What type of assignment involves partial transfer of rights to an insurer?

A collateral assignment involves a partial transfer of rights to an insurer, typically as a means of securing a loan or obligation. In this scenario, the policyholder assigns some of the benefits of their insurance policy to a lender or creditor, but retains ownership of the policy. This arrangement allows the lender to have a claim on the insurance proceeds only in the event of the policyholder's death or default on a loan. The policyholder retains control over the policy, such as the right to make changes or to receive benefits, until they fulfill their obligation to the lender.

In contrast, absolute assignment would entail a complete transfer of ownership and rights of the policy to another party, which is not what a collateral assignment does. Partial surrender refers to withdrawing a portion of the cash value from a life insurance policy while maintaining the policy itself, but it does not relate to transferring rights. The term complete transfer suggests that all rights are relinquished, making it similar to absolute assignment rather than a partial transfer.