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

Bms 101: Introduction To Insurance Question Paper

Bms 101: Introduction To Insurance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
INSTUTE OPEN LEARNING
UNIVERSITY EXAMINATIONS 2008/2009
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
BMS 101: INTRODUCTION TO INSURANCE

DATE: MONDAY, 5TH JANUARY 2009 TIME: 8.00-10.00 A.M.

INSTRUCTIONS:
Attempt question ONE and any other TWO. Marks are 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 labour from the neighbourhood 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 night guards, stolen cash and destroyed doors and walls. A board of directors meeting was held where some of them suggested that the said company be wound up. However, some directors have thought of seeking services of risk manager.

You have been appointed on this job of a risk manager. Discuss the risk involved and how the company can manage the risk to survive in the midst of the prevailing problems

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 have been chosen to a member of the team. Give your contribution. (15 marks)
3. Insurance without an underwriter 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 judgment of a reasonable insurer in the fixing the premium of 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)

Bms 101: Introduction To Insurance Question Paper

More Question Papers

Popular Exams

Mid Term Exams

End Term 1 Exams

End Term 3 Exams

Opener Exams

Full Set Exams