These changes are being put in place to help ensure a consistent customer experience across our AIA Priority Protection products and provides advisers with greater clarity of the requirements.
When can a policy be cancelled and replaced?
ARTICLE
29 October 2024
2 mins read
2 mins read
From 1 December 2024, we’re making changes to when we will accept AIA Priority Protection Cancel & Replace applications (i.e. an application for a replacement policy without full underwriting).
What is a Replacement Policy?
A Replacement Policy is a policy that is issued to replace an existing AIA policy without full underwriting. It's only available if the cancellation and replacement is being performed to facilitate a change which is not possible under the existing Policy, such as an alteration that can't be performed on the existing policy or a change of ownership that can’t be processed by a Memorandum of Transfer.
What are some examples of when a Cancel & Replace application will be accepted?
Some examples of when a Cancel & Replace application will be accepted include:
- to change ownership from an ordinary policy to a policy inside super, owned by the Trustee,
- to set up a new linked policy,
- to add a new benefit such as Crisis Extension if not available on the existing policy or,
- to change from Agreed Value Income Protection to Income Protection CORE.
What's the impact?
Some examples of when we will no longer accept a Cancel & Replace application include:
- where the request can be completed as an alteration under the existing Policy/ies,
- a change of ownership that can be processed by a Memorandum of Transfer or,
- where there is no change of benefits or ownership.
Any Cancel and Replace application submitted prior to 1 December 2024, if accepted, is subject to the previous replacement criteria.
For any Cancel and Replace application submitted from 1 December 2024, the new replacement criteria apply. Please see the latest version of the Adviser Guide.