CLHIA-ACCAP

43 policy and refuse to pay any claims. (See "Contestability" and "Misrepresentation".) Maturity date. The date on which the insurance company pays a maturity benefit and the policy ends. For an endowment policy or annuity contract, including segregated fund contracts, the maturity date is a predetermined age or date. Medical Information Bureau (MIB). A non-profit association of Canadian life and health insurance companies established to provide for the confidential sharing of information among its members. Member insurance companies use MIB's services to help assess an individual's risk and eligibility during the underwriting of life, health, disability income, critical illness, and long-term care insurance policies. Reports from MIB may alert insurance companies to applicants who have provided incomplete or false information, and help them fight insurance fraud. Member. See "Plan member". Misrepresentation. A false or misleading statement an applicant makes when applying for insurance. An insurance company can cancel the policy if they find you gave them false or misleading information in your application. (See "Material facts".) Misstatement of age. This happens when an insurance company is given the wrong age for the person insured. In some situations the insurance company can cancel the coverage when the wrong age is given. However, in many cases they adjust the coverage or premiums to take the correct age into account. Mutual insurance company. An insurance company owned by its policyholders (called participating policyholders). A mutual insurance company has no shareholders. Management is directed by an elected board. N Non-cancellable and guaranteed renewable policy. A type of insurance policy where the insurance company guarantees not to cancel the policy, increase the premiums or make changes to the policy until the insured person reaches a set age (usually 65). These policies are usually for disability insurance. Also known as a "non-cancellable policy". Non-contributory pension plan. A pension plan where the employee makes no contributions. The employer funds the entire cost of the plan. Non-forfeiture options. A feature of some permanent life insurance policies that provides the policyholder with choices if they stop paying premiums on a policy. The choices may include: (a) cash (cash value or cash surrender value); (b) reduced paid-up amount of insurance; (c) automatic premium loan to continue the full sum insured; or (d) extended term insurance for the full sum insured over a specified period (not made available by all insurers). Non-participating insurance. A policy that does not participate in the insurance company's distribution of earnings or dividends. O Off-set. See "Integration of benefits". Office of the Superintendent of Financial Institutions (OSFI). The federal agency responsible for regulating and supervising banks, insurance, trust, loan and investment companies, federally- regulated pension plans, and co- operative credit associations that are licensed or registered by the federal government. P Paid-up insurance. Life insurance on which all the required premiums have been paid and coverage continues. Partial disability benefit. A disability benefit that pays a monthly amount that's less than a total disability benefit. In this situation, the insured person can't work full time or is prevented from performing one or more important daily duties of their occupation, but isn't considered totally disabled under the policy. Participating insurance. A type of insurance policy that pays the policyholder a share of the insurance company's earnings, or dividends. (See "Policyholder dividend ".) Pension plan. A savings plan intended to provide you with a monthly income in retirement. It can include a workplace plan, government plan or your own individual plan. For workplace plans, depending on the specific plan, you and your employer may contribute to it. Permanent life insurance. A type of life insurance that provides coverage for the lifetime of the person insured, provided the required premiums are paid. Permanent life insurance usually has a cash value. "Whole life", "Term to 100" and "Universal life" are examples of this type of insurance. Plan member or participant. The person insured under a group insurance, group benefit, group pension, or group savings plan (for example, an employee, union member or association member). Plan sponsor. The holder of a group insurance, group benefit, group pension, or group savings plan. It can be any organization that provides group benefits to its members, for example an employer, union or association.

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