Sister Buying a Policy on Brother Issue!!

[TDFnCali]

I submitted a small 25k policy for a woman who was insuring her brother with RNA Essential life (She also has 1 on her mom thru them)...but RNA rejected it, saying she cant be the owner. So whos got rates like RNA for a 23yr old male, NS, no health issues for whole life 25k??

Thank you in advance!

 

[Norwayguy]

I submitted a small 25k policy for a woman who was insuring her brother with RNA Essential life (She also has 1 on her mom thru them)...but RNA rejected it, saying she cant be the owner. So whos got rates like RNA for a 23yr old male, NS, no health issues for whole life 25k??

Thank you in advance!

Why can't you submit the policy just on the brother and then do a change of ownership to the sister.

 

[TDFnCali]

Why can't you submit the policy just on the brother and then do a change of ownership to the sister.

I figured if they wouldnt allow it to begin with, why would they allow if after the fact??

 

[Norwayguy]

I figured if they wouldnt allow it to begin with, why would they allow if after the fact??

Because the owner of the policy has rights of ownership. Normally one of the rights is to change policy owners. Go to the carriers forms and find the policy change form and see you should be able to change ownership.

I have had carriers have problems with beneficiary designations in the past and have always used this approach to solve the issue.

Oh and if your client is worried the brother won't change ownership just have him sign an undated policy change form and submit after issue.

You may have to deal with where the premium is coming from as well.

 

[VolAgent]

Because the owner of the policy has rights of ownership. Normally one of the rights is to change policy owners. Go to the carriers forms and find the policy change form and see you should be able to change ownership.

I have had carriers have problems with beneficiary designations in the past and have always used this approach to solve the issue.

Oh and if your client is worried the brother won't change ownership just have him sign an undated policy change form and submit after issue.

You may have to deal with where the premium is coming from as well.

The carriers I have had trouble with about ownership never really seem to care about payor. You have to think, policyholder services gets tired of processing all the ownership and beneficiary change forms.

 

[Norwayguy]

The carriers I have had trouble with about ownership never really seem to care about payor. You have to think, policyholder services gets tired of processing all the ownership and beneficiary change forms.

What's funny is a carrier that thinks they can stop a client from doing something they want to do based on company policy like ownership.

 

[jdeasy]

I submitted a small 25k policy for a woman who was insuring her brother with RNA Essential life (She also has 1 on her mom thru them)...but RNA rejected it, saying she cant be the owner. So whos got rates like RNA for a 23yr old male, NS, no health issues for whole life 25k??

Thank you in advance!

Talk to Shannon first and see if he can get that one approved with RNA the way you wrote it. If he can't or if you don't want to go that route then just write it with him as the owner and then then do an ownership change once it's issued.

That is one of RNA's business prevention rules that they came up with last year.