Chapter 9 - Investments and Insurance

IEB Practice Questions

2022
1. Discuss the requirements that Pick n Pay would need to consider for an
insurance contract to be valid. (8)
2. Discuss the advantages of Pick n Pay being covered by insurance. (8)
3. Name FOUR types of non-compulsory insurance. (4)

MAY 2023
1. It is essential that Checkers protects the business by taking out insurance.
Assess THREE types of non-compulsory insurance that will protect (Edgars)
(6)
Additional questions:

Complete the following schematic diagram:

Requirements of a valid insurance

(1) contract (1)

(1)

6.1.4 Pick n Pay has a fire insurance contract with a local insurance company.
Explain how each of the following terms would relate to the fire insurance
contract:

(a) Subrogation (2)

(b) The ‘iron-safe’ clause (2)

(c) Indemnification (2)

1. Critically analyse why a business may decide to invest offshore.
(4)
2. Analyse the link between risk and return when investing in fixed property.
(4)