Neco Model Questions Vol1 2023 Commerce Question 45
Practice objective / multiple choice question 45 from the 2023 Neco Model Questions Vol1 Commerce examination.
An insurance company calculates the base premium for motor insurance as 5 % of the insured value of the vehicle. A loading factor of 1.2 is applied for drivers under 25 years old. A no‑claim discount (NCD) of 10 % per claim‑free year is given, cumulative up to a maximum of 30 % after three years. After the discount, a government tax of 5 % is added to the premium. A 23‑year‑old driver insures a vehicle valued at ₦2,500,000 and has two consecutive claim‑free years. Determine the annual premium the driver must pay.
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About This Question
This is Neco Model Questions Vol1 2023 Commerce Question 45. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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