FIN 512 Chapter Notes - Chapter 5: Home Insurance, Liability Insurance, Risk Management Tools

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jademallard37

17 Jul 2012

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Provides a more comprehensive version of the coverage found in automobile and homeowners insurance, and is sold to businesses and other non-personal enterprises because they face greater risk exposures than the average household. General insurance is the name given to all insurance except life and health is often referred to as property and casualty insurance or p&c. Property insurance is first-party coverage providing protection against risks to the policyholder"s own property. It covers risks such as fire, theft, or weather damage. Casualty insurance is broadly defined as third-party coverage providing protection against losses that the policyholder may cause to others but has come to mean any coverage that is not related to life, marine or property. It includes but is not limited to the following: Commercial insurance is bought by businesses and non-commercial organizations to protect themselves against possible loss or damage to their assets.

Related Questions

in 500 words: What are the types of property and casualty insurance? What are some of the key provisions to think about when purchasing insurance? What is a business owners insurance policy, including types of insurance available with BOP?

redmallard150

Commercial Insurance is a large stock property and liability insurer that specializes in the writing of commercial lines of insurance. The board of directors has appointed a committee to determine the feasibility of forming a new subsidiary insurer that would sell only personal lines of insurance, primarily homeowners and auto insurance. The new insurance company would have to meet certain management objectives. One member of the board of directors believes the new insurer should be legally organized as a mutual insurer rather than as a stock insurer. Assume you are an insurance consultant who is asked to serve on the committee. To what extent, if any, would each of the following objectives of the board of directors be met by formation of a mutual property and casualty insurer? Treat each objective separately.

a. Commercial Insurance must legally own the new insurer.

b. The new insurer should be able to sell common stock periodically in order to raise capital and expand into new markets.

c. The policies sold should pay dividends to the policyholders.

d. The new insurer should be licensed to do business in all states.

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.

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FIN 512 Chapter Notes - Chapter 5: Home Insurance, Liability Insurance, Risk Management Tools

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