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WAEC Commerce 2012 Objective — Question 43

Question 43 of 50 from the West African Examinations Council (WAEC) Commerce 2012 Objective paper, with the correct answer and a full explanation.

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Mr. Lou who assured his life for the sum of ₦80,000 was involved in an accident and had a broken leg; the money received was paid to Mr. Lou for his broken leg. The money received is known as a

  • A. bill of exchange
  • B. compensation
  • C. premium
  • D. indemnityCorrect

Explanation

Indemnity is the act of compensating an insured for damage suffered.

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