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

Which of the following is not an insurance of indemnity? (WASSCE 2012)

A. Life
B. Marine
C. Burglary
D. Fire

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

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

An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is ________ (WASSCE 2013)

A. indemnity
B. insurable interest
C. proximate cause
D. subrogation

Which of the following is not a contact of indemnity? (WASSCE 2009)

A. Marine insurance
B. Fire insurance
C. Life assurance
D. Burglary insurance

Mr Biu has been paying the premium of a straight Life Assurance policy for several years. The surrender value of the policy is the amount that _______ (WASSCE 2013)

A. would be paid to Mr. Biu if he should discontinue with the policy.
B. would be paid to Mr. Biu’s beneficiaries if he dies
C. is paid annually to Mr. Biu to the insurance company
D. the amount Mr Biu has paid plus interest