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This question belongs to Commerce Insurance
Insurance
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What is common between nomination and assignment?

Answer & Solution
Correct Answer: Option B
Both are done as per Insurance Act, 1938. The appointment of an individual by the assured to receive the amount secured by the policy, upon the demise of the assured is known as a nomination. On the other hand, assignment refers to cede the right, ownership, and interest in the policy to another person.
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