Question

Why is it difficult for customers to evaluate an insurance policy at the time of purchasing insurance?

a.

Insurance policies are always straightforward and easy to understand

b.

Customers lack the expertise to comprehend policy conditions

c.

Insurance products are standardized and easy to evaluate

d.

Insurance regulators do not play a role in evaluating insurance products

Posted under IC 14 Regulations of Insurance Business

Answer: (b).Customers lack the expertise to comprehend policy conditions Explanation:It is difficult for customers to evaluate an insurance policy at the time of purchasing insurance because many policy conditions are not comprehensible to the common man, and they lack the expertise to understand them.

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Q. Why is it difficult for customers to evaluate an insurance policy at the time of purchasing insurance?
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