Insurances usually include languages that specifically prohibit an insured from assigning their rights and interests under the insurance without the consent of the insurance company.
These anti-award clauses usually contain some form of language that traces the clause below:  Allocation of Claims
Assignment to any of your rights or obligations under this policy regarding any claim, or any part of any claim, will be declared invalid and we will not acknowledge any such information unless we give our written consent. Once you have complied with all insurance regulations, however, you can assign another party payment in writing of the claim that is otherwise to be paid to you.
In Colorado, a distinction is made between the award of an insurance before a loss has occurred and the distribution of benefits to an insured after a loss. As it involves a transfer of a contractual relationship that may affect the risk to an insurance company, clauses on before loss transfers are enforceable. 1
On the other hand, an assignment after a loss does not constitute a transfer of the personal contract represented by the insurance, but only a claim or right to action on the policy. According to this reasoning, Colorado generally finds that loss-making assignments are valid regardless of which clause is not included in the insurance policy, since the award of a post-loss claim does not affect the risk of an insurance company because liability has already been established. of the loss. 2 More specifically, the recognized reason for the ban on loss-making assignments without the insurance company's consent – increased risk – is no longer applicable after a loss.
Although Colorado allows the award of a claim after loss regardless of the language of assignments included in an insurance policy, the enforceability of these clauses depends on the law of each individual state. Always check with a lawyer before assigning insurance benefits to another, regardless of the situation.
1 Parrish Chiropractic Ctrs., P.C. v. Progressive Cas. Ins. Co. 874 P.2d 1049, 1053 (Colo.1994) (notes that clauses on non-insurances in insurance are strictly applied against attempts at transfers before loss, as such assignments significantly increase the insurers' risk or obligation).  2 Parrish Chiropractic at 1053; Rooftop Restoration, Inc. v. Ohio Sec. Ins. Co. 2015 WL 9185679, at * 3 (D. Colo. December 17, 2015).