musa lent obinna the sum of N2,000,000 i february 2015 which he promised to pay back at the end of the year.. musa decided to effect a life policy on obinna...

Answer Details

The subject matter of insurance in the package is obinna's life. Musa lent Obinna the sum of N2,000,000 in February 2015, and Obinna promised to pay back at the end of the year. Musa then decided to effect a life policy on Obinna for a sum of N20,000. This means that if Obinna were to pass away before he pays back the loan, the insurance policy would pay out N20,000 to Musa to cover the outstanding debt. Therefore, the life policy is designed to protect Musa's financial interest in the event of Obinna's untimely death, which would prevent him from repaying the loan. The insurance policy's subject matter is therefore Obinna's life, and the sum assured of N20,000 is the amount that Musa would receive if the policy is triggered due to Obinna's death.