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

Got a question or eager to learn? Discover limitless learning on WhatsApp now - Start Now!

Bms 101:Introduction To Insurance Question Paper

Bms 101:Introduction To Insurance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2010

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATION 2009/2010
OPEN,DISTANCE AND E-LEARNING EXAMINATION FOR THE DEGREE
OF BACHELOR OF COMMERCE

BMS 101:INTRODUCTION TO INSURANCE
DATE:Tuesday 20th July,2010 TIME:8.00 a.m-10.00 a.m

INSTRUCTIONS
Attempt question one and any other two.Marks given at the end of every question

1.A steel manufacturing company has been established at Umoja estate in Nairobi.The proprietors
are targeting cheap labor from the neighborhood which is readily available and they succeeded
in so doing.However, the company finds it uneconomical to operate because,on more than five
occasions in six months,thugs have broken into the factory,killed two guards ,stolen cash an
destroyed doors and walls.A board of directors meeting was held where some of them have
suggested that the said company be would up.However,some directors have thought of seeking
services of a risk manager.
your have been appointed on this job of a risk manager.Discuss the risks involved and how the
company can manage the risk to survive in the midst of the prevailing problems (30 marks)
2.During a capacity building workshop for stakeholders in the insurance industry,it emerged
that the public had lost faith in the insurance service providers
REQUIRED:
a)What may have caused such sentiments? (5 marks)
b)A team formed to counter the issue and recover the faith which has been lost and you are
chosen to be a member of the team.Give your contribution. (15 marks)
3.Insurance without an undercover is like a pilot without a compass.
REQUIRED:
A)Comment on the above (5 marks)
b)Discuss the process of underwriting (10 marks)
c)What are the sources of information to the underwriter (5 marks)
4."Every circumstance is material which would influence the judgement of a reasonable insurer
in fixing the premium or determining whether he will take the risk or not".
a)Discuss the statement in relation to contacts of insurance and quote any reiterate case to
support your answer.(5 marks)
b)List facts which a proposer for an insurance cover is expected to disclose. (8 marks)
c)List facts which a proposer for an insurance cover need not disclose.(7 marks)
5.Discuss the main challenges facing insurance industry in Kenya today. (20 marks)

Bms 101:Introduction To Insurance Question Paper

More Question Papers

Popular Exams