Question

What is the treatment of additional payments made on an ad hoc basis according to the regulations?

a.

They are considered as regular premiums

b.

They are treated as top-up premiums

c.

They are adjusted against future premiums

d.

They are refunded to the policyholder

Answer: (b).They are treated as top-up premiums Explanation:Additional payments made on an ad hoc basis are considered as top-up premiums and treated as single premium for the purpose of providing insurance cover according to the regulations.

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Q. What is the treatment of additional payments made on an ad hoc basis according to the regulations?

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