A disability policy is issued and premiums are paid on an annual basis on the 1st of January. At the first anniversary, the insured decides they do not want to renew the policy and they do not pay the premium. On the 8th day after the premium due date, the insured submits a claim for medical expenses. How will the company respond to the claim ?

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A disability policy is issued and premiums are paid on an annual basis on the 1st of January. At the first anniversary, the insured decides they do not want to renew the policy and they do not pay the premium. On the 8th day after the premium due date, the insured submits a claim for medical expenses. How will the company respond to the claim ?

A.It will not be paid because the policy expired on the anniversary date.

B.It will be paid because the insured did not request a formal cancellation

C.It will be paid because the loss was not reported within the grace period.

D.It will be paid because the loss occurred within the grace period.

Answer: D.It will be paid because the loss occurred within the grace period.

The above question A disability policy is issued and premiums are paid on an annual basis on the 1st of January. At the first anniversary, the insured decides they do not want to renew the policy and they do not pay the premium. On the 8th day after the premium due date, the insured submits a claim for medical expenses. How will the company respond to the claim ?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.