CIIN Certificate CF6 - Household Insurance Products (Nigeria)

Under a standard Nigerian household buildings insurance policy, the insured item is normally:

• AThe contents and personal belongings inside the home
• BThe structure of the dwelling including fixtures and fittings
• COnly the land on which the house stands
• DThe tenant's liability to the landlord

Household contents insurance in Nigeria principally covers:

• AStructural damage to external walls and the roof
• BHousehold goods, furniture, clothing and personal effects within the home
• CThe market value of the land
• DMortgage repayments if the owner cannot work

A combined household policy that insures both the building and its contents under one contract is commonly called:

• AA marine cargo policy
• BA household combined (householders' combined) policy
• CA fidelity guarantee bond
• DAn employers' liability policy

Which peril is typically covered under standard Nigerian household fire and special perils policies?

• AWear and tear due to gradual deterioration
• BFire, lightning and explosion
• CLoss caused by the insured's deliberate act
• DMechanical breakdown of domestic appliances through age

The 'all risks' basis of cover on household contents differs from named-perils cover because it:

• AOnly covers fire and theft
• BCovers accidental loss or damage unless specifically excluded
• CRequires no premium to be paid
• DAutomatically includes every liability claim worldwide

Personal legal liability cover under a household policy typically protects the policyholder against:

• ALoss of rent from a tenant
• BLegal liability for accidental injury to visitors or damage to their property
• CThe cost of routine home maintenance
• DIncome tax on insurance claim payments

A 'personal possessions' or 'personal effects' extension on a household policy typically covers:

• AOnly items kept permanently inside the insured home
• BSpecified personal belongings away from the home, subject to limits and conditions
• CCommercial stock held for business resale
• DMotor vehicles registered for road use

Accidental damage cover as an optional household extension would typically respond to:

• AA window broken accidentally by a child playing football indoors
• BDamage caused by termites over several years
• CLoss due to the insured deliberately setting fire to property
• DFlood damage in a known high-risk area without flood extension

Legal expenses cover attached to a household policy is designed to:

• APay the insured's fine if convicted of a criminal offence
• BFund legal costs in specified disputes such as employment or property boundary issues
• CReplace stolen contents without a police report
• DCover medical bills for the insured's own injuries

Home emergency cover as a household extension typically provides:

• AUnlimited rebuilding cost regardless of sum insured
• BAssistance for sudden domestic emergencies such as burst pipes or boiler breakdown
• CCover for all business equipment used at home
• DPermanent disability benefits for the householder

Which of the following is commonly excluded under standard Nigerian household policies?

• AFire damage from an accidental kitchen blaze
• BLoss or damage caused by war, invasion or civil war
• CTheft following forcible entry
• DLightning strike damage to electrical equipment

A household policy unoccupied premises condition typically requires the insurer to be notified if the home is left unoccupied for more than:

• A24 hours
• BA specified period such as 30 or 60 consecutive days
• COne hour
• DFive years regardless of reason

Household insurance for a tenant who does not own the building structure should normally include:

• ABuildings cover only
• BContents cover and tenant's liability; buildings cover rests with the landlord
• CNeither contents nor liability cover
• DMarine hull cover for the property

A landlord letting out a residential property in Lagos would typically need:

• AContents cover only, with no buildings insurance
• BBuildings insurance on the structure and optional landlords' contents and loss-of-rent ex…
• COnly motor insurance for tenant vehicles
• DProfessional indemnity for medical advice

High-net-worth household policies in Nigeria differ from standard policies mainly because they:

• AExclude jewellery and art entirely
• BOffer higher sums insured, broader cover and tailored extensions for valuable homes and c…
• CCover only fire with no theft protection
• DRequire no disclosure of material facts

Working from home under a standard household policy may require:

• ANo change to the policy in any circumstances
• BNotification to the insurer and possibly a business-use extension if clerical work or equ…
• CCancellation of all contents cover
• DA separate marine insurance policy

A policyholder in Abuja returns from holiday to find burglars have forced the back door and stolen electronics worth ₦800,000. The policy covers theft following forcible entry. Which section responds?

