Assignment

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The word ‘assignment’ relates to the transfer of ownership of an insurance policy or lease. It may relate to a life insurance policy held by a homeowner if that policy needs to be transferred to someone else, for instance. To give another example, it may also relate to the transfer of ownership of a lease on a property.

For example, if you are a landlord and you own a property you rent out to tenants, you will experience changes in tenants from time to time. When this occurs, you will need to transfer the lease held by the outgoing tenant to the incoming tenant. Your consent as the landlord is required for this to occur.

In all cases, regardless of the scenario, the person exiting the lease or policy is referred to as the assignor. The person taking over the lease or policy is known as the assignee. These terms are also likely to appear when you are in another scenario whereby an assignment or transfer is required to happen, as with the insurance policy example.

If an insurance policy is transferred from one party to another, this process is also called an assignment. In some instances, there may be reason for a part assignment to occur. This would happen if the policy is shared by two or more people, and part of the policy is to be transferred. It is more common for an entire insurance policy to have its ownership transferred, however, in which case the original assignment terminology stands as the relevant term.

If you are unsure about any terminology in an official document, you should always ask for clarification.

Assignment

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