What is lien?

A. An underwriting decision where increased death benefit would be payable

B. An underwriting decision where decreased death benefit would be payable

C. A decision which does not alter the death benefit

D. None of the three

Answer: Option B

Solution(By Examveda Team)

A lien is a legal right granted by the owner of property, by a law or otherwise acquired by a creditor. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. A lien is an underwriting decision where decreased death benefit would be payable.