JAMB Commerce 2020 Objective — Question 37

Question 37 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2020 Objective paper, with the correct answer and a full explanation.

37. If a person insured goods worth N500 for half the value and a fire incident in which goods valued at N200 were destroyed. The value of compensation expected from the insurer is

A. A. N500
B. B. N250
C. C. N100
D. D. N200Correct

Explanation

An insurance company has responsibility to indemnify an insured to the extent of the loss suffered. Since the loss suffered by the insured as a result of the fire is N200, then the insurance company will indemnify the person to the tune of N200.

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