What does the transfer of ownership rights by a policyholder refer to?

The transfer of ownership rights by a policyholder is referred to as assignment. This process allows a policyholder to transfer their rights and obligations under an insurance policy to another party. This can include providing rights to receive benefits, make changes to the policy, or designate beneficiaries. This transfer of rights can occur in different forms, such as absolute assignment, where all rights are permanently transferred, or temporary assignment, often used to secure a loan.

Beneficiary designation involves naming a person or entity that will receive the benefits from a policy upon the death of the insured, but it does not involve transferring ownership rights of the policy itself. Indemnity refers to the principle of compensating for a loss and is not related to ownership rights. Adhesion contracts are standard-form contracts often used in insurance where one party has significantly more power than the other in the terms of the agreement, but this concept does not relate to the transfer of ownership rights. Therefore, assignment is the correct term for the transfer of ownership rights in an insurance policy context.