Question

Why do insurers allow dating back of policy?

a.

To charge a higher premium amount

b.

To increase the entry age of the insured

c.

To provide the insured with the benefit of a lower age and lower premium

d.

To reduce the tenure of the policy contract

Answer: (c).To provide the insured with the benefit of a lower age and lower premium Explanation:Insurers sometimes give the client the benefit of a lower age, and therefore lower premium during the entire tenure of the policy contract, and this is known as date-back the policies.

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Q. Why do insurers allow dating back of policy?

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