Question

Personal Insurance Overview

1. What is an asset exposed to loss?

2. The financial consequences of loss are dependent on what factors?

3. What are two types of property that individuals and families own that may be exposed to loss?

4. What are three financial consequences of loss?

5. Describe the financial consequences of a liability loss exposure.

Answer 1

Ans.1.Asset Exposed to loss : An Asset which is likely to exposure to loss due to some unavoidable events. For, example. Fire, unavoidable losses, breakdown of machinery etc.

Ans.2. There are various factors in which financial consequences of loss are dependent:

2.1. Types of assets exposure to losses.

2.2..Risk and Uncertainity associated with these assets.

2.3. Outcomes of every losses.

Ans.3. An individual and familes usually takes property insurance for cover the loss exposed by them. Property Insurance can be classified into various types.

1. Fire insurance: An individual and families takes fire insurance in which they can cover all risks associated with fire.

2. Burglary Insurance: An individual and families takes burglary insurance in which it offers protection to the houses or shops. In case of unfortunate incidents, we can claims every damages associated with it.

Ans.4. Three financial consequences of loss:

4.1. Loss of time: Any insurance can cover the loss but cannot provide claims within a short time. An individuals have to wait for long time to get claim for damages.

4.2. bearing unclaimed costs: When insurance determine the loss exposed by insuree, they are likely to provide claims on non-insured items. In this case, insuree have to bear the unclaimed costs.

4.3. Exclusions in insurance polcies: Due to high numbers of exclusions in insurance policies , many insuree are able to get actual claims of damages.

Ans.5. The financial Consequences of a liability loss exposure:

It has arises due to both intentional and untentional risk.In legal system, one party has to face a exposure to liablity loss by defending a lawsuit when one is damage another one. The accused party has obligatory to pay for damages to them. I would like to give an example: one organisation have to pay the damages caused by providing bad quality of products.