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

Cms 200: Insurance And Risk Management (Day &Amp; Evening Class) Question Paper

Cms 200: Insurance And Risk Management (Day &Amp; Evening Class)

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2009

1
UNIVERSITY EXAMINATIONS: 2008/2009
SECOND YEAR STAGE 1 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CMS 200: INSURANCE AND RISK MANAGEMENT (DAY & EVENING CLASS)
DATE: APRIL 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
a) Discuss the adverse effects of pure risk on the economy of a developing country like Kenya.
(10 Marks)
b) Briefly discuss with relevant examples the tools and techniques that a risk manager may
employ to identify the risk exposures in the organization. (10 Marks)
c) Identify and explain the reasons why insurance is subject to government regulation.
(10 Marks)
QUESTION TWO
a) Briefly discuss any FOUR types of liability insurance covers offered by insurers for liability
risks. (8 Marks)
b) Trace the historical development of Insurance business , highlighting major milestones from
the Chinese merchants who operated as early as 3000 BC, to the development of marine
insurance and the Lloyd coffee house to modern insurance in Kenya. (12 Marks)
2
QUESTION THREE
a) A material fact is every circumstance which would influence the judgment of a prudent
insurer in fixing the premium or determining whether he will take the risk. Briefly outline
EIGHT facts that must be disclosed to assist the insurer fix the premium and take the risk.
(8 Marks)
b) Insurable interest is one of the insurance principles. Explain the circumstances that may give
rise to insurable interest. (6 Marks)
c) Discuss how the principle of insurable interest may be applied to the main forms of Insurance.
(6 Marks)
QUESTION FOUR
a) Explain any THREE strategies that a risk manager may apply in reducing risks in the
organizations. (6 Marks)
b) The Insurance policy is the only evidence of existence of the insurance contract. Discuss the
components of this policy document. (14 Marks)
QUESTION FIVE
a) Discuss FOUR reasons why insurers re-insure risks that they face (8 Marks)
b) An intermediary is an agent who is authorized by the principal to bring the principal into a
contractual relationship with another third party. Briefly discuss the different intermediaries
that assist insurance companies Market their products and services. (12 Marks)
.

Cms 200: Insurance And Risk Management (Day &Amp; Evening Class) Question Paper

More Question Papers

Popular Exams