(i) Need to spread the risks: when the insurance company wishes to share liability in the event of a major loss occurring.
(ii) Government policy: the government may make it a legal requirement for an insurance company to re-insure.
(iii) Value of the property: when the value of property is great such as a ship, single insurance company may find it difficult to bear the loss.
(iv) High risk of loss: when chances of loss through the insured risks are high it becomes necessary to re-insure.
(v) Number of risks covered: when the insurance company has insured many different risks it would be too costly to compensate many claims at once hence the need for re-insurance.
maurice.mutuku answered the question on July 22, 2017 at 08:51
-
What challenges may be experienced by a new entrepreneur who is intending to start a business in Kenya?
(Solved)
List the challenges that may be experienced by a new entrepreneur who is intending to start a business in Kenya.
Date posted:
July 22, 2017
.
Answers (1)
-
What channels can be used to distribute locally manufactured goods?
(Solved)
Give channels that can be used to distribute locally manufactured goods.
Date posted:
July 22, 2017
.
Answers (1)
-
In what ways can a legal-political environment impact negatively on entrepreneurs?
(Solved)
Give ways in which a legal-political environment can impact negatively on entrepreneurs.
Date posted:
July 22, 2017
.
Answers (1)
-
What is the difference between Double and co-insurance?
(Solved)
Explain the difference between Double and co-insurance.
Date posted:
July 21, 2017
.
Answers (1)
-
Under what circumstances can a trader issue a credit note to a customer?
(Solved)
List circumstances under which a trader can issue a credit note to a customer.
Date posted:
July 21, 2017
.
Answers (1)
-
What is Scale of preference?
(Solved)
Define Scale of preference.
Date posted:
July 21, 2017
.
Answers (1)
-
Why may a public limited company prefer to raise finance through issue of ordinary shares instead of debentures?
(Solved)
Explain why a public limited company may prefer to raise finance through issue of ordinary shares instead of debentures.
Date posted:
July 21, 2017
.
Answers (1)
-
What are the differences between a public warehouse and private warehouse?
(Solved)
Give the differences between a public warehouse and private warehouse.
Date posted:
July 20, 2017
.
Answers (1)
-
What are the challenges facing consumer associations in Kenya?
(Solved)
List the challenges facing consumer associations in Kenya.
Date posted:
July 20, 2017
.
Answers (1)
-
What are the advantages of a short distribution channel of goods to a buyer?
(Solved)
List the advantages of a short distribution channel of goods to a buyer.
Date posted:
July 20, 2017
.
Answers (1)
-
What are the uses of an advice note in business transactions?
(Solved)
List the uses of an advice note in business transactions.
Date posted:
July 20, 2017
.
Answers (1)
-
What are the unethical practices in product promotion?
(Solved)
List the unethical practices in product promotion.
Date posted:
July 20, 2017
.
Answers (1)
-
What are the factors to consider when choosing a means of transport?
(Solved)
Highlight the factors to consider when choosing a means of transport.
Date posted:
July 20, 2017
.
Answers (1)
-
What benefits may a wholesaler get if he operates own warehouse?
(Solved)
Explain the benefits that a wholesaler may get if he operates own warehouse.
Date posted:
July 19, 2017
.
Answers (1)
-
Under what circumstances would a public warehouse be ineffective?
(Solved)
List the circumstances under which a public warehouse would be ineffective.
Date posted:
July 19, 2017
.
Answers (1)
-
What are the canons of taxation?
(Solved)
List the canons of taxation.
Date posted:
July 19, 2017
.
Answers (1)
-
What measures is the state putting in place to bring sanity in the matatu transport sector in Kenya?
(Solved)
Give measures that the state is putting in place to bring sanity in the matatu transport sector in Kenya.
Date posted:
July 19, 2017
.
Answers (1)
-
Why may a manufacturing firm offer after sale services to its consumers?
(Solved)
Highlight reasons why a manufacturing firm may offer after sale services to its consumers.
Date posted:
July 18, 2017
.
Answers (1)
-
In which ways does the government participate in training businessmen in the country?
(Solved)
Give ways in which the government participates in training businessmen in the country.
Date posted:
July 18, 2017
.
Answers (1)
-
What measures can be adopted to correct the balance of payment deficit?
(Solved)
Explain measures that can be adopted to correct the balance of payment deficit.
Date posted:
July 18, 2017
.
Answers (1)