According to the assignment condition, a policy can only be transferred to another person with the written permission of the

According to the assignment condition, a policy can only be transferred to another person with the written permission of the

• A. Policyowner
• B. Insurer
• C. Mortgagee
• D. State insurance department

Answer: (B)

Assignment of a policy is a transfer of ownership or rights under the contract, and it’s typically controlled by the insurer. The reason the insurer’s written permission is required is to let the company review who will hold the policy, ensure premiums and responsibilities are still clear, and confirm that the risk and terms remain acceptable under the new ownership. Without that consent, the insurer would have no guaranteed ability to manage the policy or reflect any changes in risk. The policyowner cannot unilaterally transfer ownership just by notifying someone else; the contract protects the insurer by requiring approval. A mortgagee may have a financial stake and can be involved in certain collateral arrangements, but they do not grant permission to transfer the policy. The state insurance department isn’t the party that authorizes private transfers.

Assignment of a policy is a transfer of ownership or rights under the contract, and it’s typically controlled by the insurer. The reason the insurer’s written permission is required is to let the company review who will hold the policy, ensure premiums and responsibilities are still clear, and confirm that the risk and terms remain acceptable under the new ownership. Without that consent, the insurer would have no guaranteed ability to manage the policy or reflect any changes in risk.

The policyowner cannot unilaterally transfer ownership just by notifying someone else; the contract protects the insurer by requiring approval. A mortgagee may have a financial stake and can be involved in certain collateral arrangements, but they do not grant permission to transfer the policy. The state insurance department isn’t the party that authorizes private transfers.