Loan Split Dollar 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 client is typically the policyowner, and names their personal beneficiary. (Alternatively, the policyowner and beneficiary could be a trust established by the insured.)
   • Unisex rates should apply. (If not used, then complete Norris Letter of Understanding (BB4402)).
   • To obtain life insurance applications, visit the Create an App page on the advisor site, or Principal Advisor Network offices may use Life E-App (for Term and Universal Life products only).

2. Have customer complete a loan split dollar agreement with accompanying promissory note.
   • Sample loan split dollar agreement (BB12277)
   • Sample tax-exempt loan split dollar agreement (BB12278)
      
3. Have the appropriate collateral assignment form completed, as described below:
   • Assignment of Life Insurance Policy as Collateral (DD168) – Conveys various policy rights to the assignee (as described in its Part B), or
   • Restrictive Assignment of Life Insurance Policy as Collateral (DD9215) – Used for estate tax planning purposes where the policy is owned by a third party, such as an irrevocable life insurance trust. Use this form to convey only limited rights to the assignee (as described in its Part B) to avoid incidents of ownership in the policy by the assignee.
      
4. If trust-owned, submit Trust Certification and Indemnification form RF 971.
    
5. Complete Business Case Submission Checklist (DD849R). To identify the plan type, mark “Other” box and write: Loan Split Dollar. (Again, unisex pricing should apply.)
    
6. 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.
    
7. Prepare a cover letter/memo if there are any special instructions or requests.
    
8. Submit above items via fax or mail using the information in the Contact Us section below.

Important Information

633834-102018