Vidyalelo
Commerce · Q455

Insurance

Graduate and Post Graduate · Commerce · question 455

Q455

Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?

A.
The insurance company will refund 100% of the premium
B.
The insurance company will refund 50% of the premium
C.
The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges
Answer
D.
The insurance company will forfeit the entire premium

Answer: Option C

Solution

Answer: Option C
Solution:
The insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges.