Ellen,who has a safe driving record,purchases automobile insurance from an insurance company.Which of the following is the accurate reason why Ellen would be disallowed from assigning her rights to be insured to another driver?
A) The assignment would materially alter the risk and duties of the insurance company.
B) Claiming insurance is a future right and hence cannot be assigned.
C) Insurance is a personal service contract and hence cannot be assigned.
D) Personal contracts like insurance are assignable only with the agreement of all parties involved in the contract.

Question

Quizplus · Accepted Answer

Allowing Ellen to assign her rights to another driver would change the risk and duties of the insurance company because the new driver may have a different driving record and may pose a higher risk of accidents. Therefore, insurance companies generally disallow assignment of rights to be insured in personal auto insurance policies.

Ellen,who Has a Safe Driving Record,purchases Automobile Insurance from an Insurance