Q535
State the correct statement out of the following ones.
A.
Nominee is in every circumstance the owner of the policy proceeds
B.
Nomination is entitled to give a valid discharge to an insurer for payment of claim
AnswerC.
Assignment and nomination are one and the same
D.
Even if a policy is assigned to the insurer for a loan it cancels the existing nomination made earlier
Answer: Option B
Solution
Answer: Option B
Solution:
Nomination is entitled to give a valid discharge to an insurer for payment of claim. The nominee is statutorily recognized as a payee who can give a valid discharge to the Corporation for the payment of policy monies.