n NISM Certifications
X NISM Series X
Medium

In which type of insurance plan are the actual losses incurred by the insured not necessarily ascertainable?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Indemnity

  2. Defined benefit

    Correct answer

  3. C

    Money back

  4. D

    Life insurance

Why this is the answer

Defined benefit plans pay a fixed sum based on pre-estimated losses or benefits, such as life insurance, where the payout is predetermined and not linked to actual incurred losses.

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