Get Ri 76 10

The "Insured" is the employee, annuitant or compensationer. The "Assignee" is the person(s), firm(s), or trust(s) (usually named on an Assignment form, RI 76-10) who owns and controls the Insured's life insurance coverage. An assignment is not the same as a designation of beneficiary.

OMB 3206-0270. RI 76-10 allows an insured individual to transfer ownership, or “assign” the FEGLI coverage, to a third party. An insured may assign for several reasons; for example, for financial planning purposes, or to comply with a court order, or to sell the coverage to a third-party.

Definition of 'assign a policy' If you assign a policy, you transfer legal ownership of an insurance policy to another person. The policy may be assigned to someone else by written request of the current owner.

What is a life insurance policy assignment? In its simplest form, a life insurance policy assignment is the transfer of ownership or a portion of a death benefit to another person or entity.

A life insurance policy can be assigned when rights of one person are transferred to another. The rights to your insurance policy can be transferred to someone else for various reasons. The process is known as assignment. An “assignor” (policyholder) is the person who assigns the insurance policy.

Under a group life insurance policy, an insured who completes an assignment transfers the rights they have under the policy. The person completing the assignment is the assignor. The person or entity that they assign the rights to is the assignee.

How does collateral assignment of life insurance work? If you die before fully repaying your loan, collateral assignment will allow the lender, or "assignee," to be repaid for the outstanding loan amount using your death benefit.

A collateral assignment of life insurance is a conditional assignment appointing a lender as an assignee of a policy. Essentially, the lender has a claim to some or all of the death benefit until the loan is repaid. The death benefit is used as collateral for a loan.

An assignee has the right to reassign the coverage to someone else. A designated beneficiary does not. The Insured can cancel a designation of beneficiary at any time, but cannot cancel an assignment. You should use this form (RI 76-10) to make an assignment and SF 2823 to make a designation.