What does the assignment condition of a policy state?

The assignment condition of a policy generally states that policyholders cannot transfer or assign their policy to someone else without specific permission from the insurer. This condition is crucial as it ensures that the insurer can control who is covered under the policy, maintaining the integrity of the risk assessment and underwriting process. By prohibiting automatic transfers, the insurer can avoid situations where a policy might be assigned to individuals or entities that were not initially evaluated or approved for coverage.

In essence, this condition protects both the insurer's interests and establishes a clear relationship between the insurer and the original policyholder, thereby maintaining the intended structure of the insurance contract.