WAEC Insurance Past Questions & Answers - Page 9

41.

The body that regulates the activities of insurance market in Nigeria

A.

National Insurance Commission

B.

professional reinsurance association of nigeria

C.

Nigeria insurers Association

D.

Nigeria council of registered insurance brokers

Correct answer is A

The National Insurance Commission (NAICOM) was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.

42.

The person that buys a life insurance policy is an 

A.

actuary

B.

assured

C.

assesor

D.

agent

Correct answer is B

An assured: Legal owner or beneficiary of a life insurance policy.

43.

How many days are allowed in life insurance as days of grace

A.

25 days

B.

30 days

C.

35 days

D.

60 days

Correct answer is B

Grace periods for late payments last anywhere from 30 to 60 days and your life insurance remains in force during that time.

44.

The class of insurance that does not require a certificate is?

A.

motor insurance

B.

marine insurance

C.

fire insurance

D.

aviation insurance

Correct answer is B

No explanation has been provided for this answer.

45.

The document that is legally required to be issued by insurers in respect of compulsory insurance is

A.

cover note

B.

endorsement

C.

certificate

D.

renewal note

Correct answer is B

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.

An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy. Endorsements may also be referred to as riders. An insurance endorsement may be used to add, delete, exclude or otherwise alter coverage.

A certificate of insurance (COI) is issued by an insurance company or broke. The COI verifies the existence of an insurance policy and summarizes the key aspects and conditions of the policy.

Renewal note; a note sent by an insurance company asking the insured person to renew the insurance.