Year :
2018
Title :
Insurance
Exam :
WASSCE/WAEC MAY/JUNE
Paper 1 | Objectives
21 - 30 of 48 Questions
| # | Question | Ans |
|---|---|---|
| 21. |
A claimant who is not legally entitled to a claim under an insurance contract may be offered a payment on? A. constructive total loss basis B. partial loss basis C. advice of loss basis D. ex-gratia basis Detailed SolutionEx gratia (/ˌɛks ˈɡreɪʃiə/; also spelled ex-gratia) is Latin for "by favour", and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. |
|
| 22. |
One benefit of life insurance policy is that it serves as A. replacement of earnings after injuries B. provision for bad debts C. collateral for loans D. repair cost of damaged properties Detailed SolutionLife insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured's death. Life insurance enjoys favorable tax treatment unlike any other financial instrument. Death benefits are generally income-tax-free to the beneficiary.The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured. |
|
| 23. |
Concealment of information considered to be material to the contract of insurance is violating the principle of? A. subrogation B. indemnity C. insurable interest D. utmost good faith Detailed SolutionUtmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith (honesty) towards the company offering the insurance. |
|
| 24. |
Extension cover under money insurance policy doesnt include? A. shortage B. hold-up C. personal injury D. damaged to safe Detailed SolutionMoney insurance policy provides cover for loss of money in transit between the insured's premises, bank and other specified places occasioned by robbery, theft or any other fortuitous cause. It also provides cover for loss of money inthe business premises, safe or vault, etc. |
|
| 25. |
The form of term assurance that operates three options which must be excised before maturity is A. decreasing term insurance B. increasing term insurance C. level term insurance D. convertible term insurance Detailed SolutionA convertible insurance policy is a term usually related to life insurance. This type of policy provides the benefit of obtaining less expensive term life insurancenow while maintaining the option to convert to a permanent policy at a later date asinsurance needs and financial resources change.Decreasing term insurance is renewable term life insurance with coveragedecreasing over the life of the policy at a predetermined rate. Premiums are usuall |
|
| 26. |
The document used pending the issuance of certificate in motor insurance policy is A. a cover note B. a proposal form C. an endorsement D. a slip Detailed SolutionA 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. A cover note is different from a certificate of insurance or an insurance policy document. |
|
| 27. |
Contract of insurance which involves large industrial risks are handled for protection through the completion of? A. a proposal form B. a policy form C. an endorsement D. a slip Detailed SolutionA proposal form is the form completed by the policyholder when applying forinsurance. You will need to fill in information about the risk you are insuring e.g. the rebuild cost of your house or type of car you own.An insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing thepolicy. Most standard insurance policy forms are developed by insuranceadvisory organizations, such as Insurance Services Office, Inc. |
|
| 28. |
The winding up of an insurance is legally required to be based on a petition written from not less than A. 30 policy holders B. 40 policy holders C. 50 policy holder D. 60policy holders Detailed SolutionThe Insurance Act 2003 provides for the liquidation of insurers on the petition of either 50 policyholders or the National Insurance Commission. Section 33 of the act prohibits the voluntary winding up of insurance businesses, except for the purpose of effecting an amalgamation, transfer or acquisition. |
|
| 29. |
Insurers requesting for membership of Nigeria Insurers Association is required by law to?(i) have been registered with NAICOM (ii)operate with sound insurance principles (iii) hold membership of CHN (iv) ascribe to the policy holding of NIA A. i, ii and iii only B. i, ii and iv C. i, iii and iv D. ii, iii and iv |
B |
| 30. |
A general question in an insurance proposal form is A. name of the proposal B. carriage of fare-paying passenger C. description of the proposers' premises D. methods of construction Detailed SolutionProposal (application) forms are questionnaires issued by the insurer to be completed by the proposer or his/her agent, which ask questions about the subject matter of cover. Since the insurer will use the information to assess a premium and set the terms and conditions of the policy, the prospective insured must disclose all the material circumstances, whether or not the proposal form asks for them. |
