An absolute assignment means what?

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Prepare for the Canada HLLQP Ethics Exam with comprehensive quizzes. Utilize flashcards and multiple-choice questions, supported by hints and explanations. Enhance your readiness and confidence!

Multiple Choice

An absolute assignment means what?

Explanation:
An absolute assignment is a complete transfer of all ownership rights in a life insurance policy to someone else. When this happens, the person receiving the assignment becomes the new policy owner with full control over the policy—able to name or change the beneficiary, borrow against the cash value, surrender the policy, and ultimately receive the death benefit. The original owner gives up every owner right, and the arrangement is typically permanent. This is different from merely changing who is the beneficiary, which doesn’t transfer ownership, or from a policy loan or premium waiver, which involve different policy features while the owner remains the policyholder.

An absolute assignment is a complete transfer of all ownership rights in a life insurance policy to someone else. When this happens, the person receiving the assignment becomes the new policy owner with full control over the policy—able to name or change the beneficiary, borrow against the cash value, surrender the policy, and ultimately receive the death benefit. The original owner gives up every owner right, and the arrangement is typically permanent. This is different from merely changing who is the beneficiary, which doesn’t transfer ownership, or from a policy loan or premium waiver, which involve different policy features while the owner remains the policyholder.

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