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THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA
FINAL ASSESSMENT
SEMESTER II – 2021 MAY
PROGRAMME: BUSINESS ADMINISTRATION
COURSE NAME: RISK MANAGEMENT AND INSURANCE
CODE : ACCT4804
YEAR GROUP: FOUR
DATE ADMINISTERED: WEDNESDAY, 2021 MAY 5
DURATION: 24 HOURS
This Assessment Paper has 4 pages
INSTRUCTIONS:
1. ANSWER ALL QUESTION IN SECTION A
2. THERE ARE THREE (3) QUESTIONS IN SECTION B. ANSWER ALL
QUESTIONS IN THIS SECTION
3. GIVE CREDIT TO ANY SOURCE USED TO COMPLETE THIS ASSESSMENT.
THE APA REFERENCING FORMAT MUST BE USED.
4. TURNITIN REPORT MUST BE SUBMITTED WITH THIS ASSIGNMENT
5. SUBMIT THE SIGNED CCCJ ASSIGNMENT COVERSHEET WITH YOUR
ASSIGNMENT
NOTE: YOUR ASSIGNMENT WILL NOT BE ACCEPTED IF 4. AND 5. ABOVE ARE
NOT SUBMITTED
YOUR COMPLETED WORK MUST BE SUBMITTED WITHIN THE SPECIFIED
DURATION OUTLINED ABOVE TO PREVENT PENALTIES
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SECTION A
Instruction: Complete ALL questions from this section.
CASE STUDY
Mr. Shawn Manson is a salesman of Grace Kennedy Products Limited who on his journey on January 12th, 2021 to a potential retailer got into a head-on collision with Ms. Janice Musgrave.
Both vehicles were totalled. Mr. Manson filed a report with his supervisor a day after detailing
the incident, which is mandatory as he receives a monthly travel allowance for the use of his
vehicle to conduct the affairs of the company. He is also expected to do a quarterly service of the
vehicle. The last service date before the incident was October 29th, 2020. Ms. Musgrave’s
insurance company Sagicor has filed a claim against Mr. Manson’s insurance company Guardian
Life. Sagicor also has intentions of going against Grace Kennedy Products Limited: Ms.
Musgrave sustained a severe back injury and as a result, has had to go to weekly therapy sessions
since the incident. The claim report from Sagicor to Guardian has put the blame on Mr.
Manson. They have alleged that Mr. Manson’s car skidded as a result of smooth and wet roads.
An investigation is ongoing by Guardian Life to determine the legitimacy of the allegation.
Required
A. Discuss the type of Liability Exposure prevalent in the case. (6 marks)
B. What implication is being made about Mr. Manson in the third paragraph? How can it affect his employer? (4 marks)
C. Identify ONE (1) direct loss and ONE (1) indirect loss from the incident. (4 marks)
D. Discuss TWO (2) types ofDamages that have occurred in this case. (6 marks)
(Total 20 marks)
END OF SECTION A
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SECTION B
Instruction: Complete ALL questions from this section.
Question 1
A cargo ship operated by A.P. Moller-Maersk A/S lost several hundred containers in the Pacific
Ocean while sailing through heavy seas from China to Los Angeles earlier this year. Rough seas
during the trip caused the loss. The company said the Maersk Essen, which has capacity for more
than 13,000 containers, lost an estimated 750 of them about halfway through its trans-Pacific
sailing from China’s Port of Xiamen. The World Shipping Council, a Washington-based trade
body representing liner companies, said in a report last July that between 2008 and 2019 on
average 1,382 containers were lost at sea each year.
A. If the proximate cause of loss is a known peril can negligent claims be made against the ship’s operator? Discuss the extent of the ship operator’s responsibility. (10 marks)
B. What recourse does a shipper have as it relates to guarding against losses from such occurrences? (4 marks)
C. In most, if not all countries, auto liability insurance is a legal requirement. Self-insurance, however, is not usually an option as insufficient exposure exists even though some
individuals own more than two or three automobiles.
Explain FOUR (4) elements of the Personal Automobile Policy (PAP). (6 marks)
(Total 20 marks)
Question 2
A. Explain THREE (3) ways in which a firm can practice funded retention. (9 marks)
B. Outline the various alternatives available to fund workers’ compensation losses. (5 marks)
C. Discuss TWO (2) potential problems a firm may face if self-insurance is chosen to fund workers’ compensation losses. (6 marks)
(Total 20 marks)
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Question 3
A. Discuss why an agent from a Life Insurance Company will have a one-on-one relationship with the Human Resource Manager for a firm. (8 marks)
B. A new intern has been assigned to your Tatil Motor Insurance branch and as the supervisor, you are tasked with training. In no more than THREE (3) paragraphs, explain
to the new intern the underwriting function of insurance. (6 marks)
C. Discuss why insurance is usually heavily regulated. (6 marks)
(Total 20 marks)
END OF ASSESSMENT
