Year :
2018
Title :
Insurance
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
11 - 20 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 11. |
The legth of time in which a proposer is expected to effect changes in life insurance contract is? A. days of grace B. cooling off period C. rectification D. endorsement Detailed Solutioncooling-off period,is a period during which you can cancel the policy for any reason. If you cancel, you should get a refund of any premiums you've paid, but the insurer is allowed to charge to cover days when the policy was in force, plus an administration fee. |
|
| 12. |
Modern insurance business was introduced into nigeria by? A. American merchants B. British merchants C. French merchants D. Portuguese merchants Detailed SolutionHistory of Insurance in Nigeria. This form of social insurance is still in existence in Nigeria among community groups. In the 20th century, the British merchants introduced modern commercial insurance into West Africa. In 1921, the Royal Exchange Insurance established the first insurance company with a branch in Lagos. |
|
| 13. |
The use of gas burners for cutting and welding is considered in insurance contract as A. a favourable morale hazard B. a favourable physical hazard C. an unfavourable morale hazard D. an unfavourable physical hazard Detailed SolutionA physical hazard is defined as "A factor within the environment that can harm the body without necessarily touching it. Vibration and noise are examples of physical hazards".Physical hazards include but aren't limited to electricity, radiation, pressure, noise, heights and vibration amongst many others. Welding is a potentially hazardous activity and precautions are required to avoid electrocution, fire and explosion, burns, electric shock, vision damage, inhalation of poisonous gases and fumes, and exposure to intense ultraviolet radiation. |
|
| 14. |
The method of paying premium in life insurance contract in which premium payable increases as age increases is? A. natural premium B. level premium C. risk premium D. pure premium Detailed SolutionLoading the player... A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield; an asset's risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in a given investment.A level premium is a type of insurance premium that is regularly associated with term life insurance. The term level premium basically means that you are going to have the same premium payment for the entire life of the policy. The pure premium "refers to t |
|
| 15. |
The right to effect a contract of insurance on the life of a debtor by the creditor is? A. utmost good faith B. proximate cause C. insurable interest D. contribution Detailed SolutionInsurable interest is an essential requirement for issuing an insurance policy which makes the entity or event legal, valid and protected against intentionally harmful acts. People not subject to financial loss do not have an insurable interest. |
|
| 16. |
A condition precedent to an insurance contract is the A. extent of the cover granted B. right to cancel the insurance contract C. right to take possession of damaged property D. existence of the subject matter of insurance Detailed SolutionContract Subject matter of insurance is the life, limbs, property, rights or any potential legal liability insured under a policy.Subject matter of contract is the insured's financial interest in the subject matter of insurance. |
|
| 17. |
Addition of a new building to an existing fire and special perils insurance would be effected through the issuance of? A. a new policy B. an endorsement C. a specification D. a rectification Detailed SolutionThe purpose of an endorsement is a policy change. Insurance companies create endorsements to offer options to insureds to add coverage or increase coverage limits, but insurers may also issue special endorsements to limit or restrict coverage. Insurance endorsements are used in property and casualty insurance. |
|
| 18. |
Claims paid by insurers in the event of loss is irrecoverable when the? A. average clause is applied B. sum insured has been exhausted C. sum insured has not been exhausted D. payment is and ex gratia basis Detailed Solutionaverage clause. is an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured |
|
| 19. |
The minimum cover for motorist in nigeria is? A. ''Act'' only B. third party only C. fire and theft D. comprehensive insurance Detailed SolutionThe minimum amount of auto insurance in Nigeria that motorists must carry is third party motor insurance. Know the Terminology In the auto insurance world, a third party is defined as everyone involved in an accident except the policyholder. |
|
| 20. |
The class of insurance under which a visitor who was bitten by her host dog would be compensated is? A. personal liability insurance B. public liability insurance C. professional indemnity insurance D. employers liability insurance Detailed Solutionpublic liability insurance: Insurance that covers the insured in the case of legal action brought by members of the public. Public Liability insurance is designed to protect the insured against negligence for accidental loss of or damage to third party property, bodily injury etc |
