[amp_mcq option1=”Policy Numbermination is not cancelled if the policy is assigned to the insurer in return for a loan” option2=”Nomination can be done at the time of policy purchase or subsequently” option3=”Nomination can be changed by making an endorsement in the policy” option4=”A nominee has full rights on the whole of the claim” correct=”option4″]
The correct answer is D. A nominee has full rights on the whole of the claim.
A nominee is a person who is named in a life insurance policy to receive the benefits of the policy in the event of the policyholder’s death. The nominee does not have to be a beneficiary of the policy, and they do not have to be related to the policyholder.
The nominee’s rights are limited to the benefits of the policy. They do not have any rights to the policyholder’s assets, and they cannot make any decisions about the policy.
The policyholder can change the nominee at any time by making an endorsement to the policy. The nominee can also be removed from the policy by the policyholder.
If the policyholder dies without naming a nominee, the benefits of the policy will be paid to the policyholder’s estate.
Here is a brief explanation of each option:
- Option A is true. Nomination is not cancelled if the policy is assigned to the insurer in return for a loan. This is because the nominee’s rights are not affected by the assignment of the policy.
- Option B is true. Nomination can be done at the time of policy purchase or subsequently. This means that the policyholder can name a nominee at any time, even after the policy has been purchased.
- Option C is true. Nomination can be changed by making an endorsement in the policy. This means that the policyholder can change the nominee at any time by making an amendment to the policy.
- Option D is false. A nominee does not have full rights on the whole of the claim. The nominee’s rights are limited to the benefits of the policy.