Loan protection insurance policy wording

(example wording cont.)

Paying premiums and cancelling cover

This cover will automatically cancel if you re-pay or terminate your loan agreement.

You may cancel this insurance within 15 days after the start date by returning all certificate documents to Compass Underwriting Limited at Market Square House, St James’s Street, Nottingham, NG1 6FG. You must have not made a claim. If you do not do this, we will assume you have accepted this insurance and agree to keep to its terms and conditions. We may amend your premium or the terms and conditions of this insurance by giving you at least 30 days written notice to you at your last known address. We may cancel this insurance, for any reason, by giving written notice to you at your last known address. This will confirm that all cover will end 30 days after the date of our notice. This will not affect your ability to make a claim under this insurance if you have notified us and received written confirmation from us prior to the date of cancellation. You then have the right to cancel this certificate at any time by giving written notice at Compass Underwriting Limited at Minerva House, Market Square House, St James’s Street, Nottingham, NG1 6FG. We will calculate a pro-rata return of any unused premium, if applicable, as long as you have not made a claim.

Paying claims

A. Life benefit
If you die we will pay your lender the amount you still owe under the loan agreement at the date of your death (except any payments that you have missed). We will only pay one life benefit. If you gave your lender the wrong age when this certificate began, we may reduce the sum assured to an amount, which would have applied to your real age. If a claim is made under this section, we will deduct from the claim the balance of any premium still owed to us.

B. Critical Illness benefit
If you are diagnosed after the start date as having one of the specified critical illnesses and survive for at least 28 days after you are diagnosed, we will pay your lender the amount you still owe under the loan agreement at the date of your diagnosis (except any payments that you have missed). You can only claim benefit for one of the specified critical illnesses throughout the life of your certificate of insurance. If you make a claim under this section, we will deduct the balance of any premium you still owe us from your claim.

The specified critical illness conditions provided under this insurance plan are as follows:-

1. Cancer
A malignant tumour characterised by the uncontrolled growth of malignant cells and invasion of tissue. The term cancer includes leukaemia and Hodgkin’s disease, but the following are excluded.

a) All tumours which are histologically described as pre-malignant, as non-invasive or as cancer in situ.

b) All forms of lymphoma in the presence of any Human Immunodeficiency Virus.

c) Kaposi’s sarcoma in the presence of any Human Immunodeficiency Virus.

d) Any skin cancer other than malignant melanoma.

2. Coronary artery by pass surgery
The undergoing of open heart surgery on the advice of a consultant cardiologist to correct narrowing or blockage of one or more coronary arteries with by-pass grafts but excluding balloon angioplasty, laser relief or any other procedures.

3. Heart attack
The death of a portion of the heart muscle as a result of inadequate blood supply as evidenced by an episode of typical chest pain, new electrocardiograph changes and by the elevation of cardiac enzyme levels. The evidence must be consistent with the diagnosis of heart attack.

4. Kidney failure
End stage renal failure presenting as chronic irreversible failure of both kidneys to function, as a result of which either regular renal dialysis or renal transplant is initiated.

5. Major Organ transplant
The actual undergoing as a recipient of, or inclusion on an official UK waiting list for, a transplant of a heart, liver, lung, pancreas or bone marrow.

6. Multiple Sclerosis
A definite diagnosis by a consultant neurologist of multiple sclerosis which satisfies all of the following criteria:

a) There must be current impairment of motor or sensory function which must have persisted
for a continuous period of at least six months
b) The diagnosis must be confirmed by diagnostic techniques current at time of the claim.

7. Stroke
A cerebrovascular incident resulting in permanent neurological damage. Transient ischaemic attacks are specifically excluded.

C. Disability benefit
If you are in continuous employment and become disabled during the period of insurance for longer than the waiting period we will pay one thirtieth of the monthly benefit for each day you remain continuously disabled beyond the waiting period. The benefit will be paid monthly in arrears for up to your chosen maximum benefit period. We will continue to pay your lender until:

a) the last day of your disability;
b) the date you stop providing proof that you are still disabled; or
c) we have made the maximum number of monthly benefit payments we allow in the benefit period;
d) the end date shown on your certificate of insurance or you stop paying your monthly premium whichever is earlier.
If you make a claim under this section, we may deduct the balance of any premium you still owe us from your claim.

D. Unemployment benefit
If you are in continuous employment and become unemployed during the period of insurance for longer than the waiting period we will pay one thirtieth of the monthly benefit for each day you remain continuously unemployed beyond the waiting period. The benefit will be paid monthly in arrears for up to your chosen maximum benefit period. We may ask you to see one of our appointed consultants to help you look for permanent work. We will continue to pay your lender until:

a) the last day of your unemployment;
b) the date you stop providing proof that you are still unemployed;
c) we have made the maximum number of monthly benefit payments we allow in the benefit period;
d) the end date shown on your certificate of insurance or you stop paying your monthly premium whichever is earlier

If you make a claim under this section, we may deduct the balance of any premium you still owe us from your claim.

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