Neco Model Questions Vol1 2025 Commerce Question 11
Practice objective / multiple choice question 11 from the 2025 Neco Model Questions Vol1 Commerce examination.
A life insurance company offers a term policy with a sum assured of \(\text{₦}500,000\). The expected claim cost is \(60\%\) of the sum assured. Administrative expenses are \(5\%\) of the premium actually received, and the insurer wants a profit margin of \(10\%\) of that premium. A risk loading of \(12\%\) is applied to the base premium, and a discount of \(7\%\) is offered to policyholders who pay annually. What should be the advertised premium (before the discount) in naira, rounded to the nearest naira?
Answer Options
About This Question
This is Neco Model Questions Vol1 2025 Commerce Question 11. It is one of the objective questions from the 2025 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.