Question

What does the free-look period option of a life insurance plan allow the customer to do?

a.

Extend the policy duration

b.

Increase the premium amount

c.

Cancel the policy if not satisfied with its terms and conditions

d.

Change the beneficiary of the policy

Answer: (c).Cancel the policy if not satisfied with its terms and conditions Explanation:The free-look period option of a life insurance plan allows the customer to cancel the policy if they disagree with or are not comfortable with its terms and conditions.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does the free-look period option of a life insurance plan allow the customer to do?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Within what timeframe should the free-look option be exercised after receiving the policy?

Q. What deductions are typically made from the premium refund if a policy is canceled during the free-look period?

Q. How are changes in the net asset value (NAV) of unit-linked insurance plans during the free-look period handled?

Q. What is the duration of the free-look period for a life insurance plan?

Q. What opportunity does the free-look period provide to the customer?

Q. What is the primary objective of offering a free look period?

Q. Why is a free look period advantageous for insurance companies?

Q. What is the timeframe for sending the original documents and cancellation application to the insurance company during the free-look period?

Q. What deductions are typically made by the insurance company when a policy is canceled during the free-look period?

Q. In unit-linked insurance plans, how are changes in the net asset value (NAV) during the free-look period handled?

Q. What details should be clearly stated in a life insurance policy according to regulatory requirements?

Q. How should the insurer inform the insured about the free look period?

Q. What additional right does the insurer have in respect of unit-linked policies upon cancellation?

Q. What obligation does the insurer have regarding the insured's age in policies where premium depends on age?

Q. How often should the insurer inform the insured regarding claim procedures?

Q. What is the timeframe within which a life insurance company should process a claim upon receiving it?

Q. If additional documents are required for processing a life insurance claim, when should the insurer raise queries or request additional documents?

Q. In case an investigation is warranted for a life insurance claim, when should the insurance company initiate and complete the investigation?

Q. What action should a life insurance company take if a claim is ready for payment but cannot be made due to identification issues?

Q. In case of delay by the insurer in processing a life insurance claim, at what rate should interest be paid on the claim amount?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 14 Regulations of Insurance Business? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!