GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Financing Entity


Synonyms:insurance contract holder, insurance policy holder, policy holder
Filed Under: financial-banking, insurance
Tags: banking, finance, insurance
 

Definition of financing entity

financing entity
1. The entity that has ownership of a policy or settlement contract. A financing entity can include a placement agent, a lender, an underwriter, or any other type of entity.

Related Terms and Acronyms:

  • contract holder   The entity that holds the rights to a obligation or debt.
  • insurable interest   Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
  • insurance policy   A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • loss payee   An entity that is legally entitled to the benefits of an insurance claim.
  • spin-life   A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
  • stranger originated life insurance (STOLI)   A life insurance policy purchased by someone without any insurable interests with the insured person.
      ➥  Illegal in many Canadian provinces.
  • viatical settlement   A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.
  • viator   A person who agrees to sell his or her life insurance policy to a third party.

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