Cancer_Policy_CITY_OF_ROSENBERG_EMPLOYEE_TRUST_GVC_CONTRACT.pdf

AMERICAN HERITAGE LIFE INSURANCE COMPANY

HOME OFFICE:

1776 AMERICAN HERITAGE LIFE DRIVE

JACKSONVILLE, FLORIDA 32224-6687

(904) 992-1776

A Stock Company

GROUP CANCER AND SPECIFIED DISEASE INSURANCE POLICY

NON-PARTICIPATING

American Heritage Life Insurance Company (referred to as we, us, or our) will provide benefits under this policy. We make this promise subject to all of the provisions of this policy.

The policyholder should read this policy carefully and contact us promptly with any questions. This policy is delivered in and is governed by the laws of the governing jurisdiction, and to the extent applicable, by the Employee Retirement Income Security Act of 1974 (ERISA), and consists of:

1. all policy provisions and any amendments and/or attachments issued; and

2. the policyholder’s signed application.

This policy may be changed in whole or in part. The approval must be in writing, signed by one of our executive officers and endorsed on or attached to this policy. No other person, including an agent, may change this policy or waive any part of it.

Signed for American Heritage Life Insurance Company at its Home Office in Jacksonville, Florida on the policy effective date.

Secretary President

THIS IS LIMITED BENEFIT CANCER AND SPECIFIED DISEASE COVERAGE WHICH ONLY PROVIDES BENEFITS FOR CANCER

AND SPECIFIED DISEASES AS DEFINED AND OTHER OPTIONAL BENEFITS DESCRIBED HEREIN

THIS IS NOT A POLICY OF WORKERS' COMPENSATION INSURANCE. THE EMPLOYER DOES NOT BECOME A SUBSCRIBER

TO THE WORKERS' COMPENSATION SYSTEM BY PURCHASING THIS POLICY, AND IF THE EMPLOYER IS A NON- SUBSCRIBER, THE EMPLOYER LOSES THOSE BENEFITS WHICH WOULD OTHERWISE ACCRUE UNDER THE WORKERS'

COMPENSATION LAWS. THE EMPLOYER MUST COMPLY WITH THE WORKERS COMPENSATION LAW AS IT PERTAINS TO

NON-SUBSCRIBERS AND THE REQUIRED NOTIFICATIONS THAT MUST BE FILED AND POSTED.

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IMPORTANT NOTICE AVISO IMPORTANTE

To obtain information or make a complaint: Para obtener informacion o para someter una queja:

You may call American Heritage Life Insurance Company's toll-free telephone number for information or to make a complaint at

1-800-535-8086

Usted puede llamar al numero de telefono gratis de American Heritage Life Insurance Company's para informacion o para someter una queja al

1-800-535-8086

You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at

1-800-252-3439

Puede comunicarse con el Departamento de Seguros de Texas para obtener information acerca de companias, coberturas, derechos o quejas al

1-800-252-3439 You may write the Texas Department of Insurance P. O. Box 149104 Austin, TX 78714-9104

FAX #(512) 475-1771

Puede escribar al Departamento de Seguros de Texas P. O. Box 149104 Austin, TX 78714-9104

FAX #(512) 475-1771

PREMIUM OR CLAIM DISPUTES:

Should you have a dispute concerning your premium or about a claim you should contact the company first. If the dispute is not resolved, you may contact the Texas Department of Insurance.

DISPUTAS SOBRE PRIMAS O RECLAMOS:

Si tiene una disputa concerniente a su prima o a un reclamo, debe comunicarse con el compania primero. Si no se resuelve la disputa, puede entonces comunicarse con el departamento

(TDI).

ATTACH THIS NOTICE TO YOUR POLICY:

This notice is for information only and does not become a part or condition of the attached document.

UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de informacion y no se convierte en parte o condicion del documento adjunto.

NENSPTX-GV

TABLE OF CONTENTS

POLICY SPECIFICATIONS

POLICYHOLDER PROVISIONS

GENERAL PROVISIONS................................................................................................................................................................................ 5-9

CONTINUATION OF INSURANCE (COBRA) ............................................................................................................................................ 10-11

PORTABILITY PRIVILEGE

LIMITATIONS/EXCEPTIONS

BENEFIT INFORMATION ............................................................................................................................................................................14-17

SCHEDULE OF SURGICAL PROCEDURES ............................................................................................................................................ 18-20

CLAIM INFORMATION ............................................................................................................................................................................... 21-22

GLOSSARY ................................................................................................................................................................................................. 23-26

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CANCER AND SPECIFIED DISEASE POLICY SPECIFICATIONS

POLICYHOLDER: CITY OF ROSENBERG EMPLOYEE TRUST

POLICY NUMBER: 81606

POLICY EFFECTIVE DATE: October 1, 2017

POLICY ANNIVERSARY DATE: October 1, 2018 and the first day of October each calendar year thereafter.

GOVERNING JURISDICTION: The state of Texas and subject to the laws of that jurisdiction.

ELIGIBLE CLASS(ES): All full-time active employees working at least 30 hours per week excluding those who are insured under any other cancer or specified disease policy issued by American Heritage Life Insurance Company.

