n NISM Certifications
NSM General NISM
Medium

What is a grace period in insurance?

Practice question from IC 38 Mock Test 14 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The period of time following the premium due date during which a payment can be made to renew or continue a policy without loss of continuity benefits

    Correct answer

  2. B

    The period of time during which an insurer can assume risk

  3. C

    The period of time after which a policy cannot be renewed

  4. D

    The period of time during which claims will not be considered

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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