Question

What option does a policyholder have when discontinuing a policy?

a.

Revive the policy with increased risk cover.

b.

Withdraw from the policy without any risk cover.

c.

Convert the policy to a paid-up policy.

d.

Surrender the policy without any charges.

Posted under IC 89 Management Accounting

Answer: (b).Withdraw from the policy without any risk cover. Explanation:When discontinuing a policy, a policyholder shall be entitled to revive it or withdraw from it without any risk cover.

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Q. What option does a policyholder have when discontinuing a policy?
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