Question

What exception is provided regarding the cancellation of a nomination in case of assignment to the insurer who bears the rates on the policy?

a.

The nomination is canceled regardless of the circumstances.

b.

The nomination remains valid until the policy matures.

c.

The cancellation affects the rights of the nominee only to the extent of the insurer's interest in the policy.

d.

The policyholder must provide written consent for the cancellation.

Posted under IC 14 Regulations of Insurance Business

Answer: (c).The cancellation affects the rights of the nominee only to the extent of the insurer's interest in the policy. Explanation:The assignment of a policy to the insurer who bears the rates on the policy at the time of the assignment does not cancel a nomination but affects the rights of the nominee only to the extent of the insurer's interest in the policy.

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Q. What exception is provided regarding the cancellation of a nomination in case of assignment to the insurer who bears the rates on the policy?
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