Florida Health Insurance Terms:
Define: "Collateral Assignment"
The pledge of a life insurance policy or its value as security for the repayment of a loan. The assignee receives rights that are superior to the rights of the original policy owner and beneficiary, to the extent of the obligation owed to the assignee.
Also: The transfer of benefits or payments under a life or property insurance policy to a creditor as part of the security for a loan. The creditor has a right only to the portion of the policy's proceeds equal to the creditor's remaining interest or value in the loan.
News Article: More About: "Collateral Assignment"
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