83. When a policyowner permanently turns over all rights in a policy to an assignee it is called
Answer: A
An absolute assignment.
When a policyowner permanently turns over all rights in a policy to an assignee, it is referred to as an absolute assignment. This type of assignment transfers full ownership and control of the policy to the assignee.
A) an absolute assignment.
This option is correct because an absolute assignment involves the complete transfer of ownership rights from the policyholder to the assignee. The assignee gains the authority to make all decisions regarding the policy, including the right to receive benefits.
B) a collateral assignment.
This option is incorrect as a collateral assignment only involves a temporary transfer of rights, typically for securing a loan. The original policyowner retains some rights, and the assignment is often revocable, which does not align with the concept of a complete transfer.
C) a conditional assignment.
This option is also incorrect because a conditional assignment implies that the transfer of rights is dependent on certain conditions being met. The rights are not fully relinquished until those conditions are satisfied, contrasting with the nature of absolute assignment.
D) an executory assignment.
This option is incorrect as an executory assignment suggests an agreement that will be fulfilled in the future, rather than an immediate and complete transfer of rights. It does not accurately describe the permanent nature of an absolute assignment.
Conclusion
An absolute assignment is the only option that accurately describes the complete and permanent transfer of all rights in a policy to another party. All other options involve various forms of limited or conditional rights, which do not represent the total relinquishment of ownership characteristic of an absolute assignment.