IN THE NEWS - What's going on in Individual Insurance
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What's going on in Individual Insurance and Investment

Desjardins Insurance - Life - Health - Retirement

MGA

March 13, 2023

In this issue:

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REQUIRED: COMPLETE DECLARATION OF TAX RESIDENCE | WE'VE UPDATED THE E-APPLICATION

As announced last fall, we've updated the e‑application to comply with the Canada Revenue Agency (CRA) requirement to file a complete declaration of tax residence.

Reminder: A complete declaration of tax residence is required for all applications for insurance or policyowner changes for products subject to anti-money laundering (AML) and anti‑tax evasion (ATE), i.e., universal life, participating life and permanent life insurance that offer cash surrender values or a savings component.

Overview and scope of the update

The checkbox to take advantage of the 90‑day grace period to provide missing information on the declaration has been removed from the e‑application. Applications can now no longer be submitted for analysis without a complete declaration of tax residence, when required.

This rule applies to both the electronic, and the paper and PDF versions of the Insurance Application – Life, Health and Disability form (07002E) form.

Tool	If a complete declaration of tax residence is required	If the declaration of tax residence is incomplete
Electronic application	In both cases, we must have all the required information, including the taxpayer identification number (TIN), when the application is signed.	The application will be considered incomplete by the system and cannot be submitted.
Paper and PDF versions of the form		Assessment of the application will not be able to start. The application will be put on hold until all required information is obtained.

Important: In the event where the policyowner is a business, you must use the Identity Verification Supplementary Form (08295E). Make sure it is completed properly to avoid your client's insurance application being put on hold.

The update of the e-application formalizes the tightening of our practices to comply with the rule. As a reminder about CRA requirements, please see the news item posted on November 21, 2022 or contact your designated compliance advisor.

Questions?

Call our Client Relations Centre: 1‑800‑278‑0669

INVESTMENTS

CONVERSION OF RRSP AND LIRA CONTRACTS FOR YOUR CLIENTS TURNING 71 IN 2023

Under the Income Tax Act, the RRSP and LIRA contracts held by your clients turning 71 years old in 2023 must be converted into a retirement product prior to December 31, 2023.

List of your affected clients

Lists of clients could be provided upon request only. Call our Client relations centre: 1‑877‑647‑5435.

Procedure

Refer to the Internal transfers section of the Accumulation annuities or Guaranteed investment funds procedure guides, available on Webi under Investments > Policy services.

LIRA under federal legislation

For your clients holding LIRAs under provincial legislation other than Quebec, the transfer must be made to a Helios LIF contract.