[amp_mcq option1=”Extension of premium paying period is normally allowed as an alteration in a policy” option2=”Increase in sum assured will be welcomed as a preferred alteration in a policy” option3=”Splitting of a policy into two or more is allowed as an alteration” option4=”Notice is not always necessary in an assignment to be given by the assured to the insurer” correct=”option1″]<\/p>\n
The correct answer is: A. Extension of premium paying period is normally allowed as an alteration in a policy<\/strong><\/p>\n An extension of premium paying period is normally allowed as an alteration in a policy. This is because it is in the best interest of both the insurer and the insured. The insurer is more likely to receive the full premium, and the insured is more likely to be able to afford the premiums.<\/p>\n B. Increase in sum assured will be welcomed as a preferred alteration in a policy.<\/p>\n This is not always the case. The insurer may not be willing to increase the sum assured, or they may charge a higher premium for the increased coverage.<\/p>\n C. Splitting of a policy into two or more is allowed as an alteration.<\/p>\n This is also not always the case. The insurer may not be willing to split the policy, or they may charge a higher premium for the split policy.<\/p>\n D. Notice is not always necessary in an assignment to be given by the assured to the insurer.<\/p>\n This is true. The insured does not always need to give notice to the insurer if they are assigning the policy to someone else. However, it is always a good idea to give notice, as it will help to avoid any confusion or problems down the road.<\/p>\n