L&HFloridahard
A life insurance policy owner wants to assign all rights under her policy to her cousin as collateral for a loan. What is generally required for the assignment to be effective against the insurer?
ANothing — life insurance assignments take effect automatically once signed by the owner
BConsent of the insured, the insurer, and the named beneficiary regardless of revocability
Written notice to the insurer
DCourt approval through a probate filing
Why this is the answer
To assign a life insurance policy, the owner generally must provide written notice to the insurer so the insurer can record the assignment on its books and pay claims correctly. If the beneficiary is irrevocable, the beneficiary's written consent is also required because the owner cannot diminish an irrevocable beneficiary's vested rights. A revocable beneficiary holds only an expectancy and cannot block an assignment. The two main forms are absolute (full transfer of all rights) and collateral (limited transfer for the value of a debt). Per the Florida Agent's Health & Life Exam Content Outline §II.B.13.
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