Question

State the following statement is True or False:
Fire Insurance has a surrender value.

A

True

B

False

Easy
Solution
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Correct option is B)

Fire insurance is a part of general insurance. A fire insurance is a contract to indemnify the loss due to fire to any property that is insured. It is taken for a period of one year and is only for the purpose of covering the risk. There is no element of investment in the policy of fire insurance. Thus, it has no surrender or paid up value at the end of the life of the policy.

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