The correct answer is: C. Both A & B
Notice of assignment must be given to the insurer when an insured assigns their policy to another party. This is because the insurer needs to be aware of the change in ownership in order to properly administer the policy. Notice of nomination must also be given to the insurer when an insured nominates a beneficiary to receive the proceeds of their policy upon death. This is because the insurer needs to know who to pay the proceeds to in the event of the insured’s death.
Here is a brief explanation of each option:
- Option A: Notice of assignment has to be given to the insurer.
This is correct because the insurer needs to be aware of the change in ownership in order to properly administer the policy. For example, if the insured assigns their policy to their spouse, the insurer will need to update their records to reflect the new owner. This will ensure that the spouse is able to make changes to the policy, such as adding or removing riders, and that they will be the beneficiary of the policy upon the insured’s death.
- Option B: Notice of nomination has to be given to the insurer.
This is also correct because the insurer needs to know who to pay the proceeds to in the event of the insured’s death. For example, if the insured nominates their child as the beneficiary of their policy, the insurer will need to update their records to reflect this. This will ensure that the child is able to receive the proceeds of the policy upon the insured’s death.
- Option C: Both A & B.
This is the correct answer because both notice of assignment and notice of nomination must be given to the insurer in order to properly administer the policy.