Which of the following statements about the assignment of a life insurance policy is (are)true?
I.Under a collateral assignment,the policyowner assigns a life insurance policy to secure a loan.
II.Under an absolute assignment,only limited ownership rights in a policy are transferred.

Question

Quizplus · Accepted Answer

I is true because a collateral assignment involves using a life insurance policy as collateral for a loan. 
II is false because an absolute assignment is the complete transfer of ownership rights in a policy, not just limited rights.

Which of the Following Statements About the Assignment of a Life