• ABuildings cover only
• BContents cover
• CPersonal legal liability cover
• DLegal expenses cover

During a Harmattan-season bush fire in Ogun State, flying embers ignite the roof of an insured bungalow. The fire spreads to destroy part of the kitchen. Which cover applies to rebuilding the kitchen structure?

• AContents cover
• BBuildings cover
• CPersonal possessions away-from-home extension
• DTenant's liability cover

An insured in Port Harcourt loses a laptop worth ₦350,000 stolen from their car boot while shopping. The policy includes a personal possessions extension with a ₦500,000 limit. The main contents sum insured is ₦2 million. Which is most likely to respond?

• ABuildings cover
• BThe personal possessions extension
• CEmployers' liability cover
• DNo cover because the item left the home

A guest slips on a wet bathroom floor in an insured Enugu home and breaks an arm. She threatens to sue the homeowner. Which section of a standard household combined policy is most relevant?

• AContents cover
• BPersonal legal liability cover
• CBuildings cover only
• DAccidental damage to contents

A landlord in Ibadan lets a flat. Tenants cause accidental fire damage to the kitchen units the landlord supplied. The policy includes landlords' contents cover. Which sections may both respond?

• ABuildings cover for structure and landlords' contents for supplied fittings
• BOnly motor third party cover
• COnly the tenant's personal accident cover
• DMarine cargo cover

An insured's freezer contents spoil after a power surge damages the appliance during a storm. The policy covers storm damage to buildings and has a frozen food extension up to ₦100,000. The appliance repair is ₦40,000 and spoiled food is ₦60,000. How should this be treated?

• ANo cover because food is never insured
• BStorm damage to the appliance under buildings/contents; spoiled food under frozen food ex…
• COnly personal liability applies
• DLegal expenses for disputing the electricity company

A student in a shared Lagos apartment insures only their own bedroom contents. A fire in the communal kitchen destroys the student's insured items in their room but not the building structure. Which cover responds?

• AThe student's contents cover for items in their room
• BThe landlord's personal motor insurance
• CNational Health Insurance Authority (NHIA) cover
• DBuildings cover in the student's name

A policyholder adds a bicycle worth ₦120,000 to a personal possessions extension. It is stolen from a communal bike rack at work. The extension requires the bicycle to be secured with an approved lock. No lock was used. The insurer is likely to:

• APay the full claim regardless of security
• BDecline or reduce the claim for breach of a security condition
• CTransfer the claim to the employer's liability policy
• DPay under buildings cover

In Nigeria, the primary regulator of insurance companies offering household insurance products is:

• AThe Central Bank of Nigeria (CBN)
• BThe National Insurance Commission (NAICOM)
• CThe Corporate Affairs Commission (CAC) only
• DThe Federal Road Safety Corps (FRSC)

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 principally governs:

• AOnly life assurance business
• BThe conduct and regulation of insurance business including general insurance such as hous…
• CImport duties on household goods
• DRent control for residential tenants

A tort in the context of household liability insurance arises when:

• AA contract is signed between insurer and insured
• BA person commits a civil wrong causing injury or loss to another, giving rise to legal li…
• CThe insured pays premium late
• DNAICOM publishes annual statistics

Negligence as a basis of legal liability requires among other elements that the defendant:

• AIntended to cause harm in every case
• BOwed a duty of care, breached it, and caused foreseeable damage
• CWas always criminally prosecuted first
• DHeld a professional insurance qualification

Occupiers' liability in household insurance contexts concerns:

• AThe insurer's duty to NAICOM
• BThe legal responsibility of a person occupying premises for injury to lawful visitors
• CTax on insurance premiums
• DThe tenant's obligation to pay rent

Under general Nigerian legal principles, a limitation period for bringing a civil claim for property damage or personal injury:

• ANever expires once the event occurs
• BIs subject to statutory time limits within which court proceedings must commence
• CIs always exactly one day
• DApplies only to criminal cases

Nuisance as a tort relevant to household insurance may arise when:

• AA neighbour's activity unreasonably interferes with another's use and enjoyment of proper…
• BAn insurer calculates premium
• CA policy is renewed annually
• DThe insured completes a proposal form honestly

The duty of disclosure under Nigerian insurance law requires the proposer to disclose:

