What is the Definition of Collateral Assignment?
A temporary transfer of some of the ownership rights in a particular property, such as a life insurance policy or an annuity contract, as collateral for a loan. The transfer is made on the condition that upon payment of the debt for which the contract is collateral, all transferred rights shall revert back to the original owner. Contrast with Absolute assignment.
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Insurance?
What is the Definition of Collateral Assignment?
Check out other definition of insurance terms below:
What is the Meaning of DERIVATIVES In Insurance Terms?
Contracts that derive their value from an underlying financial asset, such as publicly traded securities and foreign currencies. Often used as a hedge against changes in value.
What is the Meaning of DIFFERENCE IN CONDITIONS In Insurance Terms?
Policy designed to fill in gaps in a business’s commercial property insurance coverage. There is no standard policy. Policies are specifically tailored to the policyholder’s needs.
What is the Meaning of DIMINUTION OF VALUE In Insurance Terms?
The idea that a vehicle loses value after it has been damaged in an accident and repaired.
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