Answered

How is a collateral assignment used in a life insurance contract?

A. Transfers permanent ownership rights to a creditor
B. Assigns complete ownership rights to a creditor
C. Transfers specific ownership rights to a creditor
D. Assigns ownership rights to the primary beneficiary



Answer :

GinnyAnswer

Final answer:

A collateral assignment in a life insurance contract transfers specific ownership rights to a creditor, allowing the policyholder to use the policy as collateral for a loan without transferring complete ownership rights.


Explanation:

A collateral assignment in a life insurance contract is used to transfer specific ownership rights to a creditor. It allows the policyholder to use the life insurance policy as collateral for a loan without transferring complete ownership rights.


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