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Kasturi Bhd. has historically purchased separate policies for property insurance and liability insurance. Each of the policies had RM4 million retention. The company is now
Kasturi Bhd. has historically purchased separate policies for property insurance and liability insurance. Each of the policies had RM4 million retention. The company is now considering the purchase of a bundled policy which covers both property and liability exposures. The retention of the bundled policy is to be RM8 million. Sketch a graph illustrating the areas of unnecessary coverage that will exist if Kasturi Bhd. continues with separate policies.
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