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
Law that provided for federal crime insurance. Because private insurance is not available for business owners and residents of certain high-crime areas, the act provides that the federal ...
The right to purchase insurance without physical examination; the present and past physical condition of the applicant are not considered. ...
Waiver of an impairment of an applicant for health insurance by attaching an endorsement to the health insurance policy stating that the policy will pay no benefits in connection with the ...
In workers compensation insurance policies and several business property and liability policies, review of the payroll of a business firm in order to determine the premium for coverage. ...
Clause in liability insurance policies stating that the insurance company has a legally enforceable obligation to pay all claims and defend all suits (even if groundless) up to the policy ...
Exchange of a new policy for one already in force. ...
Law that places limitations on an uninsured motor vehicle owner or motor vehicle operator's ability to recover damages in the event of a motor vehicle accident. The state of Louisiana ...
Coverage for paintings, pictures, etchings, tapestries, art glass windows, antique furniture, coin collections, and stamp collections owned by individuals and businesses. These works are ...
Injuries that afflict the tendons, bones, muscles, and nerves of the back, hands, arm, shoulders, and neck. These are the fastest growing areas of workers compensation claims. The symptoms ...
Have a question or comment?
We're here to help.