Question

When can the risk be postponed?

a.

If the mortality risk is found to be higher than the standard mortality table

b.

If the mortality risk is found to be substantially high when compared to the mortality table

c.

If the mortality risk is of a kind that may reduce with the passage of time

d.

If the risk is very high and is either predicted to remain static or may increase in the future

Posted under IC22 Life Insurance Underwriting

Answer: (c).If the mortality risk is of a kind that may reduce with the passage of time Explanation:The risk can be postponed if the mortality risk is found to be substantially high when compared to the mortality table at the time of applying for a policy, and his condition is likely to improve after a period. This is done in cases where the risk is of a kind that may reduce with the passage of time.

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