ELIGIBILITY WAITING PERIOD: None

BENEFITS: See page 3B & 3C

PLAN I - OPTIONAL BENEFIT(S): Cancer Initial Diagnosis: $3,000.00 Intensive Care:

Hospital Intensive Care Unit Confinement: $200.00/day Step-Down Hospital Intensive Care Unit Confinement: $100.00/day Ambulance: Actual Charges Wellness: $50.00/year

INITIAL RATE: Monthly rate of $21.94 per employee for Individual Coverage; or

$34.18 per employee for Individual and Spouse Coverage; or $31.29 per employee for Individual and Child(ren) Coverage; or $43.53 per employee for Family Coverage

PLAN II - OPTIONAL BENEFIT(S): Cancer Initial Diagnosis: $6,000.00 Intensive Care:

Hospital Intensive Care Unit Confinement: $200.00/day Step-Down Hospital Intensive Care Unit Confinement: $100.00/day Ambulance: Actual Charges Wellness: $50.00/year

INITIAL RATE: Monthly rate of $33.58 per employee for Individual Coverage; or

$52.15 per employee for Individual and Spouse Coverage; or $48.27 per employee for Individual and Child(ren) Coverage; or $66.82 per employee for Family Coverage

RATE GUARANTEE DATE: 10/01/2018

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POLICY SPECIFICATIONS (CONTINUED)

PREMIUM DUE: The initial date agreed to between American Heritage Life Insurance Company and the Policyholder and each specified date thereafter.

The policyholder must send all premiums on or before the premium due date to us. The premium must be paid in United States dollars.

Premium payments are required while the employee is receiving benefits except as provided in the Waiver of Premium benefit.

COST OF COVERAGE: The employee pays the cost of coverage.

DIVISIONS, SUBSIDIARIES OR AFFILIATED COMPANIES

These are the policyholder’s divisions, subsidiaries, or affiliates listed below. The policyholder may act for and on behalf of any and all of these in all matters that pertain to this policy. Every act done by, agreement made with, or notice given to the policyholder will be binding on them.

Name Location (City And State)

