Neco Model Questions Vol1 2019 Commerce Question 26
Practice objective / multiple choice question 26 from the 2019 Neco Model Questions Vol1 Commerce examination.
An insurance company offers a motor insurance policy with a base premium of ₦120,000. For high‑risk drivers a loading factor of 15 % is applied, and a policy tax of 5 % is then added to the loaded premium. The policy includes a deductible of ₦20,000 and a co‑insurance clause where the insurer pays 80 % of any loss exceeding the deductible. If the policyholder suffers a total loss of ₦500,000, what is the insurer's net cash flow (premium received minus claim payment) for this policy?
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About This Question
This is Neco Model Questions Vol1 2019 Commerce Question 26. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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