ISR3702 Assignment 2 (DETAILED ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED

ISR3702 Assignment 2 (DETAILED ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references ..Question 1 (46 marks) Latu Life Insurance Company provides financial services in the Republic of South Africa. In January 2024 the company received the following applications: 1.1 Indicate an appropriate life policy or policies for each application and substantiate your answer. (22) 1.2 Classify each of the applications into an underwriting class and substantiate your answer. (22) 1.3 Name one variable that is missing from the applications but that could be used to answer question 1.2 above. (2) No. Name Age Gender Occupation Medical condition Net worth Number of dependants 1 Presh 24 Female Construction worker Not stipulated (R560 000) 2 2 Premita 36 Male Lawyer Not stipulated (R330 000) 1 3 Kgabu 48 Male Medical doctor Heart attack R1 million 0 4 Tshivhase 56 Male Teacher Diabetes R203 000 0 5 Malerato 27 Female Judge Epilepsy R402 000 3 6 Grace 33 Female Self-employed Not stipulated R809 000 2 ISR3702 Page 2 of 2 Question 2 (24 marks) In the State of the Nation Address, the President of South Africa informed the country that the National Health Insurance (NHI) programme will be implemented. 2.1 Explain the purpose of the NHI programme. (4) 2.2 Describe any two perils covered by NHI (4) 2.3 Describe two advantages of the programme. (6) 2.4 Describe two disadvantages of the programme. (6) 2.5 Explain what form of insurance the NHI programme will be. (4)