Vidyalelo
Commerce · Q773

Insurance

Graduate and Post Graduate · Commerce · question 773

Q773

In respect of Traditional plans, which of the following statement is correct?

A.
Policyholder’s bonus depend on periodic valuation of Assets & Liabilities
B.
Bonus did not directly reflect the value of assets of the insurer
C.
Both A & B
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Both the statements are correct in respect of traditional plans.
Policyholder’s bonus depend on periodic valuation of Assets & Liabilities and Bonus did not directly reflect the value of assets of the insurer.