New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    _____ is the length of time after a premium is due and

    unpaid during which the policy, including all riders, remains in force.
    A Null Period Correct Answer Incorrect Answer
    B Grace Period Correct Answer Incorrect Answer
    C Void Period Correct Answer Incorrect Answer
    D Prompt Period Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A grace period is the provision in most loan and insurance contracts that allows payment to be received for a certain period of time after the actual due date. During this period, no late fees are charged, and the late payment does not result in default or cancellation of the loan. A typical grace period is 15 days.

    Practice Next