Question 1 (10 marks) Ali owns one of the large shipping companies that transport huge quantity of cargos every day. One day, one of the large ships was caught in a hurricane in the middle of the sea. The ship was washed up on an island. Most of the cargo in the ship was damaged by water and some cargo was loaded to another ship. The insurer took over the recovered cargo. The insurer decided to compensate the shipping company for both cargos, recovered or not recovered. In addition, hence the recovery cost of the ship was more than its actual value, the insurer compensates the insured with the replacement cost. However, after 2 weeks, the insurer recovered the ship and it was in a good condition. Discuss the following points: a. What type of insurance policy that Ali has for the ship? What perils, risk covered and exclusion in this policy? (3 marks) b. Explain why insurance company compensate Ali with a replacement cost? Support you answer with the appropriate insurance terminologies. (2 marks) c. Explain the claim settlement in the above scenario and support your answers with the applicable insurance principles. (2 marks) d. Do you think all risk can be insured? Give reason for your