Which of the Following Statements About Assignments of Life Insurance

question 13

Multiple Choice

Which of the following statements about assignments of life insurance policies is (are) true?
I.Under a collateral assignment,the policyowner assigns a life insurance policy to secure a loan.
II.Under an absolute assignment,only limited ownership rights in a policy are transferred.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Identical Twins

Twins that are genetically identical because they were formed from a single fertilized egg that split into two, sharing the same genetic material.

Fraternal Twins

Twins that develop from two separate eggs fertilized by two different sperm cells, sharing genetic similarities equivalent to ordinary siblings.

Siblings

Individuals sharing one or both biological parents, often playing significant roles in each other's lives through family dynamics and developmental experiences.

Cousins

Relatives who share a common grandparent or some other direct ancestor, but are one generation removed from the direct sibling relationship.