n NISM Certifications
NSM General NISM
Medium

How is present value of liabilities determined in life insurance?

Practice question from IC 38 Mock Test 11 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Subtract future premiums from payments

  2. Apply discount rate to future payments

    Correct answer

  3. C

    Divide future payments by interest rate

  4. D

    Add future payments and premiums

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.