What is the legal term for a situation where an insurance policyholder must get permission from the insurer before transferring their policy rights?

The legal term that refers to the requirement for an insurance policyholder to obtain permission from their insurer before transferring their policy rights is known as assignment. In the context of insurance, an assignment involves the policyholder transferring their ownership rights under a policy to another party. This transfer typically requires the consent of the insurer to ensure that the new policyholder meets the underwriting standards and that the insurer is willing to accept the new party as a policyholder.

This necessity for consent is rooted in the insurer's need to maintain control over whom they are agreeing to insure, as the original policyholder may have certain risk factors or circumstances not known to the insurer that could affect the terms of coverage. Therefore, without the insurer's approval, an assignment may not be valid.

Other terms, while relevant in different contexts, do not specifically relate to the transfer of insurance policy rights with the conditionality of obtaining insurer consent. For example, endorsements often refer to amendments or additions to an existing policy, delegation typically refers to the reassignment of responsibilities or duties without transferring ownership, and consent is a broader term that doesn't specifically apply to insurance policies.