Vidyalelo
Commerce · Q582

Insurance

Graduate and Post Graduate · Commerce · question 582

Q582

Pick out the incorrect statement.

A.
As per law if the premium, for three years, it shall earn a guaranteed surrender value
B.
With discontinuance of premium even after three years no surrender value is guaranteed
Answer
C.
The special revival of a lapsed policy is convenient both from the assured point of view and that of the insurer
D.
The most important condition for a policy lapsed for a considerable length of time is evidence of insurable interest

Answer: Option B

Solution

Answer: Option B
Solution:
With discontinuance of premium even after three years amount of surrender value is guaranteed.