Q160
Reversionary bonus is declared as an amount
A.
Per thousand premium paid
B.
Per thousand surplus of the company
C.
Per hundred premium paid
D.
Per thousand sum insured
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Reversionary bonus is the bonus declared every year as a percentage of (Guaranteed Maturity Benefit/Sum Assured + Earlier Reversionary Bonuses). It is payable on the death of life assured or maturity of the policy.