Assignments Flashcards
Why may a policy be assigned to someone else?
- As part of a divorce settlement
- When it’s sold for cash
Whose responsibility is it to inform the insurance company of an assignment?
The new assignee
What must the new assignee inform the insurance of upon assignment, and by what method?
The date the policy was assigned to them, in writing
Why is important that the assignee informs the insurance company of the date the policy was assigned to the,?
Because there is a priority order of payments from the proceeds of the policy
Why does the Policies of Assurance Act 1867 require an insurer to include its business address on every policy?
To encourage early notification of assignments
What are the two forms of joint ownership?
- Joint tenancy
- Tenants in common
Under a joint tenancy, what happens to their interest if one tenant dies?
It passes directly to the survivor(s)
Under a joint tenancy, what happens to their interest upon death of the last survivor?
The policy passes according to their will or by the laws of intestacy
On which policy basis are usually written as joint tenancy agreements?
Joint life, first death policies
What is a Tenancy in Common arrangement?
Where each of the tenants holds their beneficial interest ‘separately’
Under a tenancy in common, what happens to their interest if one tenant dies?
Their interest passes to their estate, and can be left to someone in a will
If a joint-life, first death policy was written as a tenancy in common agreement, who would the sum assured be paid to?
50% to the survivor & 50% to the deceased’s estate
What must be completed to formally transfer title from one policyholder to another?
The Deed of Assignment
When must the Deed of Assignment be dated?
During the currency of the policy and the lifetime of the life assured.
What will an insurer do when it receives a Deed of Assignment?
~ Check to ensure it’s a valid transfer
~ Verify the signature of the assignor
~ Check the date of the assignment is within the policy term
~Verify the wording
~Check that any stamp duty payable has been paid
