NAME INSURED AMOUNT(N) ACTUAL VALUE(N) ACTUAL LOSS(N) Mr. P Mr. K Mr. R 25,000 30,000 40,000 100,000 120,000 150,000 30,000 40,000 50,000 Use the table abov...

Assessment: JAMB UTME - Commerce - 2021 Subject: Commerce

Question 1 Report

NAME	INSURED AMOUNT(N)	ACTUAL VALUE(N)	ACTUAL LOSS(N)
Mr. P Mr. K Mr. R	25,000 30,000 40,000	100,000 120,000 150,000	30,000 40,000 50,000

Use the table above to answer questions 27 and 28

If Mr. P takes a fire insurance policy with average clause, his compensation will be

N7,500

N5,000

N70,000

N75,000

Answer Details

Under an average clause in insurance, if the value of the insured property is less than the insured amount, the policyholder will only receive a proportional compensation based on the actual value of the property. For Mr. P, the insured amount is N25,000 and the actual value is N100,000. So, the compensation will be (N25,000 / N100,000) * N30,000 = N7,500.

View Answer

NAME INSURED AMOUNT(N) ACTUAL VALUE(N) ACTUAL LOSS(N) Mr. P Mr. K Mr. R 25,000 30,000 40,000 100,000 120,000 150,000 30,000 40,000 50,000 Use the table abov...

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