Which of the following options are correct?

A. Notice of assignment has to be given to the insurer

B. Notice of nomination has to be given to the insurer

C. Both A & B

D. None of the above

Answer: Option C

Solution(By Examveda Team)

Notice of assignment and notice of nomination have to be given to the insurer. Transfer by the holder of a life insurance policy (the assignor) of the benefits or proceeds of the policy to a lender (the assignee), as a collateral for a loan. In the event of the death of the assignor, the assignee is paid first and the balance (if any) is paid to the policy's beneficiary.