Washington State Insurance Practice Exam

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Prepare for the Washington State Insurance Exam. Study with interactive flashcards and multiple-choice questions. Each question offers hints and explanations to help you succeed.

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What is an assignment in insurance terms?

  1. Transfer of a claim to another insurer

  2. Transfer of an insurance policy interest to another party

  3. Modification of policy coverage

  4. Renegotiation of premium terms

The correct answer is: Transfer of a claim to another insurer

In insurance terms, an assignment refers to the transfer of an insurance policy interest to another party. This means that the policyholder transfers some or all of their rights and benefits under the policy to a third party. It is important to note that an assignment does not involve the transfer of the actual policy to another insurer (Option A), modifying policy coverage (Option C), or renegotiating premium terms (Option D). The correct answer is B because it accurately defines what an assignment entails in insurance practice.

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