What term describes the transfer of ownership rights in a life insurance policy?

The term that describes the transfer of ownership rights in a life insurance policy is "assignment." This process involves one party (the original policyholder) transferring their rights, title, and interests in the insurance policy to another party. Assignments can be either absolute, where the ownership rights are entirely transferred, or collateral, where the policy is used as collateral for a loan while retaining some ownership rights by the original policyholder.

In contrast, beneficiary designation refers to the individual or entity named to receive the policy benefits upon the insured's death, but it does not involve the transfer of ownership rights. Underwriting is the process insurance companies use to evaluate the risk of insuring a person and determining the premium, while policy conversion typically involves changing a policy from one type to another, such as from term life insurance to whole life insurance. Each of these terms relates to different aspects of life insurance policies but does not pertain to the transfer of ownership as assignment does.