Q838
The surplus in an insurance company is a function of –
A.
How Asset is valued
B.
How liability is valued
C.
How Assets & Liabilities are valued
AnswerD.
None of the above
Answer: Option C
Solution
Answer: Option C
Solution:
The surplus in an insurance company is a function of how Assets & Liabilities are valued. Surplus is also known as net worth or the difference between the market value of assets and the present value of the liabilities and their relationship.