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Bms 101:Introduction To Insurance Question Paper

Bms 101:Introduction To Insurance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2011

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATION 2010/2011
MAY INTAKE SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BMS 101:INTRODUCTION TO INSURANCE
DATE:friday 29th July 2011 TIME:8.00 a.m-10.00 a.m

INSTRUCTIONS:
.Attempt Question ONE(compulsory) and any other TWO.
.Start each question on a new page
.Marks are awarded for proper explanation and use of appropriate examples
QUESTION ONE:(30 marks)
A)Explain the following
i)Underwriting of insurance claims (4 marks)
ii)Classification of hazards (6 marks)
b)i)Explain the requisites of insurability.(6 marks)
ii)Discuss the purposes of underwriting (6 marks)
c)Risk management techniques can be applied in any type of organisation,although they are more
commonly associated with large company.Briefly discuss with relevant examples the tools and
techniques that a risk manager in a large firm may employ to identify the risk in the
organisation. (8 marks)
QUESTION TWO:(20 marks)
A)"Business should not risk too much by assuming risks they may not have the capacity to
accommodate."Discuss. (12 marks)
b)Briefly discuss any FOUR types of liability insurance covers offered by insurer for liability
risks. (8 marks)

QUESTION THREE:(20 MARKS)
A)A material fact is every circumstance which would influence the judgement of a prudent
insurer in fixing the premium or determining whether he will take the risks.Briefly explain
eight factors that must be disclosed to assist the insurer fix the premium and take the
risks. (8 marks)
b)Insurable interest is one of the insurance principles.Explain the circumstances that may give
risk to insurable interest. (6 marks)
c)Discuss how the principle of insurable interest may be applied to the main forms of
insurance.(6 marks)

QUESTION FOUR:20 MARKS)
A)Discuss and identify the main challenge of insurance in Kenya.(10 marks)
b)Discuss the methods of providing indemnity.(10 marks)

Bms 101:Introduction To Insurance Question Paper

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