Insurance WAEC

Common Insurance Terminologies

Bayani Gaba-gaba

Insurance has a private language. A trader says the fire destroyed goods worth two million naira; the insurer replies with words like average, excess, salvage and material fact, and suddenly the cheque is for a different figure. None of it is trickery. Each of those words is a precise technical term, and using the wrong one, in an examination or at a claims desk, changes the meaning completely.

This lesson gives you that language, but not as a list to memorise. You will learn the core terms grouped into the four families they belong to: the words that measure and limit a claim, the words about honesty when the contract begins, the words for the documents themselves, and the words for how the market accepts and prices a risk. Learn each term beside its family and you will never confuse an excess with a franchise, or a warranty with a representation, again.

Manufura

  1. Define the common terms used in insurance practice and use each correctly in context
  2. Explain the terms relating to cover, including sum insured, excess, franchise and average
  3. Explain the terms relating to claims, including salvage, ex gratia payment and abandonment
  4. Explain the terms relating to the market, including underwriting, premium, endorsement and warranty
  5. Use the correct technical term when describing a given insurance situation

Takardar Darasi

Two candidates sit the same paper. Both know that a fire destroyed a warehouse and that the owner had under-insured the stock. One writes that the insurer will apply the excess and reduce the claim; the other writes that the insurer will apply average. Only the second is correct, and the difference is a whole set of marks. Insurance is a subject of exact words. A term used loosely is a term used wrongly, and examiners test that precision every single year. The good news is that the vocabulary is not random: every term earns its place by serving one of a small number of underlying principles. Learn the principle and the words fall into place.

Nazarin Darasi

Barka da kammala darasi akan Common Insurance Terminologies. 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 voluntary payment made by an insurer in respect of a loss for which it is not technically liable under the policy is called: A. A franchise B. An ex gratia payment C. A rebate D. An excess Answer: B
  2. The written document used to alter the terms of a policy that is already in force is the: A. Proposal form B. Cover note C. Endorsement D. Certificate Answer: C
  3. A policy is subject to a franchise of 60,000 naira. A loss of 50,000 naira occurs. How much will the insurer pay? A. 50,000 naira B. 10,000 naira C. 60,000 naira D. Nothing Answer: D
  4. Which of the following terms belongs to the principle of utmost good faith? A. Salvage B. Material fact C. Franchise D. Reinstatement Answer: B
  5. A car insured for 1,200,000 naira is a total loss. The insurer pays the claim in full and later sells the wreck for 200,000 naira. The insurer's net cost is: A. 1,400,000 naira B. 1,200,000 naira C. 1,000,000 naira D. 200,000 naira Answer: C

Littattafan da ake ba da shawarar karantawa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Sunaƙa: Thirteenth edition
Mai wallafa: Pearson
Shekara: 2016
ISBN: 978-0-13-408257-8
Bayanan bayanin.: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Sunaƙa: Tenth edition
Mai wallafa: Wiley
Shekara: 2008
ISBN: 978-0-470-08753-4
Bayanan bayanin.: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Sunaƙa: Second edition
Mai wallafa: Himalaya Publishing House
Shekara: 2017
ISBN: 978-93-5097-079-9
Bayanan bayanin.: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Tambayoyin Da Suka Wuce

Kana ka na mamaki yadda tambayoyin baya na wannan batu suke? Ga wasu tambayoyi da suka shafi Common Insurance Terminologies daga shekarun baya.

WAEC SSCE - Insurance - 2016

Tambaya 1 Rahoto

Explain the following terms as used in insurance business:

(a) Surrender value

(b) Days of grace

 (c) Ex-gratia payment

 (d) Endorsement

(e) Disclosure.
 

Duba Amsa