Neco Model Questions Vol1 2025 Commerce Question 47
Practice objective / multiple choice question 47 from the 2025 Neco Model Questions Vol1 Commerce examination.
An insurance company offers fire insurance for a warehouse valued at ₦12,000,000. The basic premium rate is (0.25\%\) of the sum insured, and a loading of 15 % is added to cover administrative expenses. The policy includes a deductible of ₦150,000 per claim and a co‑insurance clause where the insured pays 20 % of any loss exceeding the deductible. If a fire results in a loss assessed at ₦2,800,000, how much will the insurer pay?
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About This Question
This is Neco Model Questions Vol1 2025 Commerce Question 47. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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