Maine Revised Statutes Title 24-A. Maine Insurance Code § 6812-A. Inquiries and optional disclosures by life insurers

A. The applicant has entered into any agreement or arrangement providing for the future sale of this life insurance policy;

B. The loan arrangement for the policy provides funds sufficient to pay for some or all of the premiums, costs and expenses associated with obtaining and maintaining the applicant's life insurance policy;

C. The applicant has entered into any agreement by which the applicant is to receive consideration in exchange for procuring the policy; and

D. The borrower has an insurable interest in the insured.

A. A change of ownership could lead to a stranger owning an interest in the insured's life;

B. Your ability to purchase future insurance on the insured's life could be limited because there is a limit to how much coverage insurers will issue on one life;

C. Should there be a change of ownership and should you wish to obtain more insurance coverage on the insured's life in the future, the insured's higher issue age, a change in health status or other factors may reduce the ability to obtain coverage or may result in significantly higher premiums; and

D. You should consult a professional advisor because a change in ownership in satisfaction of the loan may result in tax consequences to the owner, depending on the structure of the loan.”