Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter C.4, Problem C.4AQ
Summary Introduction
To discuss: The amount to be paid for the auto insurance policy.
Introduction: Insurance is a policy formulation with a written contract that is an evidence of promise by the insurance company to pay for the losses or a part of losses of the insured.
Premium is the amount of fee charged by the insurance company to provide insurance to the individuals at a regular period.
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Chapter C Solutions
Understanding Business
Ch. C.1 - Prob. C.1AQCh. C.2 - Prob. C.2AQCh. C.2 - Why are companies more aware now of the need to...Ch. C.2 - Prob. 2TPCh. C.2 - What are the four major options for handling risk?Ch. C.2 - Prob. 4TPCh. C.3 - Prob. 5TPCh. C.3 - What is the rule of indemnity?Ch. C.4 - Prob. C.4AQCh. C.4 - Prob. 7TP
Ch. C.4 - Prob. 8TPCh. C - If you are interested in pursuing a career in risk...Ch. C - Prob. 2CECh. C - Prob. 3CECh. C - 1. Are you self-insuring your residence and your...Ch. C - Prob. 2CTCh. C - Prob. 3CTCh. C - Prob. 4CTCh. C - 1. List the ways you could reduce risk in your...Ch. C - Prob. 2DCSCh. C - 3. Much of risk management consists of reducing...Ch. C - Prob. 4DCSCh. C - Write a two-page essay on the risks of a terrorist...Ch. C - Prob. 1PPTCh. C - Prob. 2PPTCh. C - Prob. 3PPTCh. C - Prob. 4PPT
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- Within the context of insurance companies, risk management mainly focuses on: Select one: a. Ensuring premiums invested yield planned rate of return b. Reducing the high frequency of insurance claims c. Loss prevention and mitigation d. Prevent underwriting riskarrow_forwardWhat is the relationship between risk management and insurance management? In your answer you should demonstrate an understanding of the difference between the two fieldsarrow_forwardDo you think that eliminating or limiting the amount of deposit insurance would be a good idea? Explain your answerarrow_forward
- In the basic model of insurance, Income is the only output into a persons utility. This is obviously not realistic. If we relax our our assumption that utility is determined only by income levels can any assurance contract provide full protection against the possibility of becoming severely ill? Give examples of risks associated with becoming sick that are not typically covered by formal health insurance. Can you think of ways that people informally insure against these uninsurable risks?arrow_forwardThe health plan bears the risk at all times for medical cost under insurance plans TrueFalsearrow_forwardThe health and mortality implications of the recent coronavirus pandemic has propelled many people to think critically about having proper health insurance, retirement and estate plans. Describe the three common structures of pension plans, eligibility and qualifications for retirement.arrow_forward
- Is life insurance a necessity, or is it a luxury? What considerations should an individual evaluate before purchasing life insurance? How might these considerations change when spouses and children are brought into the analysis?arrow_forwardA category of economic risk is: Liability risk Personal risk Property Risk All of the answers are correct None of the answers are correctarrow_forwardcan you give me at least 5 questions related to insurance? For example: What type of insurance do you have?arrow_forward
- true or false 1. Particular risk happens when the breakdown of Lehman Brother causes the economy of the US to experience a massive financial meltdown 2. Financial risk is speculative risk 3. Risk-averse individuals will not assume higher risk unless they are promised with a higher rate of return. 4. Combining risks that are negatively correlated can slightly reduce the overall risk of the business entity.arrow_forward1. Evaluate the concept of risk with the focus on risk management. Your answer should include an analysis of how it has evolved from its insurance-buying originsarrow_forwardFor insurance companies risk management is critical to the success and viability of their business. As a result, they have therefore adopted strategies to manage the risks they are exposed to. Discuss the role of the Insurance Core Principles as it relates to underwriting risks, in the effective management of insurance companies.arrow_forward
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