n NISM Certifications
NSM General NISM
Medium

How does a policy loan impact the policyholder and the insurance?

Practice question from IC 38 Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It terminates the policy and releases the policyholder from obligations

  2. It provides financial relief while keeping the policy active

    Correct answer

  3. C

    It increases premiums but does not affect coverage

  4. D

    It transfers policy ownership to the lender

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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