Michael owns a small plane that he flies on weekends. His insurance agent informs him that aircraft
Question:
His insurance agent informs him that aircraft are excluded as personal property under his homeowners policy. As an insured, he feels that his plane should be covered just like any other personal property he owns.
a. Explain to Michael the rationale for excluding certain types of property, such as aircraft, under the homeowners policy.
b. Explain some additional reasons why exclusions are present in insurance contracts.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
a The home owners policy excludes certain types of property su...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Principles Of Risk Management And Insurance
ISBN: 399
12th Edition
Authors: George E. Rejda, Michael McNamara
Question Posted:
Students also viewed these Corporate Finance questions
-
Use the equation of exchange to explain the rationale for a monetary rule. Why will such a rule run into trouble if V unexpectedly falls because of, say, a drop in investment spending by businesses?
-
Michael owns a television repair shop that is insured under a commercial package policy. The policy includes the building and personal property coverage form and the causes-of-loss broad form. The...
-
Explain the reasons for including exclusions in an insurance policy.
-
a. An autoregressive model is given by: Yt = 20.58 + 0.046 yt-1 + 0.01Yt-2 where Y, = sales of a product. Explain the meaning of the terms in this autoregressive model. b. Write the expressions for...
-
Neals Photographic Supplies sells a Pentax camera for $444.98. The markup is 90% of cost. (a) How much does the store pay for this camera? (b) What is the rate of markup based on selling price?
-
What is the order for listing accounts balance sheet? in the Current Assets section of the
-
E 8-6 Additional stock issued by subsidiary directly to parent The stockholders equities of Huanh Corporation and its 90 percent-owned subsidiary, Ngon Corporation, on December 31, 2016, are as...
-
The firm for which you work estimates its short run revenue with R = 10e e2 where e is your work effort and R is the firms revenue. You choose your work effort on the short term basis to maximize...
-
The Rexburg Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Mortise has heard about a method of measuring cost...
-
There is a lottery with n coupons and n people take part in it. Each person picks exactly one coupon. Coupons are numbered consecutively from 1 to n, n being the maximum ticket number. The winner of...
-
Mike took his friend, Donna, out to dinner on her birthday. While driving Donna home, Mike became ill and asked Donna to drive. While driving Mike's car, Donna negligently injured another motorist...
-
a. A manufacturing firm incurred the following insured losses, in the order given, during the current policy year. Loss Amount of Loss A ............. $ 2500 B ............. 3500 C ................
-
Consider Example 12.4. Compute the conditional Q2-probabilities of the transitions over the second period of the tree. Compare with conditional Q-probabilities illustrated in Fig. 12.2 and explain...
-
The following data apply to Superior Auto Supply Inc. for May 2011. 1. Balance per the bank on May \(31, \$ 8,000\). 2. Deposits in transit not recorded by the bank, \(\$ 975\). 3. Bank error; check...
-
How do you determine whether there is a linear correlation between two variables \(x\) and \(y\) ? Use Table 14.10. Table 14. 10 n a = 0.05 0.950 0.878 4 5 6 0.811 7 0.754 8 0.707 9 0.666 10 0.632 11...
-
Comparative Analysis Problem: Columbia Sportswear Company vs. Under Armour, Inc. The financial statements for the Columbia Sportswear Company can be found in Appendix A and Under Armour, Inc.'s...
-
The following information is available for Book Barn Company's sales on account and accounts receivable: After several collection attempts, Book Barn wrote off \(\$ 4,500\) of accounts that could not...
-
The following information comes from the accounts of Jersey Company: Required a. There were \(\$ 170,000\) of sales on account during the accounting period. Write-offs of uncollectible accounts were...
-
A substitute teacher must choose between two school systems. In the first, the probability that he will work on the next school day given that he worked today is \(2 / 3\). The probability that he...
-
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
-
What is meant by the term reproductive isolation? Give several examples.
-
Why does nonlife insurance typically use the term property and casualty insurance rather than property and liability insurance?
-
a. Explain how insurance can provide benefits to the community. b. Explain how insurance can be costly to society.
-
Give at least four examples of fraudulent claims.
-
Read the following and then answer the questions below:September 12: A Brisbane business offers by letter to sell 500 tyres to a New Zealand company. The Brisbane company does not specify a method of...
-
Fred returns home from work one day to discover his house surrounded by police. His wife is being held hostage and threatened by her captor. Fred pleads with the police to rescue her and offers...
-
Would like you to revisit one of these. Consideration must be clear and measurable.if you can't measure it then how can you show it has / has not been done?How can you sue someone for breach of...
Study smarter with the SolutionInn App