Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Absolute assignment: in this type of assignment the rights, title and interest of the assignor passes completely to the assignee.
Absolute assignment is generally done for valuable consideration. The policy vests in the assignee absolutely and forms part of his estate on his death.
When loan is taken by a policyholder, the policy gets assigned absolutely to the insurer.
Nomination is the right provided to the policyholder to appoint a certain person, who will receive the benefits of the policy in case of the policyholder's death during the policy term.
There can be more than one nominees appointed by the policyholder. Section 39 of the Insurance Act 1938 deals with nomination
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