Inforce Certification - Module 10: Collateral Assignments

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services.

Module Overview:

Module 10 - Collateral Assignments

This module covers collateral assignments, using life insurance as loan security. It explains assigning a portion of the death benefit to a lender, processing forms, and managing multiple assignments. It also addresses lender priority, legal considerations, and releasing assignments when loans are repaid.

Learning Objectives

• Define collateral assignment and its typical uses.

• Identify the roles of the assignor and assignee in a collateral assignment.

• Explain the process of completing and submitting a collateral assignment form.

• Understand the concept of multiple collateral assignments and lender priority.

• Describe the process for releasing a collateral assignment when a loan is satisfied.

• Recognize the importance of consulting with the carrier and legal counsel regarding collateral assignments.

COURSE CONTRIBUTORS