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.
D: A fiduciary is a person who occupies a position of trust and is required to act for the latter’s benefit.
C: The process by which criminals hide the true origin and ownership of money.
B: Facultative reinsurance. The market then developed into areas such as treaty reinsurance.