Answer to Question #166080 in Management for Prabhdeep

Question #166080

Subject :insurance management


1. discuss in detail structure of ?(please answer in 200 to 250 words)

A) fire insurance business

B) marine insurance business


2. A) what do you mean by purchase of insurance product?( please answer in 100 to 150 words)

B) discuss in detail the steps in taking a purchase of insurance product? (Please elaborate points in detail)

C) how the rating of insurance cover is decided?( Please answer in detail in points)


1
Expert's answer
2021-02-25T10:51:08-0500

1.

A) fire insurance business

Fire insurance is property insurance policy that covers damage and losses caused by fire. The purchase of fire insurance in addition to homeowners or property insurance helps you to cover the cost of replacement, repair, or reconstruction of property, above the limit set by the property insurance policy. Fire insurance coverage includes mishaps caused due to accidental fire, lightning, implosion or explosion, etc. And also, man-made perils such as bursting of water tanks and pipelines or overflowing, leakages from water sprinkles, and so on. Fire insurance provides financial security for home and office, including furniture and other business assets. It turns out useful for the insured as it compensates the value of property and assets damaged in the fire.


B) marine insurance business

Marine Insurance is a type of insurance that covers cargo losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination. Principles that work under this insurance include, principle of Utmost Good Faith, principle of Insurable Interest, principle of Indemnity, principle of Cause Proxima and principle of Loss Minimization. Marine Insurance doesn't offer any coverage in the following cases: Loss or damage due to willful act of negligence and misconduct. Loss or damage due to wire, strike, riot, and civil commotion. Loss or damage arising from the use of nuclear fission, weapon, or any other radioactive force.


2.

A)Purchase insurance is a simple way of insuring durable goods like clothes, sports equipment and technical gadgets. Insurance protects durable goods from unexpected damage, destruction, theft and loss. It also applies to damage caused unintentionally by the cardholder. You do not have to do anything else but to pay with a credit card in order to have the purchase insurance apply for the item bought.


B)

i)Make sure the person or firm offering the insurance is authorized to do so. Buying insurance requires some thought. Feel free to ask for help from a financial security advisor. Consult the Register of firms and individuals authorized to practice.


ii)Determine how much and what type of insurance you need. The amount and type of insurance you choose will depend on both your needs and your financial means. The insurance premium should fit within your budget. Given the many types of insurance that are available, you’re sure to find something that meets your needs. 


iii)Compare your current coverage with your insurance needs. First ensure that you have a form of coverage, then compare it with your needs to see what you’re missing and what you’ll need in the foreseeable future. For example, in assessing your insurance needs, you might take into account the children you already have plus any children you’re planning to have down the road.


iv)Shop around for insurance that’s right for you. Prices can vary from one insurer to the next, for both premiums and contract features. Don’t forget to find out the cost of group life insurance if such insurance is available through your employer.


v)Buy insurance that meets your needs. When you buy insurance, you have to complete forms, some of which may include questions about your health. Answer honestly. You must notify the insurer of ANY facts that may influence the insurer in setting your premium. If you don’t, your insurer may refuse to pay out benefits when the time comes or may reduce the amount of insurance you thought you were entitled to.


C)Rates for most insurance is determined by a class rating or an individual rating. Individual rates depend on the individual whereas class rates depends on the underwriting class of the insured. Individual rates are often calculated as a modification of a base class rate.







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