Absolute assignment refers to permanently transferring ownership to another.

• A. It temporarily pledges the policy as loan security
• B. It changes the beneficiary designation to the policy owner's estate
• C. It permanently transfers ownership of the policy to another
• D. It resets the policy's premium

Answer: (C)

Absolute assignment is the permanent transfer of policy ownership to someone else. When ownership is assigned absolutely, the new owner takes full control of the policy and gains the right to name or change beneficiaries, decide who pays premiums if the policy allows, and ultimately surrender the policy or borrow against its cash value if applicable. The original owner loses ownership rights entirely, and the transfer is generally irrevocable.

This is different from a collateral assignment, where the policy is used as security for a loan but ownership remains with the original owner; the lender only holds a temporary interest in the policy’s rights until the loan is repaid. It also differs from simply changing a beneficiary to the owner's estate, which is a beneficiary designation change rather than a transfer of ownership. Resetting premiums isn’t related to ownership transfer at all.