None

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CANCER AND SPECIFIED DISEASE POLICY – GVCEP3TX

SEE BENEFITS SECTION OF POLICY FOR DETAILS OF BENEFITS

PLAN I - BENEFITS AMOUNT

A. CONTINUOUS HOSPITAL CONFINEMENT $200.00/DAY

B. GOVERNMENT/CHARITY HOSPITAL $200.00/DAY

C. PRIVATE DUTY NURSING SERVICES $200.00/DAY

D. EXTENDED CARE FACILITY $200.00/DAY

E. AT HOME NURSING $200.00/DAY

F. HOSPICE CARE

1. FREESTANDING HOSPICE CARE CENTER $200.00/DAY

2. HOSPICE CARE TEAM $200.00/VISIT

G. RADIATION/CHEMOTHERAPY FOR CANCER UP TO $10,000.00/12 MONTHS

H. BLOOD, PLASMA AND PLATELETS UP TO $10,000.00/12 MONTHS

I. HEMATOLOGICAL DRUGS UP TO $200.00/YEAR

J. MEDICAL IMAGING UP TO $500.00/YEAR

K. SURGERY UP TO $1,500.00 PER UNIT OF COVERAGE

SEE SCHEDULE OF SURGICAL PROCEDURES

1 UNIT OF COVERAGE

L. ANESTHESIA 25% OF SURGERY BENEFIT

M. BONE MARROW OR STEM CELL TRANSPLANT

1. AUTOLOGOUS TRANSPLANT $500.00/YEAR

2. NON-AUTOLOGOUS TRANSPLANT $1,250.00/YEAR

3. NON-AUTOLOGOUS TRANSPLANT FOR THE

TREATMENT OF LEUKEMIA $2,500.00/YEAR

N. AMBULATORY SURGICAL CENTER $250.00/DAY

O. SECOND OPINION $200.00

P. INPATIENT DRUGS AND MEDICINE $25.00/DAY

Q. PHYSICIAN'S ATTENDANCE $50.00/DAY

R. AMBULANCE $100.00/CONFINEMENT

S. NON-LOCAL TRANSPORTATION COACH FARE OR $0.40/MILE

T. OUTPATIENT LODGING $50.00/DAY

$2,000.00/12 MONTHS

U. FAMILY MEMBER LODGING $50.00/DAY

AND TRANSPORTATION COACH FARE OR $0.40/MILE

V. PHYSICAL OR SPEECH THERAPY $50.00/DAY

W. NEW OR EXPERIMENTAL TREATMENT UP TO $5,000.00/12 MONTHS

X. PROSTHESIS UP TO $2,000.00/AMPUTATION

Y. HAIR PROSTHESIS $25.00/2 YEARS

Z. NONSURGICAL EXTERNAL BREAST PROSTHESIS $50.00/INITIAL PROSTHESIS

AA. ANTI-NAUSEA $200.00/YEAR

BB. WAIVER OF PREMIUM AFTER 90 DAYS

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CANCER AND SPECIFIED DISEASE POLICY – GVCEP3TX

SEE BENEFITS SECTION OF POLICY FOR DETAILS OF BENEFITS

PLAN II - BENEFITS AMOUNT

A. CONTINUOUS HOSPITAL CONFINEMENT $300.00/DAY

B. GOVERNMENT/CHARITY HOSPITAL $300.00/DAY

C. PRIVATE DUTY NURSING SERVICES $300.00/DAY

D. EXTENDED CARE FACILITY $300.00/DAY

E. AT HOME NURSING $300.00/DAY

F. HOSPICE CARE

1. FREESTANDING HOSPICE CARE CENTER $300.00/DAY

2. HOSPICE CARE TEAM $300.00/VISIT

G. RADIATION/CHEMOTHERAPY FOR CANCER UP TO $15,000.00/12 MONTHS

H. BLOOD, PLASMA AND PLATELETS UP TO $15,000.00/12 MONTHS

I. HEMATOLOGICAL DRUGS UP TO $300.00/YEAR

J. MEDICAL IMAGING UP TO $750.00/YEAR

K. SURGERY UP TO $1,500.00 PER UNIT OF COVERAGE

SEE SCHEDULE OF SURGICAL PROCEDURES

2UNITS OF COVERAGE

L. ANESTHESIA 25% OF SURGERY BENEFIT

M. BONE MARROW OR STEM CELL TRANSPLANT

1. AUTOLOGOUS TRANSPLANT $1,000.00/YEAR

2. NON-AUTOLOGOUS TRANSPLANT $2,500.00/YEAR

3. NON-AUTOLOGOUS TRANSPLANT FOR THE

TREATMENT OF LEUKEMIA $5,000/YEAR

N. AMBULATORY SURGICAL CENTER $500.00/DAY

O. SECOND OPINION $400.00

P. INPATIENT DRUGS AND MEDICINE $25.00/DAY

Q. PHYSICIAN'S ATTENDANCE $50.00/DAY

R. AMBULANCE $100.00/CONFINEMENT

S. NON-LOCAL TRANSPORTATION COACH FARE OR $0.40/MILE

T. OUTPATIENT LODGING $50.00/DAY

$2,000.00/12 MONTHS

U. FAMILY MEMBER LODGING $50.00/DAY

AND TRANSPORTATION COACH FARE OR $0.40/MILE

V. PHYSICAL OR SPEECH THERAPY $50.00/DAY

W. NEW OR EXPERIMENTAL TREATMENT UP TO $5,000.00/12 MONTHS

X. PROSTHESIS UP TO $2,000.00/AMPUTATION

Y. HAIR PROSTHESIS $25.00/2 YEARS

Z. NONSURGICAL EXTERNAL BREAST PROSTHESIS $50.00/INITIAL PROSTHESIS

AA. ANTI-NAUSEA $200.00/YEAR

BB. WAIVER OF PREMIUM AFTER 90 DAYS

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POLICYHOLDER PROVISIONS

RATE GUARANTEE

A change in premium rate will not take effect before the Rate Guarantee Date shown on page 3 except for reasons which affect the risk assumed, including those reasons shown below:

1. a change occurs in this plan design; or

2. a division, subsidiary, or affiliated company is added or deleted; or

3. the number of insureds changes by 25% or more; or

4. a new law or a change in any existing law is enacted which applies to this plan; or

5. less than 25% of those eligible for coverage are participating.

We will notify the policyholder in writing at least 60 days before a premium rate is changed. A change may take effect on an earlier date when both we and the policyholder agree in writing.

PREMIUM INCREASES OR DECREASES

Premium increases or decreases may take effect any time subject to the Rate Guarantee provision. If they take effect during a policy month, they are adjusted and due on the next premium due date following the change. Changes will not be pro-rated daily.

If premiums are paid on other than a monthly basis, premiums for increases and decreases will result in a monthly pro-rated adjustment on the next premium due date.

INFORMATION REQUIRED FROM THE POLICYHOLDER

The policyholder must provide us with the following on a regular basis:

1. information about employees:

a. who are eligible to become insured; and

b. whose coverage changes; and

c. whose coverage ends; and

2. any information that may be required to manage a claim; and

3. any other information that may be reasonably required.

Policyholder records that have a bearing, in our opinion, on this policy will be available for review by us at any reasonable time.

CANCELING POLICY

This policy can be canceled:

1. by us; or

2. by the policyholder.

We may cancel or offer to modify this policy, with at least 31 days written notice to the policyholder, if:

1. less than 25% of those eligible for coverage are participating; or

2. this policy has been in effect more than 12 months; or

3. the policyholder does not promptly provide us with information that is reasonably required; or

4. the policyholder fails to perform any of its obligations that relate to this policy; or

5. fewer than 5 employees are insured; or

6. the policyholder fails to pay any premium within the 31 day grace period.

If the premium is not paid during the grace period, this policy will terminate automatically at the end of the grace period. The policyholder is liable for the premium for coverage during the grace period. The policyholder must pay us all premiums due for the full period this policy is in force.

The policyholder may cancel this policy by written notice delivered to us at least 31 days prior to the cancellation date. When both the policyholder and we agree, this policy can be canceled on an earlier date. If canceled, coverage will end at 12:00 midnight on the last day of coverage.

If this policy is canceled, the cancellation will not affect a payable claim incurred prior to cancellation.

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GENERAL PROVISIONS

ELIGIBILITY OF DEPENDENTS

Eligible dependents are:

1. the employee’s legal spouse or domestic partner; and

2. unmarried children of the employee including adopted children from the moment of placement in the residence, children during pendency of adoption procedures, dependent grandchildren living in the employee’s household and stepchildren, children of a domestic partner, or legal ward who are under 25 years of age. The employee’s children must be dependent on the employee for support or reside with the employee over 50% of the time in a regular parent-child relationship and be named on the enrollment or evidence of insurability form.

Coverage for an insured employee’s grandchildren will not terminate solely because they are no longer dependent on the insured employee for federal income tax purposes. After the effective date, any person (except newborns) who becomes an eligible dependent can be added to the policy if we are notified within 31 days after they become eligible.

After the effective date, any person (except newborns) who becomes an eligible dependent can be added to this policy if we are notified within 31 days after they become eligible.

If the insured employee has Individual Coverage or Individual and Child(ren) Coverage, then marries and desires coverage for his or her spouse, we must be notified within 31 days of the marriage. We will change the coverage to Individual and Spouse Coverage or Family Coverage and provide notification of the additional premium due. If we are not notified within 31 days of the marriage, then evidence of insurability will be required for the spouse.

