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

The ability to assign an insurance policy is typically governed by the terms within the policy itself and relevant state laws. The correct answer indicates that an insured can assign their insurance policy to another party when they receive written consent from the insurer.

This requirement for written consent ensures that the insurer is aware of and agrees to the transfer of policy rights and responsibilities, which is crucial because the insurer has an interest in who is covered under the policy and might have specific underwriting criteria or risk assessments associated with the original insured. If an assignment were to occur without the insurer's approval, it could lead to complications such as coverage gaps or disputes over claims.

Other options suggesting that only verbal consent is necessary or that notification after an accident suffices do not align with standard insurance practices, as assignments generally need formal approval to be valid and enforceable. Additionally, stating that an assignment can be made at any time without consent overlooks the contractual nature of insurance policies, which often include clauses about assignment restrictions.