Insurance Questions and Answers

The National Insurance Commission (NAICOM) was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.

An assured: Legal owner or beneficiary of a life insurance policy.

Grace periods for late payments last anywhere from 30 to 60 days and your life insurance remains in force during that time.

No explanation has been provided for this answer.

A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.

An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy. Endorsements may also be referred to as riders. An insurance endorsement may be used to add, delete, exclude or otherwise alter coverage.

A certificate of insurance (COI) is issued by an insurance company or broke. The COI verifies the existence of an insurance policy and summarizes the key aspects and conditions of the policy.

Renewal note; a note sent by an insurance company asking the insured person to renew the insurance.

Signature of Insurance Policies: An insurance document,such as an insurance policy, an insurance certificate or a declaration under an open cover, must appear to be signed by an insurance company, an underwriter or their agents or their proxies.

Risk pooling in insurance is a practice where the company groups large numbers of policyholders together to lower the impact of higher-risk individuals by placing them alongside lower risk ones. The company is able to offer higher risk policyholders more affordable coverage as a result.

The operative clause of the policy is a promissory clause. It is a promise that the insurer undertakes to pay the benefits of the policy if the reason(s) why the policy was incepted, and issued by the insurer, happens while the policy is in force.

An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.

A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and goals of the owner. is a contract of benefit.