Difficulty: Mixed
What is nomination in a life policy?
A Naming a benefit recipient
B Setting the premium
C Selecting an insurer
D Filing a claim
Answer: A. Naming a benefit recipient. Nomination records who is designated to receive policy proceeds, subject to applicable law.
Who makes a nomination?
A Claim assessor
B Policyholder
C Hospital administrator
D Insurance regulator
Answer: B. Policyholder. The policyholder makes or changes a nomination through the insurer’s process.
Who is the life assured?
A Named agent
B Premium collector
C Person whose life is covered
D Claim investigator
Answer: C. Person whose life is covered. The life assured is the person whose life the policy insures.
Who is the nominee?
A The insurer’s owner
B Claim surveyor
C Premium auditor
D Person named to receive proceeds
Answer: D. Person named to receive proceeds. A nominee is the person listed to receive specified policy proceeds.
Does nomination change who owns the policy?
A Not necessarily
B Yes, always
C Only after renewal
D It cancels the policy
Answer: A. Not necessarily. Nomination and ownership are different concepts; legal effects depend on law and product.
How may nomination rules vary?
A Only by premium amount
B By jurisdiction and policy
C They never vary
D Only by insurer logo
Answer: B. By jurisdiction and policy. Applicable law and contract terms affect nomination rights.
Why should nominee details be checked?
A Guarantee claim approval
B Set the premium
C Prevent identification errors
D Remove exclusions
Answer: C. Prevent identification errors. Accurate details can help identify the intended recipient.
Which detail can identify a nominee?
A Favorite color
B Job title only
C Social profile name
D Full legal name
Answer: D. Full legal name. Use the insurer’s required identifying details.
What may be recorded for a nominee?
A Contact and relationship details
B Travel itinerary
C Medical bill
D Vehicle registration
Answer: A. Contact and relationship details. Insurers may request details to identify and contact nominees.
What is a contingent nominee?
A Insurance agent
B Backup recipient if stated
C Policyholder’s doctor
D Claim assessor
Answer: B. Backup recipient if stated. Some policies allow a backup recipient, subject to their rules.
Can a policy name multiple nominees?
A Never any policy
B Only after a claim
C Often, subject to rules
D Every policy requires many
Answer: C. Often, subject to rules. Some products permit multiple nominees; verify the insurer’s process.
What should be specified for multiple nominees?
A Premium frequency
B Claim investigation date
C Insurer address
D Share allocation
Answer: D. Share allocation. Where allowed, record how proceeds should be divided.
Why record nominee shares clearly?
A Reduce ambiguity
B Guarantee no dispute
C Change benefit amount
D Remove legal rules
Answer: A. Reduce ambiguity. Clear allocations can reduce uncertainty about intended shares.
Can a minor be nominated?
A No jurisdiction allows it
B Some rules allow it
C Only with no policy
D Only after age 21
Answer: B. Some rules allow it. Rules vary; where allowed, an adult appointee may be needed.
What may an appointee do for a minor nominee?
A Own the insurance company
B Change the benefit amount
C Receive funds for minor
D Set the premium
Answer: C. Receive funds for minor. Some systems allow an adult appointee to receive or hold proceeds for a minor.
Why review a nomination after a life event?
A Premium always doubles
B Policies cancel automatically
C Claims become guaranteed
D Circumstances may change
Answer: D. Circumstances may change. Marriage, birth, death, or other changes may warrant a review.
When can a policyholder change a nominee?
A Follow policy and local rules
B Only after a claim
C Never under any law
D Whenever an agent says
Answer: A. Follow policy and local rules. Change procedures and timing depend on law and contract.
What makes a nomination change effective?
A A verbal promise
B Insurer records the change
C An unsigned note
D A social-media post
Answer: B. Insurer records the change. Use the insurer’s formal process and confirm the change is recorded.
Why keep confirmation of a nomination update?
A Set a new premium
B Guarantee payment
C Prove the record changed
D Replace the policy
Answer: C. Prove the record changed. Written confirmation helps verify the updated insurer record.
Which document may show nominee details?
A Hospital menu
B Repair invoice
C Travel receipt
D Policy schedule
Answer: D. Policy schedule. The schedule may display current nomination details.
What is a nomination form for?
A Submit or update recipient details
B Request a premium quote
C Inspect vehicle damage
D Choose a hospital
Answer: A. Submit or update recipient details. A nomination form records details required by the insurer.
Should nomination updates use an official channel?
A No, use unknown links
B Yes, verify submission
C Only tell an agent verbally
D Post publicly
Answer: B. Yes, verify submission. Use the insurer’s verified channel and retain confirmation.
What can happen if the nominee dies first?
A Benefit always disappears
B Premium is refunded
C Follow policy claim instructions
D Policy becomes invalid
Answer: C. Follow policy claim instructions. The insurer’s process and applicable law determine the next claim route.
Does a nomination automatically replace a will?
A Yes, always
B Only for life policies
C It changes every asset
D No, legal roles differ
Answer: D. No, legal roles differ. Nomination and estate documents serve distinct functions; local law matters.
Is a nominee always the final beneficial owner?
A Not universally
B Yes, everywhere
C Only if a minor
D No nominee can receive funds
Answer: A. Not universally. Legal status can vary by jurisdiction and policy.
What is assignment of a policy?
A Naming a nominee
B Transfer of policy rights
C Paying a premium
D Filing a complaint
Answer: B. Transfer of policy rights. Assignment can transfer specified policy rights under applicable rules.
