Question State four reasons why few people 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

14.- 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