Principles of Insurance (FINM2101)
Faculty of Economics and Management Science (FEMS)
Semester: First Semester
Level: 200
Year: 2016
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES ( FEMS)
LEVEL 100: FIRST SEMESTER QUIZ.
COURSE: PRINCIPLES OF INSURANCE. TIME ALLOWED: 30 MINS.
INSTRUCTION: ANSWER ALL. Course lecturer: Prince Uzor Emmanuel .E
CANDIDATE NAME:____________________________DEPARTMENT:________ REGISTRATION NUMBER: ______________
1. List the four essential features of a valid insurance contract.
a______________________b___________________c_____________________d____________________________________
2. Insurance eliminates the uncertainty that have to do with occurrence of an event.
TRUE OR FALSE.
3. Another name for ail insured________________________________________________________________________________
4. Loss can be defined as unexpected disappearance of_________________________________________________________
5. Those who are afraid of risk are called_______________________________________________________________________
6. The document showing the evidence of insurance contract is__________________________________________________
7. The principle of indemnity is applicable in life assurance. TRUE OR FALSE.
8. The information in a completed proposal form helps in revealing ------------------ a. Mural hazard b. morale
hazard. c. Physical hazard.
d.
none of the above.
9. The party who makes an offer in a contract of insurance is __________________________________________________
10. Life assurance is a contract of indemnity. TRUE OR FALSE.
11. Endowment life assurance provides benefits only on;
a. The death of the life assured
b. Maturity, date of the contract
c. Both on the death of the life assured and at maturity date!
d. Nose cf the above
12. Issuance of a claim form simply means that the insurer accepts liability. TRUE OR FALSE.
13. List the three main types of perils, a___________________ b___________________ c__________________________
14. Physical hazard can be accessed through—.a. Cover note b. proposal form c. certificate of insurance.
15. The burden of proof of the loss within the scope of the policy is upon the --------------- --- —a. Broker. B. Insured.
c. lawyer d.
insurer.
16. State the formula for calculating contribution in a contract of insurance.___________________________________
17. The commission paid to a broker is called_________________________________________________
-
18. State the formula for underinsurance calculati on._____________________________
19. “No premium no cover” means_____________________________________________________________________________
20. Ex-Gracie payment is a payment made out of_______________________________________________________________
21. When does insurable interest exist in property insurance____________________________________________________
22. Mention any three sources of insurable interest. a_____________________ b___________________ c_________________
23. There are factors that limit the full payment of indemnity. TRUE OR FALSE.
24. Surrender value is paid at the maturity of the contract. TRUE OR FALSE
25. Mention any three factors the limits the full payment of indemnity, if any a___________ b___________ c___________
26. No claim discount is received by who in a contract of insurance? A. insured b. insurer c. agent d. broker.
27. Sum insured is the limit of_________________ a. Insurer’s liability b. insured’s liability c. broker’s liability d. none of
the above.
28. Average clause is a method used to fight against ________________________in a contract of insurance.
29. Hazard in insurance actually influences the _________________ a. peril b. profit c. commission d. market.
30. What is the full name of your insurance lecturer?_____________________________________________________________
GOOD LUCK
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