Insurance - Study Mode

[#481] In so far policy loans are concerned, which one of the following is correct?
Correct Answer

(C) Both A & B

Explanation

Solution: Both the statements are correct. The policy has to be assigned in favour of the insurer and such an assignment will not cancel the nomination already made.

[#482] If both policy loan and premiums are not paid, the outstanding loan/interest may exceed the policy’s cash value. What would the insurer do in such an eventuality?
Correct Answer

(D) Foreclosure

Explanation

Solution: Foreclosure is the legal process by which a lender takes control of a property, evicts the homeowner and sells the home after a homeowner is unable to make full principal and interest payments on his or her mortgage, as stipulated in the mortgage contract.

[#483] In respect of nomination, which one of the following is incorrect?
Correct Answer

(C) Nominee has right to whole/part of the claim

Explanation

Solution: Nominee doesnot have right to whole/part of the claim.

[#484] Where more than one nominee is nominated –
Correct Answer

(B) The death claim monies is payable jointly

Explanation

Solution: Where the death claim monies is payable jointly more than one nominee is nominated.

[#485] Assignment involves transfer of _________ under the policy to another person/entity.
Correct Answer

(D) Any of the above

Explanation

Solution: Assignment involves transfer of Rights, Title, Ownership under the policy to another person/entity.