Question

What can an insurance company do if a person's proposed insurance amount exceeds their premium paying capacity?

a.

Issue a life insurance policy for the requested amount

b.

Suggest a life insurance policy for a reduced amount

c.

Reject the request for the life insurance policy in its requested form

d.

All of the above

Answer: (d).All of the above Explanation:An insurance company may issue a life insurance policy for the requested amount, suggest a life insurance policy for a reduced amount, or reject the request for the life insurance policy in its requested form, based on the amount of life insurance applied for by the person and after evaluating their premium paying capacity from their financials.

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Q. What can an insurance company do if a person's proposed insurance amount exceeds their premium paying capacity?

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