CFH Positions

Learn about the Continuing Fractional Holder

CFH is short for Continuing Fractional Holder. It means you invested in a portion of a policy before the bankruptcy and elected to continue holding your interest in the policy after the bankruptcy. You continued holding your interest. It also means you continue to pay your share of the premiums associated with that policy. The good news is that when that person dies you get your share of the policy. The bad news is you must continue paying premiums to protect your interest.

As a CFH you are billed annually by Magna Servicing for your share of the premiums. You are given 60 days to submit your payment and a reminder is sent after 30 days if you have not yet paid. If you don’t pay within the 60-day period, you are subject to being defaulted. In other words if you don’t pay your premium by the due date, then you lose your interest in the policy and instead get PHT units in the Trust.
If a policy in which you own an interest matures (the person dies), once the proceeds are received from the insurance company, you will be paid your share of the death proceeds on or about the 15th day of the following month along with any excess escrow balance or unused premiums funds you paid. Any lien you owe is deducted from the amount you are paid.