Insurance Questions & Answers

16.

A term insurance policy is cheap because?

there is no claim if the insured survives the period

the claim is small and easy to pay

there is claim if the insured survives the period

there is no payment due to the insured

Correct answer is A

Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire.

17.

The person named to recieve the life assurance proceeds after the date of the life assured is?

beneficiary

receiver

administrator

next of kin

View answer & explanation

Correct answer is A

A beneficiary is the person or entity you name in a life insurance policy to receive the death benefit.

18.

when a policy is cancelled before its expiry date, what is owed to the insured is

earned premium

unearned premium

return premium

unpaid premium

View answer & explanation

Correct answer is C

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

19.

The body charged with the responsibility to promote and uphold universally accepted standards in insurance business

Nigeria council of registered insurance brokers

chartered insurance institute of Nigeria

National insurers association

Nigeria insurance commission

View answer & explanation

Correct answer is D

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.

20.

peril in insurance means

payment that is made by insurance

events that lead to a loss

exposure to no risk at all

money that is paid for insurance

View answer & explanation

Correct answer is B

A specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or theft.

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