If the insured employee has Individual Coverage or Individual and Child(ren) Coverage, then establishes a domestic partnership and desires coverage for his or her domestic partner, we must be notified within 31 days of the date the domestic partnership was formed. We will change the coverage to Individual and Spouse Coverage or Family Coverage and provide notification of the additional premium due. If we are not notified within 31 days of the date a domestic partnership was formed, then evidence of insurability will be required.

A child born to the insured employee or spouse or domestic partner, while Individual and Child(ren) Coverage or Family Coverage is in force, will be eligible for coverage. This coverage begins at the moment of birth of such child and benefits will be the same as provided for any other person covered under this policy. No additional premium will be required for newborns added if Individual and Child(ren) Coverage or Family Coverage is in force at the time the newborn is added.

If the insured employee has Individual Coverage or Individual and Spouse Coverage, newborn children are automatically covered from the moment of birth for a period of 31 days. If the insured employee desires uninterrupted coverage for a newborn child, the insured employee must notify us within 31 days of that child’s birth. Upon notification, we will convert the insured employee’s Individual Coverage to Individual and Child(ren) Coverage or Individual and Spouse Coverage to Family Coverage and provide notification of additional premium due. If the insured employee does not notify us within 31 days of the birth of the child, the temporary automatic coverage ends.

An adopted child or child pending adoption will be covered as follows, as long as Individual and Child(ren) Coverage or Family Coverage is in force:

1. Coverage is retroactive from the moment of birth for a child with respect to whom a decree of adoption by the insured employee has been entered within 31 days after the date of birth.

2. If adoption proceedings have been instituted by the insured employee within 31 days after the date of birth and the insured employee has temporary custody, coverage is provided from the moment of birth.

3. For children other than newborns, if adoption proceedings have been completed, and a decree of adoption was entered within 1 year from the institution of the proceedings, coverage will begin upon temporary custody for 1 year, unless extended by the order of the court by reasons of the special needs of the child.

Coverage must be provided as long as the insured employee has custody of the child pursuant to decree of the court and required premiums are paid.

ELIGIBILITY DATE

If the employee is working for the employer in an eligible class, the date such employee is eligible for coverage is the later of:

1. this policy’s effective date; or

2. the date such person becomes a member of the eligible class and completes any applicable eligibility waiting period.

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GENERAL PROVISIONS (Continued)

WHEN AN ELIGIBLE EMPLOYEE CAN ENROLL, CHANGE OR DISCONTINUE COVERAGE

1. The employee may apply for coverage during:

a. his or her initial enrollment period; or

b. at any other time, subject to evidence of insurability.

2. The employee may increase coverage at the next annual enrollment period, subject to evidence of insurability.

3. The employee may discontinue coverage at any time.

WHEN EVIDENCE OF INSURABILITY IS REQUIRED

Evidence of insurability is required if:

1. the employee:

a. voluntarily canceled coverage and is reapplying; or

b. is applying for the coverage, or an increase in the amount of coverage, at any time after his or her initial enrollment period.

2. an eligible dependent did not enroll within 31 days of eligibility.

EFFECTIVE DATE OF COVERAGE

Coverage for each eligible employee is effective at 12:01 a.m. on the effective date shown on the certificate of insurance issued to that person.

For any change in an insured employee’s coverage that is subject to evidence of insurability, the change in coverage is effective on the date we approve such change.

For any change in coverage that is not subject to evidence of insurability, the change in coverage is effective on the date we receive such request for change.

WHEN AN EMPLOYEE IS ABSENT FROM WORK ON THE EFFECTIVE DATE OF COVERAGE

If an employee is absent from work due to disability, injury, sickness, temporary layoff, leave of absence or Family and Medical Leave of Absence, coverage for that person begins on the date they meet the definition of active employment. This applies to such person’s initial coverage, as well as any increase or addition to coverage that occurs after such person’s initial coverage is effective.

CERTIFICATES OF INSURANCE

We will issue certificates of insurance for each insured employee. The certificate will provide a description of the insurance provided by this policy and will state:

1. the benefits provided; and

2. to whom benefits are payable; and

3. the limitations, exclusions and requirements that apply to coverage under this policy.

If there is any discrepancy between the provisions of any certificate and the provisions of this policy, the provisions of this policy govern.

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TERMINATION OF COVERAGE

The insured employee’s coverage under the certificate ends on the earliest of:

1. the date this policy is canceled; or

2. the last day of the period for which such employee made any required premium payments; or

3. the last day such insured employee is in active employment, except as provided under the “Temporary Layoff, Leave of Absence or

Family and Medical Leave of Absence” provision; or

4. the date such insured employee is no longer in an eligible class; or

5. the date such insured employee’s class is no longer eligible.

We will provide coverage for a payable claim incurred while the insured employee is covered under this policy.

If the insured employee’s spouse is a covered person, the spouse’s coverage ends upon valid decree of divorce or death of the insured employee.

If the insured employee’s domestic partner is a covered person, the domestic partner’s coverage ends upon termination of the domestic partnership or death of the insured employee.

Coverage for a dependent child ends on the certificate anniversary next following the date the child is no longer eligible This is the earlier of: (a) when the child marries; or (b) reaches age 25; or (c) otherwise does not meet the requirements of an eligible dependent. Coverage does not terminate on an unmarried child who:

1. is incapable of self-sustaining employment by reason of mental or physical incapacity; and

2. became so incapacitated prior to the attainment of the limiting age of eligibility under this policy; and

3. is chiefly dependent upon the insured employee for support and maintenance.

The child’s coverage continues as long as the insured employee’s coverage remains in force and the child remains in such condition. Proof of the incapacity and dependency of the child must be furnished within 60 days of the child's attainment of the limiting age of eligibility.

Thereafter, such proof must be furnished as frequently as may be required, but no more frequently than annually after the child's attainment of the limiting age for eligibility.

If we accept a premium for coverage extending beyond the date, age or event specified for termination as to a covered person, such premium will be refunded, coverage will terminate and claims will not be paid. There may be no refund due if the insured employee has Individual and Child(ren) Coverage or Family Coverage and there are other eligible dependents covered under this policy.

AGENCY

For purposes of this policy, this policyholder acts on its own behalf or as the employee’s agent. Under no circumstances will the policyholder be deemed our agent.

TEMPORARY LAYOFF, LEAVE OF ABSENCE OR FAMILY AND MEDICAL LEAVE OF ABSENCE

If an insured employee ceases active employment because of a temporary layoff or leave of absence while coverage is in force, we will continue the insured employee’s coverage in accordance with the personnel practices of the policyholder, if premium payments continue and the policyholder approved the leave in writing. Coverage will be continued for 3 months following the date the insured employee ceases active employment.

If the insured employee’s coverage ends while on a Family and Medical Leave of Absence, his or her coverage will be reinstated when he or she returns to active status.

We will not:

1. apply a new pre-existing conditions limitation ; or

2. require evidence of insurability.

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ENTIRE CONTRACT

The contract consists of the following items:

1. the group policy; and

2. any amendments and endorsements; and

3. the applications and other written statements of the policyholder; and

4. any individual applications, enrollments, evidence of insurability or other statements of the insured employee.

Any statements made by the policyholder or by a covered person, in the absence of fraud, are representations and not warranties. Only written statements signed by the policyholder or a covered person will be used in defense of a claim. A copy of any written statement, if applicable, will be furnished to the policyholder or the covered person or his or her personal representative, if any, if such written statement will be used in defense of a claim.

INCONTESTABILITY

After 2 years from the effective date of this policy, no misstatement of the policyholder, made in any applications, can be used to void this policy. After 2 years from the effective date of coverage, no misstatement of a covered person, made in writing, can be used to void coverage or deny a claim.

LEGAL ACTION

No legal action may be brought to obtain benefits under this policy:

1. for at least 60 days after proof of loss has been furnished; or

2. after the expiration of 3 years from the time written proof of loss is required to have been furnished.

CLERICAL ERROR

Clerical error on the part of the policyholder or us will not invalidate insurance otherwise in force nor continue insurance otherwise terminated.

Upon discovery of any error, an adjustment will be made in the premiums and/or benefits available. Complete proof must be supplied by the policyholder documenting any clerical errors.

UNPAID PREMIUM

Upon the payment of a claim under this policy, any unpaid premium may be deducted.

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IF AN INSURED EMPLOYEE HAS A LOSS DUE TO A PRE-EXISTING CONDITION AND CHANGES FROM INDIVIDUAL INSURANCE THROUGH AMERICAN HERITAGE LIFE TO GROUP INSURANCE THROUGH AMERICAN HERITAGE LIFE

We may pay benefits if an insured employee’s loss results from a pre-existing condition if the insured employee was:

1. in active employment and insured under this plan on its effective date; and

2. insured by the prior individual insurance policy with American Heritage Life when it terminated.

The coverage that was provided under the prior individual policy must be substantially similar to this plan and have been in effect within 60 days of this plan’s effective date in order for this provision to apply.

In order to receive benefits, the insured employee must satisfy the pre-existing condition provision under:

a. the American Heritage Life plan; or

b. the prior individual insurance policy through American Heritage Life, if benefits would have been paid had the policy remained in force.

If item a. or b. above is not satisfied, we will not pay any benefits resulting from a pre-existing condition.

If item a. or b. is satisfied, we will determine our payments according to our policy provisions.

(This space intentionally left blank.)

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CONTINUATION OF INSURANCE (COBRA)

(APPLIES TO GROUPS WITH 20 OR MORE EMPLOYEES)

This section provides for continuation as mandated by federal law for all benefits. It applies if a covered person’s insurance would otherwise end due to one of the following events, called a qualifying event.

1. Termination of employment (other than by reason of gross misconduct), or of an insured employee’s eligibility due to reduction in his or her hours. Insurance may be continued for any covered person, except for domestic partners and their covered dependents.

2. The death of an insured employee. Insurance may be continued for any covered person, except for domestic partners and their covered dependents.

3. Divorce or legal separation. Insurance may be continued for a covered spouse whose insurance would otherwise end. However, COBRA does not extend continuation of coverage to domestic partners and their dependents).

4. The insured employee becoming eligible for Medicare. Insurance may be continued for any covered dependents who are not entitled to Medicare, except for domestic partners and their covered dependents.

5. A child ceasing to be an eligible dependent as defined in this policy. Insurance may be continued for that child.

6. The policyholder files a Chapter 11 Bankruptcy petition. Insurance may be continued for any insured retiree and his or her covered dependents. But this only applies if the insurance ends or is substantially reduced within 1 year before or after the filing for bankruptcy.

To choose this continuation of insurance, a person must be insured under this policy on the day before the qualifying event. In the case of bankruptcy, the person must also be: (a) an employee who retired on or before the date insurance ends or is substantially reduced; or (b) a dependent of the retiree on the day before the bankruptcy.

A person will not be denied continuation solely because he or she is covered under another group cancer and specified disease policy or eligible for Medicare on the date the qualifying event occurs.

COVERAGE CONTINUED

The insurance being continued is subject to all terms and provisions of this policy that do not conflict with this section. The insurance will be the same as that provided under this policy for other persons in the same insurance class in which such person would have been if the qualifying event had not occurred. The continued insurance will be subject to any changes to this policy affecting the benefits of such class following the qualifying event.

