Insurance WAEC

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

C. assignment of the contract

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 assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights.

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