Question

Upon receipt of the notice of transfer or assignment, what action must the insurer take according to Section 38 of the Insurance Act 1938?

a.

Reject the transfer request

b.

Record the transfer or assignment details and provide a written acknowledgment

c.

Request additional documents from the policyholder

d.

Cancel the policy

Answer: (b).Record the transfer or assignment details and provide a written acknowledgment Explanation:Upon receipt of the notice of transfer or assignment, the insurer must record the transfer or assignment details and provide a written acknowledgment.

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Q. Upon receipt of the notice of transfer or assignment, what action must the insurer take according to Section 38 of the Insurance Act 1938?

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Q. According to Section 38 of the Insurance Act 1938, from when does the insurer recognize the transferee or assignee named in the notice as the only person entitled to benefit under the policy?

Q. What clarification is provided for the process of making an assignment of a policy of life insurance in sub-section (1) of Section 38?

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Q. According to sub-section (3) of Section 38, how is the priority of claims determined in the case of multiple instruments of transfer or assignment?

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Q. What is the main difference between absolute and conditional assignments under the Act?

Q. What is the insurer's task in settling a death claim under a life insurance policy when there is a subsisting, effective nomination or assignment?

Q. What recommendation does the Law Commission make regarding Section 38 of the Insurance Act?

Q. What recommendation is made regarding the terminologies "assignment" and "transfer" in Section 38?

Q. What proposal is suggested regarding partial assignment or transfer of a policy of insurance?

Q. How does the recommendation propose to extend the applicability of Section 38?

Q. What safeguards are proposed to be built into Section 38 according to the recommendation?

Q. What does Section 39 of the Insurance Act, 1938 allow the policyholder to do?

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