Question

What is the benefit of postponing the acceptance of risk?

a.

The client can get a fair premium charged to him after the change in his health into a favourable one

b.

The insurer can accept a high risk profile at the policy commencement stage

c.

The risk cover is accepted automatically after the specified period of postponement

d.

The client can receive the policy immediately after the postponement period

Answer: (a).The client can get a fair premium charged to him after the change in his health into a favourable one Explanation:Postponing the acceptance of risk benefits the client who gets a fair premium charged to him after the change in his health into a favourable one, and the insurer, who is absolved from accepting a very high risk profile at the policy commencement stage.

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Q. What is the benefit of postponing the acceptance of risk?

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