Question

When is the transfer or assignment of a policy of life insurance considered complete and effectual according to sub-section (2) of Section 38?

a.

Upon submission of the transfer documents to the insurer

b.

Upon execution of the endorsement or instrument duly attested

c.

Upon payment of premium by the transferee or assignee

d.

Upon issuance of a written acknowledgment from the insurer

Answer: (b).Upon execution of the endorsement or instrument duly attested Explanation:According to sub-section (2) of Section 38, the transfer or assignment of a policy of life insurance is considered complete and effectual upon the execution of the endorsement or instrument duly attested.

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Q. When is the transfer or assignment of a policy of life insurance considered complete and effectual according to sub-section (2) of Section 38?

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Q. What action must the insurer take for the assignment or transfer to be operative, as per sub-section (2) of Section 38?

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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?

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