Neco Model Questions Vol1 2018 Commerce Question 4
Practice objective / multiple choice question 4 from the 2018 Neco Model Questions Vol1 Commerce examination.
An insurance company offers a policy with a sum assured of \(\text{₦}500,000\). The expected claim probability is \(0.02\). The company adds a loading of \(25\%\) on the pure premium and then a policy tax of \(5\%\) on the loaded premium. If the company wants a net profit margin of \(12\%\) on the total premium collected, what should be the gross premium charged per policy (in naira, to two decimal places)?
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About This Question
This is Neco Model Questions Vol1 2018 Commerce Question 4. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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