KRS 304.14-250: Assignability -- Rights of insurer, assignee.

Except as provided in KRS 304.17A-265, 304.17C-137, and 304.20-105:

(1) A policy may be assignable or not assignable, as provided by its terms;

(2) Subject to its terms relating to assignability, a life or health insurance policy,

regardless of when it was 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;

(3) 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 accordanc e 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; and

(4) (a) 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 or her rights and

benefits under the polic y 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.

(b) While the assignment is in effect, and regardless of when it wa s made, the

insurer shall be entitled to deal with the assignee as the owner of the rights

and benefits in accordance with the terms of the assignment and without

prejudice to the insurer on account of any lawful action taken or payment

made by the insurer prior to receipt by the insurer at its principal office of

written notice of the assignment or of the termination thereof.

(c) This subsection acknowledges, confirms, and codifies the existing right of

assignment of interests under group life insurance policies.