Vidyalelo
Commerce · Q355

Insurance

Graduate and Post Graduate · Commerce · question 355

Q355

Which one of the following statements is correct?

A.
Assignee is free from the assignor’s obligations under the policy
B.
A nomination is automatically cancelled when a loan is taken under the policy
C.
Both the statements above are correct
D.
None of the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Both the statements are incorrect.
Assignee is not free from the assignor’s obligations under the policy. A nomination is not cancelled when a loan is taken under the policy.