Assignor

What Does Assignor Mean?

An assignor is a person or organization that transfers rights, such as ownership, to another party. In insurance, the assignor is often the original policyholder who hands ownership of a policy over to someone else.

Insuranceopedia Explains Assignor

The transfer of rights may also involve the transfer of obligations. If someone enters into a contract to perform a duty for a specified period in exchange for payment, they are required to fulfill that duty during the agreed time. However, the assignment may allow the assignee to delegate the duty to another party if they are unable to carry it out. Some assignment contracts, however, prohibit such delegation.

Life insurance is one common setting for this. A policy owner can assign their rights to another person, which changes how life insurance beneficiary rules play out at claim time, and the basic mechanics of policy ownership are covered in life insurance basics.