Q. What happens once a bonus is declared by an insurer in a with-profit contract?

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Q. What is the purpose of smoothing in with-profit policies?

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Q. What is a reversionary bonus in with-profit policies?

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Q. When is the terminal bonus payable in with-profit policies?

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Q. How does an insurance company decide the mix of bonuses to pay in with-profit policies?

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Q. What is the purpose of offering low annual bonuses and a high terminal bonus in some with-profit policies?

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Q. What is the primary purpose of offering profits, bonuses, or dividends in insurance contracts?

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Q. What is the main difference between participating and non-participating insurance policies?

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Q. What are 'bonuses' or 'dividends' in insurance contracts?

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Q. Which statement about bonuses in insurance contracts is true?

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Q. What is the purpose of the terminal bonus in insurance contracts?

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Q. Which method of bonus calculation is based on a fixed percentage of the sum assured or premiums?

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Q. How is compound bonus calculated?

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Q. What distinguishes cash bonus from other methods of bonus payment?

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Q. What is the key characteristic of paid-up additions as a method of bonus payment?

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Q. What distinguishes the discount in premium method from the cash bonus method?

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Q. What is the key characteristic of future bonuses in insurance contracts?

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Q. What is the primary purpose of participating contracts in insurance?

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Q. How are future bonuses typically related to the current year's bonus?

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Q. What is the main difference between participating and non-participating insurance contracts in terms of premiums?

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