1. Karim is a financial advisor for a large private equity firm. From his years of work, he accumulated some savings and wants to start his own business by building a hotel. He approached Ahli United Bank in order to secure a loan for his upcoming venture. With his equity and loan, he was able to purchase a land from Purple Bricks Realty and finance the construction of his project through signing an agreement with TKO Contractors to build the Hotel in Muharraq.

Determine the insurable interest in the project for the parties involved. (2 marks)

1. Karim:
2. Ahli United Bank:
3. Purple Bricks Realty:
4. TKO Contractors:

2. A real estate company is concerned about the damages to their rental properties from the tenants that live in them. Often when the tenants leave, the property needs painting, some furniture could be damaged, and the electrical devices might be dysfunctional causing financial losses to the company. In addition, some tenants sublet the rooms illegally while others leave without completing their rent payments.

Provide an explanation of how to manage any of these risks from the treatment methods listed below. (2 marks)

1. Loss prevention:
2. Loss reduction:
3. Non-insurance transfer:
4. Retention: