WAEC Insurance 2016 past questions

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

Ten questions from the 2016 WAEC Insurance paper, with answers and explanations. We hold 50 questions from this paper, and the Skolra app has all of them.

WAEC Insurance 2016 questions and answers

1. 1.An insurer will recover wrongly paid claims to an insured if?
   1. A
      The premium was paid in installments
   2. B
      A loss adjuster was not used
   3. C
      The insured renews the policy next year
   4. D
      The claim was obtained through fraud or misrepresentation
      Correct
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   Answer: D

   Where a claim payment is later found to have been procured through fraud or misrepresentation of facts, the insurer is entitled to recover the sum wrongly paid from the insured.
2. 2.To insure any property, the insured must have
   1. A
      insurable interest in the property
      Correct
   2. B
      a written valuation report from a bank
   3. C
      a letter of introduction from the police
   4. D
      a guarantor who is also insured
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   Answer: A

   A fundamental requirement before any property can be insured is that the person proposing the insurance must have an insurable interest in that property.
3. 3.A document providing evidence of insurance when the policy document is not immediately available is?
   1. A
      Cover note
      Correct
   2. B
      Policy schedule
   3. C
      Proposal form
   4. D
      Endorsement
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   Answer: A

   A cover note is a temporary document issued by the insurer or broker providing evidence of insurance cover pending the issuance of the full policy document.
4. 4.A class of insurance that covers policy holders for losses caused by fraudulent employees is?
   1. A
      Burglary insurance
   2. B
      Fidelity guarantee insurance
      Correct
   3. C
      Public liability insurance
   4. D
      Professional indemnity insurance
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   Answer: B

   Fidelity guarantee insurance indemnifies an employer against financial loss caused by the fraud or dishonesty of its own employees.
5. 5.When a policy is cancelled before its expiry date, what is owed to the insured is
   1. A
      An ex-gratia payment
   2. B
      A fidelity bond
   3. C
      The full sum insured
   4. D
      Return of premium (pro-rata unearned premium)
      Correct
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   Answer: D

   Where a policy is cancelled before its expiry, the insured is entitled to a return premium, representing the pro-rata unearned portion of the premium for the unexpired period.
6. 6.An attachment to an insurance policy that modifies the policy is?
   1. A
      Proposal form
   2. B
      Cover note
   3. C
      Endorsement
      Correct
   4. D
      Certificate of insurance
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   Answer: C

   An endorsement is a rider or attachment added to an insurance policy to modify its original terms and conditions after issuance.
7. 7.Mr Aderemi's car was insured under comprehensive policy. He did not disclose his unlicensed wife also drives it. Rioters damaged the car while she drove. What is the proximate cause of the damage?
   1. A
      Non-disclosure of the unlicensed driver
   2. B
      Mechanical breakdown of the car
   3. C
      Normal wear and tear
   4. D
      Riot (civil commotion)
      Correct
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   Answer: D

   The proximate cause is the dominant, direct cause of the loss, here the riot that damaged the car, even though the non-disclosure of the unlicensed driver may separately affect the validity of the claim.
8. 8.Mr. Thomas assured his life for N300,000.00 for 20 years at N2,200.00 monthly premium. What is the sum assured for the policy?
   1. A
      N20,000
   2. B
      N528,000
   3. C
      N2,200
   4. D
      N300,000
      Correct
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   Answer: D

   The sum assured is the guaranteed amount the insurer agrees to pay on maturity or death, stated in the scenario as N300,000.00.
9. 9.Peril in insurance means
   1. A
      The amount payable on a claim
   2. B
      The document evidencing the contract
   3. C
      The actual cause of a loss, such as fire, storm or theft
      Correct
   4. D
      A condition that increases the chance of loss
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   Answer: C

   A peril is the actual event or cause of loss, such as fire, flood or theft, insured against, as distinguished from a hazard, which merely increases the likelihood of that event occurring.
10. 10.The duty of a loss assessor is to ensure
    1. A
       the premium for the policy is increased after a loss
    2. B
       the insurer pays the lowest possible amount on every claim
    3. C
       the police investigate every claim before it is paid
    4. D
       the insured receives fair and adequate compensation for the loss suffered
       Correct
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    Answer: D

    A loss assessor is engaged by (and acts in the interest of) the insured to prepare and negotiate the claim, ensuring the policyholder receives fair and adequate compensation under the policy.

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

Spotted a wrong answer? Tell us from the app or on the contact page and we check it.

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