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Commerce · Q909

Insurance

Graduate and Post Graduate · Commerce · question 909

Q909

What is lien?

A.
An underwriting decision where increased death benefit would be payable
B.
An underwriting decision where decreased death benefit would be payable
Answer
C.
A decision which does not alter the death benefit
D.
None of the three

Answer: Option B

Solution

Answer: Option B
Solution:
A lien is a legal right granted by the owner of property, by a law or otherwise acquired by a creditor. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. A lien is an underwriting decision where decreased death benefit would be payable.