§431:10-228  Assignment of policies. (a)  A policy may be assignable or not assignable, as provided by its terms.

(b)  Subject to the terms of the policy, anypolicy providing the beneficiary may be changed upon the sole request of theinsured, may be assigned by either pledge or transfer of title, executed by theinsured alone, and delivered to the insurer, regardless of whether the insureris the pledgee or assignee.  Any such assignment shall entitle the insurer todeal with the assignee as the owner or pledgee of the policy in accordance withthe terms of the assignment until the insurer has received at its home officewritten notice of termination of the assignment or pledge, or written notice byor on behalf of some other person claiming some interest in the policy inconflict with the assignment. [L 1987, c 347, pt of §2]

 

Case Notes

 

  Because Hawaii law requires every insurance policyto be subject to the general rules of contract construction, and an assignmentby operation of law is merely an extension of the common law tort rule ofsuccessor liability, trial court erred in concluding that an assignment byoperation of law was consistent with Hawaii's rules governing construction ofinsurance policies.  117 H. 357, 183 P.3d 734.

  Where insurance policies contained a no assignmentclause that required the consent of the insurer to bind it to any assignmentmade by the named insured, and named insured assignor did not obtain any of theinsurers' consent prior to the assignment, assignee was not an insured underany of the insurers' policies and was therefore not owed duties to defend orindemnify by insurers.  117 H. 357, 183 P.3d 734.