Solution:
The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result a terminal bonus. Terminal Bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity. Its value is not guaranteed and will be disclosed only at the time of policy maturity.

Solution:
A restrictive clause is a clause which functions as an adjective to identify the word it modifies. A restrictive clause is essential for the intended meaning. Hence in this case acceptance with a restrictive clause must be proceeded.

Solution:
If a policy is absolutely assigned to Ramesh and on the death of Srikant, the life assured, Ramesh will be paid the claim amount.

Solution:
Universal life policies are kept in force even if premiums are not paid, provided its cash value was sufficient to pay for Mortality charges and expenses.

Solution:
If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims.

Solution:
An insurance company put is to real test at the time of announcement of bonuses. Bonus refers to an extra amount of money one receives in addition to the base amount. The same concept also holds true with bonuses payable in a life insurance policy.

Solution:
Adhesion contract is a legally binding agreement between two parties to do a certain thing, in which one side has all the bargaining power and uses it to write the contract primarily to his or her advantage.