Question 2024 of 287 · Texas Life, Accident and Health Agent Exam
A collateral assignment is commonly used
Exactly one answer is correct.
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Correct answer to question 2024
- B: as security for a loan, so the lender is paid first out of the proceeds
Explanation
The assignee's interest is limited to the debt amount. After repayment, the owner regains the full rights, and any remainder goes to the named beneficiary.
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