Gce Model Questions Vol1 2021 Commerce Question 23
Practice objective / multiple choice question 23 from the 2021 Gce Model Questions Vol1 Commerce examination.
An insurer offers a health insurance policy with a sum assured of \(\text{₦}200{,}000\). Historical data indicate that the probability of a claim in a year is \(0.04\) and that the average claim amount when a claim occurs is \(\text{₦}150{,}000\). The insurer wants to set a premium that covers the expected loss plus a loading of \(20\%\) for administrative expenses and profit. After calculating this premium, a government levy of \(5\%\) is applied and a \(10\%\) early‑payment discount is offered. What is the final annual premium payable (rounded to the nearest naira)?
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About This Question
This is Gce Model Questions Vol1 2021 Commerce Question 23. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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