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 10 of 11

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Q91.
What is required for a transfer or assignment to be complete and effectual for the transferee/assignee?

a.

Notarization by a legal authority.

b.

Duly attested execution of the endorsement or instrument.

c.

Confirmation by the insurer.

d.

Signature of the assignor.

Discuss
Answer: (b).Duly attested execution of the endorsement or instrument. Explanation:The transfer or assignment is complete and effectual only when the execution of such endorsement or instrument is duly attested so far as the transferee/assignee is concerned.
Q92.
When is a conditional assignment considered valid?

a.

If the specified event happens after the death of the life assured.

b.

If the specified event happens during the lifetime of the life assured.

c.

If the specified event is uncertain.

d.

If the assignee is a minor.

Discuss
Answer: (b).If the specified event happens during the lifetime of the life assured. Explanation:A conditional assignment is valid only if the specified event happens during the lifetime of the life assured.
Q93.
What does an absolute assignment transfer to the assignee?

a.

Only partial rights of the assignor.

b.

All liabilities of the assignor.

c.

All rights, title, and interest of the assignor in the policy.

d.

None of the above.

Discuss
Answer: (c).All rights, title, and interest of the assignor in the policy. Explanation:An absolute assignment transfers to the assignee all rights, title, and interest of the assignor in the policy.
Q94.
When can a policyholder nominate a family member/s to receive the policy moneys?

a.

Only at the time of policy issuance.

b.

Only during the tenure of the policy.

c.

At any time, including during the tenure of the policy.

d.

Only after the maturity of the policy.

Discuss
Answer: (c).At any time, including during the tenure of the policy. Explanation:The insured can nominate a family member/s to receive the policy moneys at any time, including during the tenure of the policy.
Q95.
What is prohibited concerning insurance policies?

a.

Direct or indirect inducements to take or renew policies.

b.

Offering discounts on premiums.

c.

Providing incentives for early policy surrender.

d.

Allowing premium installment payments.

Discuss
Answer: (a).Direct or indirect inducements to take or renew policies. Explanation:No person is allowed to either directly or indirectly offer an inducement to any person to take or renew insurance policies.
Q96.
Within what timeframe can an insurer repudiate a policy based on inaccurate or false information in the proposal or document?

a.

Within one year from the policy date.

b.

Within two years from the policy date.

c.

Within three years from the policy date.

d.

Within five years from the policy date.

Discuss
Answer: (b).Within two years from the policy date. Explanation:An insurer can repudiate the policy within two years from the date of the policy if any material fact in the proposal or document is inaccurate or false.
Q97.
What is the requirement for installment premium payment for policies under certain schemes?

a.

Payment within 30 days from the policy date.

b.

Payment within 10 days from the policy date.

c.

Payment within 15 days from the date of commencement of the period.

d.

Payment within 20 days from the date of commencement of the period.

Discuss
Answer: (c).Payment within 15 days from the date of commencement of the period. Explanation:For policies under Sickness Insurance, Group Personal Accident Insurance, Medical Benefits Insurance, and Hospitalization Insurance Schemes, the installment of the premium covering a particular period must be paid within 15 days from the date of commencement of that period.
Q98.
Fill in the blanks by choosing the right option: The instrument through which a transfer or assignment of a policy of life insurance is made must be ________, ________, and ________.

(i) Signed
(ii) Attested
(iii) Notified
(iv) Stamped

a.

(i), (ii), and (ii)

b.

(ii), (iii), and (iv)

c.

(i), (ii), and (iv)

d.

(i), (ii), and (iv)

Discuss
Answer: (d).(i), (ii), and (iv) Explanation:The instrument through which a transfer or assignment of a policy of life insurance is made must be signed, attested and stamped.
Q99.
Nomination may be made by the holder of the policy only when the policy is on _______ life.

a.

His / her own

b.

Someone else’s

c.

Both of the above

d.

None of the above

Discuss
Answer: (a).His / her own Explanation:Nomination may be made by the holder of the policy only when the policy is on his / her own life. If the Holder and life assured are different, nomination cannot be made.
Q100.
Any person making default in complying with the provisions of section 41 shall be punishable with fine which may extend to _________.

a.

Rs. 100

b.

Rs. 500

c.

Rs. 1,000

d.

Rs. 5,000

Discuss
Answer: (b).Rs. 500 Explanation:Any person making default in complying with the provisions of section 41 shall be punishable with fine which may extend to five hundred rupees.
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