...Question Status: Previous Edition 3) A situation in which a person is held legally liable even though fault or negligence cannot be proven is an example of A) general damages. B) comparative negligence. C) an intentional tort. D) strict liability. Answer: D Question Status: Revised 4) Failure to exercise the degree of care required by law to protect others from harm is A) premeditated liability. B) vicarious liability. C) punitive damages. D) negligence. Answer: D Question Status: Previous Edition 226 Rejda · Principles of Risk Management and Insurance, Tenth Edition 5) All of the following are elements of negligence EXCEPT A) the ability to pay damages. B) the failure to perform a legal duty to use reasonable care. C) damages or injuries to a claimant. D) proximate cause between the negligent act and the infliction of injury. Answer: A Question Status: Previous Edition 6) Which of the...
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... * price increase and quantity increase. 10 pts draw and explain increase in technology and how it effects the graph: Supply increases so it is cheaper to produce. The supply curve shifts to the right because more quantity produced. Price also decreases. Qn2 Personal Insurance. Liability automobile insurance bodily injury liability : held legally liable for damage caused by car or driving eg disability,death, breadwinner is handicapped and can no longer earn for the family. Property damage liability insurance damage to the other persons car or other property eg house that you drove into. COGS in a truck that's hit. Uninsured motorist. The person has no auto insurance. Bodily damages , breadwinner, medical bills. (first party insurance covers your own family and own party) Medical payments only medical bills. Group insurance also included. Possibly not first party liability but if it was your fault. Personal injury protection (no fault states only. Only two no fault states) take care of major injuries. Time off work(breadwinner situation) , medical bills. Physical damage protection collision damage coverage.eg If your car overturns by a certain number of times. This insurance is v expensive if you are a maleand under 25 yrs old. Comprehensive damage eg windshield broken , hit a deer, paint damage maybe due to the government spraying something GAP coverage when you lease a car and a car is on loan, this covers the damage that occurs in the car...
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...Pre-launch Survey Report of Insurance Awareness Campaign SPONSORED BY Insurance Regulatory and Development Authority © National Council of Applied Economic Research, 2011 All rights reserved, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise, without the prior written permission of the publisher. Published by Jatinder S. Bedi, Secretary & Head, Operations, for and on behalf of the National Council of Applied Economic Research, Parisila Bhawan, 11, Indraprastha Estate, New Delhi–110 002 Printed at M/s. Multiplexus (India), Delhi. Email: multiplexusindia@gmail.com Study Team Project Leader Anushree Sinha Core Research Team Rajesh Jaiswal Barun Deb Pal Kalicharan Shukla Consultant Ramamani Sundar Geetha Natesh Technical Support Sadhana Singh Contents List of Tables List of Annexure Tables Foreword Preface Acknowledgements Chapter 1: Background 1.1 Concept of Insurance 1.2 Importance of Insurance 1.3 Origin of Insurance 1.4 Origin and Development of Insurance in India 1.5 Important Developments in the History of Indian Insurance Business 1.6 Insurance Scenario in India and Other Countries 1.7 Insurance Penetration and Density in India 1.8 Why Awareness is Important Chapter 2: Methodology 2.1 Coverage 2.2 Sample Design 2.3 Selection of the Rural Sample 2.4 Selection of the Urban Sample Chapter 3: Socio-Economic Characteristics of...
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...Assignment – (Individual) Course: Diploma in Logistics Management Batch: DLM 12/41 Module: International Shipping Management ------------------------------------------------- Lecturer: Mr Eddie Tan Assignment On: What risks and perils are present in global transportation? Discuss how exporters and importers can manage these risks. Submission Date: 27th Feb 2013 Name(s) of Student: Norhazura Binti Zulkafly (Word count –1,882) Table of Content Chapter | Title | Page | 1 Introduction 3 2 Global trends and challenges in transport sector 4 3 Cargo Insurance 8 4 Transportation Perils 10 5 Managing Risks 11 6 Insurable interest 12 7 Summary 13 9 Bibliography 14 1. Introduction The global economy is going through a highly volatile period as highlighted in the Transportation Profile. Diesel and bunker fuel prices have been largely unpredictable, thanks to the wild swings in crude oil prices (peaking at nearly $150 per barrel before plummeting to less than $40 per barrel in 2008). Demand for industrial and consumer products has contracted after years of unprecedented growth, due to rising prices and a global recession, and companies have struggled to secure needed financing because of the global credit crunch. They create extreme challenges in the market for global transportation services. Just a few short years ago during the global trade boom, ports were testing the...
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...PROCEDURE Legacy MSO Referral Policy: A “referral” is defined as a recommendation of a medical or paramedical professional. If a patient’s insurance requires written or electronic referrals, it is the responsibility of the patient to obtain the request of the referral in advance of an appointment with Dr. Boppana. Dr. Boppana’s office obtains referrals in two ways: 1. Physician referral – To facilitate an outpatient referral, a referring physician facilitates communication to Dr. Bopanna’s office for consultation. The patient’s name, contact information, medical records and insurance information are needed. 2. Attorney referral – In cases of workers compensation or NF, an attorney may refer his client to Dr. Boppana. The attorney or their office must contact Dr. Boppana and provide information regarding the reason for the visit. They must also provide the patient’s name, contact information, medical records and insurance information. Scheduling a Visit A patient may schedule an appointment by telephone or in person with a member of the practice staff. The following information is essential to do so: 1. Patient name 2. Telephone number 3. Address 4. Reason for visit 5. Referral Information a. Referring doctor’s name and contact information, if applicable b. Referral letter, if applicable 6. Date of birth 7. Insurance coverage The practice staff will use the appointment schedule system to enter the information above into the system. Once completed, the...
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...Justification for an Internal Control System Companies must mitigate risk to achieve maximum profitability. Mitigating the risk can be accomplished by implementing controls. While insurance and portfolio approaches are important control strategies, they are only single components of an overall risk management plan. Implementing an internal control system will assist management in monitoring and deterring risk. Current Controls The current approaches of insurance and portfolio are valid controls. One way to mitigate risk is to transfer some of the risk to a third party. The third party willingly accepts the risk for a fee or premium. This approach is called insurance. However, this approach is limited and considered reactive as it does nothing to deter harm to company assets. In addition, there are only certain risks that insurance companies are willing to take on and others that simply cannot be insured (McCarthy & Flynn, 2004). With the portfolio approach, all departments are treated as one unit so that interrelated risks can be identified and put “in the context of all the other risks and the company’s business strategy” (McCarthy & Flynn, 2004, pg. 255). However, it does little to deter risk. Internal Control System An internal control system is an ongoing process that ensures compliance with laws and regulations, reliable financial reporting and efficient and effective operations of an organization. According to Ratcliffe and Landes (2009), “an effective system...
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...Strategic Plan Part 1: Conceptualizing a Business 1 Strategic Plan Part 1: Conceptualizing a Business BUS/475 - Integrated Business Topics Michael Portillo August 29, 2011 Strategic Plan Part 1: Conceptualizing a Business 2 GPS Marketing is a marketing company that specializes in getting qualified guaranteed prospects to see in front of independent insurance agents. GPS actually stands for “Guaranteed Prospects to See”. GPS Marketing guarantees every agent that comes aboard with our company that we will put them in front of at least 15 qualified prospects. GPS Marketing’s mission statement is “ Our goal is to get independent insurance agents in front of qualified annuity prospects on a favorable basis which in return increases their income substantially. We do this in a multitude of ways and we want to show you just how we can help you and your business.” In the following paragraphs is a description of how GPS Marketing can do just that. Our first program that we offer our independent insurance agents is our GPS program or our Guaranteed Prospects to See Program. GPS guarantees each of our new independent agents that we will send out one-thousand mailers which are done through direct mail. GPS sends this direct mail to a particular demographic. What this means is that this mailer will only be sent to those individuals that make at least an income of $50,000 or more, own their own home, and are between the ages of 50 and 70 years old. GPS does this for the agent...
