Insurance - JSS3 Social studies Past Questions and Answers - page 2

The primary functions of insurance include risk pooling, risk transfer, financial security, promotion of saving, and encouragement of economic growth.

Two types of insurance that provide coverage for unexpected events are travel insurance and health insurance.

NDIC was established in 1988, with its main purpose being to safeguard depositors' funds and contribute to the stability of the financial system.

NDIC plays a crucial role in taking over failed banks, protecting depositors, and facilitating the orderly resolution of financial institutions.

Auto insurance covers damages and liabilities related to vehicles, while property insurance protects against damage or loss of physical assets like homes or cars.

Risk pooling involves spreading risks among a large number of policyholders, reducing the financial impact on individual policyholders in case of unexpected events.

Deposit insurance is important as it safeguards depositors' funds, ensuring they receive a portion of their funds in the event of a bank failure, contributing to financial stability.

One role of NDIC that focuses on public awareness is educating the public about the importance of deposit insurance and promoting financial stability.