Question

When is the claw-back of commission imposed?

a.

When the agent is not able to sell the insurance policy

b.

When the agent demands more commission

c.

When the policy which the agent has sold, is withdrawn and the contract is cancelled

d.

Whenever the insurer wishes to do so, even without any reason

Answer: (c).When the policy which the agent has sold, is withdrawn and the contract is cancelled Explanation:The claw-back commission is imposed, which involves imposing financial penalty on agent. This is done when the policy which the agent has sold, is withdrawn and the contract is cancelled.

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Q. When is the claw-back of commission imposed?

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