Question

An absolute assignment is a

ATransfer of some ownership rights in a policy.
BChange of beneficiary.
CChange of insurer.
DTransfer of all ownership rights in a policy.
Correct! Absolute Assignment involves transferring all rights of ownership to another person or entity. This is a permanent and total transfer of all the policy rights. The new policyowner does not need to have an insurable interest in the insured.

Answer 1

Absolute assignment in the social structure context refers to the transfer of all rights and freedoms to a sovereign for peace and self-defense, mirroring the societal contract for protection and order.

Step-by-step explanation:

The concept you're referring to, although framed in the context of an insurance policy, echoes the broader principles of social contract theory, particularly as it pertains to absolute control under authoritarian monarchy.

In a societal arrangement described by social contract theorists like Thomas Hobbes, people collectively agree to relinquish their freedom and submit to the authority of a sovereign for the sake of peace and self-defense. This is predicated on the notion that in a state of nature, life is solitary, poor, nasty, brutish, and short—hence the need for an absolute sovereign to impose law and order to avoid the state of war and chaos.

Such absolute control means that all powers and laws are centralized in the hands of the sovereign, often justified by the need for security and social order. The sovereign, once given power, holds undisputed authority over his subjects, who have exchanged their freedom for protection. In a similar vein, the 'absolute assignment' of a life insurance policy involves transferring all ownership rights permanently to another person or entity, which is a complete and irrevocable transfer.