Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
Page 26 Of 42
Go to:
restrictive conditions: these limit the scope of the assurance. These restrictive conditions are decided by the underwriter and have to be agreed by the policyholder.
Restrictive conditions are designed to eliminate certain risks that are not taken into account when determining the premium. If any such risk is incurred, the assurance is limited to the payment of the surrender value, or the return of premiums or a proportion of the sum assured as stated in the conditions.
One common restriction on all policies is that no claim will be paid if the life assured commits suicide in the first year
Privileges: these add to the benefits of the insurance and provide privileges
supplementary benefits: these provide extended or supplementary benefits
MODELEXAM® 
www.realsoftinfoplan.com