What does a policy assignment typically do?

A policy assignment is a legal process that involves transferring the ownership rights of a life insurance policy from one party to another. When a policyholder assigns their policy, they are effectively giving up certain rights, such as the ability to make changes to the policy or receive benefits, to another individual or entity, as defined in the assignment document. This transfer is important because it allows the new owner to manage the policy according to their interests and needs.

The choice regarding the validity period during the insured’s lifetime does not apply to the concept of assignment as a whole. While certain aspects of a policy assignment might be linked to the insured's lifetime, the assignment itself can often be established without such limitations in the language.

Similarly, a policy assignment does not function the same as a beneficiary designation, which merely identifies who will receive benefits upon the insured's death. A beneficiary designation does not entail the full transfer of ownership rights as an assignment does.

By accurately transferring the rights as articulated in the assignment form, the correct answer highlights the primary function of policy assignments in insurance practices.