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 5 of 11

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Q41.
When is the payment made to the nominee according to the section?

a.

When the policyholder requests it.

b.

When the nominee requests it.

c.

When the life assured dies before the nominee(s).

d.

When the policy matures for payment.

Discuss
Answer: (c).When the life assured dies before the nominee(s). Explanation:The payment is made to the nominee(s) when the life assured dies before the nominee(s).
Q42.
When are the provisions of nomination not applicable?

a.

When the policyholder is unmarried.

b.

When the policy is assigned to a third party.

c.

When the policy is governed by Section 6 of the Married Women’s Property Act, 1874.

d.

When the nominee is a minor.

Discuss
Answer: (c).When the policy is governed by Section 6 of the Married Women’s Property Act, 1874. Explanation:The provisions of nomination are not applicable to any policy of life insurance to which Section 6 of the Married Women’s Property Act, 1874 applies or has at any time applied.
Q43.
Who can nominate a person for a policy?

a.

Any individual.

b.

Only the life assured.

c.

The insurer.

d.

The nominee.

Discuss
Answer: (b).Only the life assured. Explanation:Nomination can be done only by the policyholder under a policy on their own life and not otherwise.
Q44.
When is a nomination effectual?

a.

When it is mentioned in the text of the policy.

b.

When it is communicated to the insurance company and registered in their records.

c.

When the nominee agrees to it.

d.

When the life assured requests it.

Discuss
Answer: (b).When it is communicated to the insurance company and registered in their records. Explanation:A nomination is effectual when it is communicated to the insurance company and registered in their records.
Q45.
In what manner can a nomination be done?

a.

By sending an email to the insurer.

b.

By making an oral request to the insurer.

c.

By making suitable entries in the policy proposal or by an endorsement made on the back of the policy by the life assured.

d.

By notifying the insurer through a social media platform.

Discuss
Answer: (c).By making suitable entries in the policy proposal or by an endorsement made on the back of the policy by the life assured. Explanation:A nomination can be done by making suitable entries in the policy proposal or by an endorsement made on the back of the policy by the life assured.
Q46.
When will a nomination be automatically cancelled?

a.

When the nominee requests cancellation.

b.

When the policyholder assigns the policy to a third party.

c.

When the policy matures for payment.

d.

When there is a change of nomination or endorsement, assignment in favor of a third party (except in certain cases), or by a will.

Discuss
Answer: (d).When there is a change of nomination or endorsement, assignment in favor of a third party (except in certain cases), or by a will. Explanation:A nomination will be automatically cancelled by a change of nomination or endorsement, assignment in favor of a third party (except in certain cases), or by a will.
Q47.
Can a nomination be made in favor of a minor?

a.

Yes, but only if the minor is above 12 years old.

b.

No, minors cannot be nominated.

c.

Yes, and an appointee can be appointed to receive policy moneys on behalf of the minor nominee.

d.

Yes, but only if the minor has no legal guardian.

Discuss
Answer: (c).Yes, and an appointee can be appointed to receive policy moneys on behalf of the minor nominee. Explanation:A nomination can be made in favor of a minor, and an appointee can be appointed to receive policy moneys on behalf of the minor nominee.
Q48.
When can a nomination be changed?

a.

Only after the policy matures for payment.

b.

Only with the consent of the nominee.

c.

At any time before the policy matures for payment.

d.

Only by the insurer's approval.

Discuss
Answer: (c).At any time before the policy matures for payment. Explanation:A nomination can be changed at any time before the policy matures for payment.
Q49.
What happens if a stranger is named as a nominee?

a.

The policy will be automatically cancelled.

b.

There will be a suspicion of absence of insurable interest.

c.

The nominee will not be entitled to receive the policy moneys.

d.

The insurer will reject the nomination.

Discuss
Answer: (b).There will be a suspicion of absence of insurable interest. Explanation:If a stranger is named as a nominee, there may be a suspicion of absence of insurable interest.
Q50.
When is there normally no need for nomination in a joint life policy?

a.

When the policy matures for payment.

b.

When the policyholder assigns the policy to a third party.

c.

When there is a change of nomination.

d.

When there is a joint life policy and there is a provision for simultaneous death of both lives in a common calamity.

Discuss
Answer: (d).When there is a joint life policy and there is a provision for simultaneous death of both lives in a common calamity. Explanation:Normally, there is no need for nomination in a joint life policy because in case of death of one life, policy moneys become payable to the surviving life. However, there can be a joint nomination providing for a particular contingency, such as the simultaneous death of both lives in a common calamity.
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