Insurance | Study Mode

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Question 1
A
payment that is made by insurance 
B
events that lead to a loss 
C
exposure to no risk at all 
D
money that is paid for insurance 
Explanation.
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A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft.


Correct Option:
B
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Question 2
A
Nigeria council of registered insurance brokers 
B
chartered insurance institute of Nigeria 
C
National insurers association 
D
Nigeria insurance commission 
Explanation.
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The National Insurance Commission (NAICOM) was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.


Correct Option:
D
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Question 3
A
earned premium 
B
unearned premium 
C
return premium 
D
unpaid premium 
Explanation.
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return premium. An amount, equal to a fraction of the premium, which is given back to the insured in the case of a cancellation, an adjustment to the rate, or an overpayment of an advance premium.


Correct Option:
C
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Question 4
A
beneficiary 
B
receiver 
C
administrator 
D
next of kin 
Explanation.
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Abeneficiaryis the person or entity you name in a lifeinsurancepolicy to receive the death benefit.


Correct Option:
A
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Question 5
A
there is no claim if the insured survives the period 
B
the claim is small and easy to pay 
C
there is claim if the insured survives the period 
D
there is no payment due to the insured 
Explanation.
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Term insuranceis generallycheaperbecause the coverage is only provided for a specific period of time.Inmost cases, theinsurance companywill never pay out because you will outlive thetermand thepolicywill expire.


Correct Option:
A
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Question 6
A
burial expenses 
B
medical expenses 
C
legal expenses 
D
mortuary expenses 
Explanation.
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Medicalcareexpensesinclude payments for the diagnosis, cure, mitigation,treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.


Correct Option:
B
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Question 7
A
applicable 
B
variation list 
C
log book 
D
endorsement 
Explanation.
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The 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.


Correct Option:
D
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Question 8
A
hazard 
B
remote clause 
C
proximate cause 
D
peril 
Explanation.
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Proximate causeis a keyprincipleof insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril


Correct Option:
C
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Question 9
A
loss adjuster 
B
insurance broker 
C
actuary 
D
surveyor 
Explanation.
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An actuary is a business professional who deals with the measurement and management of risk and uncertainty.Being an actuary means having highly valued mathematical skills and expertise. Actuaries come from different academic backgrounds but share a love of maths even if they havent done a maths degree.


Correct Option:
C
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Question 10
A
fidelity guarantee insurance 
B
marine insurance 
C
life insurance 
D
motor insurance 
Explanation.
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No-claim bonus (NCB) is a discount in premium offered by insurance companies if a vehicle owner has not made a single claim during the term of the motor insurance policy.


Correct Option:
D
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