Ohio Insurance Laws and Regulations Practice Exam

An "assignment" of policy benefits in Ohio refers to the transfer of benefits to another party. This legal process allows the policyholder to designate another individual or entity to receive insurance benefits that they would typically receive under the terms of the insurance policy. For instance, if a policyholder assigns their benefits to a healthcare provider, that provider can then collect payment directly from the insurance company for services rendered, rather than the policyholder receiving the payment and then paying the provider.

In this context, it is essential to understand that the assignment must comply with the terms stipulated in the insurance policy and Ohio law. Some policies may have specific requirements regarding assignments, such as needing the insurer's consent. Thus, the focus on the transfer aspect encapsulates the primary function of an assignment, underscoring its pivotal role in the management of insurance benefits.

The other options—cancellation of a policy, rejection of a claim, or modification of premium rates—do not align with the definition of "assignment." Each of these terms pertains to different aspects of insurance policy administration and does not involve the direct transfer of benefits to another party.