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Commerce · Q332

Insurance

Graduate and Post Graduate · Commerce · question 332

Q332

A policy taken with critical illness rider benefit is being assigned. Which type of assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim?

A.
Absolute assignment
B.
Conditional assignment
Answer
C.
Loan assignment
D.
Collateral assignment

Answer: Option B

Solution

Answer: Option B
Solution:
A policy taken with critical illness rider benefit is being assigned. Conditional assignment would suit the intended purpose because if the life insured is diagnosed with a critical illness, he only should receive the critical illness rider claim.