What happens when a policy is assigned absolutely?

When a policy is assigned absolutely, the assignee takes full ownership of the policy. This means that the assignee acquires all the rights and interests that were originally held by the policyholder. This transfer includes the right to receive the benefits from the policy, the ability to make changes to the policy, and the authority to surrender or cancel the policy if they choose to do so.

The original policyholder does not retain any rights once the assignment is executed. This is a key characteristic of an absolute assignment, distinguishing it from other forms of assignment where some rights might remain with the original policyholder. Thus, the statement accurately reflects the complete transfer of rights and ownership that occurs in an absolute assignment scenario.