WAEC Past Questions and Answers - Page 2461

12,301.

The expert who uses statistics to develop the premium payable in a life contract is an

A.

adjuster

B.

actuary

C.

assesor

D.

agent

Correct answer is B

An actuary is a business professional who deals with the measurement and management of risk and uncertainty.

12,302.

The factor which increases the possibility of loss that emanates from the insured attitude is?

A.

physical hazard

B.

moral hazard

C.

uninsured peril

D.

excepted peril

Correct answer is B

moral hazard occurs when someone increases their exposure to risk when insured, especially when a person takes more risks because someone else bears the cost of those risks.

12,303.

which of the following factors is not considered when calculating premium in life assurance policy

A.

expense

B.

mortality

C.

interest

D.

losses

Correct answer is A

There are several factors used to determine your life insurance premiums, including the following:

  • Age is probably the single primary factor that determines your life insurance premiums. ...
  • Gender
  • Physical condition.
  • Smoking
  • Your medical history.
  • Your family's medical history.
  • Occupation.

12,304.

Life policies can be used as a collateral for loan when the policy has?

A.

ceased to be life

B.

been temporary suspended

C.

acquired surrender value

D.

been made paid-up

Correct answer is C

collateral assignment of life insurance is a conditional assignment appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan. If the borrower is unable to pay, the lender can cash in the life insurance policy and recover what is owed.

 'Surrender Value': It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity

12,305.

The body that regulates the activities of insurance market in Nigeria

A.

National Insurance Commission

B.

professional reinsurance association of nigeria

C.

Nigeria insurers Association

D.

Nigeria council of registered insurance brokers

Correct answer is A

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.