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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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or
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(Prefer mailing. Call in emergency )
ASSIGNMENT
DRIVE SUMMER 2016
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4) /
PGDFMN – (SEM 2)
SUBJECT CODE & NAME MF0018 - INSURANCE AND RISK MANAGEMENT
SEMESTER 4
BK ID B1816
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
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. Price risk, while unavoidable, can be
mitigated through the use of hedging
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.
Answer:Elementsof a Life Insurance OrganizationAn‘organization’isalegal entitywhichiscreated
to do some activityorto achieve some purpose.Itiscreatedundersome law, which gives it a status
and identity.Becauseof the identity,the organizationisconsideredtobe apersoninlaw.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.
Important activities

2. Q3 Explain the doctrine of indemnity, doctrine of subrogation and warranties and its types and
classification.
Answer : Principle 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
Q4 Give short notes on :
a) Evidence and claim notice.
Answer:Claim: Thisis the central argumentor thesistoyourpaper.You will have one majorclaimin
your introductory
b) Subrogation
Answer:Subrogationisdefinedasalegal rightthat allowsone party(e.g., your insurance company)
to make a payment that is actually owed by another party (e.g., the other driver’s insurance
company) and then
c) Salvage
Answer:The amountfor whichan assetcan be soldat the endof its useful life. In insurance circles,
this term commonly refers to the scrap value of damaged property. In property insurance, salvage
value (e.g., scrap value) will be subtracted from any loss settlement if the insured retains the
damaged property
Q5 Explain the marketing mix (7 P’s) for insurance companies
Answer : The service marketing mix is also known as an extended marketing mix and is an integral
part of a service blueprint design. The service marketing mix consists of 7 P’s as compared to the 4
P’s of a product marketing mix. Simply said, the service marketing mix assumes the service as a
product itself. However it adds 3 more P’s which are
Q6 Explain the benefits of reinsurance. Elaborate on the application of reinsurance.

3. Answer : Benefits of Reinsurance
Reinsurance isanessential tool used for managing risk. Different from the common insurance that
protectspeople frommonetary loss, reinsurance offers protection to the main insurance company
against financial loss. Find benefits of reinsurance discussed below.
1. Protects insurance companies
Just like other people who seek the protection of an
Dear students get fully solved assignments
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or
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(Prefer mailing. Call in emergency )