Cross Purchase Buy-Sell Submission Guidelines
Take advantage of complimentary, administrative services from Principal by making sure your business is submitted to our Business Market Administration (BMA) department.
Guidelines
- Complete life insurance applications and accompanying life insurance illustrations, per NAIC regulations.
- Sex distinct rates should apply
- To speed underwriting, submit the following:
- A brief cover note to identify three things: (1) fair market value (FMV) of business and how this was determined, (2) the percentage of business ownership per proposed client, and (3) whether a Principal Life or Principal National app is being submitted for ALL individuals under the buy-sell plan, and if NOT, an explanation why.
- Copy of business valuation or buy-sell agreement (if available).
- To obtain life insurance applications, visit the Create Application Packet page in Virtual Supply, or Principal Advisor Network offices may use Life E-App (for Term and Universal Life products only).
- If trust-owned, submit Trust Certification and Indemnification form RF 971.
- Complete Business Case Submission Checklist (DD849R).
- Have the customer complete a buy-sell agreement. You may refer to these sample agreements:
- Business Continuation General Partnership Agreement (BB10994)
- "One Way" Sole Proprietorship Buy-Sell (BB10990)
- Partnership Cross Purchase (BB10988)
- Corporate Cross Purchase (BB10984)
- Prepare a cover letter/memo if there are any special instructions or requests.
- Submit via fax or mail using the information in the Contact Us section below.
Fax
866-542-1359
- Write policy number and clients name in upper right of both fax cover sheet and first page of application.
- Fax all documents in proper page order. If you have a payment, make photocopy of check and fax with application. Mail original check immediately to home office at one of the addresses below.
- Mail ONLY the following ORIGINAL documents to home office at one of the addresses below (always include cover sheet with policy number and client name):
- Initial premium payments, if paid by check;
- All 1035 exchange requirements, including Absolute Assignment (DD747) and Lost Policy Statements.
PrincipalBusiness@exchange.principal.com
Principal Financial Group
P.O. Box 10431
Des Moines, IA 50306-0431
Overnight mail
Principal Financial Group
ATTN: IPDC M-001-E10
711 High Street
Des Moines, IA 50392
Call your BMA Administrator at 800-654-4278, options 4, 2, 3 with any questions.
Important Information
Insurance issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal National and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392.
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