📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • Question

      An insurance company issues a one-year policy for

      ₹1,00,000 sum assured. Expected mortality rate = 0.001, expenses ₹50 per policy, risk-free discount rate = 5%. Compute Net Premium ignoring profit loading.
      A ₹140 Correct Answer Incorrect Answer
      B ₹100 Correct Answer Incorrect Answer
      C ₹145 Correct Answer Incorrect Answer
      D ₹150 Correct Answer Incorrect Answer
      E ₹95 Correct Answer Incorrect Answer

      Solution

      Expected death benefit = ₹1,00,000 × 0.001 = ₹100 PV of benefit = ₹100 ÷ (1.05) ≈ ₹95.24 Add expenses = ₹50 Total premium ≈ ₹145

      Practice Next
      ask-question