We have noted your interest and confirm that we hold no prior charge on this policy.” Once the bank has confirmation of the assignment, they’re happy to issue your mortgage cheque. I’ve been a trial lawyer for over 30 years, and I think I need to point out that corporate/transactional lawyers aren’t real lawyers.Like other contract rights, the right to insurance proceeds can be assigned, giving the assignee the right to recover under the policy.
In structuring transactions, one issue that sometimes comes up is whether insurance claims, or insurance policies, can be assigned to another party.
This issue also occasionally arises in the litigation context, when a plaintiff may be willing to settle a case in exchange for the assignment of the defendant’s insurance claim with its carrier.
However, it must be kept in mind that a policy may contain a non-assignment clause, which will be enforced.
An example of the non-assignment clause is found in the 1994, Fort Worth Court of Appeals opinion, Texas Farmers Ins.
To make that crystal clear, your options are: They’re trying to scare you into buying their overpriced policy. Because you already know where you can get the best mortgage protection quotes. Otherwise, it’s a bit like two young fellas swearing loyalty by spitting into a handshake.
You telling your bank about your existing policy is grand and all, but if anything happens, they want the legal papers to say they get any payout. When you die (no ‘ifs’ here, pal), your bank gets any pay-out.
They have to understand things like complicated tax laws and how to structure complex commercial deals, which is generally far above our pay grade.
Most of us became trial lawyers because we can’t do math.
You can try reading it, but honestly, you’ll have as much luck taking another crack at Finnegans Wake.
At least then you can sound cultured if you pretend you read Joyce’s gibberish. Listen, it’s a bit like Apple’s terms and conditions; everyone ticks the box and nobody has a clue what they agreed to. The bit you sign is called the Notice of Assignment. The normal, helpful lenders will help you and send the notice of assignment to your insurer.