Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley

تمرين 21

Seth Morris of Arlington, Virginia, is a divorced 40-year-old loan officer at the Northern Virginia Bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon in late December, he visits Precision Motors and buys a new car for $28,000. To obtain insurance on the car, Seth calls his agent, Paula Rathbone, who represents Chairman's Insurance Company, and explains his auto insurance needs. Paula says that she'll investigate the various options for him. Three days later, Seth and Paula get together to review his coverage options. Paula offers several proposals, including various combinations of the following coverages: (a) basic automobile liability insurance, (b) uninsured motorists coverage, (c) automobile medical payments insurance, (d) automobile collision insurance, and (e) comprehensive automobile insurance.
Critical Thinking Questions
1. Describe the key features of these insurance coverages.
2. Are there any limitations on these coverages Explain.
3. Indicate the persons who would be protected under each type of coverage.
4. What kind of insurance coverages would you recommend that Seth purchase Explain your recommendation.