What is the difference between absolute assignment and collateral assignment?

• A. The owner remains the same in both types; only the beneficiary changes.
• B. Absolute assignment uses the policy as collateral for a loan; collateral assignment transfers all rights.
• C. Collateral assignment transfers all ownership rights to the assignee; absolute uses policy as security.
• D. Absolute assignment transfers all ownership rights to the assignee; collateral assignment uses the policy as security for a loan while ownership remains with the original owner.

Answer: (D)