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