What type of assignment allows the policyowner to relinquish all policy rights?

Absolute assignment is the type of assignment that permits the policyowner to relinquish all rights to the policy. This means that the current policyowner transfers complete ownership of the life insurance policy to another party, which allows the new owner to exercise all rights associated with the policy. This can include the right to change beneficiaries, borrow against the policy, or even cancel the policy.

In contrast, collateral assignment is typically used as a means to secure a loan. In this arrangement, the policyowner retains ownership of the policy while using it as collateral, meaning they still retain most policy rights. Partial assignment, as the name suggests, transfers a portion of the rights, while the policyowner retains others. Temporary assignment might involve transferring rights for a specific period or under certain conditions, but does not fully relinquish ownership.

Thus, the completeness of rights relinquished in an absolute assignment clearly differentiates it from the other types, making it the correct choice in this context.