Vidyalelo
Commerce · Q291

Insurance

Graduate and Post Graduate · Commerce · question 291

Q291

If the proponent has no insurable interest in the insured, the underwriter will

A.
Accept with reduced sum assured
Answer
B.
Reject the proposal
C.
Accept with lien
D.
Accept with extra premium

Answer: Option A

Solution

Answer: Option A
Solution:
If the proponent has no insurable interest in the insured, the underwriter will accept with reduced sum assured.