Insurance Brokerage Question Paper

Insurance Brokerage

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2009/2010
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BMS 410:
INSURANCE BROKERAGE

=================================================================
DATE: TUESDAY 29TH DECEMBER 2009
TIME: 4.30 P.M. – 6.30 P.M.

INSTRUCTIONS
Answer Question 1 (Compulsory) and any other two (2) Questions.

Question 1 (Compulsory 30 marks)

JC has approached you with their intention of starting a brokerage firm. With knowledge
you have acquired from this unit advice JC on:-
i)
The factors that affects the operations of brokers.

(8 marks)
ii)
List the sources of information on a business when conducting initial research.

(6 marks)
iii)
The constituent parts of the marketing environment.

(10 marks)
iv)
On the key to effective implementation of a professional ways of working (a quality

system)

(6 marks)

Question 2 (20 marks)
a)
What are the basic duties of the broker in respect of negotiation of claims? (7 marks)
b)
Name three approaches of holding of client’s money by insurance brokers? (3 marks)
c)
During the assessment of an insurer what are the things a broker should consider.

(5 marks)
Page 1 of 2
d)
What does research show about customer behaviour in relation to price and service?

(5 marks)
Question 3 (20 marks)
Company DMX would like to know more about an insurance broker before deciding on
choosing for their insurance needs.
a)
What are the key function of a broker.

(8 marks)
b)
Apart from regulatory requirements, for what reasons should a broker deal with a
wide
variety
of
markets.
(6
marks)
c)
What is the difference between a statutory and a non-statutory trust and how will
different
brokers
use
these?
(6
marks)

Question 4 (20 marks)
a)
Summarize the three of the duties owed by the agents to their principals. (7 marks)
b)
What are the purposes of risk evaluation.

(5 marks)
c)
Define the following in relation to insurance brokerage:
i)
Intermediary
ii)
Material
fact
iii)
Broker networks
iv)
Risk management
v)
Marketing

(5 marks)
d)
What do brokers have to do to be
market
leaders?
(3
marks)
Page 2 of 2

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