Matching Pairs Risk Chp. 12 pt. 2Online version Risk Chp. 12 pt. 2 by Ryan Brown 1 Collateral Assignment 2 Class Beneficiary 3 Participating Policy 4 Irrevocable Beneficiary 5 Specific Beneficiary 6 Absolute Assignment 7 Policy loan provision 8 Change-of-plan provision 9 Automatic Premium Loan Provision 10 Nonparticipating Policy the policy holder temporarily assigns a life insurance policy to a creditor as collateral for a loan. Only certain rights are transferred to the creditor to protect its interest, and the policy holder retains the remaining rights. an overdue premium is automatically borrowed from the cash value after the grace period expires, provided the policy has a loan value sufficient to pay the premium. A specific person is not named but is a member of a group designated as beneficiary, such as "children of the insured" does not pay dividends. allows the policyholder to borrow the cash value. means that the beneficiary is specifically named and identified. allows policy-owners to exchange their present policies for different contracts. all ownership rights in the policy are transferred to a new owner. is one that cannot be changed without the beneficiaries consent. a policy that pays dividends.
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