Under the Consumer Protection Code, a life assurance company may charge a fee for an optional extra benefit under a new policy only if the consumer has:

• A. Has confirmed that he or she wishes to purchase that optional benefit.
• B. Does not positively object to paying for that benefit.
• C. Is an existing client of the life assurance company.
• D. Is a company or an individual acting in the course of their business.

Answer: (D)

The tested idea is that the Consumer Protection Code allows a life assurance company to charge a fee for an optional extra only when the consumer is participating in the transaction in a business capacity. In other words, fees for add-ons are permitted for buyers who are a company or an individual acting in the course of their business, not for private consumers buying personally.

This distinction protects private consumers from surprise extra charges on optional features, while recognizing that business buyers are in a different, more sophisticated commercial context where such charges can be negotiated and disclosed clearly. So the correct condition is that the consumer is a company or an individual acting in the course of their business.

The other scenarios—consent to purchase the extra, not objecting to paying, or being an existing client—do not by themselves establish the required business status. They don’t meet the regulatory trigger that justifies charging for the optional benefit.