PART 1

1) How should the property risk of e-commerce be managed?

2) Describe the parts of an e-commerce endorsement.

3) Explain why a trampoline in a backyard is considered an attractive nuisance.

4) When Vivienne and Paul Jensen's daughter Heather turned sixteen, they signed a form allowing her to get a driver's license. Two weeks after she received her license, Heather crashed the family car into a tree. He friend Rebecca, who was in the passenger seat, was severely injured. Explain why Heather's parents are responsible in this case. What are the consequences to them of this liability?

PART 2

1) How can an insured get around the coinsurance provision in the BPP? Why might an insured prefer to do this?

2) What might account for cost differentials between policies that offer the same limits of coverage?

3) Why might the deductibles for umbrella policies be so high?

PART 3

1) Who primarily bears the risk associated with premature death?

2) Explain how present value can be utilized to estimate the economic value of life.

3) Would you expect one-year term insurance that is renewable and convertible to require a higher premium than one-year term insurance without these features? Explain.

4) Compare term life to universal life and to variable life insurance in terms of (a) death benefits, (b) cash value, (c) premium, and (d) policy loans.