Question

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

a.

Additional premiums paid by policyholders

b.

Fixed sums deducted from the sum assured

c.

Additional benefits provided to policyholders based on the insurer's profits

d.

Extra charges for policy administration

Answer: (c).Additional benefits provided to policyholders based on the insurer's profits Explanation:Bonuses or dividends in insurance contracts are additional benefits provided to policyholders based on the profits earned by the insurer, usually expressed as a percentage of the sum assured.

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

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