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Commerce · Q133

Insurance

Graduate and Post Graduate · Commerce · question 133

Q133

The dividends declared under contribution method can be

A.
Paid by cash or by reducing future premiums
B.
Allowed to purchase non-forfeitable paid up additions
C.
Accumulated with interest to be withdrawn at the option of the policy holder
D.
None of the three
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The dividends declared under contribution method cannot be any of the above.