Question

19. The term "Assurance" refers to
(A) Life Insurance business
(B) Fire insurance business
(C) Motor Vehicle insurance
(D) Marine insurance
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Answer 1

Answer:

(A) i thinkk so ..

i think its not perfect think soo..

Answer 2

Answer:

The correct option is A i.e., Life Insurance business

Explanation:

Assurance refers to a contract in which the sum assured is bound to be sooner or later. In contract of assurance the sum assured is bound to be paid whether insured suffer a loss or not. In assurance, assurer assure about the compensation is paid whether the event happens or not.

The contract  of life insurance is a contract of assurance because in this contract the insurer is bound to pay the compensation either at the death of the insured or on expiry of time period of policy whichever comes earlier. In  Insurance  risk is uncertain whereas in assurance, the risk is certain as a person has to die sooner or later. In insurance where compensation is guaranteed to be paid only on happening of an event whereas in Assurance the payment of compensation is certain whether the event happens or not.

So, the term Assurance refers to Life Insurance business

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