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A Life Insurance Company has 1500 policies averaging Rs.2000 on lives at age 30. From experience, it is found that out of 100,000 alive at age 30, 99,000 survive at age 31. What is the lower value of the amount that the company will have to pay in insurance during the year? a) Rs.6000 b) Rs.8000 c) Rs.8200 d) Rs.8500​?
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A Life Insurance Company has 1500 policies averaging Rs.2000 on lives ...
Calculation of Premium Income:
- Number of policies = 1500
- Average policy amount = Rs.2000
- Total premium income = 1500 x Rs.2000 = Rs. 30,00,000

Calculation of Number of Policies at Age 31:
- Number of people alive at age 30 = 100,000
- Number of people alive at age 31 = 99,000
- Percentage of people surviving = (99,000/100,000) x 100 = 99%
- Number of policies at age 31 = 1500 x 99/100 = 1485

Calculation of Expected Claims:
- Expected claims = Number of policies at age 31 x Average policy amount = 1485 x Rs.2000 = Rs. 29,70,000

Answer:
The lower value of the amount that the company will have to pay in insurance during the year is Rs. 29,70,000. Therefore, option (a) Rs.6000, option (b) Rs.8000, and option (d) Rs.8500 are incorrect, and the correct option is (c) Rs.8200.

Explanation:
The question requires us to calculate the expected claims that the company will have to pay in insurance during the year. To calculate this, we first need to determine the number of policies at age 31, which we can do by using the survival rate provided in the question. We then multiply this by the average policy amount to get the expected claims. The total premium income is not relevant to this calculation.
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A Life Insurance Company has 1500 policies averaging Rs.2000 on lives at age 30. From experience, it is found that out of 100,000 alive at age 30, 99,000 survive at age 31. What is the lower value of the amount that the company will have to pay in insurance during the year? a) Rs.6000 b) Rs.8000 c) Rs.8200 d) Rs.8500​?
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A Life Insurance Company has 1500 policies averaging Rs.2000 on lives at age 30. From experience, it is found that out of 100,000 alive at age 30, 99,000 survive at age 31. What is the lower value of the amount that the company will have to pay in insurance during the year? a) Rs.6000 b) Rs.8000 c) Rs.8200 d) Rs.8500​? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Life Insurance Company has 1500 policies averaging Rs.2000 on lives at age 30. From experience, it is found that out of 100,000 alive at age 30, 99,000 survive at age 31. What is the lower value of the amount that the company will have to pay in insurance during the year? a) Rs.6000 b) Rs.8000 c) Rs.8200 d) Rs.8500​? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Life Insurance Company has 1500 policies averaging Rs.2000 on lives at age 30. From experience, it is found that out of 100,000 alive at age 30, 99,000 survive at age 31. What is the lower value of the amount that the company will have to pay in insurance during the year? a) Rs.6000 b) Rs.8000 c) Rs.8200 d) Rs.8500​?.
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