Assignment of insurance

Assignment of insurance,

Definition of Assignment of insurance:

  1. Transfer by the holder of a life insurance policy (the assignor) of the benefits or proceeds of the policy to a lender (the assignee), as a collateral for a loan. In the event of the death of the assignor, the assignee is paid first and the balance (if any) is paid to the policys beneficiary. Other types of insurance policies may not be used for this purpose.

Meaning of Assignment of insurance & Assignment of insurance Definition