Q386
What is paid by the insurer when the policyholder decides to discontinue the policy
A.
Forfeiture
B.
Surrender Value
AnswerC.
Intermediate Claim
D.
Lapse
Answer: Option B
Solution
Answer: Option B
Solution:
If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as surrender value.