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Question 1 Insurance | WAEC/GCE (2017)
A
insurable interest 
B
subrogation 
C
proximate cause 
D
contribution 
Explanation.
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Subrogation is a term describing a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured. This is done in order to recover the amount of the claim paid by the insurance carrier to the insured for the loss.


Correct Option:
B
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Question 2 Insurance | WAEC/GCE (2017)
A
at the inception of the policy 
B
at the renewal time of the policy 
C
when he surrenders the policy 
D
when the policy is paid up 
Explanation.
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grace period allows a borrower or insurance customer to delay payment for a short period of time beyond the due date. 

insurers allow policyholders a period of grace of at least 15 days, during which arrear premiums can be rectified. In the life insuranceindustry, the norm is to allow policyholders a grace period of 30 days.


Correct Option:
B
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Question 3 Insurance | WAEC/GCE (2017)
A
expense 
B
mortality 
C
interest 
D
losses 
Explanation.
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There are several factors used to determine your life insurance premiums, including the following:

  • AgeAge is probably the single primary factor that determines your life insurance premiums. ...
  • Gender
  • Physical condition.
  • Smoking
  • Your medical history.
  • Your family's medical history.
  • Occupation.

Correct Option:
A
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Question 4 Insurance | WAEC/GCE (2017)
A
protects the account of the insurer against large claims 
B
discourage the spread of risk in the insurance market 
C
provides protection for uninsured losses 
D
encourages the insured to make claims from more than one insurer 
Explanation.
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Reinsurance is also known as insurance for insurers or stop-loss insurance.Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.


Correct Option:
A
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Question 5 Insurance | WAEC/GCE (2017)
A
cash payment 
B
repairs 
C
replacement 
D
reinstatement 
Explanation.
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Methods Of Providing Indemnity To Insurance Contract :

There are various ways through which indemnity may be provided. These are :

 

  1. Cash Payment: This is the usual way of making payment of a claim. This method is simpler, easier and less cumbersome.
  2. Repair: This is also another way of providing compensation. Rather than making cash payment, the insurers will get the loss repaired to pre-loss condition as far as practicable.
  3. Replacement: Usually in case of total loss the insurers may replace the subject-matter by another one of the same standard, age and quality. A glass would normally be replaced than repaired.
  1. Reinstatement: The insurers may also reinstate the property by option. This is usually considered with regard to buildings damaged or destroyed by fire. Usually it is the option of the insurers to decide any one of the above four methods.

Correct Option:
C
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Question 6 Insurance | WAEC/GCE (2017)
A
whole life policy 
B
investment linked policy 
C
education endowment policy 
D
term assurance policy 
Explanation.
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Term life insurance or term assurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary.


Correct Option:
D
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Question 7 Insurance | WAEC/GCE (2017)
A
age and health condition of the employees 
B
the number of employees and the annual wage roll of the proposer 
C
nature and description of goods to be carried or dispatched 
D
the extent to which the vehicle of the proposer will be put to private use 
Explanation.
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No official Explanation yet!


Correct Option:
B
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Question 8 Insurance | WAEC/GCE (2017)
A
required by law for all motor policy holders 
B
a general practice world wide 
C
a support to policy document 
D
a replacement for the policy 
Explanation.
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Of all the documentation issued by motor insurers, the Certificate of Motor Insurance stands alone as the most important document. Its primary purpose is to provide evidence that at least the minimum level of insurance cover required by the Road Traffic Act is in place on a given vehicle.


Correct Option:
A
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Question 9 Insurance | WAEC/GCE (2017)
A
to accept all risks proposed for insurance 
B
the right to sue the insurer 
C
to make claim from more than one insurer 
D
to make a full disclosure of the proposed risk 
Explanation.
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Utmost Good Faith. Utmost 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 towards the company offering the insurance.

It means that both the policyholder and the insurer need to disclose all material and relevant information to each other before commencement of the contract.


Correct Option:
D
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Question 10 Insurance | WAEC/GCE (2017)
A
creation of a common pool 
B
provision of security 
C
stimulation of business enterprises 
D
loss prevention and control 
Explanation.
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The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain and at the happening of risk, the person will suffer the loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from sufferings.


Correct Option:
D
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