Washington State Insurance Practice Exam

What legal document allows the transfer of rights or interests in an insurance policy?

1. Policy Amendment

2. Claim Form

3. Binder

4. Assignment

The correct answer is: Policy Amendment

A Policy Amendment is the legal document that allows the transfer of rights or interests in an insurance policy. This document amends the terms and conditions of the original policy, including the transfer of rights or interests to another party. This allows for the policy to be legally transferred to a new owner or beneficiary. Option B, a Claim Form, is used to request payment from the insurance company for a covered loss or claim. This does not involve the transfer of rights or interests in the policy. Option C, a Binder, is a temporary agreement that provides immediate insurance coverage until a formal insurance policy is issued. This does not involve the transfer of rights or interests in the policy. Option D, an Assignment, is a legal transfer of ownership or rights from one party to another. This document may also be used to transfer rights or interests in an insurance policy, however, it is not specific to insurance and could be used for other types of assets as well.