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Question

In life insurance, the risk insured is __________________.
  1. certain to occur and also the timing of its occurrence is known
  2. certain to occur but its timing of occurrence is not known
  3. not certain to occur and also the timing of its occurrence is not known
  4. not likely to occur

A
not likely to occur
B
certain to occur and also the timing of its occurrence is known
C
certain to occur but its timing of occurrence is not known
D
not certain to occur and also the timing of its occurrence is not known
Solution
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Life insurance are taken to cover up the unforeseen and untimely event occurs during the life time. Life insurance companies provide the coverage of life of the insurer by taking an insurance premium. Life cover are taken to have future security in case of untimely and unforeseen circumstances.

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