n NISM Certifications
NSM General NISM
Medium

When an insurer cancels a policy, what proportion of the premium is charged/retained?

Practice question from IC 38 Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Proportion corresponding to the unexpired insurance period

  2. Proportion corresponding to the expired insurance period

    Correct answer

  3. C

    The entire premium

  4. D

    No premium is charged/retained

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.