No assignment of interest under this Policy shall be valid, unless the written consent of the Insurer is endorsed hereon.

Arch Insurance Co., 00 ATL0003 00 (04 05)

CHANGES IN ASSIGNMENT

The terms of this POLICY shall not be waived or changed, nor shall an assignment of interests be binding, except by endorsement to this POLICY issued by the INSURER

Associated Electric & Gas Services limited (AEGIS), 6100P (01/2014)

Assignment provisions preserve the insurer's right to select and limit the specific entities and individuals they choose to insure. Without such provisions, an entity or individual unable to secure D&O liability insurance might, for example, simply attempt to arrange an assignment of interest in an insurance policy as a condition of purchasing a subsidiary. In addition to an Assignment condition, most D&O policy forms also contain specific conditions that limit coverage or provide for cancellation of the policy when a change of control occurs.

Because the need for assignment is rare, the practical implications of assignment provisions are normally of little concern. Without such provisions, however, insurers could inadvertently assume risks not originally contemplated.