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    Question

    In a Life Insurance company, Premium earned during the

    year is ₹50 crore, Claims incurred ₹20 crore, Commission ₹5 crore, Operating Expenses ₹4 crore. Calculate Life Fund before valuation adjustment.
    A ₹21 crore Correct Answer Incorrect Answer
    B ₹25 crore Correct Answer Incorrect Answer
    C ₹30 crore Correct Answer Incorrect Answer
    D ₹35 crore Correct Answer Incorrect Answer
    E ₹40 crore Correct Answer Incorrect Answer

    Solution

    Life Fund = Premium – (Claims + Commission + Expenses) = 50 – (20+5+4) = 21.

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