Degree Of Bachelor Of Commerce Question Paper
Degree Of Bachelor Of Commerce
Course:Bachelor Of Commerce In Insurance (Insurance)
Institution: Kabarak University question papers
Exam Year:2012
Degree Of Bachelor of Commerce
Introduction to Risk and Insurance
Question 1.
a)What is fundamental risk? In your opinion, is it a good candidate for insurance? (4mks)
b)Financial statements are an important source of information that can reveal the risks facing an organization. Indicate the types of risks that can be identified in an organization by perusing its financial statements. (4mks)
c)Insurance contracts are enforceable by law. However, due to their unique features, the common law has been modified to address these basic features. Describe the unique features of insurance contracts. (6mks)
d)Explain the various essentials of the principle of contribution. (5mks)
e)Describe the various types of motor vehicle insurance policies in Kenya (3mks)
f)The insurance industry in Kenya has been facing various challenges. Explain those challenges and propose ways of improving performance in the sector (8mks)
Question 2.
a)Explain the meaning of insurable interest. Explain the application of this principle of insurance in the assurance of persons. (8mks)
b)Discuss the various methods of providing indemnity available to an insurance company in case of an indemnifiable loss affecting their customer. (6mks)
c)Discuss the various remedies available to an insurance company in case where customers have breached the principle of utmost good faith. (6mks)
Question 3.
a)It is mandatory in Kenya for insurance companies to re-insure a proportion of the risks they insure with reinsurance companies. Discuss the major reasons for this. (4mks)
b)Most life insurance policies do not cover all the cases of deaths. There are certain exceptions. Discuss them. (6mks)
c)The risk of fire is a major one that faces residential and commercial entities in Kenya. Discuss the various fire policies that are offered by insurance companies in Kenya to mitigate against this risk. (10mks)
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