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Part 1

  • What is the meaning of the term reinsurance?
  • Explain the reasons for reinsurance.
  • Explain the term securitization of risk.

Part 2: What unfair trade practices are each of the following insurance agents violating? Explain the terms that you use.

  • Agent Jones offers a client to pay a portion of the premium if the client purchases a policy.
  • Agent Peterson convinces a client to replace a life insurance policy with a new policy that adds little value.

Part 3: Julia owns a building worth $800,000. She insures the building for $300,000 with Company A, $400,000 with Company B, and $100,000 with Company C. There is a fire, and the building sustains $100,000 in damage.

  • How much will Julia collect in insurance?
  • How much will each company pay?
  • What insurance term describes this situation?
  • What is its purpose?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92501929
  • Price:- $15

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