Insurance JAMB, WAEC, NECO AND NABTEB Official Past Questions

(a) Explain the following terms used in insurance.
(i) peril
(ii) hazard.
(iii) disclosure.

(b) Differentiate . between the following classes of risks: (i) pure and speculative risks; particular and fundamental risks; (iii) static and dynamic risks. 
 

MADAM SCHOLASTICA’S HAIR SALON Madam Scholastica owns a big salon in centre of Lagos with fifty hair driers and two motorized: generators in a large premise. She had in her employment, sixty staff out of which forty five are professional stylists, five cashiers and ten support staff. The company makes a lot of money from high class members of the society who are prepared to pay heavily for their services at their convenience, even in their offices or homes. The company has comprehensive insurance cover. on ‘all their four vehicles. It also has Employer’s Liability Insurance which it Continues to renew for the past five years without making claims.  The policies were taken from different companies. Recently, a chemical was bought for washing hair which caused damage to .many customers’ hair, this.led to the payment of compensation to, some customers while others deserted the salon. The director had been advised to obtain other insurance policies to cover their liabilities to customers and third parties but did *not do anything about it. In the last two weeks of operation, four staff had accident with the Company’s car while returning from home service to a customer. Twb of them were seriously injured. A cashier disappeared, with a sum of N21-00;000 cash withdrawn from the company’S bank account.

(a)Under what policy will the injured employees be compensated?

(b) State and explain two policies that the director should have taken to cover their liabilities to customers and third parties.

(c) What other insurance policies would the company take in future to cover the cashiers that handle cash?

(d) Explain two other insurance products that will be useful to the company. 
 

(a) Differentiate between whole life and endowment assurance.

(b) State five uses of life assurance.

(c) List and explain two benefits covered under life assurance. 
 

(a) What is endowment policy?

(b) Differentiate between the following terms:

(i) Third party and comprehensive motor insurance; (ii) • Death benefit and maturity benefit; (iii) Contracts of life and non-life insurance. 

(a) Explain the term “risk” in insurance.

(b) List and explain five features of insurance contracts. 

(a) What is a “discharge voucher”?

(b) State three duties each of the following in insurance claims: (.i) insured; (ii) underwriter.

Explain the following terms as used in insurance business:

(a) Surrender value

(b) Days of grace

 (c) Ex-gratia payment

 (d) Endorsement

(e) Disclosure.
 

(a) State three marine perils.

(b) List and explain three types of cover available under marine insurance. 
 

PETER CITUKWU’S MOTOR INSURANCE CLAIM Mr. Peter Chukwu owns a Peugeot 406 saloon car which he insured for a value of #2,000,000.00 with Integrity Insurance Plc on comprehensive basis. He uses this vehicle for social, domestic, pleasure purposes and in connection with his business but not for hire and reward. One day, as he was going to the beach with his two children, Emeka and Pauline, he got involved in an accident with another car, a Honda Accord belonging to Mr. Bayo Samuel. Mr. Bayo Samuel was descending a hill at a high speed and consequently hit the back side of Mr. Peter Chukwu’s cat damaging the rear bumper, two rear lights and the booth. An argument ensued between Mr. Peter Chukwu and Mr. Bayo Samuel as to how to settle the issue. It was however discovered that Mr. Bayo Samuel had a third party motor insurance cover with Adequate Insurance Company Limited. The accident was reported to Integrity Insurance Plc by Mr. Peter Chukwu who subsequently submitted estimate of repairs, in the sum of two hundred and fifth thousand naira (N250,000.00). The insurer of Mr. Peter Chukwu admitted liability and paid the sum of one hundred and eighty thousand naira (#180,000.00) after adjustment and wrote to Adequate Insurance Company Limited for recovery of its outlay. Mr. Peter Chukwu took delivery of the damaged bumper and rear lights from his mechanic after fixing his car and took them home with the intention of repairing them for sale.

Required:

(a) Identify the principle involved in the case and why?

(b) Explain the principle identified.

(c) Who should take the delivery of the damaged parts of the Peugeot 406 car?

(d) Explain two covers available under the insurance policy held by Mr. Peter Chukwu 
 

what is the term used for the amount payable to mr. Thomas if he chooses to discontinue with the contract

what is the term for the period he will be allowed to reinstate the contract

what is the sum assured for the policy

A life policy where the insured cannot make claim himself because the payment cannot be made in his life time is

The policy taken to cover loss of income that a business suffers when its facilities are closed due to a disaster is

To assess aviation risks, the underwriter would want to know the

A document used to provide evidence of insurance if the policy document is not imediately available is

A life insurance contract will be affected by failure to disclose?

Hazard in insurance means?

the sum assured is the value of the?

Ex-gratia payment is made where there is

A document used to alter the information contained in the schedule of a policy is?