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collateral agreement

A collateral agreement transfers all or some of the rights of the owner of personal property (including a life insurance policy) to another party (the assignee) as security for the repayment of an indebtedness.

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Additional Information

Once the debt is repaid, the assigned property rights usually revert back to the assignor (the original property owner).

Related Terms

Assignment is a transfer of legal rights under or interest in an insurance policy to another party.

Collateral documents are additional documents that are often incorporated into a policy by physical...