Vidyalelo
Commerce · Q398

Insurance

Graduate and Post Graduate · Commerce · question 398

Q398

Which of the below party is not eligible to enter into a life insurance contract?

A.
Business owner
B.
Minor
Answer
C.
House wife
D.
Government employee

Answer: Option B

Solution

Answer: Option B
Solution:
Minor is not eligible to enter into a life insurance contract. However, although a minor child has insurable interest in the life of his/her earning parents, but children can't take insurance for parents because, as a minor, a child can't enter into a contract.