The correct answer is C. With issue of FPR further premiums are not required to be paid.
A policy is a legal contract between the life assured and the insurance company. It is the most important document evidencing the relationship between the two parties. The policy has three parts: policy schedule, standard provisions, and special policy provisions. The policy schedule contains the basic information about the policy, such as the name of the insured, the amount of coverage, and the premium. The standard provisions are the general terms and conditions of the policy, which apply to all policies issued by the insurance company. The special policy provisions are the specific terms and conditions of the policy, which are tailored to the individual insured.
With the issue of a full paid up receipt (FPR), the insured has paid all the premiums due under the policy and the policy becomes a paid up policy. However, the insured will still be covered under the policy and the benefits will be payable in the event of death or maturity.
The interpretation of a complex provision of the policy in case of conflict should be in favour of the assured. This is because the assured is the weaker party in the contract and the insurance company is the stronger party. The insurance company has the resources to hire lawyers and experts to interpret the policy, while the assured may not have the same resources. Therefore, the law protects the assured by interpreting the policy in their favour in case of a conflict.