Buss 324: Risk Management Question Paper
Buss 324: Risk Management
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS
Answer Question ONE and any Other TWO Questions
Question 1
a) Giving appropriate examples, explain the following principles of insurance.
(i) Principle of indemnity (3 marks)
(ii) Principle of utmost good faith. (3marks)
b) Describe the various types of risks that face individuals and organizations (10marks)
c) Identify the basic types of liability exposures and give an explanation of each. (14marks)
Question 2
a) The burden of risk represents some costs to the risk manager. Discuss (10marks)
b) With the use of practical examples, demonstrate how the insurance mechanism works. (10marks)
Question 3
a) It is not possible to insure all possibilities of loss at a reasonable price. Briefly explain the characteristics of an insurable risk. (12marks)
b) Distinguish between the various classes of insurers based on type of business. (8marks)
Question 4
a) Describe the various functions carried out by insurers. (14marks)
b) Under long term business discuss
(i) Endowment policy (3 marks)
(ii) Whole life assurance (3marks)
More Question Papers