Question

How do funds flow in the principle of mutuality?

a.

From one source to many destinations

b.

From many sources to one

c.

From one source to one destination

d.

Funds do not flow in the principle of mutuality

Answer: (b).From many sources to one Explanation:In the principle of mutuality, funds flow from many sources to one.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How do funds flow in the principle of mutuality?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What creates a potential corpus of money in insurance contracts?

Q. What makes insurance unique among financial products?

Q. What is "risk avoidance" in the context of risk management?

Q. What is "self-insurance" in risk management?

Q. Which risk management approach is described as more practical and relevant than risk avoidance?

Q. What does "risk reduction and control" involve?

Q. What are measures aimed at reducing the chance of occurrence of loss causing events called?

Q. What are measures to reduce the degree of loss, in case a loss happens, referred to as?

Q. What does "Risk reduction" involve?

Q. Which of the following is an example of risk reduction?

Q. What does "Risk financing" refer to?

Q. What is "self-insurance" in risk financing?

Q. What is the key difference between insurance and assurance?

Q. What is the distinguishing feature of "Assurance" in the context of life insurance?

Q. Why is the term "Assurance" used in the case of life insurance?

Q. In most markets, including India, how are the terms "Insurance" and "Assurance" commonly used?

Q. Which among the following is a method of risk transfer?

Q. What does the term 'Risk' refer to in the context of insurance?

Q. What factors determine the cost of an expected loss in insurance?

Q. How does the cost of risk vary based on probability and severity?

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!