WAEC Insurance Past Questions & Answers - Page 16

76.

payment of compensation under professional indemnity insurance would be influenced by?

A.

assault

B.

trespass

C.

nuisance

D.

negligence

Correct answer is D

Professional Indemnity Insurance (PII) is a form of liability insurancethat helps protect professional advisers, service-providing individuals and companies from bearing the full cost of defending themselves against a negligence claim made by a client and damages awarded in such a civil lawsuit in the conduct their business.

77.

A factor to be considered before a proposal for endowment assurance is accepted is the proposer's?

A.

marital status

B.

place of birth

C.

date of birth

D.

social status

Correct answer is C

An endowment assurance policy is a life insurance contract that is designed to pay a lump sum after some specified period of time on death. However, if the policy term ends whilst you are in good health, the entire sum is given to you. The date of birth is a vital factor for this insurance contract.

78.

A condition which the insuring public would use to evaluate the financial stability of an insurer is?

A.

prompt payment of claims

B.

adequate reinsurance treaty

C.

allowance for ex-gratia payment

D.

settlement of investigated claims

Correct answer is A

The “Prompt Payment of Insurance Claims” imposes certain deadlines on insurers for responding to, investigating, and accepting or rejecting claims. The purpose is to “promote the prompt payment of insurance claims pursuant to policies of insurance.” The general public would use this to judge the insurance capability of owning up to reponsibilities

79.

one of the perils of nature is?

A.

heating

B.

earthquake

C.

civil commotion

D.

spontaneous combustion

Correct answer is B

Natural peril; This category includes such perils as injury and damage caused by natural elements such as rain, ice, snow, typhoon, hurricane, volcano, wave action, wind, earthquake, or flood.

80.

A loss assessor in a claim settlement process is representing the interest of the?

A.

insured

B.

insurer

C.

reinsurer

D.

broker

Correct answer is A

A Loss Assessor is appointed by the policyholder when they need to submit a substantial or complex claim. All fees are paid by the Policy holder.(insured)