Question 1

Discuss advantages and disadvantages to a company obtaining a BOP policy.

Accepted Answer

The answer of Discuss advantages and disadvantages to a company...

Question 2

Disability buyout insurance

Accepted Answer

DDisability buyout insurance is specifically designed to provide funds to buy out the ownership interest of a partner or key employee in the event they become disabled, ensuring the continuity of the business. It does not protect against losses due to death; that is the purpose of key person insurance. While it can be used in single-owner operations, its primary function is not common in those settings as there is no partner to buy out.

Question 3

Doug works security at a bar and was recently hurt by a patron who was being forcibly removed from the premises.  He believes he has been wrongfully treated by the bar. What four elements must be in place for Doug to make a claim that the bistro has been negligent?

Accepted Answer

The answer of Doug works security at a bar and...

Question 4

Match between columns
                        Premises: Coverage primarily against employee dishonesty
A defect resulting from a problem that occurs during the manufacturing process, causing the product to subsequently not be made according to specifications
A defect resulting from a dangerous design, even though the product was made according to specifications
A form of punishment beyond compensatory damages that intends to punish wrongdoers for gross negligence or callous disregard and to have a deterrent effect.
A program that designates part of a firm's earnings to fund a portion of employee medical coverage
A defect resulting from failure to convey to the user that hazards are associated with a product or to provide adequate instructions on safe product use
Coverage designed to provide liability and physical damage protection for a vehicle
Laws that obligate an employer to pay employees for injury or illness related to employment, regardless of fault
A provision in a property insurance policy that requires the owner to have insurance for at least 80 percent of what it would cost to rebuild the building or replace the personal property
Compensatory damages for such losses as pain and suffering, mental anguish, and loss of physical abilities

Accepted Answer

The Answer of Marketing defect and Noneconomic damages and Punitive is...

Question 5

Match between columns
                        Premises: Coverage for general liability loss exposure
The criminal transfer of funds from a bank account
The typical standard of care, based on what a reasonable or prudent person would have done under similar circumstances
Coverage that provides benefits to a firm upon the death of key personnel
Coverage that reimburses a business for the loss of anticipated income following the interruption of business operations
Risks that directly affect individual employees but may have an indirect impact on a business as well
A policy for small businesses that do not qualify for a BOP that combines property insurance, commercial general lability insurance, and crime insurance
A negligent act that is the clear cause of damages sustained
Coverage that provides benefits to employees injured at work
A business version of a homeowner's policy designed to meet the property and general liability insurance needs of some small business owners

Accepted Answer

The Answer of Business owner's policy and Proximate cause and is...

Question 6

Match between columns
                        Premises: Coverage that provides benefits upon the disability of a firm's partner or other key employee
Minimizing potential losses by preventing, avoiding, and/or reducing risk
Wrongful acts or omissions for which an injured party can take legal action against the wrongdoer for monetary damages
Making funds available to cover losses that cannot be eliminated by risk control
Coverage that designates part of a firm's earnings as a cushion against possible future losses
Buying insurance or making contractual arrangements that transfer risk to others
Financing loss intentionally through a firm's cash flows
Any property other than land and anything physically attached to the land, such as buildings
Land and anything physically attached to the land, such as buildings
Ways of coping with risk that are designed to preserve the assets and earning power of a firm

Accepted Answer

The Answer of Risk control and Risk transfer and Torts is...

Question 7

Jackie owns a building in a downtown area. Her building is used for office space and is rented to a current business tenant. What kind of risk is associated with this property and is this type of risk insurable?

Accepted Answer

The answer of Jackie owns a building in a downtown...

Question 8

Bob and Tom are partners in a business.  Discuss the types of insurance the business should carry if something should happen to one of the partners.

Accepted Answer

The answer of Bob and Tom are partners in a...

