All of the following are examples of third-party ownership of a life insurance policy EXCEPT

Insurance

Are you having trouble answering the question “All of the following are examples of third-party ownership of a life insurance policy EXCEPT”? You don’t have to worry about it anymore. Azanswer team is here with the correct answer to your question.

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

Answer: An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan. A collateral assignment is the transfer of some or all of the death benefits of the policy to a creditor as security for a loan, but does not give the creditor the rights of ownership. In the event of the insured’s death, the creditor would only be able to recover that portion of the policy’s proceeds equal to the creditor’s remaining interest in the loan.

You should now have gotten the answer to your question “All of the following are examples of third-party ownership of a life insurance policy EXCEPT”, which was part of Insurance MCQs & Answers. Thanks for choosing us.