Answer-What is the purpose of a declaration policy?

A declaration policy allows the insured to periodically declare the value of their property, which fluctuates over time. This is common for businesses with inventory that changes frequently. Certainly, lets continue with the MCQs, adding the missing option E. None of the above where applicable and providing explanations for the correct answers

Question

What is the purpose of a declaration policy?

A To cover property at multiple locations

B To cover property with fluctuating values

C To cover property with a high risk of loss

D To cover property with a low insured value

E None of the above

Practice Next

More Insurance Awareness Questions

The size of the order for which both ordering and carrying cost are at minimum is known as:
What does the principle of sustainability in business ethics emphasize?
Based on the following information- calculate the initial investment in the project.

Cost of machine = Rs. 54,00,000

Installation charges ...
Disinvestment is :

Akash Ltd sells 3 products X, Y and Z. The following information was available at the year end :

In a negatively skewed distribution

Which among the following are perpetual instruments with a contingent conversion feature in case of crisis?

What is the key purpose of the new Multidimensional Vulnerability Index (MVI) launched by the UN?

Depreciation is charged on __________ as per the ___________ of accounting.

The current PCA Framework was revised in which year?

What is the purpose of a declaration policy?

Solution