PAPER 2 1. The table shows the annual premium rates per RMI 000 face value of a yearly renewable life insurance offered by an insurance . Sale (RMA — company. | 248 | 322 [170 me | (a) Based on the table, state one advantage of renewable insurance. (b) (i) Encik Amirul is a 40-year-old smoker. He has bought a renewable life insurance policy worth RM200 000. Calculate Encik Amirul’s annual premium. (ii) Mr Chong is also a 40-year-old smoker. Mr Chong’s annual premium is different from Encik Amirul’. State one possible reason. [4 marks] _2. An insurance company offers fire insurance with a deductible of RMx #0) and a co-insurance provision to insure 70% of the insurable value. The insurable values of houses P, Q and R in a residential area are the same. The residential area caught on fire. The table shows the insured values and the losses suffered by the three houses. nd Amount of RM300 000 id house Q are The amounts of compensation for house P ani RM246 000 and RM346 000 respectively. (@) Calculate the deductible amount, the amount and the insurable value of each house. (b) Calculate the amount of compensation and co for house R. [8 marks] t of required insurance -insurance penalty