RMI 3504 Lecture Notes - Lecture 11: Term Life Insurance, Lightning, Fiduciary
26 Apr 2016
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Advantage: low processing costs for insurer and insured. Lowers adverse selection b/c it covers a large # of loss exposures (take it all or leave it) Covers a broader range of loss exposures, but lower policy limits. Limit on gross sales (usually less than ,000) Bop automatically ineligible: auto businesses, bars, grills, and large restaurants, manufacturing firms, places of amusement, financial institutions. Bop property features: uses mostly replacement cost, originally, no coinsurance provisions, shorter list of property not covered, can have automatic season increase provision (ex. T-shirt shop on boardwalk, increased in summer: other property coverages include: Offers ee benefits liability and employment practices liability (fiduciary responsibility and wrongful termination) Personal and farm liability exposures: coverage parts. G- barns, outbuildings and other farm structures: just as w/ the commercial property policy, there are 3 cause of loss forms: Basic, broad, and special: modular- take only the coverage parts you need, crop/hail insurance.
