Loan Split Dollar Submission Guidelines
Take advantage of free, top-notch administrative services from Principal® by making sure your business is submitted to our Business Market Administration (BMA) department.
- Complete life insurance applications and accompanying life insurance illustrations, per NAIC regulations.
- The insured 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).
- Have client complete a loan split dollar agreement with accompanying promissory note.
- 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.
- If trust-owned,
- Complete Business Case Submission Checklist (DD849R). To identify the plan type, mark “Other” box and write: Loan Split Dollar. (Again, unisex pricing should apply.)
- 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.
- Prepare a cover letter/memo if there are any special instructions or requests.
- Submit above items via fax or mail using the information in the Contact Us section below.
- Write policy number and proposed insured's 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 proposed insured name):
- Initial premium payments;
- All 1035 exchange requirements, including Absolute Assignment (DD747), Lost Policy Statements, Internal Exchange Request (DD689), etc.
Principal Financial Group
P.O. Box 10431
Des Moines, IA 50306-0431
Principal Financial Group
ATTN: IPDC A-001-N20
711 High Street
Des Moines, IA 50392
Call your BMA Administrator at 800-654-4278, options 4, 2, 3 with any questions.
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.