Month: September 2020

Question Outline four requirements of a promissory note.   Answer Requirements of a promissory note. It is an unconditional written promise made by a person to another It must be signed by the maker It contains a promise to pay Read More …

Question  Describe five essentials of a valid bill of exchange.   Answer Essentials of a valid bill of exchange: It must be in writing – A bill of exchange cannot be oral. It must contain an express order to pay Read More …

Question Identify and briefly explain five principles of insurance.   Answer Principles of insurance Insurable Interest This is the financial or monetary interest at stake or in danger if the subject matter is not insured. It is the interest a Read More …

Question Where the assured is so situated that the happening of the event of which the insurance money is to become payable would, as approximate cause, involve the assured in the loss or diminution of any right recognized by law, Read More …

Question Jean Jipapa insured his ship against any losses while lying at Mombasa port for a sum of shillings 10 million with BADCE Insurance Company Limited. He further insured the same ship with Deep See Insurance Company Limited for a Read More …

Kasneb Question (a) Distinguish between the following set of terms: i) “Reinsurance and Double insurance”. ii) “Insurance and Assurance”. (b) Explain four categories of insurance covers.   Answer Difference between reinsurance and double insurance Whereas reinsurance refers to the spread Read More …

Question Distinction between a “contract of insurance” and a “wagering contract”.   Answer Distinction between a contract of insurance and a wagering contract A wagering contract is not legally enforceable (void) but an insurance contract is. A contract of insurance Read More …

Kasneb Question (i) Define the term “burglary insurance”. (ii) Jane Kioi wants to engage in the business of exporting of petrol. She has purchased a ship in order to advance her business. Advise Jane Kioi on the type of insurance Read More …

Question In relation to marine insurance: i) Define the term “marine insurance”. ii) Outline any four types of marine insurance policies.   Answer i)”Marine insurance”. Marine insurance is insurance that covers the loss or damage of ships, cargo, terminals, and Read More …

Beatie Osolika took a fidelity medical policy with Hope Insurance Company Ltd. While completing the proposal form, Beatie Osolika answered in the affirmative a question by the insurance company asking “are you pregnant?” Four months later, Beatie Osolika was admitted Read More …