Below is an outline of AIA Australia’s approach to grandfathering under the LIF rules.
Policies issued prior to 1 January 2018:
Policies issued prior to 1 January 2018 will be grandfathered for LIF purposes.
Policies issued after 1 January 2018:
Policies issued after 1 January 2018 will be grandfathered for LIF purposes if:
- Electronic applications are submitted to AIA Australia before 1 January 2018;
- Paper applications are signed and dated before 1 January 2018 AND received by AIA Australia before 1 February 2018;
- Electronic or paper applications are issued by 31 March 2018
All commission paid on grandfathered policies (including commission paid on alterations or additions) will:
- not be impacted by LIF; and
- be subject to our existing 12 month clawback rules