Collateral Assignment at Policy Issue and Other Changes

We’re pleased to announce that collateral assignment of IDI policy benefits may now be requested at time of policy issue.

Effective immediately, please use the new Collateral Assignment form to request the assignment of benefits to a third party as loan collateral. The terms and conditions have been updated to simplify the administration process — ensuring a consistent level of service that you expect — and also to allow policyowners to retain more control over policy changes and notifications. 

Agreement highlights:

  • Collateral assignment of an IDI policy can still be requested at any time during the life of the policy.
  • One assignee per policy may be named and the assignee will receive 100 percent of any benefits paid while the assignment is in effect.
  • The policyowner retains all rights to make changes to the policy and authorization from the assignee will not be required.
  • The Standard will not notify the assignee of policy changes, policy lapse due to non-payment of premium or policy termination.  All such communication will continue to be sent to the policyowner only.

Collateral assignment agreements already in place will be administered according to the terms of the assignment form accepted and recorded by The Standard. Effective immediately, The Standard’s Collateral Assignment form (or NY Collateral Assignment form) must be submitted to establish a new Collateral Assignment agreement. Our previous form, as well as third-party forms (such as a bank’s form), will no longer be accepted. Please discard any existing copies or links to the previous form.

Please contact your case manager if you have any questions about the new Collateral Assignment terms and conditions.

For Producers Only

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