Get premium membership and access revision papers, questions with answers as well as video lessons.

Insurance And Risk Management (Day+Evening) Question Paper

Insurance And Risk Management (Day+Evening)

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2009

UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR STAGE I EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CMS 200: INSURANCE AND RISK MANAGEMENT (DAY+EVENING)
DATE: DECEMBER 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) KCA University is considering an installation of a solar power system to supplement its energy
requirement at a cost of Ksh. 6 million. The installations will have the following additional
features;
i) The installations will save the company Ksh. 1million p.a in electricity power bills and
600,000/ p.a in power black out costs in the next 10 years.
ii) The annual depreciation for the installation will be Ksh. 500,000.
iii) The risk less rate is 12%
iv) Expected market return is 10%
v) Discount rate is 15%
vi) Tax rate is 30%
Required
i) Determine whether the Solar power system should be installed. [8 Marks]
ii) Determine the risks inherent in the project returns [4 Marks]
b) The African Investment Promotion Council is organizing a conference in Abuja Nigeria on
“Emerging Opportunities in the African Countries: Towards an integrated United States of Africa”
as championed by Muamar Gaddafi, the Libyan President. The faculty of commerce and distance
2
learning KCA University has nominated you a representative being one of its best student in risk
Management. Make a presentation to;
i) Analyse the risks facing investors in the African continent. [8 Marks]
ii) The management of the risks facing investors in the continent. [10 Marks]
QUESTION TWO
a) Discuss the various strategies that a risk manager may apply in reducing risks in the organizations
[12 Marks]
b) Discuss the significance of insurance in social and economic development of a country like Kenya.
[8 Marks]
QUESTION THREE
a) Distinguish between decreasing term assurance and convertible term assurance. [4 Marks]
b) Highlight six types of health and life insurance cover [6 Marks]
c) Discuss any FIVE classes of risk retention [10 Marks]
QUESTION FOUR
a) Highlight the FOUR different kinds of hazards with relevant examples for each kind. [4 Marks]
b) Discuss FOUR major factors limiting the insurability of risks. [8 Marks]
c) Discuss FOUR methods of providing indemnity in the insurance contracts [8 Marks]
QUESTION FIVE
(a) Discuss the intermediaries available in the insurance market place. [10 Marks]
(b) Highlight any five different types of property insurance available to businesses and to the individuals. [10 Marks]

Insurance And Risk Management (Day+Evening) Question Paper

More Question Papers

Popular Exams