Question

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

a.

To determine and document the true identity of all its customers.

b.

To determine the medical history of customers.

c.

To determine the occupation and place of residence of customers.

d.

To determine the lifestyle and habits of customers.

Posted under IC22 Life Insurance Underwriting

Answer: (a).To determine and document the true identity of all its customers. Explanation:The main purpose of the KYC norms is identification and risk assessment of the customer at the time of initial issuance of the policy contract.

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Q. What is the purpose of KYC norms in the insurance industry?
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