n NISM Certifications
X NISM Series X
Medium

In which of the following situations will the insured not have insurance cover?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Surrendered policy

    Correct answer

  2. B

    Paid-up policy

  3. C

    Term policy

  4. D

    Both surrendered and paid-up policies

Why this is the answer

A surrendered policy is terminated by the policyholder, resulting in the loss of insurance cover thereafter. Paid-up policies continue to provide reduced cover, and term policies offer full coverage as long as premiums are paid.

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