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
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.
A: A promise by the insurer that cover will continue as long as the premium is paid by the insured B: A promise by the insured that the items of value will be stored in a locked safe overnight
D: A fiduciary is a person who occupies a position of trust and is required to act for the latter’s benefit.
What is normally third party liability property damage limit in respect of a commercial motor policy?
A: Between £20m and £50m B: Between £1m and £5m C: Between £10m and £15m D: Unlimited