a. Identify and explain the major risk management approaches that are being applied in our daily life. Please provide an example for each approach you identified. (15 marks)

b. Rico has a comprehensive health care insurance policy with a $500 deductible per case and 80-20 with a maximum $1,500 copayment cap per calendar year. In March, Rico has a $1,200 claim. Rico experienced another claim in September resulting in a total bill of $9,000.

i. How much the insurance company needs to pay to Rico for the first claim incurred in March? (2 marks)

ii. How much is the total payment that Rico needs to pay for the second claim incurred in September? (4 marks)