The process by which a life insurance policyholder can transfer all rights, title and interest-under a policy contract to a third person is known as

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Assignment of the policy
B	Hypothecation of the policy
C	Reinvestment of the policy
D	Negotiation of the policy

Explanation:

Detailed explanation-1: -The rights to your insurance policy can be transferred to someone else for various reasons. The process is known as assignment. An “assignor” (policyholder) is the person who assigns the insurance policy.

Detailed explanation-2: -Definition: An absolute assignment is the act of complete transfer of the ownership (all rights, benefits and liabilities) of the policy completely to other party without any terms and condition. Description: Absolute assignment shifts the ownership of the insurance policy.

Detailed explanation-3: -Assignment of the policy refers to the transfer of rights, title, and policy ownership from the policyholder to another person or entity. The person involved in assigning/transferring the policy is called assignor, and the person/institution to which it is assigned is called the assignee.

Detailed explanation-4: -A person can transfer his rights, title and interest in a life insurance policy to another by assigning it to him. A person can transfer his rights, title and interest in a life insurance policy to another by assigning it to him.

Detailed explanation-5: -Assignment refers to the transfer of certain or all (depending on the agreement) rights to another party. The party which transfers its rights is called an assignor, and the party to whom such rights are transferred is called an assignee.

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