Stats RM_Exercise's |1 05/05/ 221 For the situations described in 1 - 10 below, determine which type of insurance you would need to purchase. 1. You live in New Orleans and are worried about your home flooding again. _ Flood 2. You live in California and are concerned about earthquakes. Earthquake 3. Your area has experienced lots of tornadoes. Homeowner 's 4. Your neighborhood has experienced a rash of home break-ins, particularly of garages. Professional Liability 5. Someone has been breaking into cars in the neighborhood and stealing the GPS equipment, as well as any other electronics that are kept inside. 6. You are a pediatrician and you're worried about being sued by a former patient's parents. 7. You own a grocery store and are worried about being held liable for "slip and fall" accidents in your store. Workers Compensation 8. You're worried that your Sales Director and CFO may engage in fraudulent activity that puts your firm at financial risk. Fidelitysurety Bonds 9. Which of the following is not an effective way for an insurance company to protect against catastrophic losses: a. Spread the company's potential losses across several different geographic. areas. b. Transfer part of the potential losses in a product line to a reinsurer. Incorporate your insurance company. d. Spread the company's potential losses across several different product lines. Homeowner's Auto Life Health Personal Umbrella Liability Earthquake Flood Fire & Allied Comm Commercial Multiple Peril General Liability Products Liab Workers Comp Inland & Ocean Marine Professional Liab Directors & Officers Crime Fidelity & Surety Bonds Medicare Social Security