FIN 502 Chapter 11: Chapter 11.docx

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jademallard37

14 Mar 2012

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Document Summary

Vast amount of pure risk as a result of owning or using properties- home, automobile, furniture, clothing, etc. Most important risk is damage or destruction. Property insurance: insures your physical properties- home, clothing, furniture, appliances, If you own a home, exposed to risk of damage by fire, lightning, explosion, vandalism, etc. If you own a car, exposed to risk of theft, collision, bodily injury to yourself/ passengers. Jewellery, and so on- against damage or destruction: most important property insurance is home and automobile industry. Protects your family against the risk of loss, damage, or destruction of the home, its retained outbuildings (ex: garage), its contents (ex: clothing, furniture, appliances) and covers liability to third parties for injuries suffered on the property. List of typical risks that are covered by a home insurance policy: damages and destruction to: fire, lightning, falling objects, riots, windstorm, hail, explosion, vandalism, flood, collapse, theft, glass breakage, ice, electrical wiring, etc.

Related Questions

Rob Worley of Richmond, Virginia, is a divorced 40-year-old loan officer at the Dominion Bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon in late December, he visits University Auto Mall and buys a new car for $28,000. To obtain insurance on the car, Rob calls his agent, Karen Cunningham, who represents Charter Insurance Company, and explains his auto insurance needs. Karen says sheâll investigate the various options for him. Three days later, Rob and Karen get together to review his coverage options. Karen offers several proposals, including various combinations of the following coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance.

Objectives â¢ Describe the key features, policy limits and persons insured of 5 important car insurance. â¢ Apply what you have learned on automobile insurance to real life saturation. Questions

1. Describe the key features of these insurance coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance. There are 5 types of insurance, each is worth 10 points. 50 points

2 Are there any limitations on these coverages? Explain. There are 5 types of insurance, each is worth 3 points.

3. Indicate the persons or property that would be protected under each type of coverage. There are 5 types of insurance, each is worth 3 points.

4. What kind of insurance coverages would you recommend that Rob purchase? Explain your recommendation.