If an Insurance Company accepts a Risk, with a Lien on Sum-Assured, then What Does this imply?
A)Lien implies that, if the Life-Assured Dies from a Specified Cause, Within a Given Period, Only a Decreased Amount of Death-Benefit may be Payable.
B)Lien implies that, the Risk is Being Accepted, by the Company, for a Limited Period.
C)Lien implies that, the Insurance Company is Accepting the Risk, at Lower Rate of Premium, as compared to the Tabular-Rate.
D)Lien implies that, the Insurance-Proposal is Postponed, till a Specified Period.

Question

Quizplus · Accepted Answer

A lien on the sum-assured in an insurance policy means that if the insured dies from a specified cause within a certain period, the beneficiary may receive a reduced death benefit, reflecting the insurer's adjusted risk acceptance.

If an Insurance Company Accepts a Risk, with a Lien