QUESTION 1
Insurance refers to a contract between two parties whereby one party called insurer undertakes, in exchange for a fixed sum called premiums, to pay the other party called insured. Discuss the essentials of a valid insurance contract. (12marks)
QUESTION 2
Write brief notes on the following principles of insurance:
Insurable interest
Utmost good faith
Principle of indemnity
Doctrine of subrogation
Proximate cause (10 marks)
QUESTION 3
The insurance industry is one of the key pillars of the financial services sector and central to the realization of financial services objectives as set out in the Vision 2030. Discuss the role of the insurance industry in Kenya’s national development ( 8 marks)
Sample Solution