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WAEC Commerce 1996 Question 75

Question 75

Insurance

The sum of money the assurer is prepared to pay the assured in total discharge of a contract before its maturity is

  1. A.dividend
  2. B.premium
  3. C.annuity
  4. D.surrender value
  5. E.interest
Show the answer and explanation

Answer: D (surrender value)

Explanation

The surrender value is paid when a life policy is cancelled before it matures.