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Which of the below statement is correct with regards to a policy returned by a policyholder during the free look period?
- AThe insurance company will refund 100% of the premium
- BThe insurance company will refund 50% of the premium
- CThe insurance company will refund the premium after adjusting for proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges
- DThe insurance company will forfeit the entire premium
Correct answer: C