A policy that can be cancelled or have the premiums raised by the insurer on a specific anniversary date, subject to certain reasons written into the policy is known as .....

INSURANCE AWARENESS

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A policy that can be cancelled or have the premiums raised by the insurer on a specific anniversary date, subject to certain reasons written into the policy is known as ____

A	Conditional Receipt
B	Consequential loss
C	Conditional Contract
D	Conditional Renewable

Explanation:

Detailed explanation-1: -Optionally renewable policies give the insurer the ability to cancel the policy on the anniversary date or premium due date. The company can only raise premiums if there is a significant increase in the risk of future claims. Most people use an optionally renewable policy for disability insurance.

Detailed explanation-2: -If a policy is canceled prior to the expiration date, the insurer is required to refund any premium difference that’s due.

Detailed explanation-3: -Definition: Discontinuance of premium is the act when the life insured stops paying the premium. The discontinuance of premium could be either because of the surrender of the policy or due to death.

Detailed explanation-4: -As per the general regulations of the All India Motor Tariff, which governs the motor insurance policies in India, an insurer can cancel a motor policy by sending the insured a seven days notice of cancellation by recorded delivery to the insured’s last known address.

There is 1 question to complete.

GENERAL KNOWLEDGE

GK

INSURANCE AWARENESS