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Cmm 212: Principles Of Insurance Question Paper

Cmm 212: Principles Of Insurance

Course:Bachelor Of Commerce

Institution: Catholic University Of Eastern Africa question papers

Exam Year:2014

THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
A.M. E. C. E. A
MAIN EXAMINATION
MAY-JULY 2014 TRIMESTER
FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING AND FINANCE
REGULAR PROGRAMME
CMM 212: PRINCIPLES OF INSURANCE
Duration 2 hrs
Instructions: Answer Questions ONE and any other TWO questions.
Q1.
a) Discuss the role of the insurance industry in Kenya (12 marks)
b) Indemnity and insurable interest are the controlling principles in insurance law. Explain the meaning and application of the two principles in insurance practice. (6 marks)
c) Briefly discuss the facts that need to be disclosed while proposing for insurance. (6 marks)
Q2.
a) Mr. Mwongo while proposing for a motor insurance policy in January 2014 failed to disclose that he had been diagnosed with mild diabetes. Last month he was involved in a motor accident where he suffered minor injuries and his car was written off. The police blamed him for the accident. The motor insurance company has declined to compensate him citing the doctrine of utmost good faith. Advice Mr. Mwongo on whether or not the claim is payable. (12 marks)
b) Explain the position of an insurance claim where the subject matter of insurance has more than one insurance policy covering the same peril. Quote case law. (8 marks)
Q3.
a) Briefly discuss the major players in the insurance industry and their roles. (10 marks)
b) Discuss the various insurance policies available to business firms and other organizations under liability insurance. (10 marks)
Q4. Differentiate between the following terms:
a) Insurance and reinsurance. (5 marks)
b) Policy document and proposal form. (5 marks)
c) Subrogation and proximate cause doctrines. (5 marks)
d) Pure risk and speculative risks. (5 marks)
*END*

Cmm 212: Principles Of Insurance Question Paper

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