You have a friend, Icahn Betitall, who just started a small business. He ispaying a hefty premium for insurance. Icahn’s insurance agent told himthat he is insuring against the risk of loss on fire, theft, liability, and businessinterruption. Icahn also has policies for life, health, and automobiles. Icahnis planning a trip to Las Vegas. He plans to contact his agent and obtain apolicy on the risk of losing his money at the blackjack table.a. What should you tell Icahn about being able to purchase such a policy?b. What are several methods that Icahn can choose to manage his risk exposurein Las Vegas?

You have a friend, Icahn Betitall, who just started a small business. He ispaying a hefty premium for insurance. Icahn’s insurance agent told himthat he is insuring against the risk of loss on fire, theft, liability, and businessinterruption. Icahn also has policies for life, health, and automobiles. Icahnis planning a trip to Las Vegas. He plans to contact his agent and obtain apolicy on the risk of losing his money at the blackjack table.a. What should you tell Icahn about being able to purchase such a policy?b. What are several methods that Icahn can choose to manage his risk exposurein Las Vegas?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter9: Insuring Your Health

Section: Chapter Questions

Problem 2FPE

See similar textbooks

Similar questions

Suppose you have $5,000 as a gift from your parents just after they kicked you out of the house. You have a car, your great grandfather's rare world War 1 commemorative badge collection and you quickly found a place to rent for a while. You work in a factory that has a history of workplace injury and you work near the conveyor belts and other gaint machines. You are single and live by yourself. Based on this information, what types of insurance would you need to purchase? List each type you would need and explain 1-2 sentences why.
Shay Manning rents an apartment in Chicago and carries $40,000 insurance on her personal belongings. She selects the $1,000,000 liability with a deductible of $1,000 for each claim and carries an identity theft/fraud protection of $24. Shay's credit is rated as bad as she has a recent bankruptcy on her record. Find her annual premium using the given table. E Click the icon to see a hypothetical table of Estimated Annual Renters Insurance Premium Rates. The annual premium is $ (Simplify your answer. Type an integer or a decimal.)
Stanley recently moved back to Ontario after living abroad for two years. He purchased a vehicle and is asking his Broker for insurance quotes. One insurance company's quote is favourable but the company prefers not to insure Stanley because of the gap in his insurance history. What should the Broker do to act within the scope of his agreement with the insurance company? Obtain approval for the risk from the Principal Broker for approval and then submit the completed application to the insurer.• Discuss the risk with the insurer's underwriter for binding approval and then submit the completed application to the insurer.•Discuss the risk with colleagues first and then submit the completed application to the insurer.•Submit the application without the driving gap as this will get Stanley the best rate.
Toby wishes to obtain auto insurance for his two-year-old car in model class H. He wants 50/100/50 liability coverage. He lives in Territory 1 and has been assigned to driver class 3 with a rating factor of 1.5. What would be his total premium? Round your answer to the nearest cent. Bodily injury coverage is $98 annually. Property damage is $63 annually. Collision with $250 deductible is $93 annually. Collision with $500 deductible is $89 annually. Full Coverage Comprehensive is $76 annually. Comprehensive with a $100 deductible is $68 annually.
Krista and Landor are new parents. They have a two-month-old baby girl and they are considering expanding their family in the future. They have purchased life insurance with a child coverage rider in the amount of $5,000. Unfortunately, their baby girl becomes gravely ill and passes away. How will the insurer deal with their death claim relating to the child coverage rider? Select one: a. b. The insurer will pay the claim for the full amount. The insurer will pay a claim for only half of the full amount to keep the child coverage rider in force for the next child. c. The insurer will deny the claim as Krista and Landon did not purchase accidental death insurance for their
Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?
Johnson has a life insurance policy, a medical insurance policy, a fire insurance policy and a motor insurance policy. Having paid insurance premiums for many years, he is hoping that he can earn some profits from the insurance policy. Based on the distinguishing characteristics of insurance contracts, advise Johnson whether he can earn profits from insurance policies with examples.
Let’s learn more about Will and Stephanie and help them determine what the best insurance options are for them.Will recently decided that he wants to live off campus next school year. He’s going to start looking for apartments in the next week. In the meantime, he wants to consider whether he needs renter’s insurance or not. Here’s some information about Will: •Things he owns that he’ll have with him next year: oLaptop ($1,500) Stereo ($500) oRecreation equipment ($500) oFurniture ($250) oMiscellaneous ($250) •Coverage Optionso Policy 1 - $4,000 of coverage, $20 a month (10% discount if he prepays a full year) oPolicy 2 - $3,000 of coverage, $18 a month (No discount if he prepays a full year) oPolicy 3 - $2,000 of coverage, $15 a month (10% discount if he prepays a full year) How much coverage should Will look for to protect all of his assets? A.$1,500 B.$2,000 C.$3,000 D.$4,000
help
On July 15, Adler purchased in Chicago a Buick sedan, intending to drive it that day to St. Louis, Missouri. He telephoned a friend, Maruchek, who was in the insurance business, and told him that he wanted liability insurance on the automobile, limited in amount to $50,000 for injuries to one person and to $100,000 for any one accident. Maruchek took the order and told Adler over the telephone that he was covered and that his policy would be written by the Young Insurance Company. Later that same day and before Maruchek had informed the Young Insurance Company of Adler’s application, Adler negligently operated the automobile and seriously injured Brown, who brings suit against Adler. Is Adler covered by liability insurance?
Zachary Lee has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damageliability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs?a. Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car.b. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each.c. Zachary’s 18-year-old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.
Phoenix is the owner of Recycle Plus Inc. a successful recycling company. Phoenix earns over $1 million annually and currently has a $3 million universal life (UL) insurance policy through Stardust Life. After meeting with his insurance agent Leroy, he decides to apply for another UL policy for an additional $4 million death benefit. Stardust Life has a retention limit of $5 million. Assuming that Phoenix is insurable, how will Stardust Life handle the application? Select one correct answer from the list 1. They will agree to insure him for an additional $2 million but he will have to apply for the extra $2 million with another insurance company. 2. They will agree to insure him for an additional $2 million and they will ask a reinsurer to insure him for the extra $2 million. 3. They will agree to insure him for $4 million. They will refuse to insure him, and he will have to apply for insurance elsewhere. 4. 27 O O