State five duties each of the following.
(a) insurance brokers
(b) insurance-agents
(c) Nigerian Insurers Association.
(a) Outline three types Of policy in motor insurance.
(b) List and explain three scopes of cover. in motor insurance.
(a) What is reinsurance?
(b) Explain four essential features of insurable interest.
(a)(i) What is a proposal form?
(ii) List four general questions that are contained in a proposal form.
(b) List and explain three documents used in effecting insurance contracts.
(a) Explain two factors that could reduce the amount of indemnity under an insurance-contract.
(b) A property owned by bal Ltd was covered by three insurers, A, B and C for the Sum of N150,000, N120,000 and N90,000 respectively. The insured suffered a loss of N60,000. Calculate the liability of each insurer.
(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 A cashier disappeared, with a sum of N21-00;000 cash withdrawn from the company’S bank account.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.
The second document issued to the Eke is
- A. satisfaction note
- B. renewal notice
- C. proposal form
- D. certificate of insurance
The document issued to Eke within one week of the contract is
- A. cover note
- B. proposal form
- C. satisfaction note
- D. renewal notice
Eke bought a new car for N1.5M. The practice in the insurance idustry is to pay 10% of the value of the vehicle as premium for comprehensive cover and 2.5% additional cover for strike, riot and civil commotion. Eke was issued a document and two weeks later, he was issued another document different from the first document issued
What is the premium payable for the comprehensive cover
- A. N37,000
- B. N150,000
- C. N155,000
- D. N187,500
The claims on kayode’s shop would be paid by
- A. musa and okon insurance company
- B. musa insurance company
- C. okon insurance company
- D. Mr Adekunle only
Adekunle bought a car for N2,000,000. he insured it with musa insurance company and okon insurance company for N600,000 and N800,000 respectively. on his way to his office, he had an accident which destroyed his windscreen valued at N30,000 and kayode’s shop valued at N15,000.
The maximum aount to be paid for kayode’s shop that was damged is
- A. N15,000
- B. N30,000
- C. N45,000
- D. N60,000
Adekunle bought a car for N2,000,000. he insured it with musa insurance company and okon insurance company for N600,000 and N800,000 respectively. on his way to his office, he had an accident which destroyed his windscreen valued at N30,000 and kayode’s shop valued at N15,000.
The policy cover with musa insurance is
- A. averagely insured
- B. fully insured
- C. under insured
- D. over insured
The insurance cover a businessman who buys goods from lagos and wants to transport it to kano would require is
- A. marine insurance
- B. business interruption insurance
- C. theft insurance
- D. goods in transit insurance
The first insurance company to establish its branch office in Nigeria is
- A. Norwich insurance company
- B. Royal exchange assurance
- C. Yorkshire insurance company
- D. phoenix of Nigeria assurance company
The policy which covers either death or disability resulting from an injury is
- A. personal accident insurance
- B. fidelity guaranteed
- C. sickness insurance
- D. motor insurance
The document used by the insurer to ask questions about a risk to be covered is
- A. certificates
- B. proposal form
- C. policy form
- D. schedule
The type of life insurance policy where the premium goes towards the policy with no interest element is
- A. endowment policy
- B. whole life insurance
- C. annuity policy
- D. term insurance
The part of a policy that describes the event that led to a loss is
- A. operative clause
- B. recital clause
- C. heading
- D. schedule
which of the following professionals is an operator in the reinsurance market?
- A. agent
- B. consultant
- C. broker
- D. adjuster
A policy that covers a trader against the risk of payment default by customer is
- A. stock insurance
- B. trade insurance
- C. fidelity insurance
- D. credit insurance