GK
INSURANCE AWARENESS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires is termed as ____
|
|
Annuitization
|
|
|
Affinity sales
|
|
|
Earned Premium
|
|
|
Demutualization
|
Explanation:
Detailed explanation-1: -When a term insurance premium is not paid by the due date, the policy expires, and your insurance benefits and previously paid premiums are lost. If you fail to pay your ULIP (unit-linked insurance plan) payment during the lock-in period or the first five years, the policy is said to have lapsed.
Detailed explanation-2: -The term earned premium refers to the premium collected by an insurance company for the portion of a policy that has expired. It is what the insured party has paid for a portion of time in which the insurance policy was in effect, but has since expired.
There is 1 question to complete.