< Study Room | 08.03.2018

What are meant by “days of grace” in insurance terms?

What are meant by “days of grace” in insurance terms?

A - A specified ‘cooling-off’ period before the issue of cover during which the proposer can change their mind

B – A specified number of days into the next insurance period during which the insured can still renew the policy

C – An automatic extension of cover beyond the renewal date in case the insured forgets to renew the policy

D – An extension of cover under a motor policy to ensure that the policyholder is legally entitled to drive


Answer:

B: Days of grace are not an extension of cover, but rather a specified number of days (15 or 30 days) into the next period of insurance when the insured can still renew cover.

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