Asked by Kartik Chopra on Jul 16, 2024
Verified
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.
Insurance Policy
A contract between an individual or entity and an insurance company, outlining the terms for the payment of claims in the event of loss.
Benefits Payment
refers to the disbursement of funds from government or insurance programs to individuals who qualify for various types of financial assistance, such as unemployment, disability, or health insurance.
- Comprehend the principles behind the delegation of responsibilities and assignment of rights in contractual agreements.
- Understand the particular circumstances under which certain categories of agreements (such as negotiable instruments, contracts for personal services, and insurance policies) are governed by distinctive guidelines for their assignment and delegation.
Verified Answer
TH
Tyler HalgrenJul 19, 2024
Final Answer :
A
Explanation :
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.
Learning Objectives
- Comprehend the principles behind the delegation of responsibilities and assignment of rights in contractual agreements.
- Understand the particular circumstances under which certain categories of agreements (such as negotiable instruments, contracts for personal services, and insurance policies) are governed by distinctive guidelines for their assignment and delegation.
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