WAEC Commerce Past Questions & Answers - Page 61

A standing order is an instruction given to a bank by an account holder, to make periodic payments to a named payee on a specific date. The bank makes the payment on behalf of the drawer (account holder). Here, the bank is referred to as the drawee.

No explanation has been provided for this answer.

A stale cheque is one in which the named date is outdated and hence cannot be honored by the bank. The validity of the cheque is six months from the date of the issuance. (This is however subject to change. Some countries' validity period is 3 months)

A contract of indemnity is a contract between two persons where one party agrees to compensate or reimburse a loss incurred by the other party. The insurance company promises to cover a loss that may be suffered by an insured. In indemnity contracts, it is not certain that a loss will be suffered. It is a matter of probability.

Life insurance is not covered in the indemnity clause, because death is an inevitable occurrence, hence the insurance company simply provides financial protection for the family of the insured in the event of their passing. If the insured dies before the expiration of the contract, the insurer will compensate the deceased family, and vice-versa. 

Life insurance provides financial protection for your family in the event of your passing. It is determined by the age of the policy holder, at the time of entering the insurance contract