Life Insurance – Knowsia

LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment

Explain insurable interest in life insurance with examples, how a bank takes effective assignment over a life policy for a loan, and whether the policy remains valid if the insured resigns from the company.

Question

a. Using examples, explain the concept of insurable interest in Life Insurance. (5 Marks)

b. Sugarcandy Company Ltd has taken a 20-year Life Endowment Policy on the life of John Gawaka, its Chief Operating Officer, who is very vital in the operations of the company. The company presents the policy to Gloryland Bank Plc for a loan.

i. How will the bank take an effective assignment over the Life Policy? (10 Marks)

ii. If John Gawaka resigns from Sugarcandy Company Ltd, will the policy still be valid? Explain your answer. (5 Marks)

[Total = 20 Marks]

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assignment of Policy, Examples, Insurable Interest, Life Insurance, Security for Loans, Validity on Resignation
Level: Level 2

Topic: General principles of security sought by lenders
Series: APR 2023

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

Question

Mr. Abu Sakari has been appointed the Head of Tax Department of Jubilee Hub Limited with effect from 1st January 2014 on annual basic salary of GHS84,000.00. Mr. Sakari also enjoys the following allowances and benefits by virtue of his position:

i. Risk allowance of GHS400.00 per month.
ii. Responsibility allowance of GHS500.00 per month.
iii. Child education allowance of GHS600.00 per month.

He is provided with a soft furnished accommodation by the company as well as a Toyota Camry saloon car which is fuelled by the company. He contributes 5.5% of his salary to the Social Security Fund and the company contributes 13%. He is a widower with four children. The first child is pursuing a BSc. Nursing program at the University of Ghana, the second child attends Presbyterian Boys Senior High School, Legon, and the last two girls attend University of Ghana Junior High School, Legon. He is fully responsible for the upkeep of his father aged 61 years and his mother aged 58 years.

He has two life assurance policies with the following details:

Company	Sum Assured (GHS)	Annual Premium (GHS)
a) Vanguard Life Company	48,000.00	4,900.00
b) Enterprise Life Company	45,000.00	3,200.00

You are required to:
a) Compute Mr. Abu Sakari’s tax liability for the 2014 year of assessment.

b) Determine Mr. Abu Sakari’s take-home pay for the 2014 tax year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductions, Employment Income, Life Insurance, Social Security, Take-home pay
Level: Level 2

Topic: Employment Income Taxation
Series: FEB 2016

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

Question

An insurer cannot carry on life insurance business if its share capital is less than ____________.

Answer

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Tags: Insurance, Life Insurance, Share Capital
Level: Level 1

Topic: Agency Law
Series: MAY 2014

BL – Nov 2013 – L1 – SA – Q10 – Agency Law

Identifies the minimum paid-up share capital required for life insurance business in Nigeria.

Question

In life insurance, no insurer can carry on the business of life insurance except it has and maintains a paid-up share capital of _____________________.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital requirement, Insurance Law, Life Insurance, Short Answer
Level: Level 1

Topic: Agency Law
Series: NOV 2013

BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System

Identifies the type of insurance contract where subrogation is not applicable.

Question

In which of the following types of insurance contract is subrogation not applicable, under insurance law?
A. Fidelity insurance
B. Life insurance
C. Motor vehicle insurance
D. Carbotage insurance
E. Fire insurance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Insurance, Life Insurance, Subrogation
Level: Level 1

Topic: The Nigerian Legal System
Series: NOV 2019

LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment

Explain insurable interest in life insurance with examples, how a bank takes effective assignment over a life policy for a loan, and whether the policy remains valid if the insured resigns from the company.

Question

a. Using examples, explain the concept of insurable interest in Life Insurance. (5 Marks)

i. How will the bank take an effective assignment over the Life Policy? (10 Marks)

ii. If John Gawaka resigns from Sugarcandy Company Ltd, will the policy still be valid? Explain your answer. (5 Marks)

[Total = 20 Marks]

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assignment of Policy, Examples, Insurable Interest, Life Insurance, Security for Loans, Validity on Resignation
Level: Level 2

Topic: General principles of security sought by lenders
Series: APR 2023

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

Question

i. Risk allowance of GHS400.00 per month.
ii. Responsibility allowance of GHS500.00 per month.
iii. Child education allowance of GHS600.00 per month.

He has two life assurance policies with the following details:

Company	Sum Assured (GHS)	Annual Premium (GHS)
a) Vanguard Life Company	48,000.00	4,900.00
b) Enterprise Life Company	45,000.00	3,200.00

You are required to:
a) Compute Mr. Abu Sakari’s tax liability for the 2014 year of assessment.

b) Determine Mr. Abu Sakari’s take-home pay for the 2014 tax year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductions, Employment Income, Life Insurance, Social Security, Take-home pay
Level: Level 2

Topic: Employment Income Taxation
Series: FEB 2016

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

Question

An insurer cannot carry on life insurance business if its share capital is less than ____________.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Insurance, Life Insurance, Share Capital
Level: Level 1

Topic: Agency Law
Series: MAY 2014

BL – Nov 2013 – L1 – SA – Q10 – Agency Law

Identifies the minimum paid-up share capital required for life insurance business in Nigeria.

Question

In life insurance, no insurer can carry on the business of life insurance except it has and maintains a paid-up share capital of _____________________.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital requirement, Insurance Law, Life Insurance, Short Answer
Level: Level 1

Topic: Agency Law
Series: NOV 2013

BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System

Identifies the type of insurance contract where subrogation is not applicable.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Insurance, Life Insurance, Subrogation
Level: Level 1

Topic: The Nigerian Legal System
Series: NOV 2019

Question Tag: Life Insurance

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LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment

Explain insurable interest in life insurance with examples, how a bank takes effective assignment over a life policy for a loan, and whether the policy remains valid if the insured resigns from the company.

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

BL – Nov 2013 – L1 – SA – Q10 – Agency Law

Identifies the minimum paid-up share capital required for life insurance business in Nigeria.

BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System

Identifies the type of insurance contract where subrogation is not applicable.

LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment

Explain insurable interest in life insurance with examples, how a bank takes effective assignment over a life policy for a loan, and whether the policy remains valid if the insured resigns from the company.

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

BL – Nov 2013 – L1 – SA – Q10 – Agency Law

Identifies the minimum paid-up share capital required for life insurance business in Nigeria.

BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System

Identifies the type of insurance contract where subrogation is not applicable.

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LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment

Explain insurable interest in life insurance with examples, how a bank takes effective assignment over a life policy for a loan, and whether the policy remains valid if the insured resigns from the company.

You're reporting an error for "LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment"

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

You're reporting an error for "ATP – Feb 2016 – L2 – Q3 – Income Tax Computation"

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

You're reporting an error for "BL – May 2014 – L1 – SA – Q10 – Agency Law"

BL – Nov 2013 – L1 – SA – Q10 – Agency Law

Identifies the minimum paid-up share capital required for life insurance business in Nigeria.

You're reporting an error for "BL – Nov 2013 – L1 – SA – Q10 – Agency Law"

BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System

Identifies the type of insurance contract where subrogation is not applicable.

You're reporting an error for "BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System"

LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment

Explain insurable interest in life insurance with examples, how a bank takes effective assignment over a life policy for a loan, and whether the policy remains valid if the insured resigns from the company.

You're reporting an error for "LRB – APR 2023 – L2 – Q4 – Insurable Interest and Life Policy Assignment"

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

You're reporting an error for "ATP – Feb 2016 – L2 – Q3 – Income Tax Computation"

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

You're reporting an error for "BL – May 2014 – L1 – SA – Q10 – Agency Law"

BL – Nov 2013 – L1 – SA – Q10 – Agency Law

Identifies the minimum paid-up share capital required for life insurance business in Nigeria.

You're reporting an error for "BL – Nov 2013 – L1 – SA – Q10 – Agency Law"

BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System

Identifies the type of insurance contract where subrogation is not applicable.

You're reporting an error for "BL – Nov 2019 – L1 – SA – Q16 – The Nigerian Legal System"

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