Question

What is the primary purpose of a policy bond?

a.

To provide legal protection to the insurance company

b.

To outline the terms and conditions of the insurance contract

c.

To specify the premium payment schedule

d.

To determine the coverage limits of the policy

Answer: (b).To outline the terms and conditions of the insurance contract Explanation:A policy bond is a legal document that sets out the terms and conditions of the insurance contract.

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Q. What is the primary purpose of a policy bond?

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