Question 9

Match between columns
                        Premises: Economic or non-economic damages intended to make the claimant whole by compensating the claimant for any injuries or loss arising from the negligent action
Stating in a property insurance policy that all direct damages are covered except those caused by perils specifically excluded
A managed-care network providing health insurance that is more expensive but offers a broader choice of medical providers
The possiblity of losses associated with the assets and earnings potential of a firm
Compensatory damages that relate to economic loss, such as medical expenses and loss of income
The uncertainty associated with an investment decision
The uncertainty associated with a situation where only loss or no loss can occur
Identifying the specific perils covered in a property insurance policy
A managed-care network providing health insurance that is less expensive but more limiting in choices of medical providers
A cause of loss, either through natural events or through the actions of people

Accepted Answer

The Answer of Health maintenance organization and Named-peril approach and is...

Question 10

After explaining the different types of property and losses, which ones were an issue for Sandy Whann, owner of Leidenheimer Baking Company ?

Accepted Answer

The answer of After explaining the different types of property...

Question 11

Match between columns
                        Premises: Insurance that provides a healthy partner the cash to buy out a partner who becomes ill
A comprehensive limit on annual expenses should a number of employees reach the firm's per-employee limit on self-funding for medical claims
A loss in which physical damage to property reduces its value to the property owner
Lessening the frequency, severity, or unpredictability of potential losses
Choosing not to engage in hazardous activities
A loss arising from an inability to carry on normal operations due to a direct loss of property
An insurance term that refers to the depreciated value of property
A firm's per-employee limit on self-funding for medical claims
The cost of replacing personal property and rebuilding real property at today's prices
Keeping a loss from happening

Accepted Answer

The Answer of Loss reduction and Indirect loss and Loss is...

Question 12

Dan bought a $500,000 marina two years ago and obtained $400,000 of property insurance.  Recently economic improvements on the lake has raised the property's value to $550,000 (the good news). But the general store had a fire causing $100,000 worth of damage (the bad news). How much will the insurance company pay to repair the store since Dan has a coinsurance clause in the marina's policy?

Accepted Answer

The answer of Dan bought a $500,000 marina two years...

Question 13

Discuss the differences between pure risk, business risk and market risk.

Accepted Answer

The answer of Discuss the differences between pure risk, business...

Question 14

List the basic principles in evaluating an insurance program. How can an insurance agent assist a small business owner?

Accepted Answer

The answer of List the basic principles in evaluating an...

Question 15

Beth has started an elder care service.  Employees work with persons who are not ready to leave their home but have some disability that prevents them from being fully mobile.  What should Beth consider in managing the associated risk?

Accepted Answer

The answer of Beth has started an elder care service.  Employees...

Question 16

Since Melissa is starting a day care center in her home, what business risks should be insured?  How can an insurance agent assist in the insurance evaluation process?

Accepted Answer

The answer of Since Melissa is starting a day care...

Question 17

After discussing the risk management process, list specific areas of concern for each step.

Accepted Answer

The answer of After discussing the risk management process, list...

Quiz 23: Managing Risk

Discuss advantages and disadvantages to a company obtaining a BOP policy.

Disability buyout insurance

Doug works security at a bar and was recently hurt by a patron who was being forcibly removed from the premises. He believes he has been wrongfully treated by the bar. What four elements must be in place for Doug to make a claim that the bistro has been negligent?

Match the term with its definition. Some terms may not be used.

Match the term with its definition. Some terms may not be used.

Matchteh term with its definition. Some terms may not be used.

Jackie owns a building in a downtown area. Her building is used for office space and is rented to a current business tenant. What kind of risk is associated with this property and is this type of risk insurable?

Bob and Tom are partners in a business. Discuss the types of insurance the business should carry if something should happen to one of the partners.

Match the term with its definition. Some terms may not be used.

After explaining the different types of property and losses, which ones were an issue for Sandy Whann, owner of Leidenheimer Baking Company ?

Match the term with its definition. Some terms may not be used.

Discuss the differences between pure risk, business risk and market risk.

List the basic principles in evaluating an insurance program. How can an insurance agent assist a small business owner?

Beth has started an elder care service. Employees work with persons who are not ready to leave their home but have some disability that prevents them from being fully mobile. What should Beth consider in managing the associated risk?

Since Melissa is starting a day care center in her home, what business risks should be insured? How can an insurance agent assist in the insurance evaluation process?

After discussing the risk management process, list specific areas of concern for each step.