Insurance - Jamb Commerce Past Questions and Answers

Question 16:

• JAMB 2000

The insurance principle that requires full disclosure of information on the insured is known as

A. Indemnity
B. Uberrimae fidei
C. Subrogation
D. Caveat emptor

Question 17:

• JAMB 2000

Mr Olatude took up a fire insurance on a property valued at N1000 and the amount insured is N 800. If the insurance was taking with the clause ‘with average ‘, What is the amount to be paid by the insurance company?

A. N320
B. N420
C. N460
D. N560

Question 18:

• JAMB 2001

Pooling of risk in insurance means that?

A. Compensations are paid out of a common fund
B. Two people can pool their risks to be insured
C. Two insurance companies can buy two policies
D. Insurance companies should encourage taking risks.

Question 19:

• JAMB 2001

The major difference between insurance and assurance is that while insurance

A. Takes care of uncertainty, assurance takes care of risks
B. Takes care of risks , assurance takes care of uncertainty
C. Hinges on probabilities, assurance is based on possibilities
D. Is about indemnity, assurance is about life in the future

Question 20:

• JAMB 2002

Under the endowment policy, the money handed over to the insured at the expiration of the stipulated time or at death is the?

A. Indemnity
B. Surrender value
C. Lump sum benefit
D. Insurance premium