WAEC Insurance Past Questions & Answers - Page 10

46.

The policy of insurance is signed by the?

A.

representative of the insured

B.

representative of the insurer

C.

insurance broker

D.

insurance consultant

Correct answer is B

Signature of Insurance Policies: An insurance document,such as an insurance policy, an insurance certificate or a declaration under an open cover, must appear to be signed by an insurance company, an underwriter or their agents or their proxies.

47.

Insurance is defined as pooling of risk because many people 

A.

with common interest make claims every year

B.

with common risk insure with the same company

C.

with common interest insure with reinsurance company

D.

form common association to help themselves

Correct answer is B

Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower risk ones. The company is able to offer higher risk policyholders more affordable coverage as a result.

48.

The part of the policy that describes the event that could lead to loss in an insurance contract is

A.

recital clause

B.

condition

C.

specification

D.

operative clause

Correct answer is D

The operative clause of the policy is a promissory clause. It is a promise that the insurer undertakes to pay the benefits of the policy if the reason(s) why the policy was incepted, and issued by the insurer, happens while the policy is in force.

49.

In an endowment policy, benefits are paid at death or 

A.

a lump sum is paid on maturity

B.

regular payments are made after maturity

C.

regular payments are made before maturity

D.

no payments is made until the death of the insured.

Correct answer is A

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.

50.

life insurance is a contract of?

A.

indemnity

B.

subrogation

C.

benefit

D.

contribution

Correct answer is C

life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and goals of the owner. is a contract of benefit.