Question 5 (20 Marks) a. Peter has bought a yacht to be used for pleasure during holidays. He informed his insurance brokers to obtain coverage but was told that the yacht was excluded as a personal property under his householders' insurance policy. i. Explain the underlying rationale of the insurance company for excluding certain types of property, such as the yacht and speed boat, under the householders' insurance policy. (3 marks) ii. Other than the reason suggested for 5(a)(i) above, identify and explain two additional justifications for inserting exclusions or exceptions in insurance policies. (5 marks) b. Identify and explain five main factors that contribute to the rising health care costs in Hong Kong. (6 marks) c. Isaac has purchased a medical insurance policy with a $2,000,000 lifetime limit. In addition to a $6,000 calendar-year deductible, his policy is also attached with an 85-15 co-insurance clause. Last month, Isaac was hospitalized for a surgical operation to remove a lump on his foot, and his covered medical expenses were $58,000. i. How much will Isaac's medical insurance policy pay? How much will Isaac have to pay himself? Show all your calculations. (3 marks) ii. What purpose(s) does a co-insurance clause serve in a medical insurance policy