Answer to Question #166083 in Management for Prince

Question

Subject insurance management

1.Explain with rationale the special underwriting considerations while deciding rates , terms and conditions for machinery breakdown insurance? (Please answer in 200 to 250 words )

2. A)Differentiate between burglary insurance and theft insurance ?(please give at least 10 points for difference)

B)discuss in details the conditions of consequential loss policy? (Please answer in 200 to 250 words)

C) what is the purpose of consequential loss insurance?( please answer in 200 to 250 words in points)

Answer 1

While deciding rates, terms and conditions for machinery breakdown insuarance there are special underwriting that are followed before the aggrements is ment, one special condition is site location where machinery is operating, this may rise the rates of insuarance expecially if the area is war zone or prone to theft, hence the owner may pay more money to insure their machine than the areas that is stable. The conditions of the machine may rise the rates,terms and conditions for insuarance, because old machine tends to breaks more oftens hence the cost of repairs is much more compared to new machines that do not break more oftens.