Which of the following is classified as a subsequent condition that must be fulfilled to maintain a policy?

Prepare for the ANZIIF Tier 1 Exam. Familiarize yourself with insurance basics using multiple choice questions, each with hints and explanations. Get ready to succeed!

The correct choice is the payment of premium, as it is a fundamental condition that policyholders must fulfill to keep their insurance policy active and in force. Regular premium payments establish a contractual relationship between the insurer and the insured, ensuring that the insurer provides coverage for the specified risks. If premiums are not paid on time, the policy can lapse, resulting in the loss of coverage.

While providing accurate information, adhering to legal obligations, and maintaining good faith are all essential aspects of managing an insurance policy, they do not specifically represent the ongoing conditions that keep the contract valid after it has been initiated. Accurate information is critical when applying for a policy but relates more to the underwriting process. Legal obligations pertain to compliance with laws and regulations but again do not directly influence the active status of a policy once it is in effect. Maintaining good faith, often referred to as the duty of good faith and fair dealing, is a principle that governs the behavior of both the insurer and the insured but is not a specific condition tied to policy maintenance in the way that premium payments are.

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