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Brokerage Insurance Question Paper

Brokerage Insurance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2010

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2010/2011
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BMS 410: BROKERAGE INSURANCE

DATE: Wednesday 1st December, 2010 TIME: 8.00 a.m. – 10.00 a.m.
______________________________________________________________________________
INSTRUCTIONS
Answer Question ONE and any other TWO questions.

QUESTION ONE
a)
The law of agency imposes several requirements on the broker to perform. Discuss any FIVE
such requirements.

[10 marks]
b)
Service agreements have in the recent past been widely used by players in the insurance sector to
ensure that each side understands its obligation and measurement needs. Discuss FIVE main
areas that it may cover.

[10 marks]
c)
Firms and more so brokerage firms must be regulated by the IRA if they are to carrying on
regulated activities. Discuss FIVE such regulated activities.

[10 marks]

QUESTION TWO
a)
When undertaking the process of assessing the customer demands and needs there are a number
of things a broker should do. Discuss FIVE of such things.

[10 marks]
b)
Highlight any TEN pre and post contract information that a broker must provide to the customers
before a pure protection contract is concluded.

[10 marks]

QUESTION THREE
a)
Discuss the criteria that brokers should use to assess the suitability of insurer to a particular risk.

[10 marks]
Page 1 of 2

b)
Presenting a risk to an underwriter is a fundamental part of the broker’s role. Discuss the
qualities and objectives of a good submission by the brokers.

[10 marks]

QUESTION FOUR
IRA operates primarily on principles basis. Discuss the principles of business that are provided by IRA
for the use by brokers and other industry players.

[20 marks]

QUESTION FIVE
a)
Discuss SIX factors that brokers need to consider when deciding what constitute appropriate
information to the customer.

[12 marks]
b)
Brokers traditionally receive their incomes inform of contingent commissions of overrides.
Discuss FOUR implications of such commissions and overrides to the broker.
[8 marks]

………………….

Page 2 of 2

Brokerage Insurance Question Paper

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