CIIN Certificate CF2 - General Insurance Business (Nigeria)

Under Nigerian motor insurance practice, which class of cover is compulsory for all vehicles using public roads?

• AComprehensive motor insurance
• BThird Party motor insurance
• CThird Party Fire and Theft
• DAct-only liability for commercial fleets

A Lagos-based haulage company insures its fleet against collision damage, fire, theft, and third-party liability under one policy. This is best described as:

• AThird Party only cover
• BComprehensive motor insurance
• CPecuniary insurance
• DEmployers' liability insurance

Which motor insurance extension covers medical expenses for the driver and passengers following an accident, regardless of fault?

• APersonal accident cover
• BNo-claims bonus protection
• CWindscreen cover
• DLegal expenses cover

In Nigeria, health insurance products offered by general insurers are primarily regulated alongside which sector framework?

• ASecurities and Exchange Commission only
• BNational Health Insurance Authority (NHIA) and NAICOM
• CCentral Bank of Nigeria monetary policy
• DFederal Ministry of Works

A managed care health insurance plan that restricts members to a network of designated hospitals and requires referrals to specialists is known as:

• AIndemnity (fee-for-service) plan
• BHealth Maintenance Organisation (HMO) plan
• CCritical illness standalone policy
• DGroup life assurance scheme

Which health insurance product pays a fixed lump sum upon diagnosis of a specified serious illness such as cancer or stroke?

• AHospital cash benefit policy
• BCritical illness insurance
• CDental care rider
• DMaternity benefit extension

A Nigerian manufacturing firm buys a single policy covering its factory buildings, plant, machinery, stock, and business interruption under one schedule. This is an example of:

• APackage (combined comprehensive) policy
• BPecuniary insurance only
• CLiability-only programme
• DReinsurance treaty

Householders' combined policies in Nigeria typically bundle which of the following covers?

• ABuildings, contents, and limited liability to third parties
• BMarine cargo and aviation hull only
• CDirectors' and officers' liability only
• DProfessional indemnity for medical practitioners

Which property insurance cover indemnifies a business for loss of gross profit and increased cost of working following insured damage to premises?

• AMaterial damage (fire and special perils)
• BBusiness interruption (consequential loss)
• CPlate glass insurance
• DContract works insurance

A warehouse in Kano stores goods worth ₦50 million. The policy covers fire, lightning, explosion, and riot. This is primarily:

• AMaterial damage / fire and special perils insurance
• BFidelity guarantee insurance
• CCredit insurance
• DPersonal accident insurance

All-risks insurance on specified property differs from named-perils cover because it:

• ACovers every loss except those specifically excluded
• BOnly covers fire and lightning
• CExcludes theft and accidental damage
• DRequires no premium payment

Pecuniary insurance primarily protects against which type of loss?

• APhysical damage to buildings
• BFinancial or monetary losses such as fraud, money in transit, or trade credit default
• CBodily injury to third parties on premises
• DMarine hull damage at sea

A bank in Abuja takes out a policy to cover losses from employee theft or fraud. This is:

• AFidelity guarantee insurance
• BPublic liability insurance
• CEmployers' liability insurance
• DProduct liability insurance

Credit insurance (trade credit insurance) protects a seller against:

• AFire damage to exported goods
• BNon-payment or insolvency of a buyer
• CEmployee workplace injuries
• DDirectors' wrongful trading decisions

A Lagos shopping mall owner is sued after a customer slips on a wet floor. Which liability class responds?

• APublic (occupiers') liability insurance
• BProfessional indemnity insurance
• CProduct liability insurance
• DEmployers' liability insurance

An insurance broker in Port Harcourt gives negligent advice causing a client financial loss. Which cover is most relevant?

• AProfessional indemnity (PI) insurance
• BPublic liability insurance
• CMotor third party insurance
• DFidelity guarantee insurance

Product liability insurance responds when:

• AA defective product manufactured or supplied causes injury or damage to a third party
• BAn employee is injured operating machinery
• CA director makes a poor investment decision
• DA building is damaged by flood

Employers' liability insurance in Nigeria primarily covers:

• ALegal liability to employees for work-related injury or disease
• BTheft of company assets by outsiders
• CLoss of profit after a fire
• DDamage to the employer's own vehicles

Directors' and Officers' (D&O) liability insurance protects:

• ACorporate directors and officers against claims for wrongful acts in managing the company
• BShareholders against stock market losses
• CCustomers against product defects only
• DEmployees against workplace accidents only

Non-insurance services commonly offered alongside general insurance policies include:

• ARisk surveys, loss prevention advice, and claims handling assistance
• BActuarial reserve certification for reinsurers
• CCentral Bank monetary policy drafting
• DCourt judgment enforcement for criminal cases

A Nigerian insurer offers a 24-hour roadside assistance helpline to comprehensive motor policyholders. This is best classified as:

• AA non-insurance service or value-added benefit
• BA reinsurance arrangement
• CA regulatory capital requirement
• DA compulsory NAICOM levy

Which property cover is most appropriate for a contractor building a new office block in Enugu?

• AContract works (contractors' all risks) insurance
• BHouseholders' contents insurance
• CTrade credit insurance
• DPersonal accident insurance

Plate glass insurance is a specialist property cover that indemnifies:

• AFixed glass in windows, doors, and display cases
• BAll electronic equipment breakdown
• CMarine cargo in transit
• DDirectors' legal defence costs

Burglary insurance (theft following forcible entry) differs from simple theft cover because it requires:

• AEvidence of forcible and violent entry to or exit from the premises
• BLoss occurring only during public holidays
• CA minimum loss of ₦10 million
• DPrior approval from NAICOM for each claim

In Nigeria, which motor policy extension covers damage to the insured vehicle caused by flood or storm?

