The incorrect sentence is:
- B. There is no difference between nomination and assignment.
Nomination and assignment are two different concepts in insurance. Nomination is the process of naming a beneficiary to receive the benefits of a life insurance policy in the event of the insured’s death. Assignment is the process of transferring ownership of a life insurance policy to another person.
In a nomination, the insured retains ownership of the policy and the right to change the beneficiary at any time. In an assignment, the insured transfers ownership of the policy to the assignee, who becomes the new owner of the policy and the beneficiary of the death benefit.
Therefore, there is a difference between nomination and assignment. In a nomination, the insured retains ownership of the policy, while in an assignment, the insured transfers ownership of the policy to the assignee.
The other three sentences are correct.
- A. In assignment the rights of the assured are transferred to the assignee.
In an assignment, the insured transfers ownership of the policy to the assignee, who becomes the new owner of the policy and
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