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304.14-250 Assignability -- Rights of insurer, assignee.
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A policy may be assignable or not assignable, as provided by its terms.
Subject to its terms relating to assignability, a life or health insurance policy,
whether heretofore or hereafter issued, under the terms of which the
beneficiary may be changed upon the sole request of the insured or owner,
may be assigned either by pledge or transfer of title, by an assignment
executed by the insured or owner alone and delivered to the insurer, whether
or not the pledgee or assignee is the insurer.
Any assignment of a policy which is otherwise lawful and of which the insurer
has received notice, shall entitle the insurer to deal with the assignee as the
owner or pledgee of the policy in accordance with the terms of the assignment,
until the insurer has received at its principal office written notice of the
termination of the assignment or pledge, or written notice by or on behalf of
some interest in the policy in conflict with the assignment.
Any individual insured under a group insurance policy or group annuity contract
shall have the right, unless expressly prohibited under the terms of the policy or
contract, to assign to any other person his rights and benefits under the policy
or contract, including, but not limited to, the right to designate the beneficiary or
beneficiaries and the rights as to conversion provided for in KRS 304.16-180 to
304.16-200, inclusive. While the assignment is in effect, and whether
heretofore or hereafter made, the insurer shall be entitled to deal with the
assignee as the owner of such rights and benefits in accordance with the terms
of the assignment; but without prejudice to the insurer on account of any lawful
action taken or payment made by it prior to receipt by it at its principal office or
written notice of the assignment or of the termination thereof. This section
acknowledges, confirms and codifies the existing right of assignment of
interests under group life insurance policies.
Effective:June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 14, sec. 25, effective June 18,
1970.
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