Take your time to read instructions before taking this test.

There are 40 questions which you are to answer in 15 minutes that gives you roughly 30 seconds per question.


If you can get at least 60%, you can be rest assured that you’ll ace FIN 106 exam




In a normal exam you will be asked between 40 – 60 questions but I only arranged 40 questions




Do not be in a hurry to answer the questions

Do not waste time on a question you don’t know

Move as fast as possible and starting with questions that don’t have calculation first to save time

Always crosscheck

Don’t be in a hurry to submit, you are not in a competition

Don’t be scared. Getting an A is easy

Don’t be over confident, you can end up a D, E or F. Calm your blood, no be only you sabi book

Please do well to use our comment box incase there’s a message you want to pass to us

70 – 100 A


60 – 69 B


50 – 59 C


45 – 49 D


40 – 44 E


0 – 39 F


I wish you success






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❤️ Undergragra

FIN 106

1 / 40

1. Insurance involves an arrangement where the insurer promises to pay a sum of money if the insured suffers financial loss. What is the price charged by the insurer called?


2 / 40

2. Which condition is NOT necessary for a right of contribution among insurers?

3 / 40

3. Which type of insurance covers the entire lifetime of the insured provided the minimum required premiums are paid?


4 / 40

4. Which of the following individuals would most likely be classified under the high-risk category for personal accident insurance?

5 / 40

5. Pure risk involves probabilities of what kind of outcomes?


6 / 40

6. Which type of insurance policy provides financial protection against damage from traffic collisions and theft?


7 / 40

7. Strategic risk can arise in a firm when what happens?


8 / 40

8. What principle allows an insurer to place itself in the insured’s position after paying a claim?

9 / 40

9. Which type of insurance requires the insurable interest to be present both at the time of entering the transaction and at the time of the claim?

10 / 40

10. What is the principle of utmost good faith (uberrimae fidei) in insurance contracts?

11 / 40

11. According to the transfer device school of thought, what is the primary business of the insurer?


12 / 40

12. What is the main function of insurance?


13 / 40

13. In an insurance contract, who is considered the insured?

14 / 40

14. Annuities provide a series of guaranteed payments for what durations?


15 / 40

15. Which intermediary has the capacity to bind the principal (insurer) in transactions with third parties?

16 / 40

16. What is the main function of insurance?


17 / 40

17. Who usually receives the claim payment in an insurance policy?

18 / 40

18. In the principle of subrogation, which of the following statements is true?


19 / 40

19. Which type of risk affects the entire economy and cannot be avoided through diversification?


20 / 40

20. Which characteristic is not true about risk?


21 / 40

21. What kind of fraud involves the insured exaggerating the extent of the risk or damage?

22 / 40

22. Which of the following types of life assurance policies provides a benefit only if the insured dies during a specified term?

23 / 40

23. Which of the following is a characteristic of pure risk?


24 / 40

24. Which type of life insurance provides for the payment of a specified sum of money to named beneficiaries on the death of the insured, regardless of when the death occurs?


25 / 40

25. Which insurance policy covers the insured vehicle against damage from traffic collisions, theft, and fire?

26 / 40

26. Under the principle of utmost good faith, what is required from the insured?


27 / 40

27. Which type of risk is associated with fluctuations in foreign exchange rates?

28 / 40

28. Which type of marine insurance policy provides compensation for any liability occurring on account of a ship crashing or colliding?


29 / 40

29. What is the main function of insurance?


30 / 40

30. Which of the following is NOT typically covered by a personal accident insurance policy?


31 / 40

31. Term assurance provides benefits under which condition?


32 / 40

32. What is the duty of the insured regarding the principle of utmost good faith?

33 / 40

33. Operational risk arises from what factors?


34 / 40

34. Diversifiable risk can be avoided and affects what size of entities?


35 / 40

35. According to the combination school of thought, what completes the definition of insurance?


36 / 40

36. Which type of risk is associated with fluctuations in foreign exchange rates?


37 / 40

37. Which principle ensures that an insured does not profit from their loss but is restored to their former position?

38 / 40

38. What is the term used to describe the condition that increases the chances of loss or severity of loss?

39 / 40

39. Which type of risk involves the possibility that external sources of finance may not be available when needed?


40 / 40

40. What must be present in a marine insurance policy for a claim to be valid?

Your score is

The average score is 56%



Ace aka Undergragra is a Computer Engineering Graduate at the Federal University Oye-Ekiti. He is a passionate teacher, writer, educational consultant, and educational informant.
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