WAEC Insurance Past Questions & Answers - Page 2

6.

The duty of a loss assessor is to ensure

A.

adequate compensation to the insured

B.

payment of premium to the insurer

C.

that risk manager identifies the risk properly

D.

that insurance broker collects commission

Correct answer is A

A Loss Assessor is appointed by the policyholder when they need to submit a substantial or complex claim.

Independent entity hired and paid by the insured (policy holder) to negotiate an insurance claim with the insurer (insurance company). The loss assessor receives a fee that is usually a percentage of the claim amount received by the insured.

7.

one of the difference between contract of life assurance and non life insurance is?

A.

non-life requires renewal while life does not

B.

life requires renewal while non-life does not

C.

life is subject to indemnity while non life is not

D.

non-life is subject to compensation while life is not

Correct answer is D

Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person.

Nonlife insurance refers to the insurance of goods and properties. ... Nonlife insurance is taken as a means of providing financial protection for building, machinery, equipment, furniture, and vehicle and merchandise items against the risk of fire, earthquake, accident and theft.

8.

A motor policy that provides cover for the loss or damage of a vehicle used for farming purposes is

A.

private car policy

B.

agricultural policy

C.

special type policy

D.

motor trades policy

Correct answer is C

No explanation has been provided for this answer.

9.

To insure any property, the insured must have

A.

insurable interest

B.

goodwill

C.

premium

D.

valuable consideration

Correct answer is A

Insurable interest is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc.

10.

A ''no claim discount'' will be granted under 

A.

fidelity guarantee insurance

B.

marine insurance

C.

life insurance

D.

motor insurance

Correct answer is D

No-claim bonus (NCB) is a discount in premium offered by insurance companies if a vehicle owner has not made a single claim during the term of the motor insurance policy.