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Bmgt 211- Introduction To Risk And Insurance Question Paper

Bmgt 211- Introduction To Risk And Insurance

Course:Bachelor Of Commerce(Bcom) ()

Institution: Kabarak University question papers

Exam Year:2012

KABARAK
UNIVERSITY
UNIVERSITY EXAMINATIONS
2011/2012 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
BMGT 211 – INTRODUCTION TO RISK AND INSURANCE
DAY: THURSDAY

DATE: 12/04/2012
TIME: 3.00 – 5.00 P.M.

STREAM Y2S1
INSTRUCTIONS:
Attempt question one and any other two questions.
QUESTION ONE
a) There are various categories of risk. Discuss four ways in which risks can be
categorized ( 8 mks)

b) In every organization risk management activities broadly take place simultaneously at
three different hierarchy levels. Discuss them ( 6 mks)

c) The risk manager must make a decision on how to deal with the various types of risks
facing the enterprise. Citing relevant examples describe five major methods of handling
risk from which one can choose from. (10 mks)

d) Many businesses have risk policy statements issued by top management. Discuss the
desirable characteristics of such policy statements (6 mks)
(30 mks)
Page 1 of 3

QUESTION TWO
a) Discuss the need to have a separate risk manager in the company when independent
insurance agents or insurance brokers are available to perform this function
(4 mks)
b) Many organizations have developed risk management manuals for their organizations.
Discuss the advantages of risk management manual (4 mks)
c) Describe the features peculiar to life assurance ( 12 mks)
(20 mks)

QUESTION THREE
a) A firm or organisation may have several objectives of risk management after the
occurrence of a loss. Discuss them. (5 mks)

b) Insurance contracts are unique contracts that are enforceable by law. Describe those
unique feature of insurance contracts (7 mks)
c) Discuss the functions of reinsurance in Kenya (8 mks)
(20 mks)
QUESTION FOUR
a) Discuss how assessment of indemnity is done in various types of insurances (5 mks)
b) Describe the various methods of providing indemnity by insurance companies
(10mks)
c) Describe the factors limiting operation of the principle of contribution ( 5 mks)
(20 mks)

Page 2 of 3

QUESTION FIVE
a) Fire insurance policies are quite important for the protection of commercial or
residential property. Discuss the principal types of fire insurance policies. (10 mks)

b) Discuss the various challenges facing Kenya’s insurance industry and their possible
solutions. (10 mks)
(20 mks)

Page 3 of 3

Bmgt 211- Introduction To Risk And Insurance Question Paper

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