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    Question

    In Life Insurance, the surplus as per Valuation Balance

    Sheet is ₹20 crore. 95% is to be allocated to policyholders and 5% to shareholders. If policy bonus is declared in the form of reversionary bonus, how much is allocated to shareholders?
    A ₹1 crore Correct Answer Incorrect Answer
    B ₹2 crore Correct Answer Incorrect Answer
    C ₹4 crore Correct Answer Incorrect Answer
    D ₹0.95 crore Correct Answer Incorrect Answer
    E ₹1.5 crore Correct Answer Incorrect Answer

    Solution

    Shareholders’ share = 5% of 20 crore = 1 crore.

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