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
D The insurance company will forfeit the entire premium

Correct Answer: 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

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.
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Related Questions

Which of the following types of life insurance policies pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policyholder on the maturity of the policy if he/she survives the term?
A Whole Life
B Endowment
C Money Back
D Unit Linked
Which of the below statement is correct with regards to grace period of an insurance policy?
A Standard length of the grace period is one month
B The standard length of the grace period is 30 days
C The standard length of the grace period is one month or 30 days
D The standard length of the grace period is one month or 31 days
How long is the free look-in period under a term insurance policy from the date of receipt of the policy document?
A 5 days
B 10 days
C 15 days
D 20 days
Raunak recently arranged a life insurance policy under which he is classed as the master policyholder. This addresses his role as
A A creditor
B A debtor
C An employee
D An employer
What is paid by the insurer when the policyholder decides to discontinue the policy
A Forfeiture
B Surrender Value
C Intermediate Claim
D Lapse
Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company?
A The policy will have to be assigned in favour of the insurance company
B The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company
C The nominee’s right will be affected to the extent of the insurer’s interest in the policy
D The policy loan is usually limited to a percentage of the policy’s surrender value
Which of the below statement is incorrect with regards to assignment of an insurance policy?
A In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee
B The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another
C It is necessary that the policyholder must give notice of assignment to the insurer
D In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben
How much free look period is allowed from the date of receipt of health insurance policy document?
A 10 days
B 15 days
C 30 days
D 90 days
When free look period under a policy would commence?
A Date of commencement
B Date of receipt of policy bond
C Date of FPR
D Any time
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

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