Arkansas Life and Health Insurance Practice Exam 2025 - Free Life and Health Insurance Practice Questions and Study Guide

Question: 1 / 400

Which of the following is NOT an example of an absolute assignment?

Assigning a policy to a trust

Assigning a policy to a trust is not an example of an absolute assignment because it does not fully transfer ownership of the policy. The policy still remains in the control of the insured and can be changed or revoked at any time.

Naming a new beneficiary is an example of an absolute assignment because it completely transfers the rights and ownership of the policy to the named beneficiary.

Transferring ownership to another individual is also an example of an absolute assignment because it fully transfers all rights and ownership of the policy to the other individual.

Using a Life Insurance policy as collateral for a loan is also an example of an absolute assignment because it fully transfers ownership and rights to the lender for the duration of the loan.

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Naming a new beneficiary

Transferring ownership to another individual

Using a Life Insurance policy as collateral for a loan

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