Q170
On foreclosure of a policy, which of the following is incorrect?
A.
Nothing is payable to the policyholder
AnswerB.
Excess amount (subsisting cash value after deducting loan/interest) is payable
C.
Notice has to be given to the policyholder by the insurer
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan. On foreclosure of a policy, nothing is payable to the policyholder.