Definition of "Assignment"

When an option is exercised, the Options Clearing Corporation prepares an assignment notification to a broker/dealer that one of its clients has options written that were exercised. The firm then assigns the exercise to one of its clients. This is done in accordance with their internal procedures.

The act of legal transfer of one person's interest in an insurance policy to another person or organization. Such cases of assignment are those when a lender takes assignment of a policy for security on a mortgage.