WAEC Commerce 2013 Objective — Question 19
Question 19 of 50 from the West African Examinations Council (WAEC) Commerce 2013 Objective paper, with the correct answer and a full explanation.
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Mr. Biu has been paying the premium of a straight Life Assurance policy for several years. The surrender value of the policy is the amount that
- A. would be paid to Mr. Biu if he should discontinue with the policyCorrect
- B. would be paid to Mr. Biu's beneficiaries if he dies
- C. is paid annually to Mr. Biu to the insurance company
- D. amount Mr. Biu has paid plus interest
Explanation
Cash surrender value or surrender value is the cash amount offered to the policyholder by the issuing life carrier upon cancellation of the contract.
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