When a consumer gives a creditor a security interest in forthcoming health insurance proceeds, the creditor must file a statement with the insurance company in order to have a perfected security interest.

Question

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Perfection of a security interest in insurance proceeds typically involves filing a financing statement under Article 9 of the Uniform Commercial Code (UCC) rather than filing a statement with the insurance company. The process of perfection generally does not require direct notification to the insurance company by the creditor.

When a Consumer Gives a Creditor a Security Interest in Forthcoming