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Bms 416: Assurance Of The Person Question Paper

Bms 416: Assurance Of The Person

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2011

DATE: Wednesday 7th December 2011

TIME: 2.00 p.m – 4.00 p.m

INSTRUCTIONS
Answer question 1 and any other TWO Questions.

Question 1

a)
Briefly explain the scope of cover for the below listed life assurance policies.

i)
Convertible Term Assurance

ii)
Family Income policy
iii)
Unit-Linked Term Assurance
iv)
Flexidowment Assurance
v)
Critical Illness Policy

(3 marks each)

b)
Giving relevant examples, discuss the different types of proportional reinsurance
treaties available to a life office.

(10 marks)
c)
Briefly discuss the need that it addressed by provision of Key Person Insurance cover.

(5 marks)

Page 1 of 2

Question 2
a)
Explain the procedure to be followed by a life assurance underwriter who assesses a
proposal form and feels it cannot be accepted immediately.

(10 marks)

b)
Explain some of the medical conditions that may require further investigations by the
life assurance underwriter.

(10marks)

Question 3
a)
Discuss some of the occupations that represent above average risk by accident in life
assurance.

(10 marks)
b)
Briefly discuss the methods that an underwriter may use to deal with under-average
lives.

(10 marks)

Question 4
a)
Explain the major loadings in a life assurance premium charged by a life office.
(10 marks)
b)
Using an illustrative example, distinguish between simple reversionary and
compound reversionary bonuses for an endowment assurance where death occurs in
the third year with bonuses for 1st and 2nd year having been 10% and 15%
respectively.

(10 marks)

Page 2 of 2

Bms 416: Assurance Of The Person Question Paper

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