Vidyalelo
Commerce · Q362

Insurance

Graduate and Post Graduate · Commerce · question 362

Q362

Which one of the following statements is correct?

A.
Maturity claim cheques are paid to the trustees in a MWP Act case
Answer
B.
Maturity claim cheques are paid to the beneficiaries in a MWP Act case
C.
Both the statements above are correct
D.
Both the statements above are wrong

Answer: Option A

Solution

Answer: Option A
Solution:
Maturity claim cheques are paid to the trustees in a MWP Act case. “Each policy under MWP Act is considered as a separate trust automatically (there is no need to create a trust). At the time of the proposal, you have to mention the names of the beneficiaries.