Life · Chapter 5 · Standard Provisions
Collateral (Conditional) Assignment
Definition
A partial, temporary transfer — usually to a lender as security for a debt. At death, the assignee gets the loan balance; the named beneficiary gets the rest.
Exam tip
Absolute = ALL rights, permanent. Collateral = SOME rights, temporary (lender).
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms