hw-8 - 1 A You decide to purchase an insurance policy to...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. A. You decide to purchase an insurance policy to support the contest i. The purpose of this insurance is to insure the money in case of a loss or fraud. ii. The insurance policy supports the risk financing goals by having external funds to pay for the losses. iii. There is no risk associated with the contest in the presence of insurance.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
b. i. Yes, risk will be present if made a decision not to insure part B. ii. The decision made for part B is considered retention, where a firm or individual takes the financial responsibility for losses that occur. iii. From a financial point of view, I might make the decision not to insure part B because I want to reduce my expenses since part A is insured. iv. I would suggest Quickens to insure part B because even though part A with $1 Billion is insured, it is more likely for contesters to get close to predict a perfect bracket. It is still a big amount of money in part B, therefore which too should be insured. 2. a. Repair and Replacement Indemnification is usually offered with cell phone insurance.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern