General Information

Choosing the right company to help secure your financial future was an important decision. Thank you for deciding on North American. We commit to protecting your plans each step of the way. We have been helping people secure a brighter financial future since 1886 and our commitment continues with you.

Here you'll find information common to North American's products. For more information, please contact our Administrative Office.

People authorized to obtain information regarding your policy

The policyowner or active insurance producer may obtain information regarding a policy. You may choose to provide North American with a written authorization to allow another person access (i.e. spouses, financial advisors, beneficiaries etc.). This request should include the owner's name, policy number, authorized person, and length of time the authorization should be in effect. This authorization (signed by the policyowner) should then be mailed to our Administrative Office.

Naming a minor or children as beneficiaries

Minor children may be named as beneficiaries however; it may be in your best interest to appoint a guardian/trustee. If a guardian/trustee is not named, the death benefit proceeds will be held in a trust
within our company until the child(ren) reach legal age for their state.

Collateral assignments

A collateral assignment is an agreement between the policyowner and another party (typically a bank/financial institution) where the policy is used to secure a debt. If the policy is collaterally assigned at the time of the insured's death, the assignee must provide us with information showing interest in the policy. The proceeds will be paid to the assignee as their interest appears. The remaining proceeds (if any) are paid to the beneficiaries.

• To collaterally assign a policy, complete an Assignment of Life Insurance Policy as Collateral form (L-513). The form must be signed by the policyowner, spouse (if Community Property laws apply), irrevocable beneficiary (if applicable) and notarized. It should then be returned to our Administrative Office for processing.
• To remove a collateral assignment, complete a Release of Assignment form (L-513). Otherwise, the assignee may submit a release in writing to our Administrative Office. The letter must include the policy number, name of the insured and be signed and dated by two officers of the company to which it was assigned.

Obtaining copies of your policy

• Complete a Multipurpose Service Request form (L-2777) and submit it along with a $25 fee to our Administrative Office.
• Another option is a Certificate of Insurance—this is a legal certificate outlining the details of your policy. This document is free of charge and may be requested either in writing or by contacting our Administrative Office.

Borrowing or withdrawing money from a policy

• You may request to borrow money from your policy in the form of a loan if your policy allows and if there
  is sufficient cash value in the policy. (Term policies do not contain a loan provision.)
• To request a loan, complete our Multipurpose Service Request form (L-2777). For your security, loan requests must be submitted in writing on the approved form. Any loan against your policy will be charged interest at the rate specified in your policy. You will receive an interest due statement once a year.

We recommend repaying the outstanding loan and/or interest, because not doing so will affect the longevity of your coverage. Any repayments to the loan principal or interest should be mailed directly to our Administrative Office. Please contact our Administrative Office for details. If your policy is currently being drafted from a financial institution, you may ask to have your draft increased and the additional amount be applied to repay the loan. Any outstanding loan amount (principal and/or interest) will be deducted from the death benefit prior to the proceeds being paid to the beneficiary.

• You may also request to partially surrender your policy if your policy has this provision and the amount requested does not cause the policy to fall below the minimum face amount allowed. (Term policies do not contain a partial surrender provision.)
• For this request, complete the Multipurpose Service Request form (L-2777).
• A partial surrender will reduce the death benefit by the amount of the partial at the time of the request and therefore is not assessed interest.
• There may be a processing fee charged in conjunction with a partial surrender, please refer to the terms of your policy for details. You do not have the option to repay a partial surrender.

Policy loans from life insurance policies generally are not subject to income tax, provided the contract is not a Modified Endowment Contract, as defined by Section 7702A of the Internal Revenue Code. A policy loan or withdrawal from a life insurance policy that is a Modified Endowment Contract is taxable upon receipt to the extent cash value of the contract exceeds premium paid. Policy loans and withdrawals will reduce cash value and death benefit. Policy loans are subject to interest charges. Consult with and rely on your tax advisor or attorney on your specific situation.