WAEC Insurance past questions and answers

Checked by the Skolra question team · Last updated 15 October 2026

WAEC Insurance: 143 objective past questions from 3 papers between 2016 and 2018, each with the answer and an explanation. Here are ten.

1. 1.Musa lent Obinna the sum of N2,000,000 in February 2015 which he promised to pay back at the end of the year. Musa decided to effect a life policy on Obinna for a sum of N20,000. The peril insured against by Musa is
   1. A
      Default of payment by Obinna
   2. B
      Death of Obinna
      Correct
   3. C
      Theft of Musa's money
   4. D
      Fire damage to Obinna's property
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   Answer: B

   Musa, as creditor, insured against the peril of Obinna's death occurring before repayment, which would extinguish his chance of recovering the debt.
2. 2.The reason for issuing certificate of motor insurance is that, it is
   1. A
      a legal requirement to prove that the vehicle is insured as required by law
      Correct
   2. B
      a tax receipt
   3. C
      a document for claiming no-claims bonus
   4. D
      proof of vehicle ownership
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   Answer: A

   A certificate of motor insurance is issued because the law requires motorists to carry documentary evidence of insurance cover that can be produced to the police or licensing authorities.
3. 3.One of the steps taken by an insurer in claim settlement is to?
   1. A
      Increase the premium of all policyholders
   2. B
      Cancel all other policies held by the insured
   3. C
      Advertise the policy to new customers
   4. D
      Investigate the circumstances of the loss to confirm its validity
      Correct
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   Answer: D

   Before settling a claim, an insurer must investigate the loss to confirm the policy was in force, the peril is covered, and the claim is genuine.
4. 4.The period of insurance in non-life insurance contract is usually
   1. A
      five years
   2. B
      ten years
   3. C
      one year
      Correct
   4. D
      one month
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   Answer: C

   Non-life (general) insurance contracts are usually written for a period of one year, after which the policy must be renewed.
5. 5.Adekunle bought a car for N2,000,000. He insured it with Musa Insurance Company and Okon Insurance Company for N600,000 and N800,000 respectively. On his way to his office, he had an accident which destroyed his windscreen valued at N30,000 and Kayode's shop valued at N15,000. The maximum amount to be paid for Kayode's shop that was damaged is
   1. A
      N45,000
   2. B
      N30,000
   3. C
      N7,500
   4. D
      N15,000
      Correct
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   Answer: D

   The shop damage is valued at N15,000, and under the principle of indemnity, Kayode can only be compensated for his actual loss, regardless of how the insurers later share the cost between themselves.
6. 6.A manufacturing company whose production was abruptly stopped by fire incidence would have its claim for loss of earning settled under the class of
   1. A
      Burglary insurance
   2. B
      Fire insurance
   3. C
      Public liability insurance
   4. D
      Consequential loss (business interruption) insurance
      Correct
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   Answer: D

   Consequential loss insurance covers the loss of earnings/profit following physical damage such as fire, which ordinary fire insurance (covering only the physical asset) does not.
7. 7.A clause that prevents the insurer from paying under a policy if the insured killed himself is?
   1. A
      Forfeiture clause
   2. B
      Suicide clause
      Correct
   3. C
      Average clause
   4. D
      Excepted perils clause
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   Answer: B

   The suicide clause in a life assurance policy excludes or restricts payment of the sum assured where the life assured dies by his own hand, usually within a stated period from inception.
8. 8.The method of paying premium in life insurance contract in which premium payable increases as age increases is?
   1. A
      Level premium method
   2. B
      Natural premium method
      Correct
   3. C
      Single premium method
   4. D
      Net premium method
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   Answer: B

   Under the natural premium method, the premium rises each year in line with the increasing mortality risk as the life assured grows older, unlike the level premium method.
9. 9.In motor insurance, which of the following covers will take care of all parties that can be involved in an accident?
   1. A
      Comprehensive cover
      Correct
   2. B
      Act only cover
   3. C
      Third party only cover
   4. D
      Third party, fire and theft cover
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   Answer: A

   A comprehensive motor policy covers the insured's own vehicle as well as third parties (other road users, passengers and property), unlike the other covers which are limited to third-party protection.
10. 10.A claimant who is not legally entitled to a claim under an insurance contract may be offered a payment on?
    1. A
       Return of premium only
    2. B
       Ex-gratia payment
       Correct
    3. C
       Full indemnity
    4. D
       Double compensation
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    Answer: B

    An ex-gratia payment is a goodwill payment an insurer may make to a claimant who has no strict legal entitlement under the policy, often to preserve goodwill.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

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