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...Organizational Structure Management structure formation is influenced by changes of organizational forms in which the enterprises function. So, at a company amalgamation in a conglomerate, there is a redistribution of administrative functions (the part of functions is centralized), also the firm management structure varies. Chandler has assumed that «the structure follows strategy». At strategic planning it is impossible to forget such important factor as environment. Essential influence on the company renders the political and legal component of environment consisting of the legislation at federal and local levels, and also the general political climate. The economic component of environment (rates of inflation, a rate of unemployment and wages, a trend of economic growth, specificity of competitors, features of suppliers etc.) appears the important factor. The technological component covers specificity of technological process. The Welfare component means demographic shifts. The organizations functioning in the conditions of the changeable environment, require the structures adapted for acceptance of flexible decisions. Under the influence of changes in an environment the organization constantly develops. As a result, former elements and communications die off and new components are formed , corresponding to new conditions. Strategy states the plan according to which the organization intends to...
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...Insert name Tutor Course Date Introduction American International Group, Inc. (AIG) is an American insurance company. Its business headquarters are situated in the American International Building of New York City. The British headquarters is located on the Fenchurch Street of London while the European headquarters is situated in La Défense, Paris, while the Asian main office is situated in Hong Kong. Reports from the 2008 Forbes Global 2000 listing highlighted that AIG was by then the 18th-biggest public corporation worldwide, and also appeared in the reports of the Dow Jones Industrial survey between April 8, 2004 and September 22, 2008. AIG experienced a liquidity catastrophe when its financial ratings dropped below "AA" rankings around September 2008. The U. S. Federal Reserve Bank on September 16, 2008 formed an $85 billion credit capacity to allow the company to overcome its increased collateral requirements following the credit ranking downgrade, in a swap over for the issuance assets merit to the Federal Reserve Bank for 79.9% equity of the AIG. The Federal Reserve Bank along with the U. S. treasury around May 2009 extended the potential monetary boost to the AIG, with the enhancement support in form of $70 billion investment, of which $60 billion was channeled on credit line as well as $52.5 billion to purchase mortgage-based properties belonging to or insured by AIG, raising the total sum available to around $182.5 billion. AIG later sold some of its...
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...retail chain has decided to respond to these threats in the following manner: For threat #1, management has decided to take no further precautions because the store is currently up to code and the insurance policy the company carries fully covers it in the event of fire. For threat #2, management has decided to implement background checks for all new applicants and all employees must now have their bags and backpacks checked by security before exiting the store. For threat #3, management has decided to add no additional security measures. Losses due to shoplifting are expected and have been included in the store’s budget. For threat #4, management has installed a comprehensive alarm and surveillance system in all stores, with around-the-clock security monitoring. Now, break-ins at this store cannot occur without detection. For threat #5, management intends to institute no countermeasures. With several other branches throughout the region, the company overall would suffer only minimal losses even if this threat were to materialize. In the following table, identify the type of risk management option the company has employed for each threat: Threat | Risk Management Option | Threat #1 | For the risk of fire, the company has decided to remain with their insurance policy because it has enough coverage to take care of everything in the event of a fire and their store is up to code. |...
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...on which company you are looking at. And since a large portion of Filipino families relied on these pre-need companies in order to send their children to college, widespread panic ensued the moment these accusations hit the press. The biggest company to suffer was the pioneer in the industry, a company called College Assurance Plan or CAP. The CAP Family of Companies began in 1980 with the birth of its mother company - College Assurance Plan. CAP has since expanded its business to the areas of Pre-need Pension, Distance Learning, Health Maintenance, Life Insurance, Information Technology, Financing, Communications and General Insurance. It is a group of companies that the Filipino family can trust for an assured and better future – to hold on to as a true and reliable partner through the next millennium. It is also a growing and dynamic corporate family capable of serving each and every Filipino family's pre-need and insurance requirements. They had the largest number of plan holders subscribed to their pre-need education plan compared to any other pre-need company. This company was brought to its knees when certain government officials of the Philippines, came out of nowhere and publicly declared that CAP was bankrupt. They questioned the company's use of their trust funds and had the Securities and Exchange Commission or SEC freeze their accounts. Naturally, the families that had subscribed to CAP at the time were infuriated and began demanding their money back, canceling their...
