Question

What is the purpose of a prospectus in the insurance industry?

a.

To provide a legal contract to policyholders

b.

To promote the insurance company's financial interests

c.

To offer additional coverage to policyholders

d.

To inform prospective policyholders about insurance products

Answer: (d).To inform prospective policyholders about insurance products Explanation:A prospectus in the insurance industry serves as an informative document that provides prospective policyholders with details about insurance products, allowing them to make informed decisions about purchasing a policy. It is not a legal contract but rather an introductory document.

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Q. What is the purpose of a prospectus in the insurance industry?

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