Case Management

Northstar Funding Partners (NSFP) provides you and your clients a refined and easy-to-follow process for completing premium financed life insurance cases – a process supported by decades of experience and thousands of placed cases. The following is an overview ofthe fundamental steps involved in the majority of cases.

PREMIUM FINANCE
STEP BY STEP

Compliant illustrations and policy, case design – multiple iterations

Review collateral and stress test arrangement

Presentation of preliminary terms (interest rates, fees, other)

Pre-vetted borrowing vehicle (trust, corporation, special purpose vehicle)

Life company due diligence and compliance review

Loan application and preliminarydocumentation

Loan underwriting and completion of requirements

Loan approval and final documentation set

Securing collateral, underwriting approval and file audit

Funding drawdown

Ongoing management and loan administration


DOCUMENTATION & REQUIREMENTS

THE FOLLOWING ARE REQUIRED BEFORE A CASE CAN BE SUBMITTED AND PROCESSED.
FUNDING IS NOT APPROVED UNTIL SUCCESSFUL COMPLETION OF UNDERWRITING.

BUSINESS BORROWER (CORPORATIONS:
S-CORP & C-CORP)

Completed Business Borrower Loan Underwriting Form (LUF)

Copy of Driver’s License from each of the 20% or more owners of Coporation

Copy of Driver’s License from Policy Owners (if different from 20% Owner)

Corporate tax returns - complete with all schedules - signed and dated (last 2 consecutive years)

Individual tax returns - complete with all schedules - signed and dated (last 2 consecutive years) from any person that owns a 20% or greater interest in Corporation

State Certified Copy of Articles of Incorporation

A Corporate Resolution authorizing the Loan signed by ALL Board Members

If Borrowing Corporation is less than 2 years old, the EIN letter issued by the US government

NSFP Loan Model (Quick View)

BUSINESS BORROWER (LLC/LLP)

Completed Business Borrower Loan Underwriting Form (LUF)

Copy of Driver’s License from each Member who owns 20% or more of LLC/LLP

Copy of Driver’s License from Policy Owner if different from Member

LLC/LLP tax returns - complete with all schedules - signed and dated (last 2 consecutive years)

Individual tax returns - complete with all schedules - signed and dated (last 2 consecutive years) from any Member that owns 20% or more of the LLC or LLP

State Certified Copy of Articles of Organization

A Borrower Resolution or the Operating Agreement authorizing the Loan signed by ALL Members

If Borrowing LLC/LLP is less than 2 years old, the EIN letter issued by the US government

NSFP Loan Model (Quick View)

TRUST BORROWER

Completed Trust Borrower Loan Underwriting Form (LUF)

Tax returns-signed and dated from either the Trust (if available) and/or Trust Grantor/Insured (last 2 consecutive years)

Copy of Grantor(s) and Trustee(s) Driver’s License

Executed Certification of Trust signed by All Trustees

NSFP Loan Model (Quick View)

COLLATERAL ARRANGEMENTS

One of the most important aspects of any financing transaction is the collateral. NSFP provides a range of collateral options to address differing client settings and long-term planning objectives.

In addition to a percentage of the Lender Acceptable Cash Surrender Value of the financed life policy other possible forms of collateral:

Cash and cash equivalents (1) 
 • Certificates of Deposit
 • Time deposits

Savings accounts
 • Money markets

Marketable securities (1)
• Mutual funds
 • Individual equities
 • Fixed income securities
 • Exchange traded funds
 • Other registered investment products

Cash surrender value of acceptable life insurance policies (1) 

Asset Backed Standby Letter of Credit issued by acceptable financial institution (2)

Real estate (3)

(1) Control agreement, custody arrangement or assignment required

(2) Limited to Lender approved underwriting applicability, conditions and other requirements

(3) Certain restrictions and other conditions apply including but not limited to: location, independent appraisal, encumbrance, property type and purpose and use

Note: not all forms of collateral are available or acceptable for certain loan situations. Some assets may need to be deposited with a specific financial institution.

NSFP will assist with all aspects of evaluating and securing appropriate collateral.

IMPORTANT INSTRUCTIONS: All relevant sections of the loan application should be completed. When referencing schedules or other financial information the application must summarize that information. Any application that references other documentation (in lieu of completing the form) will be returned. Assets, liabilities and other financial data should equate when being listed and totaled. Discrepancies in financial information will delay processing. In the case of a business/commercial loan and multiple insureds, each insured must complete a loan application. Respective percentage ownership of assets, etc. should be indicated. Particular attention should be directed to personal versus corporate-owned assets. For example, when applying for a non-business loan (e.g. trust) real estate and other properties, held in a corporation, should not be included. Survivorship cases (two insureds) require two individually completed and executed loan applications. In the event of two guarantors each guarantor must complete and sign a distinct loan application (multiple signatures on a single loan application will not be accepted).

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