The financial interest of the insured in an insurance policy is the
-
A.
subject matter of insurance -
B.
subject matter of the contract -
C.
assignment of the contract -
D.
deed of the contract
Correct Answer: Option C
Explanation
An assignment of contract occurs when one party to an existing contract (the “assignor“) hands off the contract’s obligations and benefits to another party (the “assignee“). Ideally, the assignorwants the assignee to step into his shoes and assume all of his contractual obligations and rights.