As part of the National Life Group (NLG) Anti-Money Laundering compliance program, NLG defines the types of funds that can be used for policy payments.
The chart below details acceptable sources of funds of policy payments and is effective September 1, 2016.
SOURCE OF FUNDS
|Electronic Funds Transfer (EFT)||Accepted|
|Pay By Phone||Accepted|
|Personal or Business checks||Accepted|
|Wires||Accepted – must be in US Dollars|
|Agent and/or Agency checks||Prohibited|
|• Bearer Bonds||Prohibited|
|• Cashier’s and Treasurer’s Checks 1||Accepted – must be purchased directly by customer|
|• Foreign Currency||Prohibited|
|• Money Orders 1/2||Accepted – must be purchased directly by customer|
|• Traveler’s Checks||Prohibited|
1 Subject to company approval. Not to exceed $10,000 in a rolling 12 month period excluding single Cashier’s or Treasurer’s checks greater than $10,000.
2 Except for annuity premiums.
What happens if a client submits funds that are prohibited – like cash or a traveler’s check?
While we hope that communication of this policy will prevent this from happening, should we receive cash in the mail, we will deposit it according to our procedures, but will send a letter to the client letting them know that we do not accept cash and we will provide them with alternate forms of payment (see above chart for acceptable payments). Should this happen again from the same client, we will return the funds. If we receive a non-cash prohibited form of payment, like a Traveler’s check, we will return it to the client requesting an alternate form of payment.
What happens if a client submits more than $10,000 in money orders in a 12 month period?
If a client submits more than $10,000 in money orders in a 12 month period, all money orders received on a given day that meet or exceed the $10,000 threshold will be returned and we will request an alternate form of payment (see chart above for acceptable forms of payments).