Interview Question for CT5-10
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Rishabh Surana
Q. Differentiate between Surrender and lapse of a policy? Mayank Goyal
RISHABH wrote:Q. Differentiate between Surrender and lapse of a policy?
Ans: When policyholders want to receive the benefit before the expiration, they can terminate the policy; this is called surrendering the policy. In such cases, the insurance company cut a certain fixed proportion and pays the remaining amount.
When due to some reasons, the policyholder stops paying the premium due to the policy, the company lapses/terminates the policy and no premium or claim payments are made in these scenarios.
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Actuarial Info mobile appAns: When policyholders want to receive the benefit before the expiration, they can terminate the policy; this is called surrendering the policy. In such cases, the insurance company cut a certain fixed proportion and pays the remaining amount.
When due to some reasons, the policyholder stops paying the premium due to the policy, the company lapses/terminates the policy and no premium or claim payments are made in these scenarios.
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