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GCE Commerce 1989 Question 18

Question 18

Insurance

The worth of a life assurance policy before maturity date is known as

  1. A.principal value
  2. B.surrender value
  3. C.accumulated value
  4. D.prepaid value
  5. E.accrued value
Show the answer and explanation

Answer: B (surrender value)

Explanation

Surrender value is what the insurer pays if the policyholder gives up the policy before it matures.