Hbc2109:Insurance And Risk Management Question Paper
Hbc2109:Insurance And Risk Management
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE – (30 MARKS)
(a) Explain critically the meaning of the terms “Insurance management” and “risk management”. (6 Marks) (b) Explain the objectives of a risk management program both before and after the occurrence of loss. (12 Marks) (c) As a risk financing technique, planned retention, commonly known as self-insurance is becoming a popular way of financing potential loss. Clearly outline and explain four methods of self insurance. (8 Marks) (d) Discuss the principle of contribution as used in insurance contracts. (4 Marks)
QUESTION TWO – (20 MARKS)
(a) The Kenyan government has drafted various measures and policies to spur socioeconomic development and growth of the economy. Discuss five contribution of insurance and risk management to the achievement of the goals and objectives of vision 2030. (10 Marks) (b) Explain the following types of risks using relevant examples: (i) Speculative risks (2 Marks) (ii) Political risks (2 Marks) (iii) Strategic risks (2 Marks) (c) Describe any four risk handling costs in business. (4 Marks)
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QUESTION THREE – (20 MARKS)
(a) Explain five characteristics of insurable risks. Use relevant examples. (10 Marks) (b) You have been appointed as the risk manager in your organization in which you have been an employee for a reasonable period of time. Explain the five tools that you would recommend to manage the risk that the organization faces. (10 Marks)
QUESTION FOUR – (20 MARKS)
(a) There are two main categories of hazards in business operations namely the physical hazards and the moral hazards. Discuss each of them using relevant examples. (10 Marks) (b) Explain the following concepts as used in discussing the various attitudes to risk. (i) Risk averters (2 Marks) (ii) Risk seekers (2 Marks) (iii) Risk neutral (2 Marks) (c) Discuss any four benefits of managing risk. (4 Marks)
QUESTION FIVE – (20 MARKS)
(a) Discuss four burdens of risks in the society. (10 Marks) (b) Explain the meaning of the underwriting in insurance. (5 Marks) (c) Explain the functions of an agent. (5 Marks)
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