There are some risks that you can transfer to an insurance company. There are also risks that you may want to retain. We all know the common risks that are transferred to insurance companies: auto, home, health, life. Detail a risk that could be transferred to an insurance company, but isn’t utilized as often as the most common ones mentioned. Explain the risk that can be transferred, when it’s used

There are some risks that you can transfer to an insurance company. There are also risks that you may want to retain. We all know the common risks that are transferred to insurance companies: auto, home, health, life. Detail a risk that could be transferred to an insurance company, but isn’t utilized as often as the most common ones mentioned. Explain the risk that can be transferred, when it’s used

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter12: Life Insurance Planning

Section12.3: Understanding Your Life Insurance Policy

Problem 6CC

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For automobile insurance, Describe how risk can be managed. Evaluate the risks in society. Discuss the relationship between risk and this type of insurance. Describe the risk management tools. Discuss the legal principles of risk and this type of insurance.
What are your recommendations for Insurance companies ?
One problem facing insurers is that there is a risk that a person will act differently if he/she does not bear all of the consequences of his/her actions. For instance, people with auto insurance policies may drive less carefully than they would drive if they were going to have to pay the full amount of any damages they caused/created. This problem is known as: A. Adverse selection B. Consumer deception C. Moral hazard D. Insurance fraud
For 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. You are required to: Discuss the importance of establishing an effective risk management policy at insurance companies to manage underwriting risks, giving one example of a risk management strategy used by insurance companies to mitigate such risks.
is it still beneficial for a person to have an insurance policy? Explain your answerin detail.
A risk group can be defined as a group that shares roughly the same risks of an adverse event occurring. Insurance companies often classify people into risk groups, and charge lower premiums to those with lower risks. How does this practice effect the market for healthcare? Select the correct answer below: If people are not separated into risk groups, then those with low-risk must pay for those with high risks. When people are classified into risk groups each pays according to their risk. O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care. All of the above.
A life insurance company worries that people with low risk of dying will not buy insurance because the premium is too high relative to their risk. What problem does this refer to? adverse selection moral hazard O free rider O negative externality
Discuss what you learned about the Health Insurance Portability and Accountability Act (HIPAA). Be sure to include the portability aspect of the act, as well as the security and privacy provisions.
A friend tells you about a plan for the formation of an insurance company that will issue insurance policies to protect a person who buys stock against a decline in the value of that stock. Explain why you believe the scheme will or will not work.
Placing the insured in the same position financially as he or she or it was in immediately before the loss or damage took place. For this purpose, the insurance companies are: a. Paying compensation to the insured b. Paying commission to the insured c. Paying salaries to employees d. Paying commission to the agents
MATCH WITH THE BEST ANSWER Liability Insurance Mistakes happen. You, your employees, your equipment or your suppliers could make mistakes that ultimately end up hurting your customers, your employees or other people who are involved with your business. To protect your business from being sued, you should consider these types of insurance to limit your liability: 1. ____General liability A. Provides protection if you are sued by a client for errors, omissions or negligence, when performing professional services. 2. ____Product liability B. Covers injury to clients or staff on your premises. 3. ____ Professional liability insurance C. Provides protection in the event that your products are defective or cause serious harm to those using them.
We said in our Risk Management and Insurance Planning course that Traditional/Non-Guaranteed Life Insurance could be thought of as a combination of Term Life insurance and the Cash Value account feature of Whole Life insurance. Which of the two components provides a death benefit/insurance payout if needed? Term Life component Cash Value account A combination of the Term Life component & Cash Value account None of the above