When is an insured allowed to assign their insurance policy to another party?

An insured is allowed to assign their insurance policy to another party only with written consent from the insurer. This requirement ensures that the insurance company is aware of and agrees to the transfer of responsibilities and benefits associated with the policy. Insurance contracts often contain specific clauses about assignment, and these clauses typically require that the insurer approves any assignment in writing. This protects the insurer's interests and allows them to evaluate the risks associated with the new party taking over the policy.

The other options do not align with the standard practice of insurance assignments. Allowing assignment at any time, for instance, could lead to complexities and risks the insurer may not be willing to accept without oversight. Likewise, verbal consent is insufficient since it lacks the formal documentation that written consent provides, which is essential for accountability. Lastly, the notion that assignment can occur upon settlement of a claim is misleading, as the consent of the insurer is still necessary prior to any transfer of the policy rights, regardless of the claim status.