WAEC Insurance Past Questions & Answers

The “suicide clause.” Usually, this clause states that no death benefit will be paid if the insured commits suicide within two years of taking out a policy. Whenever an insured person replaces an existing life insurance policy with a new one, the time clock for the suicide clause is set back to zero and starts over again.

A loss adjuster is an insurance agent who assesses the amount of compensation that should be paid after a person has claimed on their insurance policy.

Uninsurable risk is a condition that poses unknowable or unacceptable risk of loss or a situation in which the insurance would be against the law. Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss.

In many cases catastrophes, such as earthquakes, have become uninsurable risks. a situation for which an insurance company will not provide insurance, because, for example, it is certain to happen: A person suffering from a terminal illness is considered to be an uninsurable risk.

In insurance, the insurance policy is a contract between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language. The insurer is only obligated to pay for claims if the insured keeps their own part of the bargain by paying the premium.

Money 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 in the business premises, safe or vault, etc.