Which statement best describes the nature of ordinary life insurance?
The Supreme Court distinguishes life insurance from insurance that reimburses proved loss. The insurer's promise to pay the agreed life benefit does not amount to a…
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Which statement best describes the nature of ordinary life insurance?
Answer and explanation
Correct answer D
The Supreme Court distinguishes life insurance from insurance that reimburses proved loss.
The insurer's promise to pay the agreed life benefit does not amount to a guarantee of another person's default or an authority to act on the beneficiary's behalf.
Option feedback
Option A
Ordinary life insurance does not require proof of actual financial loss to set the benefit.
Option B
The insurer undertakes its own policy obligation, rather than answering as surety for the insured's debt.
Option C
A promise to pay a life benefit does not appoint the insurer as the beneficiary's representative.
Option D
Payment of the agreed benefit is the insurer's obligation under an ordinary life policy when the covered event and policy terms are satisfied.
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Madhya Pradesh Judicial Services
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CUET PG Law (LL.M.)
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