• AOnly facts the insurer explicitly asks about in one question
• BEvery material fact known or that ought to be known before contract formation
• CNothing until a claim occurs
• DOnly facts favourable to the insured

NAICOM's role in consumer protection for household insurance customers includes:

• ASetting mandatory motor speed limits
• BEnsuring fair treatment, complaint handling standards and market conduct by insurers
• CIssuing drivers' licences
• DRegulating hospital surgery fees

The Nigeria Data Protection Act (NDPA) 2023 affects household insurers when they:

• AProcess policyholders' personal data during underwriting, claims and renewals
• BPaint their office buildings
• CSet fire insurance rates without data
• DSell motor vehicles

Strict liability differs from negligence because:

• ALiability arises without proof of fault for certain specified activities or products
• BIt always requires proof of intentional harm
• CIt applies only to insurers, never individuals
• DIt eliminates the need for any insurance

Vicarious liability in a household context could arise when:

• AA homeowner is held liable for negligent acts of a domestic employee performed in the cou…
• BThe insurer refuses to renew a policy
• CA tenant pays rent on time
• DNAICOM approves an insurer's licence

The CIIN Code of Ethics requires insurance professionals handling household business to:

• APrioritise personal profit over client interests in all cases
• BAct with integrity, competence and fairness in serving clients and the public
• CDisclose confidential client information to competitors
• DAvoid all continuing professional development

An insurance contract under Nigerian law is primarily governed by:

• ACriminal law only
• BGeneral contract principles combined with insurance-specific statutes and regulations
• CInternational maritime conventions alone
• DCustomary land tenure rules exclusively

Regulatory requirements for selling household insurance in Nigeria include that the insurer or intermediary must:

• ABe unauthorised to reduce competition
• BHold appropriate NAICOM authorisation or licensing
• CAvoid issuing policy documents
• DCharge premiums only in foreign currency by law

A proposer fails to disclose that the home was previously flooded twice before inception. The insurer would likely argue:

• ANon-disclosure of a material fact voiding or affecting the contract
• BThat premium must automatically double at claim stage only
• CThat NAICOM must pay the claim
• DThat flooding is never material

A visitor sues a homeowner after tripping on broken steps the owner knew about for months. The strongest basis for liability is likely:

• ANegligence for failing to maintain safe premises
• BStrict liability for selling defective products
• CBreach of an insurance warranty only
• DCriminal fraud by the visitor

An insurer discovers the insured deliberately exaggerated the value of stolen contents. NAICOM market conduct principles and good faith support the insurer:

• APaying the inflated amount to maintain goodwill
• BInvestigating and potentially rejecting the fraudulent part or entire claim
• CIgnoring fraud if the premium was paid
• DTransferring the matter to the Central Bank

A tenant in Kaduna causes water damage to a neighbour's flat by leaving a tap running. The neighbour claims against the tenant. The tenant's household policy personal liability section is most relevant because:

• AIt covers the tenant's legal liability to third parties for accidental damage
• BIt replaces the landlord's buildings policy automatically
• CIt pays the tenant's own rent arrears
• DIt covers intentional criminal damage without exclusion

A policyholder submits a household claim without mentioning they operate an unregistered guest house from the property. The insurer learns the business increased foot traffic and fire risk. This most likely constitutes:

• AImmaterial detail requiring no action
• BA material alteration of risk and possible misrepresentation affecting cover
• CAutomatic renewal regardless of use
• DA matter for NHIA only

After a valid household liability claim, the insurer pays the third party and seeks recovery from a negligent contractor who caused the damage. This insurer right is called:

• AContribution
• BSubrogation
• CSalvage
• DReinsurance

A customer complains to NAICOM that an insurer unreasonably delayed a household claim for six months without explanation. NAICOM's consumer protection function supports:

• AReviewing market conduct and requiring insurers to treat customers fairly
• BPaying the claim from NAICOM's own budget automatically
• CRevoking the customer's driving licence
• DSetting household rent levels

An intermediary selling household insurance without a NAICOM licence risks:

• ANo consequence if the premium is cheap
• BRegulatory penalties and invalidation of their authority to transact insurance
• CAutomatic promotion by CIIN
• DExemption because household insurance is unregulated