Assignment: Types of Insurers and Marketing Systems
Length: 1200 words.
Part A
a) What is the meaning of the term reinsurance?
b) Explain the reasons for reinsurance.
c) Explain the term securitization of risk.
Part B
What unfair trade practices are each of the following insurance agents violating? Explain the terms that you use.
a) Agent Jones offers a client to pay a portion of the premium if the client purchases a policy.
b) Agent Peterson convinces a client to replace a life insurance policy with a new policy that adds little value.
Part C
Julia owns a building worth $800,000. She insures the building for $300,000 with Company A, $400,000 with Company B, and $100,000 with Company C. There is a fire, and the building sustains $100,000 in damage.
a) How much will Julia collect in insurance?
b) How much will each company pay?
c) What insurance term describes this situation?
d) What is its purpose?
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.