n NISM Certifications
NSM General NISM
Medium

What happens to the nomination when a life insurance policy is assigned?

Practice question from IC 38 Mock Test 18 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Nomination remains in effect

  2. Nomination is canceled except when assignment is made to the insurance company for a policy loan

    Correct answer

  3. C

    Assignee becomes the new nominee

  4. D

    Policy becomes void, and a new nomination must be made

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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