Principles of Risk Management and Insurance 13th Edition by George Rejda,Michael McNamara

Exercise 3

Morgan has an outboard motorboat insured under a boatowners package policy. Indicate whether each of the following losses would be covered under Morgan's policy. If the loss is not covered, or not completely covered, explain why.
a. Morgan's boat was badly damaged when it struck a log floating in the water.
b. An occupant in Morgan's boat was injured and incurred medical expenses when the boat struck a concrete abutment.
c. The motor was stolen when the boat was docked at a marina.
d. A small child in Morgan's boat was not wearing a life jacket. The child fell overboard and drowned. The child's parents have sued Morgan.