WAEC Commerce 1994 Question 76

Question 76

Insurance

An actuary is the expert who

  1. A.assesses the extent of risk sustained by an insured
  2. B.calculates the premium payable for an insurance policy
  3. C.brings clients to an insurance company for a commission
  4. D.undertakes to cover a risk or part of it
  5. E.writes up insurance cover notes for the insured.
Show the answer and explanation

Answer: B (calculates the premium payable for an insurance policy)

Explanation

Actuaries use statistics to calculate risks and premiums.