[Solved] If an Insurance Company accepts a Risk, with a Lien on Sum-Assured, then What Does this imply?

Q.	If an Insurance Company accepts a Risk, with a Lien on Sum-Assured, then What Does this imply?
A.	Lien implies that, if the Life-Assured Dies from a Specified Cause, Within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.
B.	Lien implies that, the Risk is Being Accepted, by the Company, for a Limited Period.
C.	Lien implies that, the Insurance Company is Accepting the Risk, at Lower Rate of Premium, as compared to the Tabular-Rate.
D.	Lien implies that, the Insurance-Proposal is Postponed, till a Specified Period.
Answer» A. Lien implies that, if the Life-Assured Dies from a Specified Cause, Within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.

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Insurance Exam (LIFE)

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