Nomination can be changed at will by the assured during the course of the policy
Assignment can also be changed at will by the assured without referring to the assignee
Witness for an assignment is not mandatorily required
Like nomination, assignment can also be effected in the proposal
Answer is Right!
Answer is Wrong!
The correct answers are:
- A. Nomination can be changed at will by the assured during the course of the policy.
- D. Like nomination, assignment can also be effected in the proposal.
A nomination is a written document in which an insured person names a person or persons to receive the benefits of a life insurance policy in the event of the insured’s death. The insured can change the nomination at any time, without the need to notify the insurer or the assignee.
An assignment is a transfer of ownership of a life insurance policy from the insured to another person. The assignment must be in writing and signed by the insured and the assignee. The insurer must also be notified of the assignment.
Witnessing is not required for either a nomination or an assignment. However, it is a good idea to have a witness sign the document to avoid any disputes in the future.
The following options are incorrect:
- B. Assignment can also be changed at will by the assured without referring to the assignee. Once an assignment has been made, the insured cannot change it without the consent of the assignee.
- C. Witness for an assignment is mandatorily required. Witnessing is not required for an assignment.