Which statement is true about absolute assignment?

Which statement is true about absolute assignment?

• A. It is a temporary transfer of rights.
• B. It transfers ownership, is permanent, and the full policy amount is assigned.
• C. It transfers only the cash value.
• D. It requires no signature from the owner.

Answer: (B)

Absolute assignment means permanently transferring all ownership rights of a life insurance policy to someone else. The new owner gains full control over the policy—designating beneficiaries, borrowing against it, surrendering it, and receiving the proceeds—regardless of any prior arrangements. It’s a lasting change, typically involving the full policy value, and the original owner must sign to make the transfer. This isn’t a temporary transfer, it isn’t limited to the cash value, and it requires the owner’s signature to take effect.

Absolute assignment means permanently transferring all ownership rights of a life insurance policy to someone else. The new owner gains full control over the policy—designating beneficiaries, borrowing against it, surrendering it, and receiving the proceeds—regardless of any prior arrangements. It’s a lasting change, typically involving the full policy value, and the original owner must sign to make the transfer. This isn’t a temporary transfer, it isn’t limited to the cash value, and it requires the owner’s signature to take effect.