Question

What can be a potential consequence of inadequate documentation in the underwriting sheet?

a.

The claimant may receive lower benefits

b.

The insurer may not pay out the claim

c.

The insurer may be held liable to pay the benefits to the claimant

d.

The underwriting process may be delayed

Posted under IC22 Life Insurance Underwriting

Answer: (c).The insurer may be held liable to pay the benefits to the claimant Explanation:In the absence of well-documented case files and evidence, legal disputes may arise, especially in the event of an early claim. The decisioning bodies like the Ombudsman or courts could hold the insurer liable to pay the benefits to the claimants, on grounds that the documentation of the case on the underwriting sheet being inadequate to support repudiation of a claim. Therefore, the potential consequence of inadequate documentation in the underwriting sheet is that the insurer may be held liable to pay the benefits to the claimant.

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Q. What can be a potential consequence of inadequate documentation in the underwriting sheet?
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