Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Alterations are considered if the policy is in force for the full sum assured. Normally alterations are not allowed for the first year of the policy unless they are done for a correction or a change which does not affect the basic insurance contract, such as changes in address or change in nominee
Alterations which increase the risk are: increasing the sum assured, increasing the term, change of insurance plan e.g. conversion of term plan to whole life plan
Alterations are generally not allowed if they involve: change to a longer term, extending the premium paying period, changing from one plan of insurance to another that represents increased risk
Some alterations are made by having a suitable endorsement on the policy itself.
If the alterations are substantial a new policy may be issued.
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