Which action is required to make an assignment of a life insurance policy valid?

To make an assignment of a life insurance policy valid, it is essential to have a formal written document submitted to the insurer. This requirement ensures that the insurance company is officially informed of the assignment, which can involve the transfer of rights and benefits of the policy from one party to another, such as transferring ownership or designating a new beneficiary. The insurer needs to update its records and confirm the legitimacy of the new arrangement to operate effectively under the terms of the policy.

In contrast to informal agreements or notifications that do not provide a clear and documented notice to the insurance company, a formal written document guarantees that all parties understand their rights and obligations. This process protects the interests of all involved parties and prevents potential disputes regarding the ownership and benefits of the policy.