NOTIFICATION AND PAYMENT REQUIREMENTS

The insured employee or other qualifying dependents have the responsibility to inform the policyholder of: (a) divorce; (b) legal separation; or

(c) a child losing eligibility under this policy. This notice must be made within 60 days of the qualifying event. Failure to provide this notification within 60 days will result in the loss of the right to continue the insurance.

The policyholder has the responsibility of notifying the plan administrator of: (a) an insured employee’s death, termination of employment, or reduction in hours; or (b) the policyholder’s bankruptcy. This notice must be made within 30 days of the qualifying event.

The plan administrator will notify the qualifying person of the right to continue within 14 days of the notice described above. The person will then have 60 days to elect to continue his or her insurance. Failure to elect to continue insurance within 60 days after a person is notified by the plan administrator will result in loss of the right to continue such insurance.

The qualifying person will be required to pay a premium for the continued insurance to the policyholder. He or she will have 45 days from the date of election to pay the initial premium due. All further premiums will be due on a monthly basis with a 31 day grace period.

GVCEP3TX Page 10

CONTINUATION OF INSURANCE (COBRA) – (Continued)

(APPLIES TO GROUPS WITH 20 OR MORE EMPLOYEES)

TERMINATION

Insurance being continued will terminate on the first of the following dates that apply:

1. The date this policy terminates or is amended to terminate the type of insurance being continued.

2. The end of the last period for which premiums for such coverage has been made. This applies if any required premium is not made to the policyholder within 31 days of the due date.

3. The date the person becomes covered under any other group cancer policy, whether as an insured or otherwise. (This will not apply if such other policy contains any exclusion or limitation with respect to any pre-existing condition the person may have.)

4. The date the person becomes entitled to benefits under Medicare. (This will not apply if the qualifying event involves retired employees of policyholders under Chapter 11 Bankruptcy and his or her dependents.)

5. The date ending 18 months from the date of the qualifying event for persons who qualify due to termination of employment or reduction in hours worked. However, if a second qualifying event occurs within this 18 month period, the period of coverage for any affected dependent may be extended up to 36 months from the date of the first qualifying event. For all other qualifying events, insurance will terminate on the date ending 36 months from the date of the qualifying event, except as provided below:

a. If a person is totally disabled for Social Security purposes any time during the first 60 days of continuation coverage, the 18 month period may be extended to 29 months. In order for this additional 11 months of insurance to be effective, the covered person must provide the policyholder or plan administrator with a copy of the notice of the determination. The notice must be provided:

1. within 60 days of the Social Security determination of total disability; and

2. within the initial 18 months of continuation coverage.

b. If an insured employee has a qualifying event (termination or reduction in hours worked) and he or she had become entitled to Medicare before the date of this qualifying event, then any other qualified beneficiary (the spouse and/or children) will be entitled to a period of continuation that is the greater of:

1. 36 months from the date the insured employee first became entitled to Medicare; or

2. 18 months from the insured employee’s termination or reduction in hours.

c. For a qualifying event involving retired employees of policyholders under Chapter 11 Bankruptcy and his or her dependents, the maximum period of continuation coverage is:

1. the lifetime of the retiree; or

2. the lifetime of the surviving spouse of a retiree who dies before the bankruptcy; or

3. 36 months after the date of death of the retiree, when such date is after the bankruptcy.

6. With respect to a person entitled to a 29 month period of continuation coverage due to disability of a qualified beneficiary, the date of a final determination under Title II or XVI of the Social Security Act that the qualified beneficiary is no longer disabled. However, insurance will not terminate until the last day of the month that next follows the completion of a 30 day period beginning on the date of such final determination.

GVCEP3TX Page 11

PORTABILITY PRIVILEGE

We will provide portability coverage, subject to these provisions.

Such coverage will not be available for a covered person, unless:

1. coverage under this policy terminates under the General Provision entitled “Termination of Coverage”; and

2. we receive a written request and payment of the first premiums for the portability coverage not later than 30 days after such termination;

and

3. a request is made for that purpose.

No portability coverage will be provided for any person, if his or her insurance under this policy terminated due to his or her failure to make required premium payments.

PORTABILITY COVERAGE

The benefits, terms and conditions of the portability coverage will be the same as those provided under this policy when the insurance terminated. Portability coverage may include any eligible dependents who were covered under this policy. Any change made to this policy after a person is insured under the portability privilege will not apply to that covered person unless it is required by law.

Portability coverage will be effective on the day after insurance under this policy terminates.

PORTABILITY PREMIUMS

Premiums for portability coverage are due and payable in advance to us at our home office. Premium due dates are the first day of each calendar month. The portability premium rate is the rate in effect under this policy for active employees who have the same coverage. The premium rate for portability coverage may change for the class of covered persons on portability on any premium due date. Written notice will be given at least 60 days before the change is to take effect.

GRACE PERIOD

The grace period, as defined in this policy, will apply to each certificate holder of portability coverage as if such covered person is the policyholder.

TERMINATION OF INSURANCE

Insurance under this portability privilege will automatically end on the earliest of the following dates:

1. the date the person again becomes eligible for insurance under this policy; or

2. the last day for which premiums have been paid, if the covered person fails to pay premiums when due, subject to the grace period; or

3. with respect to insurance for dependents:

a. the date the employee’s insurance terminates; or

b. the date the dependent ceases to be an eligible dependent, as defined.

A dependent child whose portability coverage terminates when he or she reaches the age limit may apply for portability coverage in his or her own name, if he or she is otherwise eligible.

TERMINATION OF THE POLICY

If this policy terminates, insured employees and their covered dependents will be eligible to exercise the portability privilege on the termination date of this policy. Portability coverage may continue beyond the termination date of this policy, subject to the timely payment of premiums.

