Insurance - Study Mode

[#486] The person who transfer rights is called _________ and the person who receives the right is called _________
Correct Answer

(C) Assignor, Assignee

Explanation

Solution: The person who transfer rights is called Assignor and the person who receives the right is called Assignee.

[#487] What is common between nomination and assignment?
Correct Answer

(B) Both are done as per Insurance Act, 1938

Explanation

Solution: Both are done as per Insurance Act, 1938. The appointment of an individual by the assured to receive the amount secured by the policy, upon the demise of the assured is known as a nomination. On the other hand, assignment refers to cede the right, ownership, and interest in the policy to another person.

[#488] In respect of Assignment which of the following is correct?
Correct Answer

(C) Both A & B

Explanation

Solution: In respect of Assignment the following are correct are Assignee becomes owner of the policy and Assignee cannot have better rights than assignor.

[#489] Which is not an appropriate reason for a proper financial planning?
Correct Answer

(C) Underwriting

Explanation

Solution: Underwriting is not a reason for proper financial planning. Underwriting services are provided by some large financial institutions, such as banks, or insurance or investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee.

[#490] When is the right time to start financial planning?
Correct Answer

(D) First salary

Explanation

Solution: First salary is the right time to start financial planning. Financial planning is the process of developing a personal roadmap for your financial well being.