How can assignment affect nomination?
A It always doubles proceeds
B It never matters
C It may change nomination status
D It removes all benefits
Answer: C. It may change nomination status. Assignment can affect nomination under law and contract terms.
What should a policyholder check before assigning a policy?
A Nominee’s favorite color
B Agent’s personal view
C Social-media comments
D Insurer process and legal effect
Answer: D. Insurer process and legal effect. Assignment has formal and legal consequences; seek current official guidance.
How is a nominee different from an assignee?
A Recipient designation versus rights transfer
B Both mean premium
C Both file claims
D They are identical
Answer: A. Recipient designation versus rights transfer. Nomination designates a recipient; assignment transfers rights as allowed.
What is a beneficiary designation?
A Setting the coverage limit
B Naming who receives benefits
C Choosing a premium date
D Making a claim
Answer: B. Naming who receives benefits. Beneficiary is a common term for a designated benefit recipient.
Are nominee and beneficiary always identical legal terms?
A Yes, everywhere
B Only for health plans
C No, usage differs
D Neither relates to benefits
Answer: C. No, usage differs. Terminology and legal effects vary across countries and products.
What details should be reviewed after changing nominees?
A Insurer logo
B Old premium receipt
C Agent’s office hours
D Names, shares, and contacts
Answer: D. Names, shares, and contacts. Confirm names, percentages, and contact details in the updated record.
Can a policyholder nominate an organization?
A Check product and local rules
B Yes, all policies
C Never any policy
D Only after death
Answer: A. Check product and local rules. Eligibility depends on product provisions and applicable law.
Why inform family where policy records are kept?
A Guarantee a payout
B Help them locate coverage
C Change nominee automatically
D Avoid insurer review
Answer: B. Help them locate coverage. Accessible records can help intended recipients locate the policy.
What should nominees know about the policy?
A Agent’s personal finances
B Premium tax code
C Insurer and policy location
D Every claim decision
Answer: C. Insurer and policy location. Basic policy details help nominees contact the insurer.
Does a nomination guarantee a claim is payable?
A Yes, automatically
B Only in life insurance
C It removes exclusions
D No, policy terms still apply
Answer: D. No, policy terms still apply. Claim eligibility remains subject to contract terms and law.
Can nominee contact details be updated separately?
A Follow insurer procedures
B No, never
C Only after a claim
D Change them by hand
Answer: A. Follow insurer procedures. Use the insurer’s official servicing process to update details.
What should be done if nominee name is misspelled?
A Ignore the error
B Request a recorded correction
C Change the policy PDF
D Wait until claim
Answer: B. Request a recorded correction. Ask the insurer to correct its record and confirm the change.
How can a nominee dispute be reduced?
A Avoid all documentation
B Use informal promises
C Keep records and communicate clearly
D Hide the policy
Answer: C. Keep records and communicate clearly. Clear records and communication can reduce confusion.
Should nomination advice rely on old online posts?
A Yes, always
B Only for life plans
C Posts replace policy wording
D No, check current rules
Answer: D. No, check current rules. Rules change; confirm current local requirements with official sources.
Where can Indian policyholders verify nomination process?
A Insurer and IRDAI sources
B Anonymous forum
C Unverified social account
D Unknown caller
Answer: A. Insurer and IRDAI sources. Use the insurer’s current instructions and official IRDAI material.
What does IRDAI’s life-products circular state about nominee changes?
A Never change nominees
B Change during policy term
C Only after claim
D Only at purchase
Answer: B. Change during policy term. The circular says nominees can be changed during the policy term.
Why keep a copy of nomination confirmation?
A Change premium terms
B Guarantee settlement
C Evidence of recorded instruction
D Replace legal documents
Answer: C. Evidence of recorded instruction. A confirmation documents that the insurer recorded the instruction.
What can a claim representative request from a nominee?
A A new premium quote
B Another policyholder’s password
C Unrelated property deeds
D Identity and claim documents
Answer: D. Identity and claim documents. The insurer may need identity and claim documents under its process.
Can an insurer ignore incomplete nominee details?
A It may request clarification
B Yes, pay automatically
C No records needed
D Only premiums matter
Answer: A. It may request clarification. Incomplete details can require correction before processing.
What should be checked when naming a minor?
A Premium discount
B Adult appointee requirements
C Claim assessor’s age
D Policy logo
Answer: B. Adult appointee requirements. Some jurisdictions require an adult appointee for a minor recipient.
What if a nominee’s share percentages do not total correctly?
A Assume equal shares
B Ignore the schedule
C Ask insurer to correct allocation
D Change it after death
Answer: C. Ask insurer to correct allocation. Confirm that recorded shares match the intended allocation.
Can nomination rules differ for group policies?
A No, all match
B Only premium changes
C Group plans have no nominees
D Yes, check plan terms
Answer: D. Yes, check plan terms. Group insurance may use different nomination procedures.
Which statement about nomination is accurate?
A Records and local law matter
B Nominee always owns proceeds
C Changes need no record
D One rule applies worldwide
Answer: A. Records and local law matter. Nomination effects and procedures depend on policy and jurisdiction.
What is the safest way to resolve legal uncertainty?
A Assume an online comment
B Seek qualified local advice
C Use a sales slogan
D Ignore the question
Answer: B. Seek qualified local advice. For disputes or estate issues, consult a qualified professional in the relevant jurisdiction.