ESOP Repurchase Plan 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

1. Complete life insurance applications and accompanying life insurance illustrations, per NAIC regulations.
   • The employer (or a trust on behalf of employer) should be the policy owner and beneficiary.
   • Sex distinct rates should apply.
   • 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).
      
2. Submit an ESOP Repurchase Obligation Study (if available).
    
3. If corporate-owned, have authorized officer other than client sign as policy owner¹.
   • For variable life insurance, submit documents identified in required Customer Identity Verification Form (MM2580)

If trust-owned, submit Trust Certification and Indemnification form RF 971.

4. Complete Business Case Submission Checklist (DD849R).
    
5. For Guaranteed Issue or Simplified Issue Underwriting, include a copy of the Principal home office email or letter which granted approval for this underwriting program.
    
6. Prepare a cover letter/memo if there are any special instructions or requests.
    
7. Submit via fax or mail using the information in Contact Us below.

¹  If client is the only one authorized to sign as owner, include either a copy of Articles of Incorporation or explanatory letter on company letterhead.

Important Information

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