Question

In: Operations Management

1. On a depreciating asset most likely the insurance premium would be higher for A A...

1. On a depreciating asset most likely the insurance premium would be higher for

A A replacement cost policy
B A value based policy
C This make no difference
D High deductible policy

2. Named perils in an insurance policy

A State the exact things that are covered
B State broad situations that are covered but are not specific
C Are the same as exclusions
D Are not permitted in construction

3. All insurance companies are the same and there is no need to shop around for insurances policies for construction project work.

A True
B False

Solutions

Expert Solution

1) A) replacement cost policy

The higher the deductible, the lower the premium is on the policy. A replacement cost will repair or replace the insured property at its present cost without depreciation. Naturally, replacement cost will have a higher premium than cash value.

2) Answer is A) State the exact things that are covered

A named perils insurance contract only covers the perils specifically stipulated in the policy. These provide coverage only for loss caused by the perils specifically listed as covered.

3) False

There are so many companies offering insurances policies for construction project work. And each of them have a different set of features and benefits .some plans cost less and has conflicting clauses. They can differ in the level of customer service and in the variety of insurance products they sell. Each one of them has different underwriting guidelines.


Related Solutions

1. On a depreciating asset most likely the insurance premium would be higher for A A...
1. On a depreciating asset most likely the insurance premium would be higher for A A replacement cost policy B A value based policy C This make no difference D High deductible policy 2. High insurance deductible usually means: A lower premiums B Higher premiums C No difference in premium D you are willing to take on more risk 3. Evaluating insurance coverage needs involves A Looking at the costs verses the potential for exposure B Only getting coverage that...
Would higher residual value risk make a company more or less likely to lease an asset?...
Would higher residual value risk make a company more or less likely to lease an asset? Why?
Physiology of Exercise 11. An elite powerlifter would most likely have a higher percentage of which...
Physiology of Exercise 11. An elite powerlifter would most likely have a higher percentage of which fiber type? 12. Explain blood glucose homeostasis during exercise. Talk about the hormone involved and the actions they take to control our blood glucose. 13. How do athlete's differ from the general population in hormone and receptor number. 14. What are some of the common fare markers (fats & triglycerides) that are seen in a blood test and what do they mean and how...
1. An efficient market for risk, such as an insurance market, is MOST likely to exist:...
1. An efficient market for risk, such as an insurance market, is MOST likely to exist: Select one: a. when there are significant differences between individuals' wealth levels and attitudes toward risk. b. in the presence of private, or asymmetric, information. c. when the sellers of insurance are risk-averse but the purchasers are not. d. when there is a level playing field so that all participants have approximately the same wealth and the same degree of risk aversion. 2. Which...
1. Which of the following goods would be the most likely to be subject to a...
1. Which of the following goods would be the most likely to be subject to a government-imposed tax? A Cereal B Bottles of alcohol, such as whiskey and gin C Shoes 2. Which of the following is likely to have the largest elasticity of supply? A The producer of vanilla ice cream B The producer of yachts C A dentist 3. Assume that as your income increases, your consumption of burgers decreases. We can assume that your income elasticity of...
The reason that higher premium loadings generally lead to lower demand for insurance coverage is that:...
The reason that higher premium loadings generally lead to lower demand for insurance coverage is that: The fair premium become too large relative to the expected cost of not purchasing insurance People don’t like insurers to make too much profit Exposures with low severity always have high administrative costs Exposures with high frequency are less likely to be insurance.
Which of the following statements about bonds is most likely to be true? a)The higher the...
Which of the following statements about bonds is most likely to be true? a)The higher the coupon rate, the lower the price of the bond, holding all else constant. b)The higher the coupon frequency, the higher the price of the bond, holding all else constant. c)The higher the yield to maturity, the higher the price of the bond, holding all else constant.
Which insurance policy would most likely defend and/or indemnify a project Architect against a lawsuit filed...
Which insurance policy would most likely defend and/or indemnify a project Architect against a lawsuit filed by an Owner, wherein the Owner alleges that the project Architect negligently designed the project? Group of answer choices Professional Liability Policy Builders’ Risk Insurance Policy Workers Compensation Insurance Policy Commercial General Liability Insurance Policy
Computer companies who fraudulently report higher earnings would most likely also falsify which ratios and why?
Computer companies who fraudulently report higher earnings would most likely also falsify which ratios and why?
what would be the most likely effect of a mutation in region 1 of the trp...
what would be the most likely effect of a mutation in region 1 of the trp operon leader sequence changing to two trp codons into gly codons. please explain thoroughly i am confused
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT