Which of the following statements is true?

A. Life insurance policies are contracts of indemnity, while general insurance policies are contracts of assurance

B. Life insurance policies are contracts of assurance, while general insurance policies are contracts of indemnity

C. In case of general insurance, the risk event protected against is certain

D. The certainty of risk event in case of general insurance increases with time

Answer: Option B

Solution(By Examveda Team)

Life insurance policies are contracts of assurance, while general insurance policies are contracts of indemnity.