ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to reduce the premium on the homeowner’s insurance
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to protect the person who owns the television from liability for damages
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to show the insurance company a good faith investment has been made
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to cover the cost of replacement should the television get damaged or stolen
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Detailed explanation-1: -A person buys a flat screen, plasma, theater-like television. The person has homeowner’s insurance. Why would it be appropriate to add a personal property floater to that insurance? To cover the cost of replacement should the television get damaged or stolen.
Detailed explanation-2: -Adding a floater policy assures the homeowner that the full value will be replaced in the event of theft, loss, or damage. These policies generally cover one individual item, so if you have several items for which you want full coverage, you will need to get a floater for each.
Detailed explanation-3: -A term life policy is exactly what the name implies: Coverage for a specific term or length of time, typically between 10 and 30 years. It is sometimes called “pure life insurance” because, unlike whole life insurance, there’s no cash value to the policy.
Detailed explanation-4: -Then we examine in greater detail the three most important types of insurance: property, liability, and life.
Detailed explanation-5: -When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.