Indexing a Sum Insured for Life Cover Typically

question 23

Multiple Choice

Indexing a sum insured for life cover typically:

• A) is automatic and does not require a medical examination.
• B) will cease if the insured declines the indexation increase 5 times in succession.
• C) will cease if the insured declines the indexation increase 6 times in succession.
• D) both a and c

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Definitions:

Capacity Swaps

Capacity swaps involve the exchange of production capacity or output between companies, usually to meet demand or manage surplus without the exchange of monetary payment.

Telecommunications Companies

Businesses that provide services in communication over long distances through phones, internet, cable, and other technologies.

Prematurely Recognize

Recording revenue or expenses in financial statements before the criteria for such recognition are fully met.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used internationally.