A method is disclosed for converting a third-party owned life insurance policy from being guaranteed by an insurance carrier's general account to a life insurance policy guaranteed by the insurance carrier's separate account. An insurance carrier receives a request from a policy owner to convert the account from being backed by the general account to being backed by a separate account. The insurance carrier transfers cash or assets in an amount equal to the policy value of the life insurance policy from the general account to the separate account. The insurance carrier issues an endorsement to the policy owner amending the policy. In a preferred embodiment, the owner of the third-party life insurance policy is a bank.
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