Aon, a brokerage firm, negotiated with AIG (an insurer) to write a commercial property and liability...

Aon, a brokerage firm, negotiated with AIG (an insurer) to write a commercial property and liability insurance policy for the Metropolitan Transportation Authority (MTA) that is specifically tailored to the MTA's risk profile. This policy, DIFFERENT from most other insurance contracts, is a ____

		Personal contract
		Contract of adhesion
		Valued contract
		Manuscript contract

Solutions

Expert Solution

Answer: Option C - Valued Contract

Explanation: A valued contract is the contract which pays a predefined about to the insured without considering the extent of loss and the appreciation or depreciation. Since the AIG (insurer) is giving the MTA an insurance based on their risk profile and will pay later but in full predefined amount, it is an example of Value contract.

keosha answered 1 year ago

Next > < Previous

Related Solutions

Felix is a property claims adjuster for a large property insurer. Janet is a policy owner...

Felix is a property claims adjuster for a large property insurer. Janet is a policy owner who recently notified the company that the roof of her home incurred substantial hail damage because of a recent storm. Janet owns her home and is insured under a standard homeowner’s policy with no special endorsements. What questions should Felix ask before the claim is approved for payment by his company? Provide justifications for each question that should be asked.

6. A property insurer provided the following information: Premiums written &

6. A property insurer provided the following information: Premiums written $55,000,000 Expenses incurred 9,000,000 Incurred losses & loss adjustment expenses 38,000,000 Earned Premiums 42,000,000 a. What is the loss ratio? (1 point) b. What is the expense ratio? (1 point) c. What is the combined ratio? (1 point) d. What does it mean for an insurer to have a combined ratio > 1? Why might this be acceptable to the insurer? (1 point)

Which of the following is not an example of property and liability insurance? a. Liability to...

Which of the following is not an example of property and liability insurance? a. Liability to others b. Umbrella insurance c. Homeowner’s insurance d. All of the above are examples of property and liability insurance e. None of the above is an example of property and liability insurance

Limit of Liability (LOL) method- the amount that an insurer would pay for a particular loss...

Limit of Liability (LOL) method- the amount that an insurer would pay for a particular loss if they were the ONLY insurer covering it. Example: You buy two policies from Insurers A and B, respectively: FAA = $20,000 and FAB = $80,000. If a loss = $50,000 occurs and it is covered by both contracts, how do insurers pay for this loss? Determine a percentage to split the loss: The percentage of the loss should Insurer A pay for...

Delta Insurance is a property insurer that enters into a reinsurance treaty for Eversafe Re. Delta...

Delta Insurance is a property insurer that enters into a reinsurance treaty for Eversafe Re. Delta has a retention limit of $200,000 on any single building. A building valued at $1,600,000 is insured with Delta. Shortly after the policy was issued, a severe windstorm caused a $800,000 loss to the building. 1.If the reinsurance is a excess-of-loss treaty with a maximum limit of $1,800,00, how much Delta Insurance has to pay for the loss? 2.If the reinsurance is a surplus-share...

A property insurer provided the following information: Determine the loss, expense and combined ratios.

A property insurer provided the following information: Determine the loss, expense and combined ratios.Premiums written $55,000,000Expenses incurred 9,000,000Incurred losses & loss adjustment expenses 38,000,000Earned Premiums 42,000,000

Stock Brokerage Firms. In its traditional role, why is a stock brokerage firm not considered a...

Stock Brokerage Firms. In its traditional role, why is a stock brokerage firm not considered a financial intermediary? What are the roles of a brokerage firm and an intermediary?

3. An insurer ﬁnds that the time until occurrence of a claim from its property insurance...

3. An insurer ﬁnds that the time until occurrence of a claim from its property insurance division is exponentially distributed with a mean of 1 unit of time, and the time until occurrence of a claim from its life insurance division is exponentially distributed with a mean of 2 unites of time. Claims occur independently in the two divisions. Find the expected time until the ﬁrst claim occurrence, property of life.

he portion of a property and liability insurance contract that contains information about the property or...

he portion of a property and liability insurance contract that contains information about the property or activity to be insured is called the: (a) Declarations (b) Insuring agreement (c) Exclusions (d) Conditions

Which of the following statements is TRUE? Occurrence-based liability insurance exposes the insurer to long-tail claims....

Which of the following statements is TRUE? Occurrence-based liability insurance exposes the insurer to long-tail claims. In commercial liability policies, umbrella policies provide primary coverage, while general liability insurance provides excess coverage. Inland marine insurance provides coverage mainly for transport on inland waterways. Under the doctrine of contributory negligence, a plaintiff is compensated after taking into account his/her responsibility in a loss claim.

Subjects