Which of the following statements is incorrect?
A. Money laundering is an illegal practice of bringing money into nation's economy by hiding its source and the true identity of the person involved
B. Life Insurance Company will return the entire premium under free look provisions
C. Moral hazard is not easily assessable unlike physical risk of the proposer
D. Standard and non-standard age proofs are not mutually interchangeable
Answer: Option B
Solution(By Examveda Team)
A free look period is where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges.If you have bought a policy and realise you don't want it, you can return it and get a refund. There are conditions though.
This applies only to life insurance policies and to health insurance policy that are for a term of at least 3 years.
You can exercise this option within 15 days of receiving the policy document You have to communicate to the company in writing.
The premium refund will be adjusted for proportionate risk premium for the period on cover, expenses incurred by the insurer on medical examination and stamp duty charges.
Related Questions on Insurance
Join The Discussion