Introduction To Insurance Question Paper

Introduction To Insurance

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 101:
INTRODUCTION TO INSURANCE
=================================================================
DATE: Wednesday 2nd December, 2009

TIME: 8.00 a.m. – 10.00 a.m.

INSTRUCTIONS
Attempt Question One (COMPULSORY) and any other TWO.
Start each question on a new page
Marks are awarded for proper explanation and use of appropriate examples.

QUESTION ONE
Risk represents change of negative. This condition forces the concern parties to make efforts to counter any eventually arising from the same.

Required
Clearly illustrate the need and purpose of the following practices in the risk management
process.
i)
Risk identification (10 marks)
ii)
Risk Analysis (10 marks)
iii) Risk control (10 marks)

QUESTION TWO
a)
Insurance is a very important services in the modern economic life. Briefly discuss the requisites of insurability. (7 marks)
b)
What are the functions of insurance.(6 marks)
c)
Discuss the benefits of insurance to the society. (7 marks)

QUESTION THREE
a)
Discuss the marketing of insurance under the following heads:-
i)
Self insurance (6 marks)
ii)
Captive insurance company (3 marks)
iii)
Retention groups (3 marks)
iv)
Risk sharing pools (3 marks)

b)
i)
What is subrogation in the practice of insurance? (2 marks)
ii)
How does subrogation arise (3 marks)

QUESTION FOUR
“Every circumstance is material which would influence the judgment of a reasonable insurer
in fixing the premium or determining whether he will take the risk or no”.
a)
Discuss this statement in relation to contracts of insurance, quoting any relevant 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)

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