What does Assignment of Insurance mean? Read on to discover the definition & meaning of the term Assignment of Insurance - to help you better understand the language used in insurance policies.
Assignment of Insurance
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 policy's beneficiary. Other types of insurance policies may not be used for this purpose.
We hope the you have a better understanding of the meaning of Assignment of Insurance.