Reference no: EM132810824

1. Please write a brief summary on The "Parole Evidence Rule" according to the Contract law of Australia.

2. Give the significance of the following principles to both the insurer and insured

i) Utmost good faith

ii) Indemnity.

iii) Contribution

iv) Insurable interest

3. The following are description of various insurance policies. Identify the name of the policy described by the statement:

Description Policy

Covers an organization against losses which might arise as a result of debtors failure to pay their debts

Covers for the loss of profit due to interruption of business activities as a result of fire

Covers employees who may suffer injuries while on official duties

Covers partial or total physical disability caused to a person due to injury

4. State four reasons why few Kenyan take out life assurance policy

5. Define the following types of marine insurance losses:-

(a) Total constructive loss

(b) General average loss

6. State four conditions necessary for the operation of the principle of indemnity in insurance

7. Highlight four characteristics of an insurable scheme

8. Outline four benefits of the "Pooling of risks" to an insurance company

9. Describe the procedure of acquiring an insurance policy

10. A private warehouse owner insured his warehouse valued at Kshs.400, 000 for Kshs600, 000 against risk of fire. The warehouse was later destroyed completely by fire including goods worth shs 100,000.

Required:

i) Determine the amount of compensation paid by the insurance company

ii) Give a reason for your answer in (i) above

INSURANCE

1. Under what circumstances can an insurance company fail to compensate the insured in the event of occurrence of the insured risk?

2. Describe the procedure for taking up an insurance policy

3. Your father wants to insure his life with British American Insurance Company. As a Business Studies student, explain to him five benefits of life assurance

4. Explain five principles of insurance