• What is credit?
• List and explain six principles of insurance.

This question was attempted by many candidates but their performance was below average. The candidates could not explain the following insurance terms correctly.
Contribution: This insurance principle states that if an object is insured with more than one insurance company, the claimable amount from the insurance companies is the  individual ratable proportion of the loss.
Insurance Interest: This principle provides that only the person who will suffer financial loss if the event to be insured against occurs will be allowed to take the insurance policy.
Indemnity: This restores the insured to his/her former position before the occurrence of the loss. It  is not the compensation paid by the insurer as many candidates wrote.