Question

Why is a free look period advantageous for insurance companies?

a.

It encourages customers to make premature exits from their policies

b.

It allows the company to earn higher profits

c.

It helps retain customers for a longer period

d.

It discourages customers from studying the policy in detail

Answer: (c).It helps retain customers for a longer period Explanation:A free look period is advantageous for insurance companies because it helps retain customers for a longer period by allowing them to thoroughly study the policy before making a decision to continue with it.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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?

Q. What is the recourse available to a policyholder if they are dissatisfied with the decisions taken by the insurer?

Q. What is the maximum timeframe within which a surveyor should communicate his findings to the insurer after appointment?

Q. In case a survey report is found incomplete, within what timeframe should the insurer request an additional report?

Q. How long does a surveyor have to furnish an additional report upon receiving a request from the insurer?

Q. Within what timeframe should an insurer offer a settlement of the claim to the insured upon receiving the survey report?

Q. If an insurer decides to reject a claim under the policy, within what timeframe should it communicate the decision to the insured?

Q. Within how many days should the payment of the settled claim amount be made to the insured?

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!