Insurance WAEC

one of the differences between a 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: Option D

D. non-life is subject to compensation while life is not

Explanation

Life insurance is a contract between an insurance policyholder 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.

Non- life insurance refers to the insurance of goods and properties… Non- life 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.

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