conversion privilege

Also found in: Financial.

conversion privilege,

n the right of an individual covered by a group dental insurance policy to continue having coverage on a direct payment basis when association with the insured group is terminated.
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This opportunity is missed for primarily two reasons: first, term life settlements are time-sensitive transactions that must occur before the policy lapses or the conversion privilege expires and, second, many financial advisors, accountants and attorneys are not aware that term policies can be sold in a life settlement.
In connection with the conversion privilege for holders of its Series 2 and Series 3 Preferred Shares, Bombardier Inc today announced the basis for resetting the dividend rate on its Series 3 Preferred Shares in accordance with the terms applicable to those shares.
BANKING AND CREDIT NEWS-August 17, 2016-Sun Life Financial reports conversion privilege of Class A preferred shares
M2 EQUITYBITES-August 17, 2016-Sun Life Financial reports conversion privilege of Class A preferred shares
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.
Almost all states have enacted laws which specifically permit the assignment of a group policy, including assignment of the conversion privilege.
3) Under final regulations, the issue price of a bond convertible into stock or another debt instrument of the issuer includes any amount paid for the conversion privilege, even if the privilege may be satisfied for the cash value of the stock or other debt instrument.
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.