Basics
Who is the only person who can be paid for a life settlement transaction?
Policy Owner
What is a Designated Contact?
(Bonus Point: Who is the only entity that cannot be one?)
Someone who will be in the remainder of Insured's life who can be contacted to obtain policy servicing information if Insured cannot be reached
Bonus: Insured's Physician
Approximately how long does it take from handing over client to PAM until client is paid?
3-6 weeks
Form 7 of our Contract is the Insured's LOC. What is an LOC and why is it necessary?
Letter of Competency
Need Insured's doctor to sign off that they believe the insured is competent in their medical opinion and is capable of making their own financial decisions
You have just found out that the person you have been dealing with is not the policyowner. What should your next step be?
Confirm who the actual policy owner is and let client know that the Owner is the only person who can consent to a life settlement transaction.
What is a verification of coverage call?
Completed by Avery, we are confirming basic policy information and values we already have on file to what the carrier has to ensure we have up to date and accurate information for the Contract.
If a Trust is the Policy Owner, who will sign as Owner?
Trustee(s)
What is the Suicide and Contestability period of a life insurance policy and typically how long is that period?
The contestability period is typically a 2 year window from policy start when the insurance company can investigate death claims and deny the claim if they find the policyholder intentionally lied on their life insurance application.
The suicide period references the suicide clause within the policy contract, which states that the insurance company will typically not pay a death benefit if the insured dies by suicide within the first two years of coverage.
What is a RON?
Remote Online Notary - We do a Remote Online Notary signing session with clients through the DocuSign platform
Bill is the Owner and Insured of his policy. He just asked you if the Contract will need to be notarized. You tell him that most of the forms within the Contract do need to be notarized. Bill panics, as he lives in a nursing home and cannot easily go out to have the Contract notarized. What can you tell Bill to ease his worries?
Let Bill know Abacus will cover the cost of a mobile notary to visit him if he cannot leave his home, and the PAM will set this up for him.
What does CRF stand for?
Contract Request Form
Name one form of our Contract that requires a wet signature?
Form 5, 6, 11, Carrier/change forms
What is the rescission period of a life settlement?
Bonus: Name a form of our Contract that outlines rescission
A specific timeframe, as governed by state law, during which the seller of a life insurance policy has the right to cancel the life settlement agreement without facing any adverse consequences, and the seller is required to return the settlement proceeds they received within that timeframe.
Bonus: Form 3, Form 8
Name one state that does not allow Contract signers to utilize DocuSign
California, Kansas, Arkansas, Mississippi, Indiana, Kentucky, Virginia, North Carolina, Georgia, Connecticut, Washington DC, Maine, Massachusetts, Rhode Island
Craig has stage 4 stomach cancer, and his LE is less than 24 months. You present an offer to him which he accepts. You pass him over to your PAM, who will begin gathering Closing information in order to request Contracts. Celeste finds on the CLEAR that Craig has a criminal records including multiple instances of child abuse and neglect. Is there any way to move forward with buying Craig's policy?
No.
Under what circumstances would a Policy Owner qualify for a 1099-LTC?
If Insured is terminally ill (less than 24 month LE) or if Insured cannot perform 2 out of 5 ADL's
Why do we need to review a full copy of a Trust when it is the Policy Owner or Beneficiary?
- We need to confirm who will be signing off as Owner (Trustee)
- Confirm Trust information we have is what the Carrier has as well
How often can Policy Servicing reach out to an Insured per year?
4 times, quarterly
What is Form 12 of the Abacus Contract?
Your client Jen claims to be the Owner of the policy we have valued and offered on. To her knowledge, she is the Owner, her mom Lydia is the Insured, and the Beneficiary is The Lydia Smith Revocable Trust, and the Trustee is Jen's brother Jeff. When Avery and Jen attempt to complete the VOC, the carrier refuses to provide authorization saying that Jen is not the Owner of the policy so they cannot complete the call. Based on the info you have, who do you think the Owner is and who would be the only person that could authorize Abacus?
The Owner of the policy is probably the Trust. Jeff, as the Trustee, would be the only person who is authorized to receive information and make policy changes.
What 3 items will every Owner have to provide to PAM at the start of Closing?
1. Copy of Policy and Application
2. Driver's license
3. Proof of social security number
What is an SI?
Bonus Point: Name one
Securities Intermediary
Wilmington, Computershare,
Organize these steps in chronological order:
1. Legal Review
2. Release of Funds to Owner
3. Funding Escrow
4. Verification of Coverage Call
5. CRF/Draft Contracts
6. Submit COO/COB Forms to Carrier
7. Initial Due Diligence Review
8. Client Signs Contract
4, 5, 8, 7, 1, 3, 2, 6
Would Accept:
4, 5, 8, 7, 1, 3, 6, 2
What information do we need client to provide us on Form 10 / Insured Death Certificate Release?
Insured's:
- City/State of birth
- Insured's father's full name
- Insured's mother's full name
- Insured's mother's maiden name
Phyllis accepted your offer and has moved to Closing. After the VOC is completed, we find out that her policy was previously owned by her ex-husband and Phyllis was made the owner in 1990. Phyllis asks you, why does it matter that my ex owned this policy since I am the Owner now and have all the rights to the policy?
Fund needs to ensure a clean chain of title.