Insurance Basics Quiz
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Questions and Answers

Which option describes a feature allowing late payment of an insurance premium without penalty?

  • Grace period (correct)
  • Amendment period
  • Lapse contract
  • Coverage extension
  • What is typically the consequence if an insurance premium is paid after the grace period?

  • Immediate reinstatement of policy
  • Increased premiums on policy renewal
  • Coverage continues as normal
  • Policy may lapse (correct)
  • What term refers to the cost of an insurance policy paid regularly?

  • Claim amount
  • Premium (correct)
  • Deductible
  • Coverage cost
  • What happens if payments are consistently made after the due date without any grace period?

    <p>Policy may be voided</p> Signup and view all the answers

    Which option is NOT related to the payment of insurance premiums?

    <p>Policy limit</p> Signup and view all the answers

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