Transfer For Value Rule
An exception to section 101 (a) (1) OF THE INTERNAL REVENUE CODE tax-exempt Status Of the DEATH BENEFIT in a life insurance policy where the transfer of the interest in the policy by the policy owner to another party in exchange for a valuable consideration results in the death benefit losing its tax-exempt status. However, the death benefit will not lose its tax-exempt status when the policy is transferred to the insured, to a partner of the insured, to a partnership in which the insured is a full partner, or to a company, provided the insured is a stockholder and/or an officer in that company.
Popular Insurance Terms
Transaction of reinsurance under which there is a limit on the total liability of the re-insurer and future investment income is a recognized component of the underwriting process. This ...
Term meaning that an exporter of goods that are damaged or destroyed during international shipment relinquishes responsibility for the damage or destruction once the goods leave the point ...
Abbreviation for premium payment. It usually applies to a limited number of annual premium payment policies such as a ten-day policy. ...
Method of accident prevention whose objective is to detect system-component deficiencies that have the potential for causing accidents. ...
Same as term CEDE: to transfer a risk from an insurance company to a reinsurance company. ...
Health characteristic considered by an insurer underwriting an applicant for life or health insurance. Many insurance companies charge reduced premiums for nonsmokers. ...
Coverage on an all risks basis, subject to exclusions of war, wear and tear, loss resulting from delay, loss of market, infidelity of the insured's employee, loss due to rain, sleet, snow, ...
Annuity that provides income payments for a number of years provided the annuitant is alive to receive them. All income payments cease upon the death of the annuitant. ...
Policyholder's equity share of the life insurance company's assets. The share is based on the policyholder's contribution to assets (the company's gross premiums minus cost of insurance, ...
Have a question or comment?
We're here to help.