Get premium membership and access revision papers, questions with answers as well as video lessons.
Got a question or eager to learn? Discover limitless learning on WhatsApp now -
Start Now!
Introduction To Insurance Question Paper
Introduction To Insurance
Course:Bachelor Of Commerce
Institution: Kenyatta University question papers
Exam Year:2009
KENYATTA UNIVERSITY
INSTITUTE OF OPEN LEARNING
UNIVERSITY EXAMINATIONS 2008/2009
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
BMS 101: INTRODUCTION TO INSURANCE
DATE: MONDAY, 5TH JANUARY 2009
TIME: 8.00 A.M. – 10.00 A.M.
INSTRUCTIONS:
Attempt question ONE and any other TWO. Marks are given at the end of every question.
1. A steel manufacturing company has been established at Umoja Estate in Nairobi. The
proprietors are targeting cheap labour from the neighbourhood which is readily available
and they succeeded in so doing. However, the company finds it uneconomical to operate
because, on more than five occasions in six months, thugs have broken into the factory,
killed two night guards, stolen cash and destroyed doors and walls. A board of directors
meeting was held where some of them have suggested that the said company be wound
up. However, some directors have thought of seeking services of a risk manager.
You have been appointed on this job of a risk manager. Discuss the risks involved and
how the company can manage the risk to survive in the midst of the prevailing problems.
(30 marks)
2.
During a capacity building workshop for stakeholders in the insurance industry, it
emerged that the public had lost faith in the insurance service providers.
Required:
a)
What may have caused such sentiments?
(5 marks)
b)
A team formed to counter the issue and recover the faith which has
been lost and you are chosen to be a member of the team. Give your
contribution.
(15 marks)
2
3.
Insurance without an underwriter is like a pilot without a compass.
Required:
a)
Comment on the above.
(5 marks)
b)
Discuss the process of underwriting.
(10 marks)
c)
What are the sources of information to the underwriter?
(5 marks)
4.
“Every circumstance is material which would influence the judgment of a
reasonable insurer in fixing the premium or determining whether he will take
the risk or not”.
a)
Discuss the statement in relation to contacts of insurance and quote
any reiterate case to support your answer.
(5 marks)
b)
List facts which a proposer for an insurance cover is expected to
disclose.
(8 marks)
c)
List facts which a proposer for an insurance cover need not disclose.
(7 marks)
5.
Discuss the main challenges facing insurance industry in Kenya today.
(20 marks)
*********************
More Question Papers
Popular Exams
Return to Question Papers