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WAEC Commerce 2020 Question 30

Question 30

Insurance

An insurance policy which is not a contract of indemnity is

  1. A.burglary insurance.
  2. B.fire insurance.
  3. C.life assurance.
  4. D.motor insurance.
Show the answer and explanation

Answer: C (life assurance.)

Explanation

A life cannot be valued in money, so life assurance pays an agreed sum rather than restoring a loss; it is not indemnity.