Question

What does the element of guarantee in a life insurance contract imply?

a.

That there are no regulations governing life insurance

b.

That the insurance company can change the premium at any time

c.

That life insurance is subject to strict regulation and supervision

d.

That policyholders have no say in the terms of the insurance contract

Posted under IC38 Life Insurance Agent Exam

Answer: (c).That life insurance is subject to strict regulation and supervision Explanation:The element of guarantee implies that life insurance is subject to stringent regulation and strict supervision to ensure the terms of the contract are met.

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Q. What does the element of guarantee in a life insurance contract imply?
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