Not a sale of the injury claim itself, and not a way to hand over every complaint you have against an insurer. Usually, it means a policyholder transfers a specific legal right: the right to bring a bad faith claim against an insurance company that mishandled settlement, defense, or claim decisions. That transfer often happens after the insurer refuses a reasonable settlement within policy limits and the insured ends up facing an excess judgment. The injured person may then receive an assignment of those bad faith rights and pursue the insurer directly.

In practice, this shows up when insurance coverage is too small for the harm done. Ohio's minimum auto liability limits are still 25/50/25 under Ohio Revised Code 4509.51, which can be nowhere near enough after a serious highway crash or a long hospital stay. If the insurer had a fair chance to settle within limits but did not, the insured may assign that bad faith claim as part of a settlement or consent judgment. It is a way to shift the fight toward the insurer that may have created the problem.

For an injury claim, an assignment can open another source of recovery beyond the policy limits. It can also change who is suing whom and what evidence matters, including settlement offers, claim handling, and whether the insurer breached its duty to settle or duty to defend.