WAEC Insurance 2017 past questions

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

Ten questions from the 2017 WAEC Insurance paper, with answers and explanations. We hold 45 questions from this paper, and the Skolra app has all of them.

WAEC Insurance 2017 questions and answers

1. 1.The part of the policy that describes the event that could lead to loss in an insurance contract is
   1. A
      Preamble/recital clause
   2. B
      Exceptions clause
   3. C
      Schedule
   4. D
      Operative clause
      Correct
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   Answer: D

   The operative clause states the events/perils the insurer agrees to cover, thereby describing what could lead to a loss under the contract.
2. 2.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 claims on Kayode's shop would be paid by
   1. A
      Both insurers in rateable proportion (contribution)
      Correct
   2. B
      Okon Insurance alone
   3. C
      Adekunle personally
   4. D
      Musa Insurance alone
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   Answer: A

   Since Adekunle double-insured the same car with Musa (N600,000) and Okon (N800,000), both insurers must share the third-party liability claim under the principle of contribution, each paying a rateable proportion based on their respective sums insured.
3. 3.Life insurance is a contract of?
   1. A
      utmost good faith only
   2. B
      certainty
      Correct
   3. C
      indemnity
   4. D
      warranty
   Show answerHide answer

   Answer: B

   Life insurance is a contract of certainty because the event insured against (death) is certain to happen eventually; only the timing is uncertain.
4. 4.The class of insurance that does not require a certificate is?
   1. A
      Group life insurance
   2. B
      Fire insurance
      Correct
   3. C
      Motor insurance
   4. D
      Employer's liability insurance
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   Answer: B

   Unlike the compulsory classes (motor, employer's liability, group life, builders' liability) which require a certificate of insurance by law, fire insurance is not compulsory and does not require one.
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 policy cover with Musa Insurance is
   1. A
      Act only
   2. B
      Third party only
   3. C
      Comprehensive
      Correct
   4. D
      Third party, fire and theft
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   Answer: C

   Because the policy also covers Adekunle's own windscreen damage in addition to third-party property, the cover held with Musa Insurance is a comprehensive policy, which indemnifies both own damage and third-party liability.
6. 6.A policy that covers a trader against the risk of payment default by customer is
   1. A
      Public liability insurance
   2. B
      Consequential loss insurance
   3. C
      Credit insurance
      Correct
   4. D
      Fidelity guarantee insurance
   Show answerHide answer

   Answer: C

   Credit insurance (trade credit insurance) protects a trader against financial loss arising from a customer's default in payment.
7. 7.The body that regulates the activities of insurance market in Nigeria
   1. A
      Securities and Exchange Commission (SEC)
   2. B
      Central Bank of Nigeria (CBN)
   3. C
      National Insurance Commission (NAICOM)
      Correct
   4. D
      Nigerian Insurers Association (NIA)
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   Answer: C

   The National Insurance Commission (NAICOM) is the statutory body charged with regulating and supervising insurance business in Nigeria.
8. 8.Eke bought a new car for N1.5M. The practice in the insurance industry is to pay 10% of the value of the vehicle as premium for comprehensive cover and 2.5% additional cover for strike, riot and civil commotion. Eke was issued a document and two weeks later, he was issued another document different from the first document issued. What is the premium payable for the comprehensive cover?
   1. A
      N37,500
   2. B
      N150,000
      Correct
   3. C
      N187,500
   4. D
      N1,350,000
   Show answerHide answer

   Answer: B

   Comprehensive premium is 10% of the vehicle's value: 10% x N1,500,000 = N150,000.
9. 9.The demand for payment made by the insured to the insurer following occurence of the event insured against is
   1. A
      Claim
      Correct
   2. B
      Indemnity
   3. C
      Proposal
   4. D
      Premium
   Show answerHide answer

   Answer: A

   A claim is the formal demand made by the insured (or beneficiary) to the insurer for payment following the occurrence of an insured event.
10. 10.The part of a policy that describes the event that led to a loss is
    1. A
       Operative clause
       Correct
    2. B
       Exception clause
    3. C
       Recital clause
    4. D
       Attestation clause
    Show answerHide answer

    Answer: A

    The operative clause (insuring clause) of a policy sets out the perils/events the insurer agrees to cover, describing the event that could give rise to a loss.

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.

Practise all 45 questions we hold from the 2017 paper, on a timed CBT screen

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