Waec Model Questions Vol1 2025 Commerce Question 42
Practice objective / multiple choice question 42 from the 2025 Waec Model Questions Vol1 Commerce examination.
An insurer offers a motor insurance policy. The pure premium (expected loss) is ₦45,000. Administrative loading is 15% of the pure premium. A government tax of 5% is applied on the sum of the pure premium and the loading. The insurer gives a 10% discount on the total premium (including tax) to customers who pay annually. A policyholder pays the discounted premium and later makes a claim of ₦70,000, which is fully covered. Determine the insurer's net profit or loss on this policy.
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About This Question
This is Waec Model Questions Vol1 2025 Commerce Question 42. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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