State the correct statement out of the following ones.

A. Nominee is in every circumstance the owner of the policy proceeds

B. Nomination is entitled to give a valid discharge to an insurer for payment of claim

C. Assignment and nomination are one and the same

D. Even if a policy is assigned to the insurer for a loan it cancels the existing nomination made earlier

Answer: Option B

Solution(By Examveda Team)

Nomination is entitled to give a valid discharge to an insurer for payment of claim. The nominee is statutorily recognized as a payee who can give a valid discharge to the Corporation for the payment of policy monies.