Question

    Who can the policyholder nominate to receive the money

    secured by a life insurance policy in the event of their death, and what happens if the nominee is a minor?
    A Any person, with a guardian appointed for a minor nominee Correct Answer Incorrect Answer
    B Any person, with payment going to the estate if the nominee is a minor Correct Answer Incorrect Answer
    C Any person, with a designated person receiving payment for a minor nominee Correct Answer Incorrect Answer
    D Family members only, with the insurer appointing a guardian for a minor nominee Correct Answer Incorrect Answer
    E Any person, with the legal heir of the minor nominee receiving payment Correct Answer Incorrect Answer

    Solution

    , Explanation: Section39.  Nomination  by  policyholder—(1)  The  holder  of  a  policy  of  life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death: Provided that, where any nominee is a minor, it shall be lawful for the policyholder to appoint any person in the manner laid down by the insurer, to receive the money secured by the policy in the event of his death during the minority of the nominee.

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