Vidyalelo
Commerce · Q656

Insurance

Graduate and Post Graduate · Commerce · question 656

Q656

What is defined an early claim?

A.
Whenever the claim arises before the end of the policy term it is an early claim
B.
If the claim arises after 5 years, it is an early claim
C.
All death claims are early claims
D.
A claim by death within three years of commencement
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A claim by death within three years of commencement is defined as an early claim. When a person with a life insurance policy – called a life assured – dies, a claim intimation should be sent to the insurance company as early as possible.