Assignment of a Life Insurance policy or its value, as security for a loan. In the event of default, the creditor would receive proceeds or values only to the extent of his interest.
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In Life and Health Insurance, a policy covering a mortgagor from which the benefits are intended (1) to pay off the balance due on a mortgage upon the death of the insured, or (2) to meet the payments on a mortgage as they fall due in the case of his death or disability. Also called Mortgage Redemption Insurance.