2007-02-15 06:49:54 · 6 answers · asked by thomas t 1 in Business & Finance ➔ Insurance
Maybe. There are some things for concern though. Variable Life is a securities-based policy, so there is more than just state insurance laws to worry about. Also, although most states will allow a person who lives there to sign in another state, some require that the agent is licensed in the state of the client's residence (I think Florida does). Even if it's ok, you have to use an application for the state they live in, because the policy will have to be one approved in the state of residence (if the policy is not approved in Illinois, they may not be able to issue it because there would not be an Illinois approved application).
In my opinion, your biggest worry should be the rules for variable life sales in each state, because you can get into really big trouble if you transgress those.
2007-02-15 15:32:54 · answer #1 · answered by Askala Maryam 2 · 1⤊ 2⤋
There could be a problem, depending on the laws of each state.
First of all, this is not only an insurance question, but a securities question (VUL is a securities product), so you need to understand the securities laws of each state as well as their insurance laws.
Most states do not mind one of their residents signing an insurance application in another state (insurance laws), but may have a different read on a securities product, which VUL is.
Some states also require that an agent who sells an insurance policy to one of their residents must hold a valid insurance license from their state.
In addition, even if you may write the application on a resident of Illinois, you must use an application form approved in Illinois, as the person will be issued an Illinois version of the policy. So, if the Texas -approved application is not the one approved in Illinois, there could be a problem.
2007-02-15 16:33:32 · answer #2 · answered by View from a horse 3 · 0⤊ 2⤋
Well, the client needs to change the address on the policy. If the client lives in Illinois at the time he bought the policy in Texas, the life agent will not receive commissions, unless he is licensed in Illinois too.
2007-02-15 15:04:23 · answer #3 · answered by Anonymous · 2⤊ 2⤋
I assume you're asking whether this is legal or not? The answer depends upon the insurance law in the state where the policy was actually sold.
For example, in my state, a person who travels here can legally be sold a policy by an agent. The agent must be paid commissions, whether he or she is licensed in the buyer's state or not.
For a definitive answer, call the insurance commissioner's office in the state where the sale and signing took place.
2007-02-15 15:46:40 · answer #4 · answered by Suzanne: YPA 7 · 3⤊ 2⤋
As long as the agent who sold the policy is licensed in Illinois it is OK. You have to be licensed in the state that the buyer is a resident from.
2007-02-15 15:02:30 · answer #5 · answered by AriesJWR 4 · 0⤊ 3⤋
Life insurance with cash value don't pay out cash value when you die! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams!
2007-02-15 23:39:10 · answer #6 · answered by Anonymous · 1⤊ 1⤋