Vidyalelo
Commerce · Q357

Insurance

Graduate and Post Graduate · Commerce · question 357

Q357

Which one of the following statements is correct?

A.
Foreclosure can be done only with the consent of the policyholder
B.
Foreclosure can be done only after informing the policyholder
Answer
C.
Both the statements above are correct
D.
Both the statements above are wrong

Answer: Option B

Solution

Answer: Option B
Solution:
Foreclosure can be done only after informing the policyholder. Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.