Vidyalelo
Commerce · Q66

Insurance

Graduate and Post Graduate · Commerce · question 66

Q66

A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the

A.
Customer submits a second quotation request
B.
Insurer increases its underlying premium rates
C.
Market place experiences a significant downturn
D.
Material facts change
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A life insurer issued a quotation on 10 February, guaranteed for 14 days, which was accepted by the customer on day 10. Consequently the insurer can only decline this risk if the Material facts change.