ISR3702
EXAM PACK
Solutions, Explanations, workings, and references
+27 81 278 3372
, Page 1 of 9 ISR3702
Confidential May/June 2023
CONFIDENTIAL
ISR3702
May/June 2023
LIFE INSURANCE
STUDENT NUMBER
IDENTITY NUMBER
Marks
Question No Examiners
1 2 3
FOR USE BY EXAMINATION INVIGILATOR
1
2
3
………………………………………………………. 4
Subject
……………………………………………………….
Number of paper
……………………………………………………….
Date of examination
Total
, Page 2 of 9 ISR3702
Confidential May/June 2023
Total: 70 marks
Duration of examination: three hours
This examination question paper consists of nine (9) pages.
Instructions
1. Answer all the questions in section A and section B.
2. Round off the figures in instances where calculations are applicable to zero decimal.
3. The use of The Invigilator app is compulsory for ISR3702.
4. Please find the QR code for the app and the related instructions on the attached document
(refer the second attachment).
5. Examination rules posted on the module site apply.
, Page 3 of 9 ISR3702
Confidential May/June 2023
SECTION A
Use the following information to answer the questions in this section:
Applications
100 000 proposals were received.
Each proposal requires a sum assured of R25 000.
Underwriting
1 500 proposals were declined owing to incomplete information.
Additional information is required for 800 proposals before a final decision can be made.
1 700 policies were not taken up by proposers.
Underwriting expenses are estimated at R68 300.
Investment income is estimated at R33 100.
Claims
42 claims were received, of which 17 were declined during processing.
Actuarial
A mortality factor of 0,001 is applicable to these proposals.
Accounting (actual figures)
Interest income R68 660
Underwriting expenses R52 400
Reinsurance commission received R45 000
Question 1 [20 marks]
1.1 The estimated number of claims is … .
a. 100
b. 99
c. 98
d. 42
EXAM PACK
Solutions, Explanations, workings, and references
+27 81 278 3372
, Page 1 of 9 ISR3702
Confidential May/June 2023
CONFIDENTIAL
ISR3702
May/June 2023
LIFE INSURANCE
STUDENT NUMBER
IDENTITY NUMBER
Marks
Question No Examiners
1 2 3
FOR USE BY EXAMINATION INVIGILATOR
1
2
3
………………………………………………………. 4
Subject
……………………………………………………….
Number of paper
……………………………………………………….
Date of examination
Total
, Page 2 of 9 ISR3702
Confidential May/June 2023
Total: 70 marks
Duration of examination: three hours
This examination question paper consists of nine (9) pages.
Instructions
1. Answer all the questions in section A and section B.
2. Round off the figures in instances where calculations are applicable to zero decimal.
3. The use of The Invigilator app is compulsory for ISR3702.
4. Please find the QR code for the app and the related instructions on the attached document
(refer the second attachment).
5. Examination rules posted on the module site apply.
, Page 3 of 9 ISR3702
Confidential May/June 2023
SECTION A
Use the following information to answer the questions in this section:
Applications
100 000 proposals were received.
Each proposal requires a sum assured of R25 000.
Underwriting
1 500 proposals were declined owing to incomplete information.
Additional information is required for 800 proposals before a final decision can be made.
1 700 policies were not taken up by proposers.
Underwriting expenses are estimated at R68 300.
Investment income is estimated at R33 100.
Claims
42 claims were received, of which 17 were declined during processing.
Actuarial
A mortality factor of 0,001 is applicable to these proposals.
Accounting (actual figures)
Interest income R68 660
Underwriting expenses R52 400
Reinsurance commission received R45 000
Question 1 [20 marks]
1.1 The estimated number of claims is … .
a. 100
b. 99
c. 98
d. 42
