Page 371 - IC38 GENERAL INSURANCE

against the insurers. They are also applicable when annual insurance is
cancelled by the insured.
6. Minimum premium
It is the practice to charge minimum premium under each policy so that
administrative expenses of issuing the policy are covered.
Test Yourself 3
What is expected of an agent when she detects a moral hazard?
I. Continue with the insurance as before
II. Report the same to the insurer
III. Ask for a share in the claims
IV. Turn a blind eye

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