Question

What does the grace period in insurance policies typically refer to?

a.

A period during which the policyholder can backdate the policy

b.

A period allowing the policyholder to pay premiums late without penalties

c.

A period during which the policyholder can convert the policy into an annuity

d.

A period for free look cancellation of the policy

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).A period allowing the policyholder to pay premiums late without penalties Explanation:The grace period in insurance policies allows policyholders to pay premiums late without facing penalties, ensuring continuity of coverage.

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Q. What does the grace period in insurance policies typically refer to?
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