o Life Insurance Policies Taras ex-spouse purchased a $100,000 term life insurance policy five years ago that had Tara named as beneficiary. Tara has a $50,000 group term life insurance policy from her employer. Tara is the insured and the owner of the policy.

o Health Insurance Policy Tara has employer-provided health insurance. The family annual deductible is $250, coinsurance is 80/20, and the family out-of-pocket stop loss is $1,000. The lifetime cap of the policy is $1M per person.

o Homeowners Insurance Tara has a HO-2 policy for $100,000. The personal property coverage is $50,000, and the personal liability is for $100,000. There are no separate endorsements.

o Auto Insurance Tara has a personal auto policy with bodily injury and property damage of 100/300/100. The deductible is $250. She does not have any uninsured motorist coverage.

o Umbrella Liability Insurance there are no other liability insurance other than the liability covered in the homeowners policy.

Managing catastrophic risk is a critical issue in any strategic-planning activity. In your work you will rely on risk-management assumptions in order to determine Taras needs; those needs are then compared to current coverages, and the comparison helps you understand current weaknesses and gaps.

Question: Describe in four or five sentences the insurance-related assumptions you will use in determining Taras needs?