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