Insurance & Risk Management BBA Second year Fourth Semester Examination 2009

BBA second year fourth semester examination, 2009

INSURANCE & RISK MANAGEMENT

Subject code:2201

Examination code: 604

Time – 3 hours

Full marks- 70

[N.B. - the figures in the right margin indicate full marks. Answer  any five questions from Part A and three questions from part B]

Part – A  - Short Question

Marks- 5*5=25

1. (a) What are the methods that an insurance company uses to handle risk?

(b) “Pure risks are always insurable”- explain

2. (a) How the right of subrogation arises?

(b) Discuss the different rules relating to proximate cost.

3. (a) What are the differences between representations and warranties?

(b) What are the facts which are required to be disclosed in case of utmost good faith?

4. (a) What are the requirements of a valid insurance contract?

(b)  What subject-matters are insured in marine insurance- discuss.

5. (a) What are the various essentials of insurable interest?

(b)When insurable interest must exist?

6. (a) What do you mean by surrender value ?

(b)Describe the important feature of surrender value.

7. Discuss the constraints of insurance business in Bangladesh.

PART-B- Broad Questions

Marks- 15*3=45

8. (a) Proximate cost is not very essential in case of life insurance contract- explain.

(b) Explain the limitation on the scope of insurance.

(c) Describe the policies that are issue d in accident department.

9. (a) What do you mean by moral hazard and physical hazard in fire insurance policy?

(b) Describe the nature of insurance in case of life, marine, fire and liability insurance.

(c) Mrs. Keya chowdhury purchased two policies for tk. 50,00,000 and tk. 30,00,000 from Sohel Insurance Company and Koheli Insurance Company respectively for her house. The house was destroyed by fire and the loss ascertained at the tk. 40,00,000.How much and at what ratio the Soheli and Koheli Company will pay the claim to Mrs. Keya Chowdhury?

10. (a) define  re-insurance with example. Briefly explain the reasons for re-insurance.

(b) Assess the elements of an insurable risk.

(c) Elucidate insurance pricing. Discuss the method of insurance pricing.

11. (a) write the steps for calculating of net single premium.

(b)  Calculate the net single premium and net annual premium for 5 years endowment policy of tk. 10,000 at the age of 30 from the following:-

Age	No. of persons insured	No. of death	Present Value of tk.1@4%
30	9480	125	.952
31	9,355	126	.907
32	9,229	128	.864
33	9,101	130	.823
34	8,971	136	.784