conversion privilege


Also found in: Medical.

Conversion Privilege

1. In insurance, a policy in which both the premiums and the coverage are guaranteed for a certain number of years, regardless of the health of the insured person. This privilege is operative as long as premiums are paid on time. The insurer may only increase the premium if premiums are increased to the whole class of policyholders.

2. The right of a policyholder to convert a group policy to an individual policy without a health examination. This right is usually exercised after the termination of employment, and the premium is determined by the policyholder's attained age.

conversion privilege

References in periodicals archive ?
Conversion privilege - a ManuTerm/ManuTerm rider policy can be converted without evidence of health to any Manulife whole life, endowment or investment-linked plan before age 65 (for the same coverage benefits only).
If a conversion privilege is attached to the bond, shareholders have sold a call option to bondholders.
To exercise their conversion right as a result of the Delisting, holders must surrender the notes for conversion to the conversion agent at any time on or before July 19, 2010 and follow the applicable depository procedures or, in the case of notes in the certificated form, surrender the notes to the conversion agent with appropriate signatures, endorsements and transfer documents as described in the Indenture and in the Fundamental Change Company Notice and Notice of Conversion Privilege distributed to the holders of the notes and published on the Company's web site.
Because the conversion right automatically expires on the exercise of the conversion privilege, should Parent's basis in the debenture have been increased for the portion of the stock attributable to the conversion option?
To exercise their conversion right as a result of the Merger, holders must surrender the notes for conversion to the conversion agent at any time on or before July 8, 2010 and follow the applicable depository procedures or, in the case of notes in the certificated form, surrender the notes to the conversion agent with appropriate signatures, endorsements and transfer documents as described in the Indenture and in the Fundamental Change Company Notice and Notice of Conversion Privilege distributed to the holders of the notes and published on the Company's web site.
The model language says that the model does not apply when "an application to the existing insurer that issued the existing policy or contract when a contractual change or a conversion privilege is being exercised; or, when the existing policy or contract is being replaced by the same insurer pursuant to a program filed with and approved by the commissioner.
Therefore, the parent would usually select noncumulative preferred stock without value supporting features (such as a conversion privilege into the common stock or a liquidation right).
To exercise their conversion right as a result of the Fundamental Change described above, holders must surrender the notes for conversion to the conversion agent at any time on or before July 6, 2010 and follow the applicable depository procedures or, in the case of notes in the certificated form, surrender the notes to the conversion agent with appropriate signatures, endorsements and transfer documents as described in the Indenture and in the Fundamental Change Company Notice and Notice of Conversion Privilege distributed to the holders of the notes and published on the Company's web site.
Other options to consider include applying a "prior insurance credit upon transfer of life insurance" amendment, issuing a waiver of the actively-at-work requirement, educating employees about the conversion privilege or delaying the effective date to lessen change-of-carrier impact on employees.
BNY Mellon Shareowner Services, the transfer agent, will provide the Depository Trust Company today with a notice of redemption and expiration of conversion privilege.
The Bank of New York, the Trustee, will mail today a notice of the specific terms of the maturity and expiration of conversion privilege and a form of conversion notice to all holders of record of the Notes.