WAEC Insurance Past Questions & Answers - Page 19

91.

concealment of information considered to be material to the contract of insurance is violating the principle of?

A.

subrogation

B.

indemnity

C.

insurable interest

D.

utmost good faith

Correct answer is D

Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith (honesty) towards the company offering the insurance.

92.

one benefit of life insurance policy is that it serves as 

A.

replacement of earnings after injuries

B.

provision for bad debts

C.

collateral for loans

D.

repair cost of damaged properties

Correct answer is A

Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured's death. Life insurance enjoys favorable tax treatment unlike any other financial instrument. Death benefits are generally income-tax-free to the beneficiary.

The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

93.

A claimant who is not legally entitled to a claim under an insurance contract may be offered a payment on?

A.

constructive total loss basis

B.

partial loss basis

C.

advice of loss basis

D.

ex-gratia basis

Correct answer is D

Ex gratia (/ˌɛks ˈɡreɪʃiə/; also spelled ex-gratia) is Latin for "by favour", and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace.

94.

The class of insurance under which a visitor who was bitten by her host dog would be compensated is?

A.

personal liability insurance

B.

public liability insurance

C.

professional indemnity insurance

D.

employers liability insurance

Correct answer is B

public liability insurance: Insurance that covers the insured in the case of legal action brought by members of the public. Public Liability insurance is designed to protect the insured against negligence for accidental loss of or damage to third party property, bodily injury etc

95.

The minimum cover for motorist in nigeria is?

A.

''Act'' only

B.

third party only

C.

fire and theft

D.

comprehensive insurance

Correct answer is B

The minimum amount of auto insurance in Nigeria that motorists must carry is third party motor insurance. Know the Terminology In the auto insurance world, a third party is defined as everyone involved in an accident except the policy holder.