West Virginia Property and Casualty Licensing Practice Exam

When can an insurer assign their insurance policy to another party?

1. At any time

2. Only with verbal consent

3. Only with written consent

4. Automatically upon request

The correct answer is: Only with written consent

An insurer can assign their insurance policy to another party only with written consent. This requirement ensures that all parties are aware and in agreement regarding the transfer of rights and responsibilities associated with the policy. Written consent serves to protect both the insurer and the insured, providing a clear record of the assignment and minimizing the risk of misunderstandings. Assigning a policy involves transferring the contractual rights from one policyholder to another, which can have various implications for both the original policyholder and the insurer. Thus, requiring written consent safeguards against unauthorized assignments and helps maintain the integrity of the insurance contract. The other options do not align with standard insurance practices, as unauthorized assignments can lead to disputes and confusion about coverage and liability. Verbal consent, for instance, is typically less formal and may not provide the same legal protections as a written agreement.