WAEC Insurance Past Questions & Answers - Page 18

The Insurance Act 2003 provides for the liquidation of insurers on the petition of either 50 policyholders or the National Insurance Commission. Section 33 of the act prohibits the voluntary winding up of insurance businesses, except for the purpose of effecting an amalgamation, transfer or acquisition.

A proposal form is the form completed by the policyholder when applying forinsurance. You will need to fill in information about the risk you are insuring e.g. the rebuild cost of your house or type of car you own.

 An insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing thepolicy. Most standard insurance policy forms are developed by insuranceadvisory organizations, such as Insurance Services Office, Inc.

A placing slip is a document created by a broker that contains a summary of the terms of a proposed insurance or reinsurance contract which is then presented by the broker to selected underwriters for their consideration.

An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy.

A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued. A cover note is different from a certificate of insurance or an insurance policy document.

A convertible insurance policy is a term usually related to life insurance. This type of policy provides the benefit of obtaining less expensive term life insurancenow while maintaining the option to convert to a permanent policy at a later date asinsurance needs and financial resources change.

Decreasing term insurance is renewable term life insurance with coveragedecreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually.

Increasing term life insurance. A term life policy that increases the death benefit each year during the term. Concurrently, as the death benefit increasLevel-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases.es, so does the premium. If kept long enough, the premium on this policy will increase faster than the death benefit.

Money insurance policy provides cover for loss of money in transit between the insured's premises, bank and other specified places occasioned by robbery, theft or any other fortuitous cause. It also provides cover for loss of money inthe business premises, safe or vault, etc.