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