To determine the answer to this question, we need to understand the context provided by the insurance policy regulations concerning claims made during the grace period.
In general, during the grace period, an insurer allows the policyholder extra time to make premium payments without losing coverage. However, if a claim is made during this period and the premium is overdue, the insurer is permitted to deduct the overdue premium from the claim amount. Additionally, the insurer can charge interest on the overdue premium.
Now, we need to identify the maximum allowed interest rate from the given options. This information is typically governed by regulatory standards or specific policy terms set by the insurer and may vary based on jurisdiction or company policy. However, according to standard practice and regulatory norms, the most commonly accepted maximum interest rate charged on overdue premiums in many jurisdictions is 6%.
Therefore, based on the provided options, the correct answer is:
C. 6%