• AOwn-damage section of comprehensive motor policy
• BThird Party only cover
• CAct liability minimum
• DEmployers' liability extension

Goods in transit insurance protects:

• APhysical loss or damage to goods while being transported
• BProfessional negligence of the transport broker
• CPermanent disability of the truck driver
• DShareholder disputes in the transport company

Cyber insurance as a pecuniary/liability hybrid product typically covers:

• AData breach response costs, business interruption from cyber events, and third-party liab…
• BOnly physical fire damage to servers
• CCompulsory motor third party liability
• DLife assurance maturity benefits

A Nigerian oil services firm operating offshore requires cover for drilling equipment and platform liability. The most appropriate specialist classes are:

• AEnergy/engineering insurance and liability extensions
• BHouseholders' combined policy
• CTravel insurance
• DMicro-insurance for low-income households

Which statement best describes the scope of public liability cover for a Nigerian hotel?

• AIt covers legal liability to guests and visitors for injury or property damage arising fr…
• BIt covers the hotel's own building damage from fire
• CIt guarantees full occupancy rates
• DIt replaces the hotel's group life assurance scheme

Legal expenses insurance attached to a motor or household policy typically funds:

• ALegal costs of pursuing or defending certain uninsured motoring or property disputes
• BThe full replacement value of a stolen vehicle without excess
• CMedical treatment in any country worldwide without limit
• DDirectors' bonuses during litigation

A Nigerian retailer selling imported electronics faces a claim that a faulty charger caused a house fire. Which liability cover responds first?

• AProduct liability insurance
• BEmployers' liability insurance
• CFidelity guarantee insurance
• DPlate glass insurance

Money insurance (cash in transit) is classified under:

• APecuniary insurance
• BMarine hull insurance
• CLife assurance
• DAviation hull insurance

A combined household policy in Nigeria that includes 'all risks' cover on portable items (laptops, jewellery) away from home is extending:

• APersonal possessions / unspecified all-risks extension
• BEmployers' liability
• CMarine hull cover
• DReinsurance quota share

Machinery breakdown insurance covers:

• ASudden and unforeseen mechanical or electrical breakdown of specified machinery
• BGradual wear and tear over years of use
• CWar and civil war perils without exclusion
• DDirectors' mismanagement claims

In the Nigerian market, Takaful general insurance products differ from conventional insurance primarily because:

• AThey operate on mutual cooperation and Shariah-compliant risk-sharing rather than convent…
• BThey are exempt from all NAICOM regulation
• CThey never pay claims
• DThey only cover motor third party without exceptions

A Nigerian exporter shipping goods by sea to Europe will typically arrange:

• AMarine cargo (goods in transit by sea) insurance
• BHouseholders' buildings cover
• CPersonal accident only
• DDirectors' and officers' liability only

When assessing a fire insurance risk for a Lagos warehouse, an underwriter considers stock type, construction, and sprinkler systems. These factors are collectively known as:

• AMaterial circumstances / risk characteristics
• BPolicy exclusions only
• CClaims reserves
• DReinsurance premiums

Physical hazard in underwriting refers to:

• ATangible conditions of the risk that increase the likelihood or severity of loss
• BThe insured's dishonest character
• CThe insurer's financial strength
• DThe broker's commission rate

Moral hazard in insurance underwriting arises when:

• AThe insured's attitude or behaviour increases the likelihood of loss or exaggerated claims
• BThe building has a thatched roof
• CThe policy has a high excess
• DThe premium is paid annually

Under the principle of utmost good faith, a proposer must disclose:

• AEvery material fact known or that should be known before the contract is concluded
• BOnly facts the insurer explicitly asks about under Nigerian law in all cases
• CNothing—the insurer must investigate everything independently
• DOnly facts that reduce the premium

A material fact in underwriting is best defined as:

• AAny fact that would influence the judgment of a prudent underwriter in accepting, declini…
• BAny fact the insured finds embarrassing
• COnly facts about previous claims exceeding ₦1 million
• DFacts disclosed after policy expiry

Proposal forms, surveys, and inspections are used by underwriters primarily to:

• AObtain material information to assess and price the risk
• BGuarantee that no claims will occur
• CReplace the need for a policy document
• DEliminate the insurer's duty to pay valid claims

When setting up a general insurance contract in Nigeria, the insurer must ensure:

• AProper documentation, premium payment terms, and compliance with Insurance Act and NAICOM…
• BVerbal agreement only without written policy
• CNo need to specify sum insured
• DAutomatic renewal without notice

The 'inception date' of a general insurance policy is:

• AThe date from which cover commences as stated in the policy schedule
• BThe date the claim is reported
• CThe date the insurer was incorporated
• DThe date of the insured's birth

A warranty in an insurance policy is:

• AA strict condition that must be exactly complied with; breach may discharge the insurer f…
• BA flexible recommendation with no legal effect
• CThe same as a policy exclusion
• DA broker's marketing slogan

A representation in insurance is:

• AA statement made during negotiations that induces the contract but is not guaranteed as s…
• BA final court judgment
• CThe premium calculation formula only
• DA reinsurance treaty clause only