A. no legal liability obligation
B. legal liability obligation
C. need to refund a premium
D. delay in payment of compensation
Correct Answer: Option A
A. no legal liability obligation
Explanation
Ex gratia payment: A sum of money paid when there was no obligation or liability to pay it. For example, a lump sum payment over and above the pension benefits of a retiring employee. In insurance claims, it may take the form of payment for which the insurer did not appear to be liable.
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