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 11 of 11

Discover more Topics under IC 14 Regulations of Insurance Business

Q101.
As per Section 45 of the Insurance Act 1938, a life insurer can repudiate the policy on the ground that any material facts in the proposal or document are inaccurate or false within ___________ from the date of the issuance of the policy or commencement of risk.

a.

One year

b.

Two years

c.

Three years

d.

Five years

Discuss
Answer: (b).Two years Explanation:In respect of the repudiation of life insurance policy, the existing Section 45 of the Insurance Act, 1938 provides that within two years from the date of policy, an insurer can repudiate the policy on the ground that any material fact in the proposal or document in inaccurate or false. After the expiry of two years, an insurer can repudiate the policy on fulfilling all three conditions mentioned in the second part of Section 45.
Q102.
Fill in the blank by choosing the correct option: For policies under Group Personal Accident Insurance, the installment of the premium covering a particular period must be paid within _______ from the date of commencement of that period.

a.

2 days

b.

7 days

c.

15 days

d.

30 days

Discuss
Answer: (c).15 days Explanation:For policies under Sickness Insurance, Group Personal Accident Insurance, Medical Benefits Insurance and Hospitalization Insurance Schemes, the premium can be accepted in instalments provided that the instalment covering a particular period must be received within 15 days from the date of commencement of the period.
Q103.
What type of assignment is valid only if the specified event happens during the lifetime of the life assured?

a.

Conditional

b.

Unconditional

c.

Both of the above

d.

None of the above.

Discuss
Answer: (a).Conditional Explanation:A conditional assignment shall be valid only if the specified event happens during the life time of the life assured.
Q104.
Section 39 of the Insurance Act, 1938 provides that the policyholder may nominate ______ to whom the money secured by the policy shall be paid in the event of the death of the policyholder.

a.

Only one person

b.

One or more persons

c.

At least two people

d.

Maximum three people

Discuss
Answer: (a).Only one person Explanation:Section 39 of the Insurance Act, 1938 provides that the policyholder may nominate one or more persons to whom the money secured by the policy shall be paid in the event of death of the policyholder.
Q105.
Nomination is canceled where the nominee/s _______ before the policy matures for payment.

a.

Die

b.

Become major

c.

Get married

d.

Any one of the above.

Discuss
Answer: (a).Die Explanation:Nomination is cancelled where the nominee or, if there are more nominees than one, all the nominees die before the policy matures for payment.
Q106.
Which of the below assignments transfers to the assignee all rights, title, and interest of the assignor in the policy?

a.

Conditional

b.

Unconditional

c.

Absolute

d.

All of the above

Discuss
Answer: (c).Absolute Explanation:An absolute assignment transfers to the assignee all rights, title and interest of the assignor in the policy. The policy vests in the assignee absolutely and forms part of his / her estate.
Q107.
Fill in the blank by choosing the correct option: Any nomination can be at any time canceled or changed before the policy _______.

a.

Matures

b.

Lapses

c.

Is rejected

d.

Is repudiated

Discuss
Answer: (a).Matures Explanation:Any nomination can be at any time cancelled or changed before the policy matures. The notice of any cancellation or change in the nomination must be given in writing to the life insurance company.
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