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

Hello and Welcome to Commerce Practice Test - Insurance

  1. You are to attempt 5 random objectives questions ONLY.
  2. Supply Your Full Name and Location in the text box below and begin immediately.
  3. You can attempt as many times as possible

Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop, she did not tell the Insurance Company that she cooks in the shop, but told the Insurance Company that she sells second hand clothes. Hence she insured her store against natural causes. Tope's shop got burnt yesterday by fire from the cooking pot.

Which of the following insurance principles will prevent her from claiming compensation? (WASSCE 2007)

A. Indemnity
B. Insurable interest
C. Proximate cause
D. Utmost good faith

The work of actuaries is to ______ (WASSCE 2010)

A. underwrites insurance risks.
B. calculates insurance premiums.
C. settles insurance claims.
D. assesses profits for insurance companies

The insurance principle of indemnity does not apply to ________ (WASSCE 2013)

A. fire insurance
B. life assurance
C. burglary insurance
D. marine insurance.

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.

Which of the following is referred to as the oldest form of insurance? (WASSCE 2007)

A. Marine insurance
B. Burglary insurance
C. Whole life assurance
D. Accident insurance



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