Which policy provision allows an insured to transfer their interest in the policy?

The correct answer is "Assignment." This provision specifically allows an insured individual to transfer their rights and interests in an insurance policy to another party. This can be important in situations where the policyholder wishes to assign their benefits from the policy to another individual or entity, such as in the event of a property sale or when a creditor needs to be compensated directly from the policy.

Assignment ensures that the new party gains the rights to the coverage and benefits that the original policyholder held. In many insurance contracts, there may be conditions or limitations placed on assignment to protect the insurer's interests and ensure that they are aware of who is covered under the policy.

The other options, while related to insurance, do not pertain specifically to the transfer of interest in a policy. For instance, the "Transfer of rights" might seem relevant, but it generally refers to various rights under a contract rather than specifically assigning the policy. "Subrogation" involves the insurer's right to pursue recovery from third parties after paying a claim, and "Disclosure" relates to the obligation to provide truthful information during the application process.