Question

How is the premium charged in a Group (Term) Insurance Scheme?

a.

It remains constant throughout the term.

b.

It is not charged annually.

c.

It depends on the age distribution of the age group.

d.

It is charged only at the time of joining the group.

Posted under IC 89 Management Accounting

Answer: (c).It depends on the age distribution of the age group. Explanation:Group (Term) Insurance Scheme is usually offered under One Year Renewable Group term assurance plan, and every year on the Annual Renewal date, the insurer charges the premium depending upon the changes in size and age distribution of the age group.

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Q. How is the premium charged in a Group (Term) Insurance Scheme?
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