Question

What is the main purpose of KYC norms in the insurance industry?

a.

To identify and assess the risk of the customer

b.

To ensure that the customer is aware of the insurance policy's terms and conditions

c.

To establish the source of funds for large single premiums

d.

To ensure that the insurance company's financial underwriting guidelines are followed

Posted under IC22 Life Insurance Underwriting

Answer: (a).To identify and assess the risk of the customer Explanation:The main purpose of KYC norms in the insurance industry is identification and risk assessment of the customer at the time of initial issuance of the policy contract.

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