On foreclosure of a policy, which of the following is incorrect?

A. Nothing is payable to the policyholder

B. Excess amount (subsisting cash value after deducting loan/interest) is payable

C. Notice has to be given to the policyholder by the insurer

D. None of the above

Answer: Option A

Solution(By Examveda Team)

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan. On foreclosure of a policy, nothing is payable to the policyholder.