[amp_mcq option1=”Both can be done at the time of taking the policy” option2=”Both are done as per Insurance Act, 1938″ option3=”Both involve transfer of rights under the policy” option4=”None of the above” correct=”option3″]
The correct answer is C. Both involve transfer of rights under the policy.
A nomination is a written request by the policyholder to the insurer to pay the proceeds of the policy to a specified person or persons in the event of the policyholder’s death. An assignment is a transfer of the policyholder’s interest in the policy to another person. In both cases, the rights under the policy are transferred from the policyholder to another person.
Option A is incorrect because nomination can be done at any time during the policy term, while assignment can only be done after the policy has been issued.
Option B is incorrect because nomination is not required by the Insurance Act, 1938, while assignment is.
Option D is incorrect because both nomination and assignment involve transfer of rights under the policy.