Question

What could be the consequence of issuing policies with specific exclusions and assigning them to mortgage loans?

a.

Legal battles between the beneficiaries and the insurance company

b.

Higher premiums for the policyholders

c.

Longer policy term

d.

Increased policy benefits

Posted under IC22 Life Insurance Underwriting

Answer: (a).Legal battles between the beneficiaries and the insurance company Explanation:Issuing policies with specific exclusions and assigning them to mortgage loans could lead to legal battles between the beneficiaries and the insurance company if the death claim is denied.

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Q. What could be the consequence of issuing policies with specific exclusions and assigning them to mortgage loans?
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