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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 the meaning of the following concepts as applied in the insurance industry. (i) Claim (2 Marks) (ii) Diversifiable risk (2 Marks) (iii) Moral Hazard (2 Marks) (iv) Risk management framework (2 Marks) (v) Risk register (2 Marks) (b) Risk managers use insurance to treat certain loss exposures. Explain five key areas which must be emphasized. (10 Marks) (c) Business manager have various risk mitigation measures which they can formulate and implement. Identify and explain any four of them. (10 Marks)
QUESTION TWO – (20 MARKS)
(a) Explain the meaning of the term loss exposure. (2 Marks) (b) Describe any four tools of risk identification. (4 Marks) (c) Distinguish between pure risks and speculative risks. (4 Marks)
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(d) Positive risk management entails recognizing a number of issues by risk owners. Identify and explain five issues that risk owners needs to recognize and understand. (10 Marks)
QUESTION THREE – (20 MARKS)
(a) Discuss the main contents of an insurance policy document. (10 Marks) (b) Define personal risks and explain the four major personal risks. (10 Marks)
QUESTION FOUR – (20 MARKS)
(a) Giving examples explain the following types of risks. (i) Speculative (ii) Operational (iii) Systematic (iv) Liquidity (v) Market risks (10 Marks) (b) Distinguish between insurance management and risk management. (10 Marks)
QUESTION FIVE – (20MARKS)
(a) Describe the procedure involved in making an insurance claim. (10 Marks) (b) Show why the following risk stakeholders should be interested in risk management issues in an organization. (i) The media (2 Marks) (ii) Employees (2 Marks) (iii) Labour unions (2 Marks) (iv) The suppliers (2 Marks) (v) The government (2 Marks)

Hbc2109:Insurance And Risk Management Question Paper

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