1 | Page
Ribo - chapter 1 Questions and Correct
Answers
Insurance Ans: The undertaking by one person to imdemnify
another person against loss or liability for loss in respect of a
certain risk or peril to which the object of insurance may be
exposed... or to pay a sum of money or other thing of value upon
thr happening of a certain event.
5 functions of insurance Ans: 1. Spread of risk.
2. Basis of credit system.
3. Eliminates worry - encourages entrepreneurship.
4. Loss prevention and loss reduction.
5. Source of employment and investment capital.
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, 2 | Page
Analysis of insurance reveals: Ans: 1. Insurance provides a means
of shifting one's financial responsibility for a loss to another party.
2. Payment will be made only in the event of the happening of a
certain risk or peril.
3. The amount of the payment is restricted to the amount required
to indemnify the insured.
4. Insurance covers losses to which the object of insurance may be
exposed.
5. The indemnify provided can be in the form of a sum of money
or other thing in value.
Property and casualty insurance or general insurance involves all
types of insurance other than life and health. It includes: Ans: 1.
Automobile insurance
© 2025 All rights reserved
Ribo - chapter 1 Questions and Correct
Answers
Insurance Ans: The undertaking by one person to imdemnify
another person against loss or liability for loss in respect of a
certain risk or peril to which the object of insurance may be
exposed... or to pay a sum of money or other thing of value upon
thr happening of a certain event.
5 functions of insurance Ans: 1. Spread of risk.
2. Basis of credit system.
3. Eliminates worry - encourages entrepreneurship.
4. Loss prevention and loss reduction.
5. Source of employment and investment capital.
© 2025 All rights reserved
, 2 | Page
Analysis of insurance reveals: Ans: 1. Insurance provides a means
of shifting one's financial responsibility for a loss to another party.
2. Payment will be made only in the event of the happening of a
certain risk or peril.
3. The amount of the payment is restricted to the amount required
to indemnify the insured.
4. Insurance covers losses to which the object of insurance may be
exposed.
5. The indemnify provided can be in the form of a sum of money
or other thing in value.
Property and casualty insurance or general insurance involves all
types of insurance other than life and health. It includes: Ans: 1.
Automobile insurance
© 2025 All rights reserved
