Principles of Insurance (INSC2101)
Higher Institute of Commerce and Management (HICM)
Semester: First Semester
Level: 200
Year: 2018
THE UNIVERSITY OF BAMENDA
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT (HICM)
LEVEL 100: FIRST SEMESTER QUIZ.
COURSE: PRINCIPLES OF INSURANCE TIME ALLOWED: 30 MINS
INSTRUCTIONS: ANSWER ALL Course lecturer: Prince Uzor Emmanual.E
CANDIDATE NAME
DEPARTMENT…………. REGISTATION NUMBER:……………………
1. List the four essential features of a valid insurance contract
a----------------b----------------c---------------d-----------
2. Insurance limits uncertainty that have to do with occurrences of an even
TRUE OR FALSE.
3. Another name for an insured is------------------------------
4. Loss can be defined as unexpected disappearance of------------------------------
5. The document showing the evidence of insurance contract is----------------------------
6. The principle of indemnity is applicable in life assurance. TRUE OR FALSE
7. The information in a completed proposal form helps in revealing---------a. Moral hazard. b.
morale hazard. c. Physical hazard. D. none of the above.
8. The party who makes an offer in a contract of insurance is------------------
9. Life assurance is a contract of indemnity. TRUE OR FALSE,
10. Issuance of a claim form simply means that insurer accepts that liability. TRUE OR FALSE
11. List the three main types of perils.a ------------------b--------------c----------
12. Physical hazard can be accessed through—.a. Cover note b. proposal form c.certifcate of
insurance.
13. State the formula for calculating contribution in a contract of insurance---------------------
14. The commission paid to a broker is called-----------------
15. State the formula for underinsurance calculation.---------------------
16. "No premium no cover" means -----------------
17. Ex-Gracie payment is a payment made out of---------------------
18. When does insurable interest exist in property insurance contract?-------------------------
19. Mention any three sources of insurable interest, a---------------b--------------c--------------
20. There are factors that limit the full payment of indemnity. TRUE OR FALSE
21. Surrender value is paid at the maturity of the contract. TRUE OR FALSE
22. Mention any three factors the limits the full payment of indemnity, If any. a------------b------------
c----------------
23. No claim discount is received by who in a contract of insurance ------------------a insured b.
insurer c. agent d. broker
24. Sum Insured is the limit of------- -a. insurer's liability b. insured's liability c. broker's
liability d. none of the above.
25. Average clause is a method used to fight against----------------
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26. Hazard in insurance actually influences the ---------------a. peril b. profit c.commision
d.market
27. List the six basic principles of insurance --------------------- ------------------------- ----------------
---------------------- -------------------------------- --------------------------------
28. The proposal form is not the basis of insurance contract A . true B.false
29. If sum Insured is given as 2,000,000frs, loss as 500,000frs with premium the premium payable by
the insured.
30. Treaty reinsurance is the oldest method of placing reinsurance. True or False
31. Mention any three methods of handling risk.--------------------------- ----------------------------- -----
----------------------------
GOOD LUCK
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