[amp_mcq option1=”In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee” option2=”The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another” option3=”It is necessary that the policyholder must give notice of assignment to the insurer” option4=”In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben” correct=”option4″]
The correct answer is D.
In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the beneficiary.
This is incorrect because in case of Absolute Assignment, the title of the policy passes to the assignee and the assignee becomes the owner of the policy. The policy does not revert back to the beneficiary in case of death of the insured during the policy tenure.
Here is a brief explanation of each option:
A. In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee.
This is correct because in case of Absolute Assignment, the title of the policy passes to the assignee and the assignee becomes the owner of the policy. The title of the policy would therefore pass to the estate of the deceased assignee in case of death of the assignee.
B. The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another.
This is correct because assignment of a life insurance policy is the transfer of the rights, title and interest in the policy from one person to another.
C. It is necessary that the policyholder must give notice of assignment to the insurer.
This is correct because the policyholder must give notice of assignment to the insurer in order to make the assignment effective.
D. In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the beneficiary.
This is incorrect because in case of Absolute Assignment, the title of the policy passes to the assignee and the assignee becomes the owner of the policy. The policy does not revert back to the beneficiary in case of death of the insured during the policy tenure.