n NISM Certifications
NSM General NISM
Medium

What is the purpose of an arbitration clause in an insurance policy?

Practice question from IC 38 Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To waive insurer’s liability

  2. To provide faster, cost-effective dispute resolution

    Correct answer

  3. C

    To create more disputes between insurer and insured

  4. D

    To eliminate possibility of arbitration

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

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

IC 38 Mock Test 6