Explanation: Life insurance in Italy = 2500 Commission through agents = 14\(\%\) of 2500 = 350 Life insurance in Spain = 2000 Commission through agents and brokers = 14% + 5\(\%\) = 19\(\%\) of 2000 = 380 Thus, the life insurance sold through agents in Italy is \(\$\)30 million less than the life insurance sold through agents and brokers in Spain. Therefore, Correct answer is option C\(:\)Less by $ 30 million.
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Question: 2
If it is known that 12.5% of the total life insurance sold in the countries is listed for term insurance, then what is the approximate value of non-term insurance sold in these countries for the year 2002 ?
Explanation: Total life insurance in all countries = Italy + Spain + India + China + Pakistan + Russia + USA Total life insurance = 2500 + 2000 + 15000 + 10000 + 1000 + 20000 + 30000 Total = 80500 million Percentage of non-term insurance = 100\(\%\) - 12.5\(\%\) = 87.5\(\%\) Value of non-term insurance = 87.5\(\%\) of 80500 = \((\frac{87.5}{100})\times80500\) = 70437.50 million Therefore, the approximate value of non-term insurance is 70400 million.
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Question: 3
The split-up of sales of life insurance by distribution channels for India in 2002 is the same as that of Spain. If the insurance agents in India are paid a commission of 0.5% of their sales, then what is the amount of commission earned by them ?
Explanation: Total life insurance sales in India = 15000 million Sales by insurance agents in India = 14\(\%\) of 15000 = \((\frac{14}{100})\times15000\) = 2100 million Commission earned by insurance agents = 0.5\(\%\) of 2100 = \((\frac{0.5}{100})\times2100\) = 10.5 million dollars Therefore, the commission earned by the insurance agents is 10.5 million dollars. So, Option C (10.5 million dollars) is the correct Answer.
