A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)

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A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)

a) automatic premium loan
b) nonforfeiture option
c) collateral assignment
d) irrevocable assignment

Answer: c) collateral assignment

WA Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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