Life Insurance 17. Ownership Provisions Flashcards
- Policy Owner. Who is the owner of this Policy?
The INSURED,unless otherwise stated in the application or in a Policy endorsement.
- Your rights as an owner end on:
the Insured’s death.
- While the INSURED is living, you have the rights as Policy Owner to:
a. Transfer ownership rights and privileges by Absolute Assignment or Collateral Assignment, or
b. designate, change, or revoke a Contingent Owner, or
c. change any Beneficiary during the Insured’s lifetime, or
d. receive any benefit, exercise any right, and use any privilege granted to You by Your Policy, or
e. agree with Us (the Insurance Carrier) to change or amend your Policy.
- If you have named an IRREVOCABLE BENEFICIARY, the Insurance Carrier will require:
their consent before processing any of Your requests.
- If the OWNER dies before the INSURED, who becomes the new owner?
the CONTINGENT OWNER. If the OWNER dies before the insured and no other arrangements have been made with the Insurance Carrier, ownership will transfer to the OWNER’S ESTATE.
- CHANGE OF OWNERSHIP. If a new OWNER or CONTINGENT OWNER is named, then, unless other wise stated, any prior designation of a CONTINGENT OWERN will be
VOID. The ownership change must be made while the Insured is living by sending satisfactory written notice to US (Insurance Carrier) at OUR HOME OFFICE.
- ASSIGNMENT. Assignment of this Policy will be binding on Us (Insurance Carrier) only after:
a copy of the ASSIGNMENT is received at Our Home Office (Insurance Carrier). The Insurance Carrier is not responsible for the VALIDITY of any assignment. If the ASSIGNMENT is ABSOLUTE, all rights of the OWNER and any REVOCABLE BENEFICIARY are transferred to the ASSIGNEE.
If the ASSIGNMENT is COLLATERAL, rights are transferred only to the extent of the ASSIGNEE’S interest.
- CHANGE OF BENEFICIARY. The Owner may change the beneficiary, unless:
it is an IRREVOCABLE BENEFICIARY, at any time while the insured is living by sending written notice to Us (Insurance Carrier) at their Home Office.
- EFFECTIVE DATE OF ELECTIONS, DESIGNATIONS, CHANGES AND REQUESTS. All elections, designations, changes and requests must be:
made in written form satisfactory to the Insurance Carrier. They will become effective on the date the notice of change is signed, unless specified otherwise by the Owner.
- The Insurance Carrier will not be liable for payment made or action taken by the Insurance Carrier if:
they were made before notice was received at their Home Office and acknowledged in writing by the Insurance Carrier.
