Which one of the following statements is correct?

A. Assignee is free from the assignor’s obligations under the policy

B. A nomination is automatically cancelled when a loan is taken under the policy

C. Both the statements above are correct

D. None of the above

Answer: Option D

Solution(By Examveda Team)

Both the statements are incorrect.
Assignee is not free from the assignor’s obligations under the policy. A nomination is not cancelled when a loan is taken under the policy.