Health · Chapter 18 · Additional Provisions
Owner's Rights / Assignment of Benefits
Definition
The policyowner holds all ownership rights, including the right to assign benefit payments directly to health care providers — avoiding pay-out-of-pocket-then-seek-reimbursement. BUT unlike life insurance, health policyowners cannot transfer ownership of the policy itself; assignment doesn't change that the policy indemnifies the insured.
In plain English
You can point the checks at your doctor — you can't hand the whole policy to someone else.
Exam tip
⚠️ Life vs health: life policies are freely assignable (absolute/collateral); health allows only assignment of benefits, not ownership.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms