What does the term 'assignment' refer to in insurance?

Prepare for the Nevada Casualty Law Exam with engaging flashcards and multiple-choice questions. Each question provides helpful hints and explanations, ensuring you're ready for exam day!

The term 'assignment' in insurance refers specifically to the transfer of a legal right or interest from one party to another. In the context of insurance, this often involves the policyholder transferring their rights under an insurance policy to another individual or entity. This could occur in various scenarios, such as when a homeowner sells their property and assigns their homeowner's insurance policy to the new owner, allowing them to receive coverage without having to obtain a new policy.

Understanding this concept is crucial because assignments must often comply with specific conditions outlined in the insurance policy itself. Insurers might require notification and approval of any assignment to ensure that the new party is acceptable and meets any underwriting criteria.

The other options represent different concepts unrelated to the definition of 'assignment.' For instance, the policy renewal process relates to extending an insurance policy's coverage after its initial term, while deductibles pertain to the out-of-pocket expenses that a policyholder must cover before insurance benefits apply. Policies covering multiple properties involve multi-property coverage but do not relate to the transfer of rights under a specific insurance agreement.

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