Vidyalelo
Commerce · Q537

Insurance

Graduate and Post Graduate · Commerce · question 537

Q537

What is correct?

A.
A minor cannot be named as a nominee in a policy
B.
Where nominee is a minor, an appointee has to be appointed by the assured
Answer
C.
There can only be one nominee and not more
D.
If more than one nominee is appointed the policy claim moneys can be shared amongst them

Answer: Option B

Solution

Answer: Option B
Solution:
Where nominee is a minor, an appointee has to be appointed by the assured. If the nominees are minors, then you need to name an appointee as well. The appointee, who must be an adult, will be paid the sum assured if you die while your nominees are still minors. You will need to instruct the appointee directly or through a will to take care of the money for your intended nominees.