Commerce Practice Test – Insurance (Questions with Answers and Explanations)

Which of the following is not a principle of insurance? (WASSCE 2005)

A. indemnity
B. insurable risk
C. subrogation
D. insurable interest

Which of the following terms is used in marine insurance when the cargo suffers partial loss? (WASSCE 2005)

A. General average
B. particular average
C. floating policy
D. open cover

The Practice by which an insurance company accepts a very large risk, and later shares it with other insurance companies is called _______ (JAMB 1995)

A. subrogation
B. contribution
C. re-insurance
D. indemnity.

Demurrage is paid by a vessel for _______ (WASSCE 2006)

A. overloading
B. Travelling along unplanned route
C. Delaying at the port
D. Not using the services at the wharf

A person who undertakes any risk in insurance business is known as ____ (JAMB 1996) 

A. a broker
B. an underwriter
C. an insurer
D. an actuary.