which of the following policies can be used as security for a loan.
-
A.
key-man policy -
B.
endowment policy -
C.
term insurance policy -
D.
whole life insurance
Correct Answer: Option C
Explanation
A collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan. If the borrower is unable to pay, the lender can cash in the life insurance policyand recover what is owed.