The rights under an insurance policy can normally be assigned
A)if the assignment involves only a payment of benefits.
B)if the assignment significantly changes the risk to the insurer.
C)if the assignment significantly alters the duties of the insurer.
D)under no circumstances.

Question

Quizplus · Accepted Answer

Assignments involving only the payment of benefits do not change the risk or obligations of the insurer, thus they are typically allowed. This allows the policyholder to direct where the benefits should go without altering the terms of the insurance contract.

The Rights Under an Insurance Policy Can Normally Be Assigned