[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″]<\/p>\n
The correct answer is C. Both involve transfer of rights under the policy.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Option B is incorrect because nomination is not required by the Insurance Act, 1938, while assignment is.<\/p>\n
Option D is incorrect because both nomination and assignment involve transfer of rights under the policy.<\/p>\n","protected":false},"excerpt":{"rendered":"
[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″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32594","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n