The correct answer is: D. Fraudulently
Section 45 of the Insurance Act, 1938 states that an insurance company can reject a claim after 2 years from issuance of policy if the material facts in the proposal are fraudulently made. This means that if the insured person makes a false statement on their insurance application, the insurance company can deny their claim even if the claim is valid.
The other options are incorrect because they do not accurately reflect the meaning of the word “fraudulently.” Option A, “innocently,” means without knowledge or intent to deceive. Option B, “falsely,” means in a way that is not true. Option C, “frantically,” means in a state of great agitation or excitement.
It is important to note that the insurance company must prove that the insured person made a fraudulent statement in order to deny a claim. The insured person has the right to challenge the insurance company’s decision.