THE UNIVERSITY BAMENDA

HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT(HICM)

FIRST SEMESTER RESIT EXAMINATION 2017/2018 SESSION. LEVEL 100 COURSE TITLE:PRINCIPLES OF

INSURANCE TIME ALLOWED: 3 HOURS INSTRUCTION: ANSWER QUESTION 1, 2,5,6 AND ANY OTHER ONE

QUESTION. COURSE LECTURER: PRINCE UZOR EMMANUEL E

QUESTION 1. SANCO Insurance Company based In bamenda is a property insurer that entered

into a surplus share reinsurance treaty with sorpe Reinsurance Companies. SANCO insurance

Company had a retention limit of 400,000frs o a single building and up six lines of insurance may

be ceded to 1

Reinsurance Company, 4 lines for the second reinsurance. The building was valued

• Show your workings

• QUESTION 2 : The regulation of insurance business is of paramount concern of the government

in any developing economy. What are the reasons for government regulation of insurance

business in Cameroon? Itemize and explain at least four reasons. (15 marks)

QUESTION 3: man is said to be a bundles of risks. As an insurer in the making, what are some of the

available techniques or arsenals to be employed in battling those risks?( 10 marks) QUESTION 4: For a

contract of insurance to belegally recognized, there are some characteristics or ingredients to be met.

Judiciously itemize and explain at least four of it.( 10marks)

QUESTION 5:Mr Efe insured his new SUV car worth 5million frs against fire for 3 million frs. After

three months, Mr Efe incurred loss of 800,000 FRS as a result of partial fire accident on his car.