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 4 of 11

Discover more Topics under IC 14 Regulations of Insurance Business

Q31.
When does the money secured by the policy become payable according to Section 39(5)?

a.

When the policyholder requests it.

b.

When the nominee reaches a certain age.

c.

When the policy matures for payment during the lifetime of the insured person.

d.

When the nominee dies before the policyholder or their heirs.

Discuss
Answer: (c).When the policy matures for payment during the lifetime of the insured person. Explanation:The money secured by the policy becomes payable when the policy matures for payment during the lifetime of the person whose life is insured.
Q32.
What happens if there are multiple nominees and all of them die before the policyholder or their heirs according to Section 39(6)?

a.

The money is divided among the legal heirs of the nominees.

b.

The money is forfeited.

c.

The money is paid to the policyholder's estate.

d.

The money is paid to the insurance company.

Discuss
Answer: (c).The money is paid to the policyholder's estate. Explanation:If there are multiple nominees and all of them die before the policyholder or their heirs, the amount secured by the policy shall be payable to the policyholder's heirs or legal representatives.
Q33.
When does Section 39 not apply to a policy of life insurance according to Section 39(7)?

a.

When the policyholder is unmarried.

b.

When the policyholder is a minor.

c.

When the policy is covered under the Married Women’s Property Act, 1874.

d.

When the policy is issued by a foreign insurance company.

Discuss
Answer: (c).When the policy is covered under the Married Women’s Property Act, 1874. Explanation:Section 39 does not apply to any policy of life insurance to which Section 6 of the Married Women’s Property Act, 1874, applies or has applied.
Q34.
What provision is made for minor nominees under Section 39?

a.

They must wait until they reach the age of majority to receive the benefits.

b.

They are automatically excluded from receiving any benefits.

c.

The policyholder can appoint someone to receive the benefits on behalf of the minor nominee.

d.

They must provide written consent to receive the benefits.

Discuss
Answer: (c).The policyholder can appoint someone to receive the benefits on behalf of the minor nominee. Explanation:If any nominee is a minor, the policyholder can appoint in the prescribed manner any person to receive the money secured by the policy in the event of his death during the minority of the nominee.
Q35.
How can a nomination be made effectual according to Section 39(2)?

a.

By mailing a letter to the beneficiary.

b.

By orally informing the insurer.

c.

By endorsing the nomination on the policy and registering it with the insurer.

d.

By publishing it in a national newspaper.

Discuss
Answer: (c).By endorsing the nomination on the policy and registering it with the insurer. Explanation:Any nomination, to be effectual, shall be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy.
Q36.
How can a nomination be cancelled or changed?

a.

By sending an email to the insurer.

b.

By making an oral request to the insurer.

c.

By endorsing the cancellation or change on the policy or through a further endorsement or a will.

d.

By notifying the insurer through a social media platform.

Discuss
Answer: (c).By endorsing the cancellation or change on the policy or through a further endorsement or a will. Explanation:A nomination may be cancelled or changed by an endorsement on the policy, a further endorsement, or a will.
Q37.
When is the insurer not liable to pay according to the section?

a.

When the nominee refuses to accept the payment.

b.

When the policyholder is alive.

c.

When the insurer has not received notice of cancellation or change of nomination.

d.

When the policyholder requests a payment delay.

Discuss
Answer: (c).When the insurer has not received notice of cancellation or change of nomination. Explanation:The insurer is not liable for payment under the policy if it has been made bona fide to a nominee mentioned in the policy or registered in the insurer's records, unless the insurer has received notice of cancellation or change of nomination.
Q38.
What is the maximum fee that the insurer may charge for registering a cancellation or change?

a.

One hundred rupees.

b.

Fifty rupees.

c.

Five rupees.

d.

One rupee.

Discuss
Answer: (d).One rupee. Explanation:The insurer may charge a fee not exceeding one rupee for registering such cancellation or change.
Q39.
When does a nomination automatically get cancelled?

a.

When the policyholder requests cancellation.

b.

When the policy matures for payment during the lifetime of the insured person.

c.

When the nominee dies before the policy matures for payment.

d.

When the insurer becomes bankrupt.

Discuss
Answer: (b).When the policy matures for payment during the lifetime of the insured person. Explanation:A nomination is automatically cancelled when the policy matures for payment during the lifetime of the person whose life is insured.
Q40.
What happens to the amount secured by the policy when the nomination is cancelled?

a.

It is forfeited by the insurer.

b.

It is paid to the nominee's legal heirs.

c.

It is paid to the policyholder, their heirs, legal representatives, or the holder of a succession certificate.

d.

It is invested in the insurer's own funds.

Discuss
Answer: (c).It is paid to the policyholder, their heirs, legal representatives, or the holder of a succession certificate. Explanation:When the nomination is cancelled, the amount secured by the policy shall be payable to the policyholder, their heirs, legal representatives, or the holder of a succession certificate, as the case may be.
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