What is the term used for the act of transferring an insurance policy to another party?

The term used for the act of transferring an insurance policy to another party is “assignment.” An assignment in insurance refers specifically to the policyholder's ability to transfer rights and obligations under the policy to another individual or entity. This process is commonly utilized for various reasons, such as selling a policy, refinancing, or transferring the coverage when a property is sold.

In the context of insurance, the assignment must typically be documented in writing, and it can be subject to the insurer's approval depending on the policy terms. It's essential to adhere to any stipulations outlined in the insurance contract to ensure that the transfer is valid and enforceable.

Other possible terms, such as delegation, may imply a transfer of duty or responsibility but do not encompass the full scope of transferring rights under a policy. Similarly, the terms transfer and concession do not accurately capture the legal and formalized process indicated by assignment in insurance terminology. Thus, assignment is the precise term that describes the legally recognized transfer of an insurance policy to another party.