Question

How does zone-wise premium affect insurance policies?

a.

It increases the age of the insured person

b.

It depends on the sum insured selected

c.

It assigns higher premiums to certain geographic areas with higher claims costs

d.

It provides standard premium rates across all zones

Answer: (c).It assigns higher premiums to certain geographic areas with higher claims costs Explanation:Zone-wise premium assigns higher premiums to certain geographic areas with higher claims costs, such as metropolitan cities, as compared to other zones.

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Q. How does zone-wise premium affect insurance policies?

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