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 6 of 11

Discover more Topics under IC 14 Regulations of Insurance Business

Q51.
What is the purpose of nomination under the insurance law?

a.

To determine the succession of the estate of the deceased life assured.

b.

To vest the proceeds of the policy in the nominee's estate.

c.

To secure an immediate payment of the policy moneys by the insurer.

d.

To ensure that the policyholder's legal representatives receive the policy money.

Discuss
Answer: (c).To secure an immediate payment of the policy moneys by the insurer. Explanation:Nomination under the insurance law is created to secure an immediate payment of the policy moneys by the insurer.
Q52.
What distinction does the Law Commission recommend in Section 39?

a.

A distinction between a policyholder and a nominee.

b.

A distinction between a life assured and a nominee.

c.

A distinction between a beneficial nominee and a collector nominee.

d.

A distinction between a policyholder and a collector nominee.

Discuss
Answer: (c).A distinction between a beneficial nominee and a collector nominee. Explanation:The Law Commission recommends making a distinction between a beneficial nominee and a collector nominee in Section 39.
Q53.
According to the Law Commission's recommendations, what option should be given to the policyholder regarding the nominee?

a.

The policyholder can nominate only one person.

b.

The policyholder can nominate multiple persons, and they will share the policy money equally.

c.

The policyholder can choose whether the nominee will collect the money on behalf of the legal representatives or be the absolute owner of the money.

d.

The policyholder can nominate a collector nominee only.

Discuss
Answer: (c).The policyholder can choose whether the nominee will collect the money on behalf of the legal representatives or be the absolute owner of the money. Explanation:The Law Commission recommends giving the policyholder the option to clearly express whether the nominee will collect the money on behalf of the legal representatives or be the absolute owner of the money.
Q54.
What proviso does the Law Commission recommend adding to Section 39?

a.

A proviso stating that the nominee will be the absolute owner of the policy money.

b.

A proviso making the nomination effectual for the nominee to receive the policy money in case the policyholder dies after the maturity of the policy but before it can be encashed.

c.

A proviso stating that the nominee will be the collector nominee.

d.

A proviso stating that the policyholder cannot change the nominee after nomination.

Discuss
Answer: (b).A proviso making the nomination effectual for the nominee to receive the policy money in case the policyholder dies after the maturity of the policy but before it can be encashed. Explanation:The Law Commission recommends adding a proviso making the nomination effectual for the nominee to receive the policy money in case the policyholder dies after the maturity of the policy but before it can be encashed.
Q55.
What is prohibited under Section 41 of the Insurance Act, 1938?

a.

Offering discounts on insurance premiums

b.

Accepting rebates on insurance premiums

c.

Providing incentives to policyholders

d.

Allowing discounts on agent commissions

Discuss
Answer: (b).Accepting rebates on insurance premiums Explanation:Section 41 prohibits any person from accepting rebates on insurance premiums, either directly or indirectly, as an inducement to take out or renew insurance policies.
Q56.
Under what circumstances is an insurance agent allowed to accept commission on a policy taken out by himself?

a.

If the policy is for a high-risk category

b.

If the insurance agent is a senior employee of the insurer

c.

If the insurance agent satisfies prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer

d.

If the policyholder agrees to pay a higher premium

Discuss
Answer: (c).If the insurance agent satisfies prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer Explanation:An insurance agent is allowed to accept commission on a policy taken out by himself if he satisfies prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer, as per the proviso of Section 41(1).
Q57.
What is the penalty for non-compliance with the provisions of Section 41?

a.

Suspension of insurance license

b.

Fine not exceeding five hundred rupees

c.

Revocation of insurance policy

d.

Imprisonment for a term not exceeding six months

Discuss
Answer: (b).Fine not exceeding five hundred rupees Explanation:Any person making default in complying with the provisions of Section 41 shall be punishable with a fine which may extend to five hundred rupees, as stated in Section 41(2).
Q58.
Under Section 45 of the Insurance Act, 1938, within what time frame can an insurer call into question the accuracy of statements made in a life insurance policy proposal?

a.

Within one year from the date of commencement of the Act

b.

Within two years from the date of commencement of the Act

c.

Within two years from the date of policy inception

d.

Within one year from the date of policy inception

Discuss
Answer: (c).Within two years from the date of policy inception Explanation:Section 45 of the Insurance Act, 1938, specifies that no policy of life insurance, whether effected before or after the commencement of the Act, can be called into question by an insurer on the grounds of inaccurate or false statements made in the proposal or any related documents after the expiry of two years from the date of policy inception.
Q59.
Under what conditions can an insurer challenge the accuracy of statements made in a life insurance proposal according to Section 45?

a.

If the insured fails to disclose any medical conditions

b.

If the insured fails to disclose any past insurance claims

c.

If the statements were found to be materially inaccurate or fraudulent

d.

If the insured fails to disclose the exact date of birth

Discuss
Answer: (c).If the statements were found to be materially inaccurate or fraudulent Explanation:An insurer can challenge the accuracy of statements made in a life insurance proposal under Section 45 only if the statements were materially inaccurate or fraudulent, and the policyholder knew at the time of making them that they were false or suppressed material facts.
Q60.
What action can an insurer take if it is discovered that the age of the insured was incorrectly stated in the proposal?

a.

Cancel the policy immediately

b.

Adjust the terms of the policy based on the correct age

c.

Initiate legal proceedings against the policyholder

d.

Call into question the accuracy of all statements made in the proposal

Discuss
Answer: (b).Adjust the terms of the policy based on the correct age Explanation:If it is discovered that the age of the insured was incorrectly stated in the proposal, the insurer can adjust the terms of the policy based on the correct age, as stated in the proviso of Section 45.
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