Common use of Ownership of Policy Clause in Contracts

Ownership of Policy. The Employee shall be the sole and absolute owner of the Policy and shall have and may exercise all the rights and incidents of ownership granted to the owner by the Policy's terms except as otherwise provided in this Agreement. Such rights and incidents of ownership include the right to borrow on security of the Policy but only to the extent that the cash surrender value of the Policy exceeds the cumulative amount of premiums paid by the Company to such date, less any indebtedness to the Insurer created in favor of the Company; to pledge or assign his interest in the Policy for such loans or advances; the right, in the event of termination of this Agreement, to realize against the cash value of the Policy (to the extent such cash value exceeds the Company's interest in the Policy); the right of the Employee's estate in the event of the Employee's death, to realize against the proceeds of the Policy (to the extent said proceeds exceed the Company's interest in the Policy); and the right, subject to the interest of the Company to be reimbursed for its interest in the Policy, to surrender the Policy. An assignment describing the rights of the Company shall be filed with the Insurer. The parties agree that the Insurer is authorized to recognize the rights of either party, as designated in the assignment. The sole signature of either party shall be sufficient for the exercise of his or its respective rights, provided that the Company shall not surrender the Policy as long as the Employee is the owner of the policy, except as otherwise provided in paragraph 9(b) of this Agreement. Each right under the Policy shall be exercisable by the owner of the right without the consent of the other party; however, if the Insurer shall require the signatures of both the Company and the Employee, the parties agree to co-sign any required documents and take all steps necessary to permit the exercise of any such right under the Policy.