Spring-2016
Get solved
assignments at nominal price of Rs.125 each.
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Master of
Business Administration - MBA Semester 4
MF0018-Insurance
and Risk Management
(Book ID:
B1816)
Assignment
(60 Marks)
Note: Answers
for 10 marks questions should be approximately of 400 words. Each question is
followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.
Q1. Explain price risk and its types.
Explain Risk management methods.
Answer. Price risk is the risk of a decline in the value
of a security or a portfolio. Price risk is the biggest risk faced by all
investors. Although price risk specific to a stock can be minimized through
diversification, market risk cannot be diversified away. It is the Probability
of loss occurring from adverse movement in the market price of an asset.
A price risk
is the risk that an investor will invest in an equity that will eventually be
worth less than what they paid for it. There are ways to manage price risk, but
as long as there is some investment going on in unsecured products, there is no
way to totally eliminate it. Therefore, the
Q2. An organization is a legal entity
which is created to do some activity of some purpose. There are elements of a
life insurance organization. Explain the elements of life insurance organization.
Important
activities-2
Internal
organization-3
Distribution
system-2
Functions of
the agent-3
Answer. An ‘organization’ is a legal entity which is created to
do some activity or to achieve some purpose. It is created under some law,
which gives it a status and identity. Because of the identity, the organization
is considered to be a person in law. Therefore, it can enter into contracts, be
sued in courts, accumulate property and wealth, and do business, in the same
manner as any individual can do. The way activities are grouped lead to the
formation of offices, departments and sections Responsibilities (for results)
have to be clarified and authorities (to take decisions and utilize resources)
have to be defined. When all these are clarified, there will be people holding
Q3. Explain the doctrine of
indemnity, doctrine of subrogation and warranties and its types and classification.
Answer. Doctrine of indemnity:
Indemnity
means security or compensation against loss or damage. The principle of
indemnity is such principle of insurance stating that an insured may not be
compensated by the insurance company in an amount exceeding the insured’s
economic loss. In type of insurance the insured would be compensation with the
amount equivalent to the actual loss and not the amount exceeding the loss.
Q4. Give short notes on:
a. Evidence and claim notice.
b. Subrogation
c. Salvage
Answer. a. Let's say that you have a reading
passage that has an essay writing prompt at the end. After you read the
passage, your writing prompt asks you to determine the theme for the passage
and to give supporting evidence to prove your point. In this writing prompt,
it's not enough to just tell your reader what your theme is. It is also not
enough to show the evidence that confirms your answer. You also need to include
information that explains why you believe your answer is right.
Here's how it works:
Q5. Explain the marketing mix (7 P’s)
for insurance companies
Answer. The
Marketing Mix Extended 7P’s:
1. Product -
the Product should fit the task
consumers want it for, it should work and it should be what the consumers are
expecting to get. A product is an item that is built or produced to satisfy the
needs of a certain group of people. The product can be intangible or tangible
as it can be in the form of services or goods.
A product has a certain life cycle that includes the
growth phase, the maturity phase, and the sales decline phase.
Q6. Explain the benefits of
reinsurance. Elaborate on the application of reinsurance.
Answer. Purchasing reinsurance reduces insurers’ insolvency risk by
stabilizing loss experience, increasing capacity, limiting liability on
specific risks, and/or protecting against catastrophes. Consequently,
reinsurance purchase should reduce capital costs. However, transferring risk to
reinsurers is expensive. The cost of reinsurance for an insurer can be much
larger than the actuarial price of the risk transferred. With purchasing
reinsurance, insurers accept to pay higher costs of insurance production to
reduce their underwriting risk.
Spring-2016
Get solved
assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490
