Question 1
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This is a case study question where the candidates were required to read, understand and apply their knowledge of the insurance principles in solving practical problems posed in the case as related in the following questions:
(a) Identify two principles of insurance applicable in the case above.
(b) State whether KUK Assurance Company Limited was right to have paid N1,700 on medical expenses instead of N30,000.
(c) Explain why KUK Assurance Limited paid claims on personal accident policy when the accident occurred outside working hours.
(d) Calculate the total claims paid by KUK Assurance Company Limited.
(e) Explain why Adewale was paid N1,275 instead of N1,700
Observation
Most of the candidates avoided the case study question even though it was compulsory. The few that attempted the question performed fairly well. The calculation of the actual total claim due to the insured in the case is as follows:
Calculation of total claims paid by KUK Assurance Company Limited
Personal accident (N1275 x 7 x 6) = N53,550
Medical expenses = N17,000
N70,550