Year :
2018
Title :
Insurance
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
1 - 10 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 1. |
A document issued by an insurer giving temporary protection to the insure is? A. endorsement B. certificate C. proposal form D. cover note Detailed Solutioncover note; A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued. |
|
| 2. |
The financial interest of the insured in an insurance policy is the A. subject matter of insurance B. subject matter of the contract C. assignment of the contract D. deed of the contract Detailed SolutionAn assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignorwants the assignee to step into his shoes and assume all of his contractual obligations and rights. |
|
| 3. |
Full return of premium paid for a contract of insurance is applicable in a situation involving? A. double insurance B. reduction of cover C. absence of agreement D. financial distress Detailed Solutiondouble insurance: Situation in which the same risk is insured by two overlapping but independent insurance policies. When an individual has double insurance, he or she has coverage by two different insurance companies upon the identical interest in the identical subject matter.The general rule is that in the event of double insurance, if a loss is caused by the risk insured against, subject to the terms of each insurance policy, the insured may recover the full amount of his loss from whichever insurer or insurers he chooses. |
|
| 4. |
One of the steps taken by an insurer in claim settlement is to? A. investigate the loss B. assess the risk C. present a claim D. appoint loss assessor Detailed SolutionOnce you are injured in an accident, receiving compensation is more than just a simply filing a claim with the guilty party’s insurance.Most of the time, there will be negotiating involved with the insurance company along with an extensive investigation of your claims. After all of this, insurance companies may still low-ball your claim, and knowing how to proceed can be very important. |
|
| 5. |
A risk considered as sub standard in future can be dealt with by insurers through(i) premium loading (ii) double insurance (iii) excess imposition A. I and II B. I and III C. II and III D. I,II and III Detailed Solutionpremium loading; The amount an insurer needs to cover its expenses and generate profit.Excess imposition - Your insurer may impose a non-standard excess, because of the number of claims you have had, or other factors which may mean you are more likely to make a claim. |
|
| 6. |
Non-indemnity insurance policies are referred to as A. benefit policies B. profit policies C. non-profit policies D. non-benefit policies Detailed SolutionIn non-indemnity insurance the sum which the insured is entitled to receive from the insurer does not necessarily bear any relation to the actual loss, if any, suffered by the insured. Life insurance contracts, personal accident and sickness insurance are examples of non-indemnity insurance.A benefit policy is the advantage, privilege, right, or financial reimbursement (such as that made under an insurance policy, medical plan, or pension plan). for example life insurance is non-indemnity insurance. |
|
| 7. |
Insurer XYZ is jointly covered for two lines surplus treaty reinsurance by reinsurers I,J,K and L for a retention limit of N120,000. The amount of cession for reinsurer K if all reinsurers share the risk equally with the sum insured of N360,000 is? A. N45,000 B. N60,000 C. N90,000 D. N120,000 |
B |
| 8. |
Marine cargo insurance indemnifies the insured for a loss of? A. vessel B. container C. consignment D. freight Detailed Solutionmarine cargo insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways. shippers can request cargo insurance to protect their goods from loss, damage, or theft while in transit.consignment is a batch of goods destined for or delivered to someone. |
|
| 9. |
An insured arranges for his premium payment to cease at the age of 70. This is a whole life policy with A. indeterminate premium payment B. limited premium payment C. single premium payment D. modified premium payment Detailed SolutionA limited premium payment plan is a plan where you paythe premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time. |
|
| 10. |
One of the functions of the institute of loss adjuster of Nigeria is to A. provide a forum to improve insurance business B. prepare the insured's claims C. offer technical services in claim investigation D. adjust loss to suit the insured Detailed SolutionThe objectives of the Institute is to establish and sustain a professional body of practicing Loss Adjusters in Nigeria; to engage in activities that will ensure the general welfare and public well being of Insurance Loss Adjusters and to take necessary actions for the advancement of education in the field of loss adjusting in Nigeria. The objectives shall be pursued: |
