Private Replacement Variable Life (ppvl)
Definition of "Private replacement variable life (ppvl)"
Life insurance policy in which the cash value and in some circumstances the death benefit will vary according to the investment performance of an underlying portfolio usually comprised of equities. Thus, this product is considered to be a variable life insurance policy. In order for a PPVL policy to be sold in any state, the insurance company must be approved to distribute that product in the state and the product must be approved for distribution. Section 817 of the Internal Revenue Code, which discusses the tax treatment of variable policies, and Regulation 1.817.5, which discusses the diversification requirements for life insurance policies, variable dollar annuities, and endowment insurance policies, pertain to the tax considerations for the PPVL. All variable life insurance policies are considered securities and are subject to federal securities law. One life insurance product currently being directed on a private placement basis is corporate-owned variable LIFE INSURANCE.
Popular Insurance Terms
Percentage of first year's premium paid to compensate an insurance agent. This is known as the "First Years" to show how much new business the agent is generating, compared with renewal ...
Type of surety bond that guarantees the performance of public officials. Public officials are responsible for a broad range of property including fees that they collect, money that they ...
Type of major medical deductible amount that acts as a corridor between benefits under a basic health insurance plan and benefits under a major medical insurance plan. After benefits are ...
One who purchases insurance, usually property and liability and not life or annuities, by utilizing his or her own employee purchaser or licensed broker/agent at a minimum annual premium of ...
Dishonest statement to induce an insurance company to write coverage on an applicant. If the company knew the truth, it would not accept the applicant. Fraudulent misrepresentation gives a ...
Risk incurred by the insurance company after it makes the commitment to make the loan at some future time and the borrower may not accept the loan at that time. ...
Former arrangement under which retirement benefits payable to an employee who continued to work beyond normal retirement age were frozen, and not increased in recognition of added work ...
Term used in the reinsuring of disability income insurance policies in that, after an extended period of time expires (in addition to the elimination period found in the disability income ...
Detailed descriptive list made available to the survivor (s) of the insured showing: attorney, accountant, insurance agent, and location of important documents such as wills, power of ...
Have a question or comment?
We're here to help.