Georgia Property & Casualty Practice Exam

Can Jack transfer his homeowners policy to Sue after selling his home?

1. Yes, insurance policies have a certain portability to them which makes this possible.

2. No, this cannot be done under any circumstances.

3. No, unless the insurer gives written consent to do so.

4. Yes, if Jack and Sue became joint insureds.

The correct answer is: No, unless the insurer gives written consent to do so.

When it comes to homeowners insurance policies, they are typically tied to a specific property and the individual insured. When Jack sells his home, the homeowners policy he holds is not automatically transferable to Sue, the new homeowner. This is primarily because the insurance contract is based on specific underwriting criteria related to Jack and his property, which would change when the ownership changes. However, if it's essential for the new owner to have coverage and there is a desire to transfer the policy, the insurer must be involved in the process. The insurer's written consent is necessary to allow the transfer of the policy because the new insured must meet the insurer's underwriting standards. This means that the insurance company needs to evaluate Sue as a new applicant to determine if they can insure her in relation to the home before any transfer can occur. The other options imply various scenarios where a transfer could happen without insurer consent or suggest that transfers are universally possible, which are not aligned with standard insurance practices. Therefore, the requirement for written consent from the insurer makes the correct answer clear, as it emphasizes the role of the insurer in maintaining their underwriting standards and ensuring proper risk management.