Vidyalelo
Commerce · Q181

Insurance

Graduate and Post Graduate · Commerce · question 181

Q181

An alternative to bonus method of distribution of surplus is

A.
Lapsation method
B.
Contribution method
Answer
C.
Accumulation method
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
An alternative to bonus method of distribution of surplus is Contribution method. Contribution method is a method of apportioning loss among multiple insurers.