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Commerce · Q323

Insurance

Graduate and Post Graduate · Commerce · question 323

Q323

Which facility is given to the policyholder to neutralise the bargaining power in adhesion contracts?

A.
Surrender
B.
Loan
C.
Assignment
D.
Free look period
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A free look period is a period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.