Insurance Awareness - Life Insurance - LIC
What is the legal effect of nomination on ownership of a life insurance policy?
What is the legal effect of nomination on ownership of a life insurance policy?
hard Q9 of 15
Step-by-Step Solution
Step 1: Distinguish nomination from assignment
Nomination and assignment have different legal effects.Step 2: Apply ownership principle
Nomination only designates a beneficiary; ownership remains with the policyholder or assignee.Final Answer:
Nomination appoints beneficiary but does not transfer ownership → Option CQuick Check:
Ownership changes only through assignment, not nomination.
Quick Trick: Nomination ≠ Ownership.
Common Mistakes:
MISTAKES- Believing nomination overrides assignment.
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