Importance of insurance - Jamb Commerce Past Questions and Answers

Question 1:

• JAMB 1994

Commerce is defined as the study of how

A. Man utilizes the resources in his physical environment
B. Man produces, distributes and consumes his goods and services
C. Man buys, sells and distributes goods and services
D. Raw materials are changed into finished goods

Question 2:

• JAMB 1997

The main purpose of insurance is to

A. Encourage business to surviveand grow
B. Ensures that facilities are available for operators
C. Accepts risk s and extend credit to policy holders
D. Spread individual losses ove all covered participants

Question 3:

• JAMB 2005

The most important benefit of insurance is that it provides?

A. Control over activities
B. The insured with a right to premium
C. The insured with a right to full compensation
D. Protection against risks

Question 4:

• JAMB 2009

The most important reason for the existence of insurance business is to?

A. Prevent the occurrence of any loss
B. Spread losses to all covered participants
C. Provide for the replacement of facilities
D. Encourage individuals to save