fund Life & Health Insurance

Decide whether each question is true or false.

1. The three factor contribution formula consists with three sources including gains from investment earning, gains from mortality and gains from underwriting.

2. Under the reinstatement clause, policyholder has the right to reinstate a lapsed policy under certain conditions.

3. According to the contribution principle, divisible surplus should be distributed to policies in the same proportions as the policies are considered to have contributed to the surplus.