What is it called when benefits of a health policy are transferred to someone other than the policy owner?

The correct term for when the benefits of a health policy are transferred to someone other than the policy owner is known as "assignment." This process entails that the policy owner legally transfers their rights or benefits under the insurance contract to another individual or entity.

In health insurance, assignments are typically used when policyholders want to ensure that medical providers can receive payments directly from the insurer, rather than the policyholder having to pay upfront and seek reimbursement afterward. It simplifies the process for both the insured and the provider as it streamlines the claims process.

The other terms do not accurately describe this process. Delegation refers to the act of transferring responsibility or authority, which does not apply directly to policy benefits. Transfer of rights is a broader term that may encompass various aspects of ownership and rights but does not specifically indicate the act of transferring benefits. An endorsement usually refers to a modification or addition to an insurance policy, which is unrelated to the assignment of benefits.