Benefits for portability coverage will be determined as if the policy had remained in full force and effect.

GVCEP3TX Page 12

LIMITATIONS / EXCEPTIONS

1. PRE-EXISTING CONDITION LIMITATION

We do not pay for any benefit due to, or caused by, a pre-existing condition, as defined, during the 12 month period beginning on the date that person became a covered person.

2. OTHER LIMITATIONS AND EXCEPTIONS

We do not pay for any loss except for losses due directly from cancer or a specified disease. We do not pay for any other conditions or diseases caused or aggravated by cancer or a specified disease. Diagnosis must be submitted to support each claim.

GVCEP3TX Page 13

BENEFIT INFORMATION

PAYMENT OF BENEFITS

If cancer or a specified disease is diagnosed on or after the covered person’s effective date, we pay according to the benefits provisions in this policy, subject to the Limitations/Exceptions provision and all other provisions contained in this policy.

If diagnosis is made while the covered person is hospital confined, benefits begin retroactively to the day of admission or 10 days prior to the date of diagnosis if this is more favorable.

If positive diagnosis is made within 12 months after a tentative diagnosis, benefits are paid from the date of tentative diagnosis if the tentative diagnosis is made on or after the effective date, subject to the Pre-existing Condition Limitation provision.

If a covered person dies while an inpatient in a hospital and cancer or a specified disease is not diagnosed until after the covered person’s death, benefits will begin retroactively to the day of admission, up to a maximum of 30 days prior to death.

SCHEDULE OF BENEFITS

We pay the following benefits for the necessary services and products for a covered cancer or a specified disease. Treatment must be received in the United States or its territories.

For those benefits for which we pay actual charges up to a specified maximum amount, benefits K., W. and X., if specific charges are not obtainable as proof of loss, we will pay 50% of the applicable maximum for the benefits payable.

No benefits are payable for the treatment of cancer or a specified disease except those expressly stated in this Schedule of benefits.

A. Continuous Hospital Confinement. If a covered person is admitted to and confined as an inpatient in a hospital, we pay the amount shown on page 3A per day for each day.

B. Government or Charity Hospital. In lieu of all other benefits in this policy (except the Waiver of Premium benefit), we pay the amount shown on page 3A per day for each day a covered person is confined to: (1) a hospital operated by or for the U.S. Government (including the Veteran’s Administration); or (2) a hospital that does not charge for the services it provides (charity).

C. Private Duty Nursing Services. While a covered person is an inpatient receiving treatment, we pay the amount shown on page 3A per day if such covered person requires the full-time services of a private nurse. Full-time means at least 8 hours of attendance during a 24 hour period. These services must be required and authorized by the attending physician and must be provided by a nurse.

D. Extended Care Facility. We pay the amount shown on page 3A per day for each day a covered person is confined in an extended care facility. Confinement in the extended care facility must be at the direction of the attending physician and must begin within 14 days after a covered hospital confinement. This benefit is limited to the number of days of the previous continuous hospital confinement.

E. At Home Nursing. While a covered person is receiving treatment, we pay the amount shown on page 3A per day for private nursing care and attendance by a nurse at home. At home nursing services must be required and authorized by the attending physician. This benefit is limited to the number of days of the previous continuous hospital confinement.

F. Hospice Care. When a covered person is:

1. determined by a physician to be terminally ill; and

2. expected to live 6 months or less;

We pay one of the following two benefits for hospice care:

a. Freestanding Hospice Care Center. We pay the amount shown on page 3A per day for confinement in a licensed freestanding hospice care center. The covered person must be diagnosed by a physician as terminally ill and the attending physician must approve the confinement. This benefit is payable only if a covered person is admitted to a freestanding hospice care center. Benefits payable for hospice centers that are designated areas of hospitals will be paid the same as inpatient hospital confinement; or

b. Hospice Care Team. We pay the amount shown on page 3A per visit, limited to 1 visit per day, for home care services by a hospice care team. Home care services are hospice services provided in the patient's home.

This benefit is payable only if: (1) the covered person has been diagnosed as terminally ill; and (2) the attending physician has approved such services. We do not pay for: (a) food services or meals other than dietary counseling; or (b) services related to well-baby care; or (c) services provided by volunteers; or (d) support for the family after the death of the covered person.

GVCEP3TX Page 14

BENEFIT INFORMATION (Continued)

G. Radiation/Chemotherapy for Cancer. We pay the actual cost, up to the amount stated below for radiation therapy and chemotherapy received by a covered person.

This benefit is limited to the amount shown on page 3A per 12 month period beginning with the first day of benefit under this provision.

Administration of radiation therapy or chemotherapy other than by medical personnel in a physician’s office or hospital, including medications dispensed by a pump, will be limited to the costs of the drugs only, subject to the maximum amount payable per 12 month period explained above.

We only pay this benefit for cancer treatment consisting of:

1. cancericidal chemical substances for the purpose of modification or destruction of cancer or a specified disease;

and

2. X-ray radiation; and

3. radium and cesium implants; and

4. cobalt.

This benefit does not pay for: (a) any other chemical substance which may be administered with or in conjunction with radiation/chemotherapy; or (b) treatment planning; or treatment consultation; or treatment management; or the design and construction of treatment devices; or basic radiation dosimetry calculation; or any type of laboratory tests; or X-ray or other imaging used for diagnosis or disease monitoring; or the diagnostic tests related to these treatments; or (c) any devices or supplies including intravenous solutions and needles related to these treatments.

