What is an assignment of rights?

An assignment of rights is a legal process that transfers the rights to receive payment from an insurance company from the original claimant to another party. In Arizona, an assignment of rights is found in the Insurance Code (Article 20.4). It is a contract between the original claimant and the assignee and must be in writing. When a person assigns their rights, the assignee is responsible for all communication with the insurance company as well as all obligations to the insurance company. Generally, an assignment of rights is used by medical providers who treated a patient and received authorization from the patient to submit a claim to the insurance company for payment. Having the rights assigned ensures the medical provider is paid for their service. An assignment of rights can also be used between individuals, such as when the original claimant assigns the rights to another who then must proceed to the settlement of a claim or proceed to litigation regarding a claim. In situations such as these, the assignee can be any person, such as an attorney. In any situation where an assignment of rights is used, it is important that the assignee fully understands their rights and responsibilities as the assignee. The rights and responsibilities will vary depending on the situation.

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