Part 1 What is the meaning of the term reinsurance? Explain the reasons for reinsurance. Explain the term securitization of risk.
What unfair trade practices are each of the following insurance agents violating? Explain the terms that you use. Agent Jones offers a client to pay a portion of the premium if the client purchases a policy. Agent Peterson convinces a client to replace a life insurance policy with a new policy that adds little value.
Julia owns a building worth $800,000. She insures the building for $300,000 with Company A, $400,000 with Company B, and $100,000 with Company C. There is a fire, and the building sustains $100,000 in damage. How much will Julia collect in insurance? How much will each company pay? What insurance term describes this situation? What is its purpose?
1,200 words (2 pages)