Macedon Insurance Ltd is a public limited company that specialises in insurance for home owners. The extract below gives details of its house and contents insurance policy.
MACEDON INSURANCE LTD
HOUSE AND CONTENTS INSURANCE POLICY
The main risks covered are fire, theft, earthquake, storm,
flood, oil leakage, burst water pipes and malicious damage.
PLUS indemnity up to $2m for liability to members of the
public for accidents.
The main risks not covered are:
1. The first $200 of any loss.
2. Damage or theft caused by war or riot.
Premium $10 for each $5000 of cover required.
Failure to tell the truth puts your claims at risk.
Fig. 3
Use Fig. 3 to help you to answer the following questions.

Q: What topic does this question test?

This question tests Insurance in O-Level Commerce (syllabus code 7100). It is worth 20 marks.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Commerce May/June 2010 examination, Paper 2 Variant 1 (7100_s10_qp_21.pdf).

Question

Macedon Insurance Ltd is a public limited company that specialises in insurance for home owners. The extract below gives details of its house and contents insurance policy.
MACEDON INSURANCE LTD
HOUSE AND CONTENTS INSURANCE POLICY
The main risks covered are fire, theft, earthquake, storm,
flood, oil leakage, burst water pipes and malicious damage.
PLUS indemnity up to $2m for liability to members of the
public for accidents.
The main risks not covered are:
1. The first $200 of any loss.
2. Damage or theft caused by war or riot.
Premium $10 for each $5000 of cover required.
Failure to tell the truth puts your claims at risk.
Fig. 3
Use Fig. 3 to help you to answer the following questions.

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