n NISM Certifications
NSM General NISM
Medium

What is the difference between insurance and assurance?

Practice question from IC 38 Mock Test 18 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Insurance provides financial coverage for extended periods or until death, while assurance is used for most general insurance contracts

    Correct answer

  2. B

    Assurance is used for general insurance, while insurance refers to coverage until death

  3. C

    Both terms are interchangeable

  4. D

    Insurance is only for life insurance; assurance is for others

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

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