SUCCESSIVE NOMINEE: Where it is mentioned in nomination that the policy money should be paid to Nominee A failing him to Nominee

B whom failing to Nominee C, etc., such nomination is called successive nomination. Such nomination would be in favour of one individual in the order mentioned. All such Nomination would mean that if Nominee A were dead at the time in question the Nominee B would take the whole amount and that if both Nominees A and B were then dead then Nominee C would take the whole amount and so on. ASSIGNMET AND NOMINATION DISTINGUISHED: Assignment and Nomination though looks similar to each other but have a lot of differences. The provision for governing the assignment is stated in section 38 of the act. The main points of difference between an assignment and a nomination are:

(1) An assignment passes to the assignee the right to the insurance money. The nominee on the other hand, gets no rights and holds the money for the benefit of the estate of the deceased assured. (2) Once an assignment is made it cannot be cancelled at the option of the assignor. It creates a vested right in the assignee. Subject only to the equities between the assignor and the insurer. On the other hand, a nomination, unless there is a special clause inserted to make it irrevocable, does not deprive the policy-holder of his rights, etc. under the policy including the right to alter the nominee. (3) An assignee gets the right to further deal with the policy, for he becomes a policy-holder, but nominee gets no such rights. (4) An assignee is entitled to the money even if the assured survives the policy; but in the case of nomination if the assured is alive at the time of maturity, nominee gets no rights.