Question

Question 3

The chance of loss could be increased or decreased by different conditions which are called hazards. For each of the following, identify the type of hazard.

a) A motorist drives too fast.

b) A man fakes an accident to collect money from an insurer.

c) The new state regulation that require insurers not paying any claims in case of suicide.

Question 4

a) Explain how a society benefits from loss prevention.

b) Give at least three examples of loss-prevention programs supported by insurance companies.

Answer 1

Question - 3

Solution - 3 - a) The person who drive motorbike too fast on the roads have more chances of losing his life or get him on the bed for the long time due to the fracture.

B) A man who claims the insurance form the insurance company by falsely representing an accident with his vehicle, this could be a hazard for the person who are claiming insurance falsely because the insurance company can scrutinize the case of accident and the person who are claiming can get the punishment under the law and have to pay heavy fines.

C.) In the event of suicide the the insurance must provide nominal amounts to be paid to the family for the livelihood and if state regulations stop providing claims to the family of the person who commit suicide then the family of the died person would in serious pain due to the no money or income source.

Question - 4

A)A society can be benefitted by having prevention in the way of taking insurance plans such as term plan or life insurance plans for life and General insurance for the cars and scooters.

B) Life insurance plan given by the insurance company at the event of death the company will provide a total amount with the bonus and interest to the nominee he appointed to receive the money.

2nd) Prevention of accident - In the General insurance plans the insurance will provide the insurance on the car or any vehicles, at the time of accident the person can claim the money from the insurance company.

3rd) And one more kind of prevention is the health prevention the insurance company give people the insurance of their health and charge amount monthly or yearly.