What term describes when the insured transfers control of a policy to another person?

The correct term for when the insured transfers control of a policy to another person is legal assignment. In this context, a legal assignment occurs when the policy owner officially transfers their rights and obligations under the insurance policy to another individual or entity. This process ensures that the new assignee gains legal rights to the policy, including the ability to make changes to the policy, receive benefits, and be responsible for premiums.

Constructive delivery refers to a situation where the ownership of the policy is transferred without the physical exchange of the document, but it does not equate to a formal assignment of rights as seen in legal assignment. Immediate transfer and agent designation do not accurately capture the essence of legally transferring control of an insurance policy, as they involve different contexts of ownership and authority. Thus, legal assignment is the appropriate term to describe this transfer of control.