What does Section 1035 Exchange mean? Read on to discover the definition & meaning of the term Section 1035 Exchange - to help you better understand the language used in insurance policies.
Section 1035 Exchange
Section 1035 exchange refers to the exchange of a current annuity contract, life insurance contract, or endowment contract for a new one without subjecting it to any tax consequence for as long as it involves the same policyholder or annuitant and the same contract or policy.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Section 1035 Exchange. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: