F

IRST

SEMESTER EXAMINATION

LEVEL 100

. OPTION ALL

C

OURSE

TITLE: P

RINCIPLES OF INSURANCE

T

IME

NSTRUCTIONS

:

A

NSWER QUESTION

1

AND

4

WITH ANY OTHER ONE QUESTION

Question I: Equity Insurance company had a surplus share treaty arrangement with some caterpillar

reinsurance companies. Equity Insurance company had a retention limit of 85,000frs. The arrangement

was in 5 lines for the first reinsurer, 4 lines for the second reinsurer, 2 lines for the third reinsurer. The

premium rate is 5% and equity insurance company obtained a business valued at 400,000frs on their fire

1. Premier Insurance company for 250,000frs

2. Equity insurance company for 200,000frs

3. Union insurance company for 220,000frs

Question 3. MR Song insured his car with Uzor insurance company for 150,000frs against theft. And mr

Song's car was burnt partially by fire which will cost him 100,000frs to repair. As. a loss assessor in the

making, you are required to calculate the liabilities of the parties involved. And give your advice to the

policyholder. (10 marks) ,

Question 4: Itemize and explain any four symptoms or setback facing the insurants development in

Cameroon, and state your recommendations to the symptoms.(30 marks)