Question

What happens if a policyholder does not exercise any option upon receiving a notice from the insurer?

a.

The policy automatically gets canceled

b.

The insurer must continue providing coverage

c.

The insurer may consider a complete withdrawal from ULIP funds

d.

The policyholder loses all rights to the policy

Posted under IC 14 Regulations of Insurance Business

Answer: (c).The insurer may consider a complete withdrawal from ULIP funds Explanation:If a policyholder does not exercise any option within 30 days of receiving a notice from the insurer, the insurer may consider that the policyholder has opted for a complete withdrawal from ULIP funds with no risk cover. This highlights the importance of timely decision-making for policyholders in managing their insurance policies.

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Q. What happens if a policyholder does not exercise any option upon receiving a notice from the insurer?
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