Question

DISCUSSION QUESTION: There are several techniques available for managing risk. For each of the following risks, identify an appropriate technique or combination of techniques, that would be appropriate for dealing with risks.

a. A family head may die prematurely because of a heart attack.

b. An individual’s home may be totally destroyed in a hurricane.

c. A new car may be severely damaged in an auto accident

d. A negligent motorist may be ordered to pay a substantial liability judgment to someone who is injured in an auto accident.

e. A surgeon may be sued for medical malpractice.

Answer 1

a.A family head may die prematurely because of a heart attack.

This risk can be managed by taking a life insurance. The insurance company guarantees a death benefit to the beneficiaries upon the death of the insured. This provides financial protection to the dependents of the insured.

b.An individual’s home may be totally destroyed in a hurricane.

This risk can be managed by taking an home insurance. It is an insurance, which covers a private residence from perils such as burglary, earthquake, flood, vandalism, fire, lightening and many more. It provides financial protection against disasters. It can protect a private residence against the damage to the property and personal possessions inside.

c.A new car may be severely damaged in an auto accident

This risk can be managed by taking an auto insurance An auto insurance is an insurance which provides financial protection in the event of an accident or theft. It provides medical payment for injury while driving the vehicle. It provides reimbursement in the event of an accident.

d.A negligent motorist may be ordered to pay a substantial liability judgment to someone who is injured in an auto accident.

This risk can be managed with vehicle insurance. It reimburses the person who has taken insurance when an accident is caused by a person who does not have insurance. Some insurance policies reimburses others for the damage caused by the insured.

e.A surgeon may be sued for medical malpractice

This risk can be managed with malpractice insurance. It is an insurance purchased by healthcare professionals, which protects them from the liability arising from negligent and wrongful practice. It protects healthcare professionals against patients who sue them.

I hope that was helpful :)