n NISM Certifications
NSM General NISM
Medium

Why is advance premium payment significant?

Practice question from IC 38 Mock Test 10 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Ensures insured is protected

  2. Allows insurer to earn interest on the premium

    Correct answer

  3. C

    Reduces risk of fraud/non-payment

  4. D

    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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