Insurance

Ex-gratia payment is made where there is?

A. no legal liability obligation B. legal liability obligation C. need to refund a premium D. delay in payment of…

5 years ago

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

A. slip B. endorsement C. cover note D. policy form Correct Answer: Option B B. endorsement Explanation An insurance endorsement…

5 years ago

Features of insurable risk include?

(i) fortuity (ii) insurer (iii) utmost good faith (iv) financial value A. I and ii only B. ii and iii…

5 years ago

A guarantee issued by an insurance company to support their client who is applying for a contract is?

A. performance bond B. bid bond C. retention bond D. advance payment bond Correct Answer: Option A A. performance bond…

5 years ago

The principle of insurance that demands that the insured must stand to a loss in the event of a loss before taking a policy is?

A. consideration B. insurable interest C. proximate cause D. subrogation Correct Answer: Option B B. insurable interest Explanation Insurable interest…

5 years ago

An insurer will recover claims paid wrongly to an insured if?

A. it was ex-gratia payment B. there was a mistake of law C. the premium had not been paid D.…

5 years ago

Which of the following is a subject matter of insurance in fire policy?

A. building B. shares C. corporation D. money Correct Answer: Option A A. building Explanation The subject matter of insurance…

5 years ago

Business interruption claims will only be settled if it is caused by?

A. permanent disability B. machinery breakdown C. sickness D. death Correct Answer: Option B B. machinery breakdown Explanation Business interruption…

5 years ago

Surrender value is the amount payable if the insured?

A. does not want to continue with the life policy B. does not want to continue with car insurance C.…

5 years ago

What is the proximate cause of the damage to the car?

Mr. Aderemi owns a car that was insured under a comprehensive policy. while insuring the car, he did not inform…

5 years ago