1. Assignment. For value received, _________________,
of _______________________, assignor, hereby assigns,
transfers, and delivers to _______________________,
of _____________________, assignee, _______ successors
or assigns, policy No. ________, issued by ____________________,
insurer, and any supplementary
contract issued in connection therewith on the life
of __________________, of _____________________, and
all my right, title, and interest therein except as
provided in Section 3 hereof, subject to all the terms
and conditions of the policy and to all superior liens,
if any, that insurer may have against the policy.
2. Rights of assignee. Assignor agrees that the
following specific rights pass to assignee by virtue
of this agreement:
a. The sole right to collect from insurer the net
proceeds of the policy when it becomes a claim by
death or maturity;
b. The sole right to surrender the policy and receive
the surrender value thereof at any time provided by
the terms of the policy and at such other times as
insurer may allow, and the full right to obtain one
or more loans or advances on the policy from insurer,
such rights subject however, to the provisions of
Section 5a hereof;
c. The sole right to collect and receive all distributions
or shares of surplus, dividend deposits, or additions
to the policy now or hereafter made or apportioned
thereto, and to
exercise any and all options contained in the policy
with respect thereto; provided, that unless and until
assignee shall notify insurer in writing to the contrary,
the distributions or shares of
surplus, dividend deposits, and additions shall continue
on the plan in force at the time of this assignment;
and
d. The sole right to exercise all nonforfeiture
rights permitted by the terms of the policy or allowed
by insurer and to receive all benefits and advantages
derived therefrom.
3. Rights reserved by assignor. It is expressly
agreed that so long as the policy has not been surrendered,
the following specific rights are reserved and excluded
from this assignment and do not pass to assignee by
virtue hereof:
a. The right to collect from insurer any disability
benefit payable in cash that does not reduce the amount
of insurance;
b. The right to designate and change the beneficiary;
and
c. The right to elect any optional mode of settlement
permitted by the policy or allowed by insurer.
4. Indebtedness secured. This assignment is made
as collateral security for any and all indebtedness
of assignor to assignee, either now existing or that
may hereafter arise between assignor and assignee.
Assignee agrees to apply any and all money received
from insurer to the satisfaction of such indebtedness,
and to pay to assignor, his legal representatives,
heirs, or assigns, any balance remaining after payment
of the indebtedness existing at the time of such payment.
5. Covenants of assignee. Assignee covenants that:
a. Assignee will not exercise either the right to
surrender the policy or, except for the purpose of
paying premiums, the right to obtain policy loans
from insurer, until there has been
default in any of the then existing indebtedness secured
by this assignment or a failure to pay any premium
when due, or until thirty (30) days after assignee
shall have mailed to assignor, at
the address last supplied in writing to assignee,
notice of intention to exercise such right, with specific
reference to this assignment; and
b. Assignee will, on request, forward without unreasonable
delay to insurer the policy for endorsement of any
designation or change of beneficiary or any election
of an optional mode of settlement.
6. Payment of charges on policy. Assignor agrees
to pay, and assignee shall be under no obligation
to pay, any premium, or the principal of or interest
on any loans or advances on the policy whether or
not obtained by assignee, or any other charges on
the policy. However, any such amounts so paid by assignee
shall become a part of the indebtedness hereby secured,
shall be due immediately, and shall draw interest
at the rate of _______ percent (______%) per year
from date of payment.
Dated _______________________, 20_____.
______________________________
NOTICE
The information in this document is designed to
provide an outline that you can follow when formulating
business or personal plans. Due to the variances of
many local, city, county and state laws, we recommend
that you seek professional legal counseling before
entering into any contract or agreement.
