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Part III: Case Application and Written Answers (10 marks) ALO's: A1, A2, CI, C2, D4) 1. Explain how the law of large numbers supports the application of insurance. (2 marks) 2. Argue whether the risk of ships damaged by storms can be commercially insurable or not? 2 marks) 3. Grills Co. is a fast food restaurant in Bahrain. It has three outlets where customers can order and sit in, but the main source of income for the restaurant is through home deliveries. Identify four types of commercial insurance needed by Grills Co and explain what perils they protect against. (1 mark) 4. Explain the social benefits and social costs of insurance on society. (2 marks) 3 Finc 323 - Assignment One 5. Wholefoods Inc is an organic supermarket with locations across the world. Their in-house products range from fruits and vegetables, baked goods, frozen produce, cosmetic and toiletries to everyday household items. Each supermarket usually contains a coffee shop and serves hot food and ready sandwiches. Wholefoods employ over 12,000 staff worldwide in various roles, own offices worldwide, have warehouses for dry/cool storage and have an online ordering service supported by a fleet of delivery cars and trucks. Identify two major risks associated with Wholefoods Inc operations. For each risk identified, provide one risk control treatment method, and one risk financing treatment method. (3 marks) Risk Risk Control Method Risk Financing Method Treatment method: Treatment method: Description: Description: Treatment method: Treatment method: Description Description: TI

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