Question

How does the concept of level premiums apply to general insurance policies?

a.

Level premiums are a common feature in general insurance policies.

b.

General insurance policies are typically long-term, so level premiums are necessary.

c.

Level premiums do not apply to general insurance policies as they are usually short-term.

d.

The concept of level premiums is the same for both general and life insurance policies.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).Level premiums do not apply to general insurance policies as they are usually short-term. Explanation:The concept of level premiums does not apply to general insurance policies as they are typically short-term and expire annually. Level premiums are a feature specific to long-term life insurance policies.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the concept of level premiums apply to general insurance policies?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What role does the Principle of Pooling play in life insurance?

View solution

Q. What is the purpose of the life insurance policy document?

View solution

Q. Why is life insurance often compared to financial products?

View solution

Q. What is one of the advantages of cash value life insurance contracts?

View solution

Q. What is one of the disadvantages of cash value life insurance contracts?

View solution

Q. The principle of risk pooling in life insurance primarily serves to:Which document serves as evidence of the life insurance contract and contains all the terms and conditions of the insurance?

View solution

Q. The principle of risk pooling in life insurance primarily serves to:

View solution

Q. What does the sum assured in a life insurance policy imply?

View solution

Q. What is one of the advantages of life insurance as a financial product?

View solution

Q. What is one of the disadvantages of life insurance as a financial product?

View solution

Q. In financial terms, what is an asset?

View solution

Q. What does the Human Life Value (HLV) concept measure?

View solution

Q. What is a characteristic of a level premium in a life insurance policy?

View solution

Q. How can mutuality help reduce risk in financial markets?

View solution

Q. What does the element of guarantee in a life insurance contract imply?

View solution

Q. How does diversification reduce risks in financial markets?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Environment Management

Master the art of Environment Management with our specialized category. Explore...