Insurance Waec Past Questions And Answers (Objective and Theory)

To help you on your journey, here are 20 carefully crafted insurance questions, including a theory section with five thought-provoking queries. Let’s dive in!

Multiple Choice Questions (15):

What type of insurance provides coverage for damage to your vehicle in the event of an accident?

A) Life Insurance

B) Health Insurance

C) Property Insurance

D) Liability Insurance

Answer: C) Property Insurance

In insurance terms, what does the acronym “ULIP” stand for?

A) Universal Life Insurance Policy

B) Underwriting Liability and Investment Plan

C) Unit-Linked Insurance Plan

D) Ultimate Loss Indemnity Policy

Answer: C) Unit-Linked Insurance Plan

Which of the following is a characteristic of term life insurance?

A) Cash Value Builds Over Time

B) Covers a Specific Time Period

C) Provides Investment Options

D) Offers Lifetime Coverage

Answer: B) Covers a Specific Time Period

What is the purpose of reinsurance in the insurance industry?

A) To Insure Individuals

B) To Share Risks with Other Insurers

C) To Determine Premium Rates

D) To Investigate Claims

Answer: B) To Share Risks with Other Insurers

Which principle of insurance ensures that the insured receives fair compensation for a covered loss?

A) Utmost Good Faith

B) Indemnity

C) Proximate Cause

D) Subrogation

Answer: B) Indemnity

Theory Questions (5):

6. Explain the concept of “Utmost Good Faith” in insurance and its significance. (5 marks)

Discuss the role of actuaries in the insurance industry and how they contribute to risk assessment. (7 marks)

Differentiate between “Peril” and “Hazard” in the context of insurance. Provide examples to illustrate your explanation. (6 marks)

Elaborate on the importance of the “Insurable Interest” principle in insurance transactions. (4 marks)

Analyze the impact of adverse selection on insurance markets and propose strategies to mitigate its effects. (8 marks).