| 1. |
A document issued by an insurer giving temporary protection to the insure is? A. endorsement B. certificate C. proposal form D. cover note Detailed Solutioncover note; A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued. |
|
| 2. |
The financial interest of the insured in an insurance policy is the A. subject matter of insurance B. subject matter of the contract C. assignment of the contract D. deed of the contract Detailed SolutionAn assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignorwants the assignee to step into his shoes and assume all of his contractual obligations and rights. |
|
| 3. |
Full return of premium paid for a contract of insurance is applicable in a situation involving? A. double insurance B. reduction of cover C. absence of agreement D. financial distress Detailed Solutiondouble insurance: Situation in which the same risk is insured by two overlapping but independent insurance policies. When an individual has double insurance, he or she has coverage by two different insurance companies upon the identical interest in the identical subject matter.The general rule is that in the event of double insurance, if a loss is caused by the risk insured against, subject to the terms of each insurance policy, the insured may recover the full amount of his loss from whichever insurer or insurers he chooses. |
|
| 4. |
One of the steps taken by an insurer in claim settlement is to? A. investigate the loss B. assess the risk C. present a claim D. appoint loss assessor Detailed SolutionOnce you are injured in an accident, receiving compensation is more than just a simply filing a claim with the guilty party’s insurance.Most of the time, there will be negotiating involved with the insurance company along with an extensive investigation of your claims. After all of this, insurance companies may still low-ball your claim, and knowing how to proceed can be very important. |
|
| 5. |
A risk considered as sub standard in future can be dealt with by insurers through(i) premium loading (ii) double insurance (iii) excess imposition A. I and II B. I and III C. II and III D. I,II and III Detailed Solutionpremium loading; The amount an insurer needs to cover its expenses and generate profit.Excess imposition - Your insurer may impose a non-standard excess, because of the number of claims you have had, or other factors which may mean you are more likely to make a claim. |
| 6. |
Non-indemnity insurance policies are referred to as A. benefit policies B. profit policies C. non-profit policies D. non-benefit policies Detailed SolutionIn non-indemnity insurance the sum which the insured is entitled to receive from the insurer does not necessarily bear any relation to the actual loss, if any, suffered by the insured. Life insurance contracts, personal accident and sickness insurance are examples of non-indemnity insurance.A benefit policy is the advantage, privilege, right, or financial reimbursement (such as that made under an insurance policy, medical plan, or pension plan). for example life insurance is non-indemnity insurance. |
|
| 7. |
Insurer XYZ is jointly covered for two lines surplus treaty reinsurance by reinsurers I,J,K and L for a retention limit of N120,000. The amount of cession for reinsurer K if all reinsurers share the risk equally with the sum insured of N360,000 is? A. N45,000 B. N60,000 C. N90,000 D. N120,000 |
B |
| 8. |
Marine cargo insurance indemnifies the insured for a loss of? A. vessel B. container C. consignment D. freight Detailed Solutionmarine cargo insurance is a class of property insurance that insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways. shippers can request cargo insurance to protect their goods from loss, damage, or theft while in transit.consignment is a batch of goods destined for or delivered to someone. |
|
| 9. |
An insured arranges for his premium payment to cease at the age of 70. This is a whole life policy with A. indeterminate premium payment B. limited premium payment C. single premium payment D. modified premium payment Detailed SolutionA limited premium payment plan is a plan where you paythe premium for a shorter span of time and enjoy the benefits of an insurance cover for a long time. |
|
| 10. |
One of the functions of the institute of loss adjuster of Nigeria is to A. provide a forum to improve insurance business B. prepare the insured's claims C. offer technical services in claim investigation D. adjust loss to suit the insured Detailed SolutionThe objectives of the Institute is to establish and sustain a professional body of practicing Loss Adjusters in Nigeria; to engage in activities that will ensure the general welfare and public well being of Insurance Loss Adjusters and to take necessary actions for the advancement of education in the field of loss adjusting in Nigeria. The objectives shall be pursued: |