NECO Commerce Past Questions & Answers - Page 59

291.

What best explains the principle of subrogation in insurable?

A.

Both parties of the insurance contract must deal openly and honestly with each other and disclose all relevant facts

B.

The right that a person has to stand in the place of another and enjoy all the rights and remedies of that other person

C.

There must be a close connection between the risk insured against and the cause of the loss

D.

The insurer who insures the same risk with more than one insurer can only recover to the extent of the loss and nothing more, in the occurrence of the event

E.

The insured discloses all the material facts which would affect the premium which the insurer charges

Correct answer is B

No explanation has been provided for this answer.

292.

.......... is NOT a principle of insurance

A.

utmost good faith

B.

particular average

C.

indemnity

D.

subrogation

E.

insurable interest

Correct answer is B

No explanation has been provided for this answer.

293.

The reward of capital as a factor of production is

A.

dividend

B.

interest

C.

profit

D.

rent

E.

wages

Correct answer is B

No explanation has been provided for this answer.

294.

ln partnership business, the maximum number of persons for its formation is

A.

five

B.

fifteen

C.

ten

D.

twenty

E.

twenty five

Correct answer is D

No explanation has been provided for this answer.

295.

What is NOT an instrument of credit?

A.

bills of exchange

B.

cheque

C.

money order

D.

postal order

E.

source document

Correct answer is E

No explanation has been provided for this answer.