Which term describes the transfer of rights under an insurance policy?

The correct term that describes the transfer of rights under an insurance policy is assignment. When a policyholder assigns their rights or interests in an insurance policy to another party, they are effectively transferring the benefits and responsibilities associated with that policy. This process often occurs in situations such as when a property owner sells an asset and assigns their insurance policy related to that asset to the new owner.

Assignment can allow the new party to file claims or make changes to the policy, depending on the terms outlined in the original insurance agreement. It is important to note that most insurance policies have specific provisions regarding assignment, possibly requiring the insurer’s written consent for the assignment to be valid. Understanding this term is crucial for both consumers and professionals navigating insurance agreements, ensuring that the rights and obligations are clearly defined and upheld during such transfers.