Risk Management

User Generated

ybiryvsr

Business Finance

Question Description

FINC330-1401A-01: Risk Management01

1,200 words (2 pages) and included reference page

Part 1

  • What is the meaning of the term reinsurance?

  • Explain the reasons for reinsurance.

  • Explain the term securitization of risk.

    Part 2

    What unfair trade practices are each of the following insurance agents violating? Explain the terms that you use.

  • Agent Jones offers a client to pay a portion of the premium if the client purchases a policy.

  • Agent Peterson convinces a client to replace a life insurance policy with a new policy that adds little value.

    Part 3

    Julia owns a building worth $800,000. She insures the building for $300,000 with Company A, $400,000 with Company B, and $100,000 with Company C. There is a fire, and the building sustains $100,000 in damage.

  • How much will Julia collect in insurance?

  • How much will each company pay?

  • What insurance term describes this situation?


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Explanation & Answer

arnpl (1312)
University of Virginia

Anonymous
I was having a hard time with this subject, and this was a great help.

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