# MISCELLANEOUS EXERCISE - 2 - State whether each of the following is True or False.

1. General insurance covers life, fire, and theft. **– False**

2. The amount of claim cannot exceed the amount of loss. **– True**

3. Accident insurance has a period of five years. **– False**

4 Premium is the amount paid to the insurance company every month. **– True**

5. Payment of every annuity is called an installment. **– False**

6. Annuity certain begins on a fixed date and ends when an event happens. **– True**

7. Annuity contingent begins and ends on certain fixed dates. **– False**

8. The present value of an annuity is the sum of the present value of all installments. **– True**

9. The future value of an annuity is the accumulated values of all installments. **– False**

10. Sinking fund is set aside at the beginning of a business. **– True**