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Cms 200 Insurance And Risk Management - Day &Amp; Evening Question Paper

Cms 200 Insurance And Risk Management - Day &Amp; Evening

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2011

1
UNIVERSITY EXAMINATIONS: 2010/2011
SECOND YEAR EXAMINATION FOR THE BACHELOR OF COMMERCE
CMS 200 INSURANCE AND RISK MANAGEMENT - DAY & EVENING
DATE: DECEMBER 2011 TIME: 2 HOURS
INSTRUCTIONS: Attempt question ONE and any other TWO questions
QUESTION ONE
i) a) The Insurance sector has had unprecedented number of its firms collapse in the recent
times; it appears the regulator has not been effective in executing its mandate. As an
insurance and risk scholar diagnose SIX reasons that have led to such collapse.
[6 Marks]
b) Formulate FOUR effective mandates that the regulator should pursue to steer the sector
in the right track. [4 Marks]
c) Discuss FOUR risks and challenges that may occur should the collapsed firms not put
their houses in order and resume operations on time? [4 Marks]
ii) a) Financial literacy is an important element in managing risk in these dynamic times.
Many of our personal and institutional failures and or mishaps results from our schooling.
As risk management student discuss personal, institutional or national risks that have
resulted from our schooling. [8 Marks]
b) Discuss ways our policies, curriculums and pedagogy can be framed to stem the above
personal and national risks from facing our society today. [8 Marks]
2
QUESTION TWO
a) Risk Management is a strategic management issue that requires top management support.
Discuss the relevance of Risk management at this level. [12 Marks]
b) Identify and explain FOUR principal methods organizations use to reduce risks in these
modern times. [8 Marks]
QUESTION THREE
a) Discuss any THREE remedies available for the breach of the principle of utmost good
faith. [6 Marks]
b) “The doctrine of uberrimae fidei postulates the facts that must be disclosed and those that
need not be disclosed”. Discuss [14 Marks]
QUESTION FOUR
a) Tools for risk management are diverse and require that the risk manager understand his
environment to effectively deploy the right strategy. Discuss the process of risk identification and
the associated processes to manage the risks. [10 Marks]
b) Risk management has a variety of objectives that can be classified into two namely Pre-loss
objectives and the Post-loss objectives. List and explain FIVE pre-loss objectives that risk
managers may pursue in their organizations. [10 Marks]
QUESTION FIVE
a) What is risk retention? Briefly discuss FOUR advantages of risk retention to a firm. [10 Marks]
b) Explain what is meant by the statement that insurance contracts are contracts of adhesion,
aleatory, conditional, and unilateral and contracts of utmost good faith. [10 Marks]

Cms 200 Insurance And Risk Management - Day &Amp; Evening Question Paper

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