Policyholder Rights of Assignment,Nomination and Transfer MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Policyholder Rights of Assignment,Nomination and Transfer, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Policyholder Rights of Assignment,Nomination and Transfer MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Policyholder Rights of Assignment,Nomination and Transfer mcq questions that explore various aspects of Policyholder Rights of Assignment,Nomination and Transfer problems. Each MCQ is crafted to challenge your understanding of Policyholder Rights of Assignment,Nomination and Transfer principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Policyholder Rights of Assignment,Nomination and Transfer MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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Policyholder Rights of Assignment,Nomination and Transfer MCQs | Page 1 of 11

Discover more Topics under IC 14 Regulations of Insurance Business

Q1.
What is one of the significant features of an insurance policy that ensures funds are given to the nominee in case of the policyholder's death?

a.

Surrender value

b.

Maturity benefit

c.

Nomination facility

d.

Loan facility

Discuss
Answer: (c).Nomination facility Explanation:The nomination facility in an insurance policy ensures that funds are given to the nominee in case of the policyholder's death.
Q2.
According to Section 38 of the Insurance Act 1938, how can a transfer or assignment of a life insurance policy be made?

a.

Verbally with a witness present

b.

Through a separate instrument signed by the transferor or assignor and attested by at least one witness

c.

By mailing a letter to the insurer

d.

By submitting an online form to the insurance company

Discuss
Answer: (b).Through a separate instrument signed by the transferor or assignor and attested by at least one witness Explanation:According to Section 38 of the Insurance Act 1938, a transfer or assignment of a life insurance policy may be made by a separate instrument signed by the transferor or assignor and attested by at least one witness.
Q3.
When does a transfer or assignment of a life insurance policy become complete and effectual?

a.

Upon submission of the transfer documents to the insurer

b.

Upon execution of the endorsement or instrument duly attested

c.

After receiving acknowledgment from the insurer

d.

Upon payment of a fee to the insurer

Discuss
Answer: (b).Upon execution of the endorsement or instrument duly attested Explanation:The transfer or assignment of a life insurance policy becomes complete and effectual upon the execution of the endorsement or instrument duly attested.
Q4.
What action must be taken to make a transfer or assignment of a life insurance policy operative against an insurer?

a.

Surrender the policy document

b.

Notify the insurer in writing with a copy of the endorsement or instrument

c.

Submit a medical certificate

d.

Obtain approval from the regulatory authority

Discuss
Answer: (b).Notify the insurer in writing with a copy of the endorsement or instrument Explanation:To make a transfer or assignment of a life insurance policy operative against an insurer, written notice must be provided to the insurer along with a copy of the endorsement or instrument.
Q5.
What regulates the priority of all claims under a transfer or assignment of a life insurance policy?

a.

Date of execution of the transfer document

b.

Date of delivery of notice to the insurer

c.

Date of policy issuance

d.

Date of premium payment

Discuss
Answer: (b).Date of delivery of notice to the insurer Explanation:The priority of all claims under a transfer or assignment of a life insurance policy is regulated by the date of delivery of notice to the insurer.
Q6.
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

Discuss
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.
Q7.
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?

a.

From the date of execution of the transfer document

b.

From the date of policy issuance

c.

From the date of receipt of the notice referred to in sub-section (2)

d.

From the date of premium payment

Discuss
Answer: (c).From the date of receipt of the notice referred to in sub-section (2) Explanation:According to Section 38 of the Insurance Act 1938, the insurer recognizes the transferee or assignee named in the notice as the only person entitled to benefit under the policy from the date of receipt of the notice referred to in sub-section (2).
Q8.
What clarification is provided for the process of making an assignment of a policy of life insurance in sub-section (1) of Section 38?

a.

The importance of obtaining consent from the transferor or assignor

b.

The requirement for the assignment to be made with consideration

c.

The methods by which the assignment can be made, either by endorsement on the policy or by a separate instrument

d.

The need for the assignment to be attested by two witnesses

Discuss
Answer: (c).The methods by which the assignment can be made, either by endorsement on the policy or by a separate instrument Explanation:The clarification provided in sub-section (1) of Section 38 outlines the methods by which an assignment of a policy of life insurance can be made, either by endorsement on the policy itself or by a separate instrument.
Q9.
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

Discuss
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.
Q10.
What action must the insurer take for the assignment or transfer to be operative, as per sub-section (2) of Section 38?

a.

Record the assignment or transfer in their internal records

b.

Send a confirmation letter to the policyholder

c.

Receive written notice along with the endorsement or instrument

d.

Publish a notice in a local newspaper

Discuss
Answer: (c).Receive written notice along with the endorsement or instrument Explanation:For the assignment or transfer to be operative, the insurer must receive written notice along with the endorsement or instrument, as per sub-section (2) of Section 38.
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