Common use of Policy Ownership Clause in Contracts

Policy Ownership. a. Except as provided in, or limited by, Section 4 and subparagraph b of this Section, the Owner shall have all the rights of the "Owner" under the terms of the Policy, including but not limited to the right to designate beneficiaries, select settlement options and to surrender the Policy; provided, the Owner may surrender paid up additions, borrow against the Policy or change dividend options on the Policy only if and to the extent that, immediately after the Owner takes such actions, the Cash Surrender Value of the Policy exceeds 110% of the Assignee's Premium Interest. b. In exchange for the Assignee's payment of its premium contribution under Section 2, the Owner hereby assigns to the Assignee the following limited ownership rights in the Policy: (i) The right to obtain one or more loans or advances on the Policy to the extent of the Assignee's Policy Interest and to pledge or assign the Policy for such loans or advances. (ii) The right to realize against the Cash Surrender Value of the Policy to the extent of the Assignee's Policy Interest, in the event of termination of this Agreement as provided in Section 5. (iii) The right to realize against the proceeds of the Policy to the extent of Assignee's Policy Interest, in the event of the Insured's death. c. It is agreed that benefits may be paid under the Policy by the Insurer either by separate checks to the parties entitled thereto, or by a joint check. In the latter instance, the Owner and the Assignee agree that the benefits shall be divided as provided herein.

Policy Ownership. a. Except as provided in, or limited by, Section 4 and subparagraph b of this Section, the Owner shall have all the rights of the "Owner" under the terms of the Policy, including but not limited to the right to designate beneficiaries, select settlement options and to surrender the Policy; provided, the Owner may surrender paid up additions, borrow against the Policy or change dividend options on the Policy only if and to the extent that, immediately after the Owner takes such actions, the Cash Surrender Value of the Policy exceeds 110% of the Assignee's Premium Interest. b. In exchange for the Assignee's payment of its premium contribution under Section 2, the Owner hereby assigns to the Assignee the following limited ownership rights in the Policy: (i) The right to obtain one or more loans or advances on the Policy to the extent of the Assignee's Policy Interest and to pledge or assign the Policy for such loans or advances. (ii) The right to realize against the Cash Surrender Value of the Policy to the extent of the Assignee's Policy Interest, in the event of termination of this Agreement as provided in Section 5. (iii) The right to realize against the proceeds of the Policy to the extent of Assignee's Policy Interest, in at the event death of the Insured's deathsurvivor of the Insureds. c. It is agreed that benefits may be paid under the Policy by the Insurer either by separate checks to the parties entitled thereto, or by a joint check. In the latter instance, the Owner and the Assignee agree that the benefits shall be divided as provided herein.