Studies On New Forms Of Policy Assignment

Policy assignment is a measure to improve the liquidity of the policy,which has yet to form any systematic theory.The paper discussed the basic theory of policy assignment from the aspect of traditional insurance contract assignment,policy mortgage loan and viatical settlement.Besides the traditional assignment of insurance contract,the policy guarantee(policy mortgage loan) and policy transaction (viatical settlement)also should be included in policy assignment.However, designating or changing the beneficiary is excluded.Similar to securities,the policy of the whole life insurance, endowment insurance and variable life insurance policy meets the requirements of right pledge and can be pledged.Since viatical settlement is a kind of policy transaction,both parties of the viatical settlement normally will not have kinships or affiliations with each other. Considering the fact that the assign of the life insurance need not to be interested in the subject-matter,the life insurance’s policy meets the requirements of viatical settlement.The above analysis proves theoretically that the policy is assignable and the assignment has a significant value for its existence.This paper also discussed the object and the subject of the policy assignment.Besides the policy value,the policy proceeds in the certain payment insurance can also be pledged provided that the beneficiary is irrevocable.In case there is a conflict between the viatical settlement and the refund of policy value, the viatical settlement’s object shall be the policy proceeds.The subject of the policy assignment shall be consistent with the object.On the condition that the rights of the pledgee and the beneficiary conflicts,the pledgee shall only have the priority within the claim.Judging from the purpose of viatical settlement and the possession of the insurance interest,the viator and the owner of the payments shall be the insured.The discussion and studies on the theory and new forms of policy assignment will facilitate minimizing the risks and lay a firm theoretical foundation for the practices.