◈ Oracle PrepSign Up Free
O-LevelCommerceInsurance7100/12 · Oct/Nov 2024 · Q271 Mark

An insurance company has estimated that 5000 people will purchase fire insurance. The company forecasts 100 claims totalling $720000 in the next year. What is the average premium that this insurance company will charge for the 5000 people?

A$50
B$144
C$720
D$7200

✓ Correct answer

B: $144

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Insurance and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, Oct/Nov 2024 Paper 1 Variant 2, question 27.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Commerce questions

InsuranceMay/June 20171m

What is a personal insurance risk?

InsuranceMay/June 20171m

Which principle of insurance prevents someone from insuring his neighbour's premises?

InsuranceMay/June 20171m

Insurance premiums are fixed according to the

ProductionMay/June 20161m

The table shows how a country's labour force is distributed between various industries. industry: agriculture, % of l…

Retail tradeMay/June 20161m

Why are there more new businesses in retailing than in manufacturing?

Retail tradeMay/June 20161m

Which retail outlet is usually in a city centre and offers a wide range of goods in luxury surroundings?

← Browse all past-paper questions

© 2026 Oracle Prep