(a) A life underwriter shall regard a sale of life insurance as being completed not only when the life insurance is in force and a policy has been issued but also from the moment that the sale is considered completed in accordance with following conditions:
When an application for life insurance is signed and settlement in whole or part of first premium as specified in the application is made by applicant.
i. payment of cash or cheque * in full,
ii. part cash or cheque and not for balance,
iii. partial settlement in cash or by cheque,
iv. a signed authorization for a salary savings case or under a banker’s order plan, or
v. a signed authorization to transfer fund from one policy to another within the same company:
.When, in case of a single premium annuity contract, the application is signed and full settlement of the premium is made;
.When, in the case of life .insurance issued with an interim term period not exceeding one year, the application has been signed and the interim term premium is paid;
. When, in the case of funds to be transferred to a Registered Pension Plan, or a Registered Retirement Savings Plan.
. When, in the case of funds to be transferred from whatever source the life underwriter has received an authorization and direction to transfer the funds, duly signed and completed by the applicant.
*whenever the word “cheque” appears above, it shall mean a cheque which is not post-dated.
(b) A sale of life insurance may be reopened:
. When partial settlement is made but no further arrangements are made wi thin the next 60 days to pay the balance of the premium;
. When full settlement of the premium is made but, where a medical examination has not been completed within 60 days, or
. When the life insurance is issued on terms which differ from those applied for and the new terms have not been accepted by the applicant.