Q650
Pick out the correct statement.
A.
Extension of premium paying period is normally allowed as an alteration in a policy
B.
Increase in sum assured will be welcomed as a preferred alteration in a policy
C.
Splitting of a policy into two or more is allowed as an alteration
AnswerD.
Notice is not always necessary in an assignment to be given by the assured to the insurer
Answer: Option C
Solution
Answer: Option C
Solution:
Splitting of a policy into two or more is allowed as an alteration. There are many alterations in insurance policies that can be noted on the certificates. Any variation to the text of a life insurance policy, including a correction, is known to insurance professionals as `Alteration'. A policy evidences a life insurance contract between the insured and the insurer.