Question

How is a surrender value payment different from other claim payments in life insurance?

a.

Surrender value payments have no penalty for premature withdrawal

b.

Surrender value payments are based on medical records

c.

Surrender value payments are automatically paid to the policyholder

d.

Surrender value payments are triggered by the decision of the life assured

Answer: (d).Surrender value payments are triggered by the decision of the life assured Explanation:Surrender value payments in life insurance are different from other claims because they are triggered by the decision of the policyholder or assignee to cancel the contract and withdraw the due amount. There is typically a penalty for premature withdrawal.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How is a surrender value payment different from other claim payments in life insurance?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How are critical illness claims typically ascertained in life insurance?

Q. What happens to the insurance cover under a life insurance contract when a death claim is paid?

Q. Why is it important to educate policyholders about conditional assignments in critical illness benefits?

Q. What are survival benefit payments in a life insurance policy?

Q. What is the surrender value of a life insurance policy?

Q. When can a life insurance policy be surrendered?

Q. What is the purpose of a critical illness rider in a life insurance policy?

Q. What happens to the policy contract when a maturity claim is paid?

Q. What is a death claim in a life insurance policy?

Q. What does a death claim typically include in a life insurance policy?

Q. When is a death claim considered "early" in a life insurance policy?

Q. What forms are typically submitted for a death claim in a life insurance policy?

Q. What happens if the insurer detects incorrect statements or material facts suppression in a death claim?

Q. Under what section of the Insurance Act, 1938 is a policy of life insurance protected from being called into question after three years from the policy's issuance date?

Q. What is the maximum time period insurers have to process a death claim under a life insurance policy as per IRDAI (Protection of Policyholders' Interests) Regulations, 2017?

Q. What interest rate is applicable if a claim is ready for payment but cannot be made due to improper identification of the payee?

Q. How much interest does a life insurance company need to pay on the claim amount in case of a delay in processing the claim for reasons other than improper identification?

Q. What role is expected of an insurance agent in the claim process for a life insurance policy?

Q. What is the purpose of Section 45 of the Insurance Act?

Q. What are the two main types of claims in life insurance?

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!