[amp_mcq option1=”Bonus is not allowed on surrender of a policy” option2=”In compound reversionary bonus it is a percentage of basic benefit and already attached bonus” option3=”Terminal bonus and compound bonus are one and the same” option4=”Persistence bonus is allowed by the insurer at its discretion in certain cases” correct=”option4″]<\/p>\n
The correct answer is: D. Persistence bonus is allowed by the insurer at its discretion in certain cases<\/strong>.<\/p>\n A bonus is a payment made by an insurance company to a policyholder in addition to the basic benefit of the policy. Bonuses are typically paid out annually, and they can be either guaranteed or non-guaranteed. Guaranteed bonuses are paid out regardless of the performance of the insurance company’s investments, while non-guaranteed bonuses are paid out only if the insurance company’s investments perform well.<\/p>\n Persistence bonuses are a type of non-guaranteed bonus that is paid to policyholders who have maintained their policy for a certain number of years. The amount of the persistence bonus is typically based on the policyholder’s age, the type of policy they have, and the length of time they have had the policy.<\/p>\n Persistence bonuses are allowed by the insurer at its discretion in certain cases. For example, an insurer may offer a persistence bonus to policyholders who have been with the company for a long time or who have a high-value policy. The insurer may also offer a persistence bonus to policyholders who renew their policy at a higher level of coverage.<\/p>\n The other options are incorrect because:<\/p>\n [amp_mcq option1=”Bonus is not allowed on surrender of a policy” option2=”In compound reversionary bonus it is a percentage of basic benefit and already attached bonus” option3=”Terminal bonus and compound bonus are one and the same” option4=”Persistence bonus is allowed by the insurer at its discretion in certain cases” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32412","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n\n