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WAEC Commerce 1997 Question 77

Question 77

Insurance

When an assured is unable to honour his obligation in an insurance contract thereby terminating it before maturity, he could only receive

  1. A.indemnity
  2. B.the sum insured
  3. C.the surrender value
  4. D.compensation
  5. E.premium
Show the answer and explanation

Answer: C (the surrender value)

Explanation

If a life policy is ended before maturity, the insured gets only the surrender value.