BUISENESS MANAGEMENT
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: -Then we examine in greater detail the three most important types of insurance: property, liability, and life.
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: -An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured).
Detailed explanation-5: -Purpose of insurance Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee-an insurance premium-to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.