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Assignments Of Insurance As Collateral: Article 9 Doesn't Apply

LexisNexis (May 3, 2018, 10:41 AM EDT) -- Article 9 doesn't apply to "a transfer of an interest in or an assignment of a claim under a policy of insurance…."  UCC 9-109(d)(8).  The filing of a financing statement will not perfect a lender's security interest in the borrower's insurance policies.  Instead, the lender will need to turn to the common law of the relevant state, or a relevant non-UCC statute that governs perfection.  Comment 7 to pre-Revision UCC 9-104 explains that "[r]ights under life insurance and other policies…are often put up as collateral. Such...
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