| 11. |
The legth of time in which a proposer is expected to effect changes in life insurance contract is? A. days of grace B. cooling off period C. rectification D. endorsement Detailed Solutioncooling-off period,is a period during which you can cancel the policy for any reason. If you cancel, you should get a refund of any premiums you've paid, but the insurer is allowed to charge to cover days when the policy was in force, plus an administration fee. |
|
| 12. |
Modern insurance business was introduced into nigeria by? A. American merchants B. British merchants C. French merchants D. Portuguese merchants Detailed SolutionHistory of Insurance in Nigeria. This form of social insurance is still in existence in Nigeria among community groups. In the 20th century, the British merchants introduced modern commercial insurance into West Africa. In 1921, the Royal Exchange Insurance established the first insurance company with a branch in Lagos. |
|
| 13. |
The use of gas burners for cutting and welding is considered in insurance contract as A. a favourable morale hazard B. a favourable physical hazard C. an unfavourable morale hazard D. an unfavourable physical hazard Detailed SolutionA physical hazard is defined as "A factor within the environment that can harm the body without necessarily touching it. Vibration and noise are examples of physical hazards".Physical hazards include but aren't limited to electricity, radiation, pressure, noise, heights and vibration amongst many others. Welding is a potentially hazardous activity and precautions are required to avoid electrocution, fire and explosion, burns, electric shock, vision damage, inhalation of poisonous gases and fumes, and exposure to intense ultraviolet radiation. |
|
| 14. |
The method of paying premium in life insurance contract in which premium payable increases as age increases is? A. natural premium B. level premium C. risk premium D. pure premium Detailed SolutionLoading the player... A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield; an asset's risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in a given investment.A level premium is a type of insurance premium that is regularly associated with term life insurance. The term level premium basically means that you are going to have the same premium payment for the entire life of the policy. The pure premium "refers to t |
|
| 15. |
The right to effect a contract of insurance on the life of a debtor by the creditor is? A. utmost good faith B. proximate cause C. insurable interest D. contribution Detailed SolutionInsurable interest is an essential requirement for issuing an insurance policy which makes the entity or event legal, valid and protected against intentionally harmful acts. People not subject to financial loss do not have an insurable interest. |
| 16. |
A condition precedent to an insurance contract is the A. extent of the cover granted B. right to cancel the insurance contract C. right to take possession of damaged property D. existence of the subject matter of insurance Detailed SolutionContract Subject matter of insurance is the life, limbs, property, rights or any potential legal liability insured under a policy.Subject matter of contract is the insured's financial interest in the subject matter of insurance. |
|
| 17. |
Addition of a new building to an existing fire and special perils insurance would be effected through the issuance of? A. a new policy B. an endorsement C. a specification D. a rectification Detailed SolutionThe purpose of an endorsement is a policy change. Insurance companies create endorsements to offer options to insureds to add coverage or increase coverage limits, but insurers may also issue special endorsements to limit or restrict coverage. Insurance endorsements are used in property and casualty insurance. |
|
| 18. |
Claims paid by insurers in the event of loss is irrecoverable when the? A. average clause is applied B. sum insured has been exhausted C. sum insured has not been exhausted D. payment is and ex gratia basis Detailed Solutionaverage clause. is an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured |
|
| 19. |
The minimum cover for motorist in nigeria is? A. ''Act'' only B. third party only C. fire and theft D. comprehensive insurance Detailed SolutionThe minimum amount of auto insurance in Nigeria that motorists must carry is third party motor insurance. Know the Terminology In the auto insurance world, a third party is defined as everyone involved in an accident except the policyholder. |
|
| 20. |
The class of insurance under which a visitor who was bitten by her host dog would be compensated is? A. personal liability insurance B. public liability insurance C. professional indemnity insurance D. employers liability insurance Detailed Solutionpublic liability insurance: Insurance that covers the insured in the case of legal action brought by members of the public. Public Liability insurance is designed to protect the insured against negligence for accidental loss of or damage to third party property, bodily injury etc |