What of the following statement is correct regarding insurance?

A. Life Insurance contract is between a proposer and his agent for protection of his life’s economic worth

B. Prospectus is in lieu of policy in certain cases

C. Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer

D. There is no difference between a proposal and prospectus

Answer: Option C

Solution(By Examveda Team)

Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer. When a company seeks to raise capital through the offer of securities to the public, or seeks an admission to trading of securities, a prospectus or listing particulars will be issued detailing in-depth financial information about the company and its future objectives and strategies.