Waec Model Questions Vol1 2017 Commerce Question 38
Practice objective / multiple choice question 38 from the 2017 Waec Model Questions Vol1 Commerce examination.
An insurer classifies drivers into three risk categories with the following annual premiums: Low risk - ₦12,000; Medium risk - ₦15,000; High risk - ₦20,000. A driver was low risk for two consecutive years, then medium risk for one year, and high risk for the fourth year. The insurer offers a no‑claim discount of 5% for each consecutive claim‑free year, up to a maximum of 20%, applied to the premium of the following year. The driver had no claims in the first three years. In addition, a surcharge of 8% is added to the premium of any year the driver is in the high‑risk category, before any discount for the next year. What premium must the driver pay in the fifth year when he returns to low risk?
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About This Question
This is Waec Model Questions Vol1 2017 Commerce Question 38. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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