Insurance - SS2 Commerce Past Questions and Answers - page 1

1

When was the Royal Exchange Assurance Corporation established in Nigeria?

A

1960

B

1918

C

1999

correct option: b

1918

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2

Who regulates the insurance industry in Nigeria?

 

A

National Insurance Commission (NAICOM)

 

 

B

Central Bank of Nigeria (CBN)

 

C

Securities and Exchange Commission (SEC)

 

correct option: a

National Insurance Commission (NAICOM)

 

Users' Answers & Comments
3

Which type of insurance covers risks related to damage or loss of property?

 

A

Life insurance

 

B

Motor insurance

 

C

Health insurance

 

correct option: b

Motor insurance

 

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4

What is the purpose of insurance in providing financial protection?

 

A

Managing investment portfolios

B

Compensating policyholders

 

C

 Maximizing profits for insurance companies

 

correct option: b

Compensating policyholders

 

Users' Answers & Comments
5

What has been a challenge for the insurance industry in Nigeria?

 

A

 Low awareness

B

High premiums

 

C

Limited coverage options

 

correct option: a

 Low awareness

Users' Answers & Comments
6

Define insurance in simple terms.

 

Insurance is a system that provides financial protection against risks and uncertainties by compensating policyholders in the event of a covered loss or damage.

 

Users' Answers & Comments
7

Who regulates the Nigerian insurance industry?

 

The Nigerian insurance industry is regulated by the National Insurance Commission (NAICOM).

 

Users' Answers & Comments
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