Gce Model Questions Vol1 2017 Commerce Question 10

Practice essay / theory question 10 from the 2017 Gce Model Questions Vol1 Commerce examination. This question covers Insurance .

Gce Model Questions Vol1 2017 Commerce Essay / Theory

Topic: Insurance

Question 10 GCE_MODEL_QUESTIONS_VOL1 • 2017 • COMMERCE • essay

An insurance company provides motor insurance for private cars. The actuary has estimated the following for a particular class of drivers:

Question Parts

( a )

If the average annual claim cost for a driver in this class is ₦120,000 and the probability of a claim in a year is 0.15, calculate the pure premium per driver.

( b )

The insurer adds a loading of 25 % for administrative expenses and then a profit margin of 10 % of the loaded premium. Determine the final annual premium payable by the driver.

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About This Question

This is Gce Model Questions Vol1 2017 Commerce Question 10. It is one of the essay questions from the 2017 Gce Model Questions Vol1 Commerce examination.

The question covers Insurance .

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