Application questions

1. A group of investors are discussing the formation of a new property and casualty insurer. The proposed company would market a new homeowners policy that combines traditional homeowner coverages with unemployment benefits if the policyowner becomes involuntarily unemployed. Each investor would con- tribute at least $100,000 and would receive a pro- portionate interest in the company. In addition, the company would raise additional capital by selling ownership rights to other investors. Management wants to avoid the expense of hiring and training agents to sell the new policy and wants to sell the insurance directly to the public by selective advertis- ing in personal finance magazines. a. Identify the type of insurance company that best fits the above description. b. Identify the marketing system that management is considering adopting.

please in details.