Exam (elaborations)
ISR3702 EXAM PACK 2024
ISR3702 Latest exam pack questions and answers and summarized notes for exam preparation. Updated for 2024 exams . For assistance Whats-App.0.6.7..1.7.1..1.7.3.9 . All the best on your exams!!
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ISR3702EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, Page 1 of 8 ISR3702
Confidential May/June 2024
CONFIDENTIAL
ISR3702
MAY/JUNE 2024
LIFE INSURANCE
STUDENT NUMBER
IDENTITY NUMBER
Marks
Question No Examiners
1 2 3
FOR USE BY EXAMINATION INVIGILATOR 1
2
……………………………………………………….
Subject
……………………………………………………….
Number of paper
……………………………………………………….
Date of examination
This study source was downloaded by 100000861114578 from CourseHero.com on 10-15-2024 10:05:16 GMT -05:00
Total
https://www.coursehero.com/file/238553718/LIFE-INSURANCE-Underwriting-Premium-Analysis-ISR3702/
, Page 2 of 8 ISR3702
Confidential May/June 2024
May/June 2024
ISR3702
LIFE INSURANCE
Total: 70 marks
Duration of examination session: three hours
Instructions
1. Round off the figures in instances where calculations are applicable to a zero decimal.
2. The use of The Invigilator app is compulsory for ISR3702 examinations.
3. The QR code is provided in the separate enclosed document on this platform.
4. The examination rules enclosed in your examination timetable apply.
5. Answer all questions. Note that question 1 has 25 questions that count two marks each.
This study source was downloaded by 100000861114578 from CourseHero.com on 10-15-2024 10:05:16 GMT -05:00
https://www.coursehero.com/file/238553718/LIFE-INSURANCE-Underwriting-Premium-Analysis-ISR3702/
, Page 3 of 8 ISR3702
Confidential May/June 2024
Question 1 [50 marks]
Use the following information relating to the Taxi Association to answer the questions in this section:
Information about the insured
At its last board meeting, the Taxi Association added a requirement for operating in the industry. The
requirement is that every taxi owner must ensure it employs taxi drivers who have a death policy of at
least R20 000 sum assured. This decision was motivated by the fact that the board attended a risk
financing workshop where life insurance was discussed as part of risk financing. According to data
collected by the Taxi Association, a total of 100 000 applications from taxi drivers were submitted to the
Life Insurer. The board is currently investigating if the school-attending children of taxi drivers could be
insured for R15 000 sum assured. A maximum of ten children per driver will be insured by the Taxi
Association.
Information of the insured
The Life Insurer accepted all 100 000 applications from individual taxi drivers of the Taxi Association
without any proposed changes since all the required information was submitted. In addition, the Life
Insurer observed that 60% of the applications were received from female drivers who were 28 years of
age while the rest of the applications were received from male drivers who were 32 years of age.
The Life Insurer used the following information to underwrite the applications from individual taxi drivers:
(i) Underwriting
Applications received from male drivers were all substandard risks and subject to 3% premium loading.
Underwriting expenses were estimated at R88 900.
All the proposals were finalised within the standard turnaround times.
The applications were underwritten on an individual and not a group basis.
Interest income was estimated at R96 300.
(ii) Actuarial information
Age Male deaths per 1 000 persons Female deaths per 1 000 persons
28 2,11 1,32
29 2,24 1,69
30 2,55 1,73
31 2,68 1,82
32 2,89 1,93
This study source was downloaded by 100000861114578 from CourseHero.com on 10-15-2024 10:05:16 GMT -05:00
https://www.coursehero.com/file/238553718/LIFE-INSURANCE-Underwriting-Premium-Analysis-ISR3702/
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