Question

What is the Postponement of acceptance of risk in the insurance industry?

a.

Accepting the risk at the policy commencement stage

b.

Declining the proposal in case of uninsurable health conditions

c.

Deferring the risk cover for a specified period

d.

Accepting the risk automatically after the specified period of postponement

Answer: (c).Deferring the risk cover for a specified period Explanation:The Postponement of acceptance of risk is when the risk cover is deferred or postponed for a specified period to benefit both the client and insurer, with the proposal re-evaluated by the underwriter after the postponement period through a second pre-insurance medical screening of the individual.

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Q. What is the Postponement of acceptance of risk in the insurance industry?

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