Question

In what condition are insurance contracts considered valid if payment is made by cheque?

a.

Only if the cheque is realized

b.

Only if the cheque is submitted

c.

Regardless of whether the cheque is realized

d.

If the cheque is dishonoured

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Only if the cheque is realized Explanation:Some insurers issue insurance contracts with a condition that, in case of payment by cheque, the contract is valid only if the cheque is realized, highlighting the significance of payment realization in determining the validity of the contract.

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Q. In what condition are insurance contracts considered valid if payment is made by cheque?
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