H. Blood, Plasma and Platelets. We pay the actual cost, up to the limit stated below, when a covered person receives:

1. blood, plasma and platelets (including transfusions and administration charges); and

2. processing and procurement costs; and

3. cross-matching.

This benefit is limited to the amount shown on page 3A per 12 month period beginning with the first day of benefit under this provision. We do not pay for blood replaced by donors. We also do not pay for immunoglobulins.

I. Hematological Drugs. We pay the actual cost up to the amount shown on page 3A for drugs intended to boost cell lines such as white blood cell counts, red blood cell counts and platelets. This benefit is paid only when the Radiation/Chemotherapy for Cancer benefit (benefit G.) is paid.

J. Medical Imaging. We pay the actual cost once per calendar year, up to the amount shown on page 3A if a covered person receives an initial diagnosis or follow-up evaluation based upon one of the following medical imaging exams: CT scan; Magnetic Resonance Imaging (MRI) scan; bone scan; thyroid scan; Multiple Gated Acquisition (MUGA) scan; Positron Emission Tomography (PET) scan; transrectal ultrasound; or abdominal ultrasound. This benefit is limited to 1 payment per calendar year per covered person.

K. Surgery. We pay the actual charges, up to the amount listed in the Schedule of Surgical Procedures for the specific procedure per unit of coverage shown on page 3A when surgery is performed on a covered person:

1. for the purpose of treating a diagnosed cancer or specified disease; or

2. for the purpose of diagnosing cancer or a specified disease and that surgery results in a diagnosis of cancer or a specified disease; or

3. that is the first surgery performed subsequent to a diagnosis of cancer or a specified disease that is performed for the purpose of verifying the complete removal of the cancer or specified disease.

If any surgical procedure other than those listed in the Schedule of Surgical Procedures is performed, we pay the actual charges, up to the unit value for the surgical procedure as set forth in the 1964 California Relative Value Schedule (C.R.V.S.) multiplied by $10.00 per unit of coverage. If the surgical procedure has no unit value or is not shown in the 1964 C.R.V.S., we pay the actual charges, up to an amount we reasonably determine to be consistent (based upon relative difficulty) with the Schedule of Surgical Procedures per unit of coverage. Two or more procedures performed at the same time through one incision or entry point are considered one operation; we pay the amount for the procedure with the greatest benefit. Payment will never exceed the maximum per unit of coverage.

Surgery performed on an outpatient basis is paid at 150% of the scheduled benefit. This benefit does not pay for surgeries covered by other benefits in this Schedule of Benefits.

L. Anesthesia. We pay 25% of the amount paid for the Surgery benefit (benefit K.) for anesthesia received by an anesthetist.

GVCEP3TX Page 15

BENEFIT INFORMATION (Continued)

M. Bone Marrow or Stem Cell Transplant. We pay the amounts shown on page 3A for the following types of bone marrow or stem cell transplants performed on a covered person:

1. A transplant which is other than non-autologous.

2 A transplant which is non-autologous for the treatment of cancer or a specified disease, other than Leukemia.

3. A transplant which is non-autologous for the treatment of Leukemia.

This benefit is payable only once per covered person per calendar year.

A non-autologous transplant is an allogeneic or syngeneic graft from one human being to another.

N. Ambulatory Surgical Center. We pay the amount shown on page 3A for the use of an ambulatory surgical center for a surgical procedure covered under the Surgery Benefit (benefit K.) that is performed at an ambulatory surgical center.

O. Second Opinion. If surgery or treatment is recommended by a physician and the covered person chooses to obtain the opinion of a second physician, we pay the amount shown on page 3A. This second opinion must be: rendered prior to surgery or treatment being performed; and obtained from a physician not in practice with the physician rendering the original recommendation.

P. Inpatient Drugs and Medicine. We pay the amount shown on page 3A for charges per day, made by the hospital for drugs and medicine while hospital confined, for each day of continuous hospital confinement. This benefit does not pay for drugs and/or medicine covered under the Radiation/Chemotherapy benefit (benefit G.) or the Anti-Nausea benefit (benefit AA.).

Q. Physician's Attendance. We pay the amount shown on page 3A per day for a visit by a physician while a covered person is receiving treatment during hospital confinement. This benefit is limited to one visit by one physician per day of hospital confinement. A visit means personal attendance by the physician. Admission to the hospital as an inpatient is required.

R. Ambulance. We pay the amount shown on page 3A per continuous hospital confinement for transportation by a licensed ambulance service or a hospital owned ambulance to or from a hospital in which the covered person is confined.

S. Non-Local Transportation. We pay the following benefit for transportation to receive treatment at a hospital (inpatient or outpatient); or radiation therapy center; or chemotherapy or oncology clinic; or any other specialized freestanding treatment center nearest to the covered person’s home, provided the same or similar treatment cannot be obtained locally: (1) actual cost of round trip coach fare on a common carrier; or (2) the amount shown on page 3A, up to 700 miles, for round trip personal vehicle transportation. Mileage is measured from the covered person’s home to the nearest treatment facility as described above. "Non-Local" means a round trip of more than 70 miles from the covered person’s home to the nearest treatment facility. We do not pay for: transportation for someone to accompany or visit the person receiving treatment; visits to a physician's office or clinic; or for services other than actual treatment.

T. Outpatient Lodging. We pay a daily lodging benefit when a covered person receives radiation or chemotherapy treatment (benefit G.)

on an outpatient basis, provided the specific treatment is authorized by the attending physician and cannot be obtained locally. The benefit is for a single room in a motel, hotel, or other accommodations acceptable to us, for the amount shown on page 3A per day during treatment.

This benefit is limited to the amount shown on page 3A per 12 month period beginning with the first day of benefit under this provision.

Outpatient…