Vidyalelo
Commerce · Q751

Insurance

Graduate and Post Graduate · Commerce · question 751

Q751

Which of the new guidelines for traditional products is not true?

A.
For participating policies, bonus is linked to performance of the fund
B.
Bonus once announced becomes a guarantee
C.
Such a bonus is called Terminal Bonus
Answer
D.
For Non-par policies, returns are disclosed at the beginning of the policy

Answer: Option C

Solution

Answer: Option C
Solution:
For participating policies, bonus is linked to performance of the fund. Bonus once announced becomes a guarantee. Such a bonus is called Simple Reversionary Bonus.