Use this form to release all interest in the policy and assign it to another. This should not be used for collateral.If multiple beneficiaries are assigning their portions of proceeds, all such beneficiaries must complete and sign the Assignment of. Complete this form for the Collateral Assignment of Life insurance and Annuity contracts ONLY. Absolute Assignment and Transfer of Policy. Assignment of Life Insurance Policy Form. To start this process, file a Petition for Assignment with the probate court in the county where the decedent lived. Once you have found the right loan, you must fill out the collateral assignment form.