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Cross Purchase Plan
Insurance for business partners--one partner purchases insurance on the other partner's lives--that protects the value of a business in the event of death or disability of one of the partners, providing for the transfer of the deceased or disabled partner's interest in the business to the surviving partner(s) in accordance with a preset formula. When the business has more than two partners, the plan can become intricate. For example, in the event of four partners, partner 1 purchases insurance on the lives of partners 2, 3, and 4; partner 2 purchases insurance on the lives of partners 1, 3, and 4, and so on, for a total of 12 insurance policies to cover all of the partner configurations.
Insurance Industry News from ProgramBusiness.comASCnet Honors NGM
National Grange Mutual Insurance Co. (NGM) recently was honored for its use of technology to help boost independent insurance agency efficiency. The carrier, part of Jacksonville and Keene, N.H.-based Main Street America Group, received the "Real Time Interface Award" from agency management system vendor Applied Systems.
The award was presented during the Applied Systems Client Network (ASCnet) user group annual conference in New Orleans.
NGM received the recognition for introducing a real-time rating and quoting capability for its independent agent customers. "We’re pleased to be recognized by Applied Systems for our success in launching real-time quoting for our agents," says Greg Manning, assistant vice president, marketing, for Main Street America. The company brought the functionality to the marketplace for contractors and business owners policy (BOP) clients, he notes, with other lines to be added over time.
NGM’s work makes it possible for agents using Applied’s flagship agent technology system, The Agency Manager, to enter data and transmit it immediately to NGM’s policy administration system as a request for a quote. The transmission takes place via Transformation Station, an insurance industry routing service that uses ACORD XML standards to enable direct connection of agency data and related data in a carrier’s mainframe.
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