Question

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

a.

Charges for policy administration

b.

Cost of medical tests and stamp duty

c.

Commissions paid to the insurance agent

d.

Taxes levied on the premium amount

Answer: (b).Cost of medical tests and stamp duty Explanation:The deductions typically made from the premium refund include the cost of medical tests, stamp duty, and the risk premium if the customer was provided cover during the free-look period.

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

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