Life Policy ProvisionsQuestion 170 of 315
When a life insurance policyowner makes an absolute assignment of the policy, what is the result?
a.The insurer assumes ownership for collateral purposes only
b.The assignment is voided after one year
c.Only the death benefit is transferred; ownership stays with the original owner
d.All ownership rights are permanently transferred to the assignee
Explanation
An absolute assignment is a full and permanent transfer of all ownership rights in the policy to the assignee. A collateral assignment, by contrast, transfers only enough rights to secure a debt, with remaining benefits reverting to the policyowner once the debt is paid.
Law Reference: Cal. Ins. Code §10130Practice all 315 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)