Neco Model Questions Vol1 2024 Commerce Question 39
Practice objective / multiple choice question 39 from the 2024 Neco Model Questions Vol1 Commerce examination.
An individual purchases a motor‑insurance policy with a sum assured of ₦(2,000,000). The premium rate is (2.5\%\) of the sum assured, payable annually. The policy includes a no‑claim bonus (NCB) of (10\%\) on the premium for each claim‑free year, up to a maximum of (30\%\) reduction. After three consecutive claim‑free years, the individual increases the sum assured to ₦(2,500,000) effective from the next policy year. What will be the new annual premium after applying the NCB?
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About This Question
This is Neco Model Questions Vol1 2024 Commerce Question 39. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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