conversion privilege

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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 ?
It is affordable, and you have conversion privileges.
Others have revisited the guaranteed purchase and future purchase options by eliminating the flaws associated with past designs and allowing for multiple opt-outs and conversion privileges.
If we assume that this conversion privilege has the same maturity as the debt, then we can simply subtract the value of this option (using the Black-Scholes model) from Equation (3) to obtain the stock value associated with conversion privileges and relative priority rules:
When making a term life insurance recommendation, agents should consider the issuing company's financial strength, the policy's conversion privileges, the policy's waiver of premium rider features and the ability of the policy's features to work simultaneously.
Advantage Elite Term Life, which offers fully guaranteed level term protection in an array of durations with conversion privileges for permanent life insurance;
Investment instruments include subordinate debt with warrants or conversion privileges and equity securities.
With conversion privileges and annuities, plus new opportunities with the same clients, well, you get the picture
Company Offers More Competitive Premiums and Improved Conversion Privileges to Enhance its New Term Series
Holders wishing to exercise conversion privileges should contact EquiServe Trust Company at the address set forth in the Notice of Redemption or by telephone at (800) 733-5001.
Some of these attributes include conversion privileges and mandatory conversion rights, whereby a specified percentage of the Bonds can be converted into common shares of Pluris Energy on a year over year basis for up to 100% conversion of the Bonds into common shares of the Company over their five year term.
The debentures are secured only by the common stock subject to the conversion privileges.
Generous conversion privileges -- guaranteed conversion option makes permanent protection available without additional underwriting, even if the policyholder's health deteriorates.