Limitation on transferability

The limitation on transferability is used for securing a loan by means of the entitlements from the insurance contract. The insurance policyholder applies to the insurance undertaking for limitation on transferability. Then the insurance undertaking deposits a declaration of limitation on transferability to the creditor to whom transferability is limited (e.g. a bank). Consequently entitlements can only be paid out to the policyholder by the insurance undertaking with the approval of the creditor to whom transferability is limited.