyholder and the Insurance Company.
If this policy discontinues with respect to any of the employees of a
Participant Employer, the Policyholder and the Employer shall be jointly and
severally liable to the Insurance Company for all unpaid premiums for the period
during which this policy was in force with respect to any of the employees of
such Employer.
Article VI--MISCELLANEOUS PROVISIONS (Continued)
Section 5. Time Limit on Certain Defenses
No claim for loss incurred or commencing after two years from the effective date
of the insurance coverage with respect to which claim is made shall be reduced
or denied on the ground that a disease or physical condition not excluded from
coverage by name or specific description effective on the date of loss, had
existed prior to the effective date of the coverage with respect to which claim
is made.
Section 6. Proofs of Loss
Written proof covering the occurrence, the character, and the extent of loss
must be furnished to the Insurance Company, in case of claim for loss under
Title WBC, if included in this policy, within 90 days after the termination of
the period for which the Insurance Company is liable, and in case of claim for
any other loss, within 90 days after the date of such loss. Failure to furnish
such proof within the time required shall not invalidate nor reduce any claim if
it was not reasonably possible to give proof within such time, provided such
proof is furnished as soon as reasonably possible and in no event, except in the
absence of legal capacity of the employee, later than one year from the time
proof is otherwise required. No action at law or in equity shall be brought to
recover on this policy after the expiration of three years after time written
proof of loss is required to be furnished.
Section 7. Payment of Claims
Benefits payable under this policy for any loss with be paid immediately upon
receipt of due written proof of loss.
The benefit, if any, for loss of life will be payable in accordance with the
beneficiary designation and the provisions respecting such payment. All other
benefits are payable to the insured employee.
If any benefit under any Title of this policy shall be payable to the estate of
the insured employee, or to an insured employee who is a minor or otherwise not
competent to give a valid release, the Insurance Company may pay such benefit up
to an amount not exceeding $1,000 to any relative by blood or connection by
marriage of the insured employee who is deemed by the Insurance Company to be
equitably entitled thereto. Any payment made by the Insurance Company in good
faith pursuant to this provision shall fully discharge the Insurance Company to
the extent of such payment.
Subject to any written direction of the insured employee in a request for
insurance or otherwise, all or a portion of the benefits, if any, provided by
this policy on account of hospital, nursing, medical, or surgical service may,
at the Insurance Company's option, and unless the insured employee requests
otherwise in writing not later than the time proof of loss is filed, be paid
directly to the hospital or person rendering such services, but it is not
required that the service be rendered by a particular hospital or person.
The Insurance Company at its own expense shall have the right and opportunity to
examine the person of any individual whose injury or sickness is the basis of
claim when and as often as it may reasonably require during the pendency of a
claim hereunder.
[Page 12 is missing]
Section 8. Conversion Privilege (Continued)
(4) the converted policy may include a provision whereby the Insurance
Company may request information at any premium due date of such policy of
any individual covered thereunder as to whether he is then covered by
another policy of hospital or surgical expense insurance or hospital
service or medical expense indemnity corporation subscriber contract
providing similar benefits or is then covered by a group contract or
policy providing similar benefits or is then provided with similar
benefits required by any statute or provided by any welfare plan or
program--if any such individual is so covered or so provided and fails to
furnish the details of such coverage when requested, the benefits payable
under the converted policy may be based on the hospital, surgical, or
medical expenses actually incurred after excluding expenses to the extent
they are payable under such other coverage or provided under such
statute, plan, or program; and
(5) the Insurance Company may decline to issue the converted policy
(i) if application therefor is not made in the jurisdiction in which
this group policy is delivered or in some other jurisdiction in
which the Insurance Company is authorized to issue or deliver the
converted policy; or
(ii) if termination of insurance under said Titles of this policy takes
place prior to the date the employee concerned has been insured
thereunder for at least three months; and
(6) the Insurance Company may decline
(i) to cover an individual who t is desired be included in the
converted policy, if the insurance under said Titles of this
policy terminated because such individual had exhausted the
maximum benefit available to him under said Titles; and
(ii) to cover an individual who it is desired be included in the
converted policy for any one or more of the benefits included in
the converted policy, if the provision of such benefit or
benefits, as the case may be, is prohibited by any application for
such policy is made; and
(7) the premium payable under the converted policy on its effective date
shall be at the Insurance Company's then customary rate applicable to the
class of risk to which the insured individual under the converted policy
belongs, to the age of such insured individual and to the form and amount
of insurance under the converted policy; and
(8) any converted policy issued under the terms of this section shall take
effect as of the date of termination of insurance under said Titles of
this policy.
Any converted policy issued pursuant to this section shall be in exchange for
all privileges and benefits under said Titles with respect to the person or
persons named in the converted policy.