Neco Model Questions Vol1 2020 Commerce Question 35
Practice objective / multiple choice question 35 from the 2020 Neco Model Questions Vol1 Commerce examination.
A term life insurance policy pays a death benefit of \(1000000\) Naira at the end of the year of death. For a 30‑year‑old male, the annual mortality rate is \(0.0012\). The insurer adds a loading of 15% to the pure premium and offers a 5% discount on the premium for policyholders who undergo a health check, which reduces the mortality rate by 20%. Compute the annual premium (in Naira) after the discount, rounding to the nearest Naira.
Answer Options
About This Question
This is Neco Model Questions Vol1 2020 Commerce Question 35. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.