Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points
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Where the premium is tendered by postal money order or cheque sent by post, the risk may be assumed on the date on which the money order is booked or the cheque is posted, as the case may be.
Any refund of premium which may become due to an insured on account of the cancellation of a policy or alteration in its terms and conditions or otherwise shall be paid by the insurer directly to the insured by a crossed or order cheque or by postal money order and a proper receipt shall be obtained by the insurer from the insured, and such refund shall in no case be credited to the account of the agent.
Where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he shall deposit with, or despatch by post to, the insurer, the premium so collected in full without deduction of his commission within twenty four hours of the collections excluding bank and postal holidays.
The transfer or assignment is complete and effectual only when the execution of such endorsement or instrumental is duly attested so far as transferee / assignee is concerned.
A conditional assignment is valid only if the specified event happens during the life time of the life assured. Assignee can be anybody including a minor. An absolute assignment transfers to the assignee all rights, title and interest of the assignor in the policy.
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