JAMB Commerce Past Questions & Answers - Page 81

401.

A person who undertakes life insurance is said to be an

A.

insurer

B.

assurer

C.

assured

D.

insured

Correct answer is D

Insured refers to the owner of the property insured or the person whose life is the subject of the contract of insurance

402.

Assurance is different from insurance in that the former is based on

A.

probability

B.

possibility

C.

risk

D.

uncertainty

Correct answer is B

Assurance is similar to insurance, with the terms often used interchangeably. However, insurance refers to coverage over a limited time, whereas assurance applies to persistent coverage for extended periods or until death. 

403.

The right of an insurance company to stand in place of an insured against a third party , who is liable for the occurrence of a loss, is the principle of

A.

proximate cause

B.

insurable interest

C.

insurance priority

D.

subrogation

Correct answer is C

No explanation has been provided for this answer.

404.

Communication is relevant to business activities because it

A.

creates wealth for people

B.

reduces the cost and risk of travelling

C.

connects people

D.

enhances delivery of goods and servicess

Correct answer is C

Effective communication can help to foster a good working relationship between you, your staff and customer which can in turn improve morale and efficiency.

405.

Printed messages sent by cable are recorded as

A.

telegram

B.

SMS

C.

telex

D.

MMS

Correct answer is A

Telegram is a message sent by telegraph and then delivered in written or printed form