A five-year endowment policy matured on 1 August 2017 with a maturity value of £40,000. The policy had been taken out with a single premium of £30,000. What is the amount of the top-sliced gain?
A – £10,000
B - £40,000
C – £8,000
D – £2,000
D: The chargeable gain is £10,000 being the maturity value of £40,000 less the single premium of £30,000. The top sliced gain is £10,000/5 years = £2,000.
A: The insured B: The insurer C: The broker (acting on behalf of their client) D: The loss adjuster
A: Reinstatement B: New for old C: Indemnity D: Replacement
a: Because it allows them to commence a recovery action at an earlier stage b: Because it allows them to peruse a recovery in their own name