What does the assignment clause in an insurance policy ensure?

The assignment clause in an insurance policy typically ensures that the insured cannot transfer the rights and obligations of the policy to someone else without the consent of the insurer. This provides the insurer with a level of control over who is covered under the policy. The insurer has the right to evaluate the risks associated with any new policyholder, and therefore, requires that any assignment of the policy be approved. This clause helps maintain the integrity of the risk assessment and ensures that the policy terms remain consistent with the original agreement between the insurer and the insured.

In contrast, the other options either misinterpret the purpose of the assignment clause or address aspects of insurance that are not relevant to this particular provision. For example, the ability to transfer a policy at will would undermine the insurer's ability to pre-approve policy assignments, and requiring coverage for all third parties or allowing the insurer to change terms unilaterally are not functions of the assignment clause.