| 21. |
A claimant who is not legally entitled to a claim under an insurance contract may be offered a payment on? A. constructive total loss basis B. partial loss basis C. advice of loss basis D. ex-gratia basis Detailed SolutionEx gratia (/ˌɛks ˈɡreɪʃiə/; also spelled ex-gratia) is Latin for "by favour", and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. |
|
| 22. |
One benefit of life insurance policy is that it serves as A. replacement of earnings after injuries B. provision for bad debts C. collateral for loans D. repair cost of damaged properties Detailed SolutionLife insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured's death. Life insurance enjoys favorable tax treatment unlike any other financial instrument. Death benefits are generally income-tax-free to the beneficiary.The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured. |
|
| 23. |
Concealment of information considered to be material to the contract of insurance is violating the principle of? A. subrogation B. indemnity C. insurable interest D. utmost good faith Detailed SolutionUtmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith (honesty) towards the company offering the insurance. |
|
| 24. |
Extension cover under money insurance policy doesnt include? A. shortage B. hold-up C. personal injury D. damaged to safe Detailed SolutionMoney insurance policy provides cover for loss of money in transit between the insured's premises, bank and other specified places occasioned by robbery, theft or any other fortuitous cause. It also provides cover for loss of money inthe business premises, safe or vault, etc. |
|
| 25. |
The form of term assurance that operates three options which must be excised before maturity is A. decreasing term insurance B. increasing term insurance C. level term insurance D. convertible term insurance Detailed SolutionA convertible insurance policy is a term usually related to life insurance. This type of policy provides the benefit of obtaining less expensive term life insurancenow while maintaining the option to convert to a permanent policy at a later date asinsurance needs and financial resources change.Decreasing term insurance is renewable term life insurance with coveragedecreasing over the life of the policy at a predetermined rate. Premiums are usuall |
| 26. |
The document used pending the issuance of certificate in motor insurance policy is A. a cover note B. a proposal form C. an endorsement D. a slip Detailed SolutionA 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. A cover note is different from a certificate of insurance or an insurance policy document. |
|
| 27. |
Contract of insurance which involves large industrial risks are handled for protection through the completion of? A. a proposal form B. a policy form C. an endorsement D. a slip Detailed SolutionA proposal form is the form completed by the policyholder when applying forinsurance. You will need to fill in information about the risk you are insuring e.g. the rebuild cost of your house or type of car you own.An insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing thepolicy. Most standard insurance policy forms are developed by insuranceadvisory organizations, such as Insurance Services Office, Inc. |
|
| 28. |
The winding up of an insurance is legally required to be based on a petition written from not less than A. 30 policy holders B. 40 policy holders C. 50 policy holder D. 60policy holders Detailed SolutionThe Insurance Act 2003 provides for the liquidation of insurers on the petition of either 50 policyholders or the National Insurance Commission. Section 33 of the act prohibits the voluntary winding up of insurance businesses, except for the purpose of effecting an amalgamation, transfer or acquisition. |
|
| 29. |
Insurers requesting for membership of Nigeria Insurers Association is required by law to?(i) have been registered with NAICOM (ii)operate with sound insurance principles (iii) hold membership of CHN (iv) ascribe to the policy holding of NIA A. i, ii and iii only B. i, ii and iv C. i, iii and iv D. ii, iii and iv |
B |
| 30. |
A general question in an insurance proposal form is A. name of the proposal B. carriage of fare-paying passenger C. description of the proposers' premises D. methods of construction Detailed SolutionProposal (application) forms are questionnaires issued by the insurer to be completed by the proposer or his/her agent, which ask questions about the subject matter of cover. Since the insurer will use the information to assess a premium and set the terms and conditions of the policy, the prospective insured must disclose all the material circumstances, whether or not the proposal form asks for them. |