Observation

Most candidates who attempted the question did not do well in parts 3a. However, most of them did well in part 3b of the question. The part 3a required candidates to present their responses in sequentially, however most candidates did not do that and this accounted to their low scores

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The expected responses to the question include:

3.(a) Procedures involved in taking an Insurance Policy

• The proposed insured would decide what will be insured and the insurer to use.
• The person will go to an insurance company or agent and obtain a proposal form.
• The form will be filled, disclosing all relevant facts that would affect the subject matter to be insured.
• The insurer will decide on premium payable and other conditions attached to the policy.
• The client is informed of the amount of premium payable and mode of payment from the insurance company.
• The client pays the initial premium as determined by the insurance company.
• The client receives a cover note signifying that the insurance company has given him a temporary cover.
• The client is issued with the insurance policy certificate.

b)Roles of Insurance to Business

• Insurance takes care of insurable risks.
• It provides compensation in case of damage or loss of property.
• It provides a pool of funds that could be loaned to the business world.
• It encourages businessmen to undertake large scale and risky ventures.
• The policy issued could be used as collateral to raise loan from banks and other financial houses.
• It encourages international trade by guaranteeing payment if the overseas buyer refuses to pay.