Question

What obligation does every insurer carrying on life insurance business have regarding policy lapses?

a.

They must renew the policy automatically

b.

They must notify the policyholder of available options upon lapse

c.

They must cancel the policy without notification

d.

They must ignore policy lapses

Posted under IC 14 Regulations of Insurance Business

Answer: (b).They must notify the policyholder of available options upon lapse Explanation:Every insurer carrying on life insurance business is required to give notice to the holder of a life insurance policy informing them of the options available upon lapsing of the policy.

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Q. What obligation does every insurer carrying on life insurance business have regarding policy lapses?
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