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...Lloyd’s Certificate This Insurance is effected with certain Underwriters at Lloyd’s, London. This Certificate is issued in accordance with the limited authorization granted to the Correspondent by certain Underwriters at Lloyd’s, London whose syndicate numbers and the proportions underwritten by them can be ascertained from the office of the said Correspondent (such Underwriters being hereinafter called “Underwriters”) and in consideration of the premium specified herein, Underwriters hereby bind themselves severally and not jointly, each for his own part and not one for another, their Executors and Administrators. The Assured is requested to read this Certificate, and if it is not correct, return it immediately to the Correspondent for appropriate alteration. All inquires regarding this Certificate should be addressed to the following Correspondent: 303 Congressional Boulevard Carmel, IN 46032 1-800-335-0611 317-575-2652 317-575-2659 FAX www.sevencorners.com SLC-3 (USA) NMA 2868 (24/08/2000 From approved by Lloyd’s Underwriters’ Non-Marine Association Limited EASON PRINTING CO., CHICAGO Compass Budget, Care and Elite Plans 1 Effective 7-01-11 CERTIFICATE PROVISIONS 1. Signature Required. This Certificate shall not be valid unless signed by the Correspondent on the attached Declaration Page. 2. Correspondent Not Insurer. The Correspondent is not an Insurer hereunder and neither is nor shall be liable for any loss or claim whatsoever. The Insurers hereunder...
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...mortgages involves the pooling of mortgage loans for sale in the financial markets. | TRUE |6. |In recent years, the number of commercial banks in the U.S. has been increasing. | FALSE |7. |The credit union industry avoided much of the financial distress of the 1980s because of the short maturity and relatively less credit risk of their | | |assets. | TRUE |8. |Life insurance companies also manage private pension plans which include the offer of guaranteed investment contracts (GICs). | TRUE |9. |In group life insurance, lower rates can be offered because of cost economies as a result of mass administration of plans and reduced selling and | |...
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...Corporate risk can be divided into 3 categories, as shown in the graph below: Market risk is a consequence of volatility in financial markets, and includes interest rates risk, foreign exchange risk, commodity price risk and eventual pension fund shortfalls. SMEs are intrinsically riskier borrowers than large firms, because they are more vulnerable to market changes. As already said, financing its operations is the most difficult and expensive task for SME management. As a consequence of adverse selection, smaller companies borrow at higher rates, and inflation and interest rates volatility affects them significantly. For SMEs that are trying to grow and become international, additional difficulty is represented by foreign exchange risk. SMEs usually use financial services and products less than large enterprises, mostly due to unavailability and higher costs. For example, when it comes to financing, large companies can issue a bond, while smaller ones don’t have that privilege. Also, smaller companies use less financial instrument, mostly because of lack of know-how (they often cannot afford to have expert for financial risk management, for example). Commercial risk arises as a consequence of firm’s everyday operations. It includes risk of loss resulting from inadequate or failed internal processes, people and systems, and actions of competitors. Characteristics of SMEs make it most vulnerable to commercial risk. Because of their small size, SMEs often don’t have adequate...
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...research oriented pharmaceutical company such as Merck with a drug marketing company like Medco. In addition, there are concerns on the need to continue increasing the stock price for Merck and about the different business cultures between the two and how they may not mix well. This could result in an expensive failure. On the other hand, the marketing department fully supports the acquisition. The acquisition will provide leverage for marketing opportunities in the managed care area, given the size of the database for Medco. So, the plan is for Merck to acquire Medco for a $6.6 billion offer. Clear and substantive analysis of the M&A is needed for better decision making. Medco is a Benefits Prescription Management Company that manages insurance claims, negotiate discounts with drug manufacturers and encourage the use of less expensive general drugs. Health providers that have ties with Medco, usually use drugs listed on what is called a formulary. The formulary consist of list of drugs to prescribe to customers, in which a team of Medco pharmacist and...
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