n NISM Certifications
NSM General NISM
Medium

What is the significance of paying premiums in advance?

Practice question from IC 38 Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It ensures protection in case of loss

  2. It allows the insurer to earn interest on the premium amount

    Correct answer

  3. C

    It helps reduce risk of fraud and non-payment of premiums

  4. D

    It is a legal requirement for all insurance contracts

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

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