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Commerce · Q72

Insurance

Graduate and Post Graduate · Commerce · question 72

Q72

What normally happens to the sum insured under a life insurance policy once the period of the lien expires?

A.
It reduces
B.
It increases
Answer
C.
It is temporarily suspended
D.
It is replaced by a newly-underwritten sum insured

Answer: Option B

Solution

Answer: Option B
Solution:
The sum insured under a life insurance policy once the period of the lien expires it increases.