What does the assignment clause in an insurance policy specify?

The assignment clause in an insurance policy establishes the conditions under which the insured can transfer rights or interests in the policy to another party. Typically, this clause specifies that the insured must obtain written consent from the insurer before transferring ownership rights. This requirement helps the insurer maintain control over who may hold the policy and ensures that the new party meets underwriting standards.

In practical terms, this means that if an insured individual wants to assign their policy—such as transferring it to a new owner due to a sale or inheritance—they must first seek and receive approval from the insurance company. This process protects both the insurer and the insured, ensuring that the new party is adequately assessed before they assume the policy.

The other options do not accurately reflect the purpose of the assignment clause. For instance, allowing transfer of rights without consent would undermine the insurer's ability to manage risk, while stating that an insurer cannot refuse a transfer does not align with the typical requirement for consent. Thus, option B correctly outlines the fundamental principle governing assignments in most insurance policies.