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Definition of 'Absolute Assignment'

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.

For instance, a policy owner X wants to gift his life insurance policy to another person named Y. Hence X is doing absolute assignment. Here X is the assignor and Y is the assignee. Now all benefits, returns and even the liabilities are in the name of Y. If Y wants, he can further use absolute assignment and transfer the policy to other party.

Also See: Assignee, Assignor

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