Insurance WAEC

Insurance Renewals

Bayani Gaba-gaba

Most general insurance runs for one year and then quietly ends. If you want the cover to carry on, you have to renew it, and the few weeks around each renewal date decide whether you are protected or exposed. Miss the date on a motor policy and you are not merely uninsured, you are breaking the law the moment you drive out of your compound.

In this lesson you will learn what a renewal notice is and why insurers send one, the step by step renewal procedure, and the meaning of the days of grace (and the classes they do not cover). You will see how a no claim discount rewards careful policyholders, why a trader might sign a long-term agreement, and exactly what a policyholder loses by letting a policy lapse. Worked calculations show you how examiners test each of these.

Manufura

  1. Explain the purpose of a renewal notice and describe the renewal procedure
  2. Explain the operation and purpose of a no claim discount
  3. Describe a long-term agreement and state the benefit to the insured and to the insurer
  4. Explain the consequences of allowing a policy to lapse at renewal

Taswirar tunani

An zana wannan batu don ka ga yadda ra'ayoyi ke hadewa.

Katunan tunawa

Gwaji mai sauri kan abin da ake jarraba a wannan batu.

Takardar Darasi

Musa runs a provisions store in Kano and insures the shop and stock against fire. One busy December the renewal date slips past him. Three weeks later a faulty socket sets the storeroom alight and the stock is lost. Musa reaches for his policy expecting a cheque and discovers there is no live cover to claim against: the policy expired, he never paid the renewal premium, and a fire policy does not simply carry on by itself. Renewal is not paperwork you can ignore. It is the act that keeps your protection alive from one year to the next, and the rules around it decide who is covered and who is not.

Nazarin Darasi

Barka da kammala darasi akan Insurance Renewals. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  1. A renewal notice is best described as a document which: A. Legally compels the insurer to renew the policy B. Reminds the policyholder that the policy is due for renewal and invites payment C. Transfers the policy to a new insurer D. Cancels the existing policy Answer: B
  2. Days of grace at renewal do NOT apply to: A. Fire insurance B. Life assurance C. Motor insurance D. Household contents insurance Answer: C
  3. A no claim discount is granted to a policyholder who: A. Insures for less than the full value B. Made no claim during the preceding period of insurance C. Pays the premium in one lump sum D. Holds more than one policy with the insurer Answer: B
  4. A basic motor premium is 80,000 naira and the policyholder has earned a 25% no claim discount. The renewal premium payable is: A. 80,000 naira B. 60,000 naira C. 55,000 naira D. 20,000 naira Answer: B
  5. The main benefit of a long-term agreement to the insured is: A. Freedom to change insurer at any time B. A discount on the premium for each year of the agreement C. Exemption from paying any premium D. Automatic increase in the sum insured Answer: B

Littattafan da ake ba da shawarar karantawa

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Mai wallafa: Pearson
Shekara: 2016
ISBN: 978-0-13-408257-8
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Fundamentals of Risk and Insurance
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Mai wallafa: Wiley
Shekara: 2008
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Fundamentals of Insurance
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Mai wallafa: Himalaya Publishing House
Shekara: 2017
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