Question

What happens if the premium to be charged comes to a higher value than what the client applied for through the quote?

a.

The policy contract is cancelled

b.

The client is asked to pay the difference in premium

c.

The premium is set to the initial quote generated at the pre-underwriting stage

d.

A new quote is generated and the client is asked to consent to the revised rates

Answer: (d).A new quote is generated and the client is asked to consent to the revised rates Explanation:If the premium to be charged comes to a higher value than when the client applied for through the quote, a consent for the revised rates through a new quote along with the requisite additional premium with leviable taxes thereon will be called for from the client.

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Q. What happens if the premium to be charged comes to a higher value than what the client applied for through the quote?

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