Coverage disputes often arise regarding corporate successors' and assignees' rights under others' insurance policies. Most insurance policies contain anti-assignment provisions, purporting to prohibit the assignment of interests in the policy without the insurer's consent.
'Consent to Assignment' Clauses Held 'Unenforceable by CA Court
Whether a policy's anti-assignment clause will void a transfer of insurance proceeds or coverage rights, by contract or operation of law, usually requires an analysis of whether the predecessor corporation is an insured under the policy; whether the predecessor corporation still exists; whether the successor corporation succeeded to the predecessor's liabilities; and more.
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