These eight original questions follow the four lessons in insurance mathematics. They ramp in difficulty, and each answer shows the working.
Write your working first, then open the answer.
The questions
Question 1. A policy has a monthly premium of RM85. Find the premium paid in 3 years.
Answer
Per year: 85 × 12 = RM1 020. Over 3 years: 1 020 × 3 = RM3 060.
Question 2. A car repair costs RM5 800. The policy has a deductible of RM500. How much does the insurer pay?
Answer
The policyholder pays the deductible first: 5 800 − 500 = RM5 300. The insurer pays RM5 300.
Question 3. A hospital bill is RM6 000 with a deductible of RM800. The policyholder then pays 10% of the remaining bill. Find what the policyholder pays and what the insurer pays.
Answer
Remaining bill: 6 000 − 800 = RM5 200. The 10% share is RM520.
The policyholder pays 800 + 520 = RM1 320. The insurer pays 6 000 − 1 320 = RM4 680.
Question 4. Classify each as life or general insurance and give a reason.
(a) Pays RM150 000 if the insured dies.
(b) Pays the repair cost of a fire-damaged shop, up to RM60 000.
Answer
(a) Life: a fixed sum tied to a life event. (b) General: the payment depends on the loss, with a limit.
Question 5. A policy states: deductible RM1 000 first, then a limit of RM12 000. A loss of RM15 000 occurs. Find the insurer’s payment.
Answer
After the deductible: 15 000 − 1 000 = RM14 000. This is above the limit, so the insurer pays RM12 000.
Question 6. Property value RM250 000, co-insurance 80%, amount insured RM150 000, loss RM20 000. Use payment = (amount insured ÷ required amount) × loss. Find the payment.
Answer
Required amount: 80% × 250 000 = RM200 000. Payment: (150 000 ÷ 200 000) × 20 000 = 0.75 × 20 000 = RM15 000.
Question 7. Same property and co-insurance as Question 6, but the amount insured is RM210 000. Find the payment for the same loss of RM20 000 and explain.
Answer
The required amount is still RM200 000. The amount insured is above it, so the condition is met and the full loss of RM20 000 is paid.
Using the formula would give 1.05 × 20 000 = RM21 000, which is more than the loss and cannot be right.
Question 8. Property value RM400 000, co-insurance 70%, amount insured RM210 000, loss RM30 000. The proportion is applied first, then a deductible of RM1 500 is subtracted. Find the payment.
Answer
Required amount: 70% × 400 000 = RM280 000.
Proportion: 210 000 ÷ 280 000 = 0.75. Payment before deductible: 0.75 × 30 000 = RM22 500.
After the deductible: 22 500 − 1 500 = RM21 000.
If you got these wrong
Questions 1 to 3 test vocabulary and order, so read interpreting premium, deductible and co-insurance again. Question 5 belongs to calculating a claim using stated policy conditions.
Question 4 is covered in telling life from general insurance, and questions 6 to 8 in checking under-insurance calculations.
Log each slip in the mistake log tool, then build a timed round with the timed practice session builder. If the same slip returns, SPM Mathematics one-to-one tuition lets a teacher trace it on your own working.