Question

What is a grace period in insurance?

a.

A period of time during which an insurance policy is inactive.

b.

A period following the premium due date in which a policy can be renewed without loss of benefits.

c.

The waiting period for policy benefits to take effect.

d.

A period during which the policyholder cannot make claims.

Answer: (b).A period following the premium due date in which a policy can be renewed without loss of benefits. Explanation:A grace period in insurance is a specified period immediately following the premium due date during which a policy can be renewed without the loss of continuity benefits.

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