How to Pass JAMB Insurance in 2027
How to pass JAMB Insurance in 2027: learn the principles of insurance, the main classes of cover, underwriting and claims through simple Nigerian scenarios.
ExamPadi Editorial · Updated · 6 min read
Insurance is the study of how a group of people share the cost of misfortune. You pay a small amount regularly, and if one of you suffers a loss, the pool covers it. Almost everything in the subject, from the principles to the claims process, follows from that single idea. If you hold on to it, the topic list becomes manageable.
This guide is for the 2027 cycle. Before you plan around Insurance, check the official JAMB brochure at jamb.gov.ng to see whether it is listed as a subject for your course at all; if not, the principles below still help in Commerce. Our subject combination guide shows how to check which combinations are valid.
What the subject covers
ExamPadi organises Insurance practice around ten topics: Principles of Insurance, Risk and Risk Management, Life Assurance, Motor Insurance, Marine Insurance, Fire Insurance, Reinsurance, Underwriting, Claims Settlement and the Insurance Market. They group naturally:
| Group | Topics | What the questions ask |
|---|---|---|
| Foundations | Principles, Risk and Risk Management | Definitions and principles |
| Classes of cover | Life, Motor, Marine, Fire | Features, terms, typical cases |
| The business | Underwriting, Reinsurance, Claims | How insurers decide, share and pay |
| The industry | The Insurance Market | Who the players are and what they do |
Foundation one: risk
Risk is the chance of a loss. Not all risks are insurable. Learn the difference between pure risks (only loss or no loss, such as fire) and speculative risks (loss or gain, such as business investment). Insurers generally cover pure risks. Learn the ways of handling risk: avoiding it, reducing it, retaining it, transferring it. Insurance is a method of transfer.
An insurable risk usually has features such as a measurable loss, a fortuitous cause (not deliberate), and a large enough group of similar exposures. Learn these as a short list and be ready to say why a loss you cause on purpose is not covered.
Foundation two: the principles
Learn these as a set of six, with one sentence and one example each.
| Principle | Plain meaning | Everyday example |
|---|---|---|
| Utmost good faith | Both sides must disclose all material facts honestly | You tell the insurer about earlier accidents when buying motor cover |
| Insurable interest | You must stand to lose if the thing is damaged | You can insure your own shop, not a stranger's |
| Indemnity | You should be put back where you were, not made richer | A damaged car is repaired or valued at its market worth |
| Subrogation | After paying, the insurer takes your rights against the person at fault | Insurer pursues the driver who caused the crash |
| Contribution | If more than one policy covers a loss, insurers share the payment | Two policies on one building |
| Proximate cause | The effective cause of the loss decides if it is covered | Fire caused by lightning may be covered; damage from an excluded event may not |
Life assurance is not a contract of indemnity, because a life cannot be valued in money and put back. Insurable interest and utmost good faith still apply, but a question may ask which principles do not. Learn that carefully, along with the reason.
An original practice scenario: Ada insures her shop for ₦2,000,000, which is its full value. A fire damages it, and the loss is assessed at ₦900,000. The insurer pays ₦900,000, not ₦2,000,000. Which principle is at work? Indemnity: she is restored to her position before the loss, not given a profit. Practise a dozen of these, turning each scenario into the principle that explains it.
Classes of insurance
For each class, note what it covers, who typically buys it and the main features.
- Life assurance: pays a sum on death or at a stated time. Learn the main types, such as term (cover for a fixed period), whole life and endowment (a sum paid on survival to a date or on earlier death).
- Motor insurance: the main types are third-party only, third-party fire and theft, and comprehensive. Learn what each covers. Third-party covers damage to others, not to your own vehicle.
- Marine insurance: covers ships, cargo and freight at sea. Learn the basic ideas of hull, cargo and freight cover.
- Fire insurance: covers loss by fire and sometimes related perils, with exclusions. Learn the idea of an excess or deductible.
Each class has some special terms. Make a glossary for them: premium (what you pay), sum insured, policy, proposal form, cover note, excess, no-claims bonus, beneficiary.
Underwriting, reinsurance and claims
Underwriting is the process of assessing a risk and deciding whether to accept it and at what premium. Learn the factors an underwriter considers (such as age and health for life, vehicle type and driver history for motor). The proposal form is the main tool, and honesty on it is a duty.
Reinsurance is insurance for insurers: an insurer passes part of a large risk to another insurer. Learn why it is used (to spread large risks, to protect solvency) and the simple idea of ceding part of a risk.
Claims settlement is the procedure after a loss. Learn the typical steps: notify the insurer, complete a claim form, provide proof, assessment or investigation, settlement. Learn also why claims are sometimes rejected, such as non-disclosure of material facts, loss outside the policy, or late notice.
The insurance market
Learn the roles of insurers, brokers, agents and loss adjusters. A broker acts for the client; an agent acts for the insurer; a loss adjuster assesses the loss. Learn the role of the regulator at a high level and check the official regulator's website for current names and rules rather than relying on hearsay.
Study methods
- Scenario drills. Read a short case, name the principle.
- Term cards. Put each key word on one side, meaning and example on the other.
- Comparison tables. Third-party versus comprehensive; agent versus broker.
- Link to Commerce. Reading the insurance section of Commerce first can make the subject more familiar. See how to pass JAMB Commerce.
For recall methods, read how to memorise faster.
Mistakes to avoid
- Confusing insurable interest with indemnity.
- Mixing up insurer and insured.
- Treating life assurance as indemnity.
- Confusing broker and agent.
- Forgetting to check the question for "which of the following is NOT".
A study plan
| Week | Focus |
|---|---|
| 1 | Risk and the six principles |
| 2 | Life and motor insurance |
| 3 | Marine and fire insurance |
| 4 | Underwriting, reinsurance, claims, market |
| 5 | Mixed timed sets |
See JAMB Insurance topics to focus on for priorities.
Practise on screen
ExamPadi has free Insurance practice with explanations and a timed CBT mode. Start with the 2025 Insurance past questions. We cannot promise a score, but scenario drills build the skill of applying a principle to a short case. Tonight, write the six principles with one example each and test yourself on three scenarios.
Practise with real past questions and worked answers
Practise JAMB Insurance freeFrequently asked questions
How many questions are in JAMB Insurance?
We could not confirm that Insurance is listed as a UTME subject, so do not assume a question count. Check the current JAMB brochure and syllabus (IBASS) to see whether Insurance is offered for your course, and read the format and time limit at jamb.gov.ng.
Is Insurance hard?
It is more about clear definitions and scenarios than difficult ideas. If you understand the six main principles and can apply them to a short case, you have the core of the subject.
What is the best way to learn the principles of insurance?
Write each principle in one sentence, then give one everyday example. Test yourself by reading a short scenario and naming the principle at work.
How is Insurance related to Commerce?
Insurance is one of the aids to trade in Commerce, so the two subjects overlap. The Insurance syllabus goes deeper into policies, risks and claims.