What is the term for the transfer of a legal right or interest in an insurance policy that often requires prior written consent?

The term that describes the transfer of a legal right or interest in an insurance policy, which often requires prior written consent, is known as "assignment." In the context of insurance, assignment refers to the policyholder's ability to transfer their rights and benefits under the policy to another party. This process usually involves notifying the insurance company and obtaining their approval, ensuring that both parties are aware of and agree to the change in rights.

This is particularly important because it protects the insurer by ensuring that they know who is entitled to the benefits of the policy, and it helps maintain the integrity and original terms of the contract. Assignments can be critical in various situations, such as when the original policyholder sells a property that is covered under the insurance policy.

In contrast, terms like endorsement refer to changes in the terms of an existing policy rather than the transfer of rights. Transfer is a more general word that may not encompass the specific legal nuances found in insurance assignments, and a loan typically pertains to borrowing and repayment rather than the nuances of insurance policy rights.