Book Opener

CHAPTERASSESSMENTParticipating as a Member of a TeamIn small groups, create an imaginary personwith property who will need insurance. Be asrealistic as possible. Negotiate with your teammembers about what kinds of insurance will berequired to protect the person and his or herproperty interests. Next:9. Contact four different insurance agents,and ask for premium quotes on life, health,and property insurance.10. Negotiate with the agents, and review theirquotes to determine which agent made thebest overall offer.Be prepared to answer the agents’ questionsabout the imaginary person and property thatyou created.No Need for Insurance?Arlen is a risk taker. He is a professional stuntmanand loves to jump out of burning buildings,drive fast cars, and live from paycheck to paycheck.Recently, his friend Pam asked Arlenabout the insurance he carries. Arlen justlaughed—he doesn’t believe in insurance. “Itis a waste of money,” he says.Debate11. Explain the importance of life, health, andproperty insurance to Arlen.12. What type of insurance would you recommendthat Arlen purchase first? Explainyour answer.For the following cases, give your decision andstate a legal principle that applies.13. Al Zuni Trading, Inc. purchased a $1 millionlife insurance policy on the life of ThomasMcKee, one of its officers. McKee resignedfrom the company three months later, anddied two years after that. Is Al Zuni Trading,Inc. entitled to the million dollars? Explainyour answer.14. Antoinette Gareau is seriously ill and needsto be hospitalized. A friend recommends acertain hospital that specializes in treatingher illness. An HMO provides Antoinette’shealth insurance. Will it cover services inany hospital that she chooses? Why orwhy not?15. Alphonse Weible purchased a straight lifeinsurance policy on his life. After payingpremiums regularly for six years, he losthis job and stopped making payments. Aftera grace period, the insurance company canceledthe policy. Is Alphonse entitled to arefund of some of the money he paid to theinsurance company? Explain your answer.16. Yang Pak insured his house for $32,000,under a fire insurance policy that containsan 80 percent coinsurance clause. Thehouse is worth $80,000. An accidental firecaused $10,000 of damage to the house.How much money will Yang receive fromthe insurance company?17. Zane Lewis stated in his application for lifeinsurance that he was 22 years old, whenhe was actually 28. After paying premiumsfor five years, Zane died, and the insurancecompany discovered his correct age. Thecompany refused to settle on the policy,claiming material misrepresentation. Willthe insurance company have to pay theclaim? Explain your answer.768 Unit 7: Planning for the Future