Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop,she did not tell the Insurance company that she cooks in the shop, but told the insurance company that she sells second hand clothes. Hence she insured her store against natural causes. Tope's shop got burnt yesterday by fire from the cooking pot.


The amount D60,000 quoted represents

A.

Premium

B.

sum insured

C.

contribution

D.

compensation

Correct answer is A

No explanation has been provided for this answer.