Final answer:
The characteristic that is incorrect for Home Service (Industrial) Insurance is that the settlement option is strictly a lump sum payment, as there can be other types of payouts; moreover, the Grace Period for these policies is usually longer than 10 days.
Step-by-step explanation:
All of the following are characteristics of Home Service (Industrial) Insurance, except:
- Industrial policies generally have a face amount of $1,000 or less
- A Debit Agent sells policies house-to-house
- The settlement option is a lump sum payment
- The Grace Period is 10 days
The incorrect statement among the options given is that 'The settlement option is a lump sum payment'. Home Service Insurance, also known as Industrial Life Insurance, is known for providing insurance with a face amount usually of $1,000 or less and it is indeed sold door-to-door by a Debit Agent. However, the settlement options can vary and are not strictly lump sum payments; they can also include other forms of payouts such as annuities or installment payments. Typically, these policies may have a longer Grace Period, often around 28 to 31 days, not 10 days as traditionally found in larger policies.