Mid-Term Examination Course Title- MGT 412: Insurance and Risk Management 2

MANARAT INTERNATIONAL UNIVERSITY (MIU)

Department of Business Administration (DBA)

Program: BBA. Semester: Fall-2011. Section: 21 (M and F)

Mid-Term Examination

Course Title- MGT 412: Insurance and Risk Management

Time: 01.30 hrs.                                                                                             Full Marks: [(2*5.0) x3] =30

Ø   Give Correct Answer of All questions. Ø   Chronological Answer of Questions is a Must. Ø   Wrong Answer may lead to the Negative Marking. Ø  After Completion of the Examination Return the Question Paper with the Answer Script.

01. (a) Can insurance be considered as gambling? Why or why not?  “If we analyze the gradual development in the sphere of insurance, we shall come across certain common features associated with such development.” Justify this statement.

     (b) Write short notes on Bangladesh Insurance Academy. What does public property mean according to the Section 23 of the Insurance (Amendment) Ordinance, 1984?

02. (a) Compare the insurance contract with the contract of the sale of goods in light of the principles of Uberrima Fides. Recall the facts, which are required to be disclosed and which are not.

     (b) Can anybody insure anything that he sees around? Who can insure and what? Summarise the cases where insurable interest exists.

03. (c) The Principle of Indemnity is not followed strictly as the usual appreciation and depreciation is not taken into account. Justify this statement. Recall the four methods of providing indemnity.

      (a) When the Principle of Contribution operates? With regard to payability or otherwise of a claim, certain rules of proximate cause should be noted carefully. Explain the statement.