General Insurance
An owner wishes to transfer a life policy to another person. Why does the personal contract character of insurance matter here?
Answer and explanation
Answer: D. Insurance is a personal contract between the insurer and the owner, so an assignment ordinarily requires notice to, or the consent of, the insurer. Life policies can be assigned, and insurable interest is tested when the policy is taken out rather than at death.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, personal contract
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