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WAEC Commerce 2016 Question 22

Question 22

Insurance

The worth of a life assurance policy before its maturity date is

  1. A.residual value.
  2. B.surrender value.
  3. C.accrued value.
  4. D.assured value.
Show the answer and explanation

Answer: B (surrender value.)

Explanation

The surrender value is what the insurer pays if the policy is cashed in before it matures.