WAEC Insurance Past Questions & Answers - Page 14

66.

use the following information to answer the question below.

Basanya's vehicle was hit at the rear by jaguna's vehicle. The two vehicles had a minimum cover. estimate of repairs were as follows; 

Basanya's vehicle - N155,000; jaguna's vehicle- N75,000

jaguna's repaired expenses of N75,000 would be paid by

A.

jaguna's insurer

B.

jaguna

C.

Basanya's insurer

D.

Basanya

Correct answer is A

No explanation has been provided for this answer.

67.

use the following information to answer the question below.

Basanya's vehicle was hit at the rear by jaguna's vehicle. The two vehicles had a minimum cover. estimate of repairs were as follows; 

Basanya's vehicle - N155,000; jaguna's vehicle- N75,000

The compensation would be calculated as

A.

N75,000 payable to jaguna

B.

N80,000 payable to jaguna

C.

N155,000 payable to basanya

D.

N230,000 payable to basanya

Correct answer is A

No explanation has been provided for this answer.

68.

use the following information to answer the question below.

Basanya's vehicle was hit at the rear by jaguna's vehicle. The two vehicles had a minimum cover. estimate of repairs were as follows; 

Basanya's vehicle - N155,000; jaguna's vehicle- N75,000

The effect of the minimum cover on the two vehicles is the the?

A.

two vehicles will be repaired by jaguna's insurer

B.

insurer of each vehicle is responsible for the repairs

C.

vehicle of Basanya will be repaired by jaguna's insurer

D.

two vehicles are not entitled to compensation from the insurer

Correct answer is C

No explanation has been provided for this answer.

69.

An insurance that could be effected with profit feauture is

A.

term insurance

B.

public liability insurance

C.

endowment assurance

D.

personal accident insurance

Correct answer is C

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.

70.

A manufacturing company whose production was abruptly stopped by fire incidence would have its claim for loss of earning settled under the class of

A.

fire insurance

B.

all risk insurance

C.

product liability insurance

D.

consequential loss insurance

Correct answer is D

What is 'Consequential Loss'. A consequential loss is an indirect loss resulting from an insured's inability to use business property or equipment. A business owner may purchase insurance to protect them against the secondary loss of property and equipment due to a natural disaster or accident.