Question

What is typically charged for subsequent reinstatements of the coverage limit?

a.

No additional premium is charged

b.

A fixed premium is charged for each reinstatement

c.

A prorata additional premium is charged for each reinstatement

d.

The premium is adjusted based on the extent of the reinstatement

Answer: (c).A prorata additional premium is charged for each reinstatement Explanation:After the first free reinstatement, subsequent reinstatements of the coverage limit are usually subject to a prorata additional premium. This means that for each additional reinstatement, a premium amount proportional to the coverage limit being reinstated is charged.

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Q. What is typically charged for subsequent reinstatements of the coverage limit?

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