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 ?
In the circumstance where a holder's Debentures are held through a broker, the broker should be contacted immediately as the process for exercising the conversion privilege is also subject to the rules and procedures of the broker and of CDS Clearing and Depository Services Inc.
ManuTerm is a level (fixed premium) or renewable (policy term extendable) term plan with conversion privilege that provides high coverage for Loss of Life and Terminal Illness at affordable rates.
Most group insurance plans have a conversion privilege," McLellan said.
Although most group life policies provide term coverage, most states require a conversion privilege allowing employees to convert their policies to permanent insurance and pay premiums directly to the insurer when they leave their job or organization.
In the legislative history to the NQPS provisions, however, Congress evinced concern that the NQPS provisions should not necessarily be avoided by the inclusion of conversion rights per se: "In no event will a conversion privilege into stock of the issuer automatically be considered to constitute participation in corporate growth to any significant extent.
Such rights would include all of the right, title, interest, ownership, control, and incidents of ownership in any and all insurance policies, and would include any conversion privilege, waiver of premium benefit, borrowing rights and assignment rights.
Under existing rules, options and warrants are excluded from fully diluted EPS if the conversion privilege is not effective within 10 years from the end of the fiscal period.
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.