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WAEC Commerce 1994 Question 5

Question 5

Insurance

Which of the following terms relate to insurance?
I. Proximate cause
II. Letter of hypothecation
III. indemnity
IV. Caveat emptor
V. uberrimae fidei

  1. A.I, II and IV only
  2. B.II, IV and V only
  3. C.I, III and V only
  4. D.II, III and V only
  5. E.III, IV and V only
Show the answer and explanation

Answer: C (I, III and V only)

Explanation

Proximate cause, indemnity and uberrimae fidei (utmost good faith) are principles of insurance; caveat emptor is a sale-of-goods rule and